How do jewellery shops make profits?

Question

How do jewellery shops make profits?

Answer 1

The same way as any other shop.  They buy the merchandise they sell at a cheaper price than they sell it for.

Answer 2

Well, There is one by my house or actually a few and these jewelers and gemologists, litterally travel to the diamond mines in Africa, they buy gold from India which is very pure, they spend excessive amounts on what they bring into their business and they charge prices that would make you cry (LOL) they cater to an elite crowd, often times hold functions to debut their selections classic and contemporary, they really have a great angle but ever shop caters to as specific clientele.

Answer 3

They sell jelwelry is their shops!!!! DUH

Answer 4

Jewellery is marked up.  (Thank you for spelling Jewellery the way the Canadians spell it)  They also take in repairs and change watch batteries for $10 (batteries cost them something like 50cents).  They sell insurance now, to protect your jewellery if it breaks down, and some push their credit cards which makes them money as well.  And when someone has their credit card, they often return to buy more.  Some pierce ears too, for free, but make a lot of money on the ear piercing earrings they sell with the free piercing.  They do free ring cleanings so they can inspect rings for damaged claws, which they would then offer to repair for a price.

Answer 5

markups...the markups on jewelry can be as high as 200% or more (example, an item cost the jeweler $100 to obtain, and he sells it for $300, a 200% markup)

Answer 6

When you buy jewelry from a store , there is usually a mark up of 200% and in some stores more. But remember if you are not buying the really high price classy stuff,it is usually commercial grade stones and diamonds that you are buying.

Answer 7

No shop would be in bussiness if they did not make profit. So everything you buy ANYWHERE not just jewlery shops are going to be making some sort of profit. Thats how they stay in bussiness. It takes money to pay for electricty, employees, insurance, advertising, etc.

Simple bussiness....Buy low Sell high!

They buy from wholesalers or direct from companys at prices that are lowere then the suggested manufacuarts price or  MSRP. Then then sell at that price or below depending on what they bought it for. sometimes that will have "sales" say there sale is 50% off if there profit margin is 80% then they are still making 30%. Which sounds like alot but when you consider the over head they may only take home 5% of what they sell.