A jewelry store as a business idea belongs to a highly profitable area with a development perspective. The relevance is due to the demand for jewelry in both women and men. They are bought as a gift to loved ones or to pamper yourself.
Precious metals do not lose value over the years, investing in gold is always profitable.
- Stable demand for products with an increase for the holidays
- Lack of product expiration dates
- High sales profit
- The store does not require a large area and many employees
- Jewelry margin is 50%-80%
- Large initial investment
- Payback from 1.5 to 3 years
- The need to obtain activity permits
How to open a jewelry store
Having set the goal of organizing a jewelry business, you need to plan a sequence of steps, namely: choose a store format and draw up the necessary documents, find premises and staff, purchase equipment and jewelry, assess profitability and risks. It will take 3-4 months to implement the idea .
First you need to determine the format of the business:
- The counter in the shopping center is suitable for beginners with a small amount of investment
- The salon of antique or designer jewelry is difficult to implement and requires large expenses
- Jewelry store of serial jewelry of average cost for a wide range of customers
- A branded franchise salon involves small investments and the franchisor’s assistance at all stages of the business process
- A large jewelry store with a variety of assortment from inexpensive jewelry to exclusive products of famous brands: figurines, dishes, souvenirs made of precious metals and more. This format will require huge investments and is more suitable for experienced entrepreneurs.
It is necessary to find a source of investment: personal funds, a bank loan or other income.
Further, entrepreneurial activity is registered with the IFTS as an individual entrepreneur or legal entity. To apply for an IP, you need to submit an appropriate application, passport, TIN, pay a fee of 800 rubles.
With several founders, an LLC is opened, additionally providing the decision of the founders with the minutes of the meeting, the charter of the company and a receipt for payment of the state duty of 4 thousand rubles. Specified OKVED code: 58.48.22 on specialized retail trade in jewelry.
Taxable base: simplified tax system with a deduction of 6% of total income or 15% of net profit.
In addition, you will need to open a bank account and have quality certificates for each batch of goods. To trade jewelry, you must obtain a license, permission from Rospotrebnadzor and the fire service, as well as register with the State Inspectorate for Assay Supervision.
Demand and competition analysis
The jewelry market is dynamically developing and growing by 5% per year. Although the competition is quite high, with proper marketing and pricing, it is not difficult to win your client.
Before opening, it is worth analyzing this market for the preferences of buyers and the number of competitors, their offer and price. To do this, they study the dynamics of sales on special sites in order to determine the demand for products and form a future assortment. To evaluate competitors, they personally visit jewelry stores or read reviews on the Internet.
Typically, jewelry stores work in the following areas:
- Sales of precious metals and stones
- Cleaning jewelry
- They buy jewelry to exchange for a new product.
- Carry out the order of jewelry according to the manufacturer’s catalog
Search and repair of premises
When choosing a room for a jewelry store, they start from the location. It should be a well-maintained area with a developed infrastructure, transport interchange and good pedestrian traffic.
The store can be located in a shopping and entertainment center or on the first floor of a detached building of the first line with a parking space, communications and a convenient approach. The required floor space is 30-40 sq. m. A stylish sign should be hung above the entrance.
The room needs to be renovated and decorated in a laconic style, in light colors. It is important to place the jewelry in a winning way, both on the external and internal windows, in order to make the buyer want to go into the store and see the goods. You also need to set the right lighting, preferably in cold white light.
The display of goods is carried out taking into account the visibility of the product and saturation. The client must see the full range of jewelry and have direct access to the showcase.
Purchase of commercial equipment
The main commercial equipment of a store with an area of 30-40 sq. m. is shown in the table:
|Demonstration equipment: coasters, busts, displays, podiums||one||140 thousand|
|Illuminated bulb||5||13 thousand|
|Showcase with backlight||fourteen||28 thousand|
|Terminal and cash register||one||30 thousand rubles|
|A computer||one||25 thousand|
|Jewelry scales||one||1 thousand|
Showcases should be made of unbreakable glass, equipped with an alarm system and a reliable lock. There are several varieties of them:
- A classic showcase of various shapes, which is a counter 100-120 cm high with a glass lid
- Vertical stand with a height of 120-170 centimeters, accommodating a large number of products and allowing you to save space
- Glass cabinet used in high-end salons to house exclusive jewelry and large jewelry
A separate issue is the lighting of shop windows, which should be dealt with by a specialist with experience. He will establish a favorable light for each type of precious metals and stones, taking into account their characteristics.
The assortment of a jewelry store should consist of gold and silver jewelry without inserts and with inserts of precious and semi-precious stones:
- bracelets and chains
- necklace, pendants
- earrings and rings
- decorative pins, cufflinks
- brooches, piercing
- wrist watch
To reach a wide target audience, 80% of the goods are in the middle and low price segment and 20% in the premium class.
When buying jewelry, you need to check:
- the presence of the brand of the manufacturer and the assay
- the presence of a tag with a manufacturer’s seal and a tag with information about the name of the product, type of metal and insert, weight and retail value of the jewelry
In this case, the tag must be signed or stamped by the seller.
At the initial stage, you should not buy a lot of jewelry, it is better to buy a small batch of different assortments and see what will sell better. You can also work on the sale of products through catalogs on order .
When choosing a supplier, the terms of delivery, terms of payment, price of products are taken into account. On the market you can find both Russian and foreign manufacturers of jewelry. Consider several suppliers and visit exhibitions where you can study the products of jewelry companies and sign a contract.
Sign contracts with reliable suppliers of trusted brands. At the same time, discuss the possibility of installment payment or payment upon sale, the replacement period for a product that is not in demand.
Half the success of the business depends on the store staff. Therefore, you should hire friendly sales consultants who are knowledgeable in jewelry products and who are able to carry out a quality sale.
They are set a shift work schedule and wages from a small salary and a bonus part in the form of a percentage of the proceeds. In addition to salespeople, you will need a sales manager, a security guard, a cleaning lady and an outsourcing accountant.
Advertising and marketing
To promote your business, you should launch a large-scale advertising campaign using the following tools:
- Broadcasting commercials on local television, radio, advertisements in print media
- Outdoor advertising: billboards, billboards
- Distribution of leaflets and flyers in high traffic areas, shopping centers
- Creation of your own website with photos and descriptions of products, groups in social networks
- Posting ads in transport, elevators, public transport stops
- word of mouth
- Loyalty programs: customer discounts, gift certificates, holiday promotions
Do not skimp on advertising, as the client flow and profit of the store depend on its effectiveness.
How much money do you need to start
The initial investment depends on the format and area of the jewelry store. On average, you will need about 4-5 million rubles:
|Item of expenses||Investment amount|
|Rental and renovation of premises||300 thousand rubles|
|Purchase of commercial equipment||1 million 200 thousand rubles|
|Purchase of the first batch of goods||2 million 500 thousand rubles|
|Activity insurance||50 thousand rubles|
|Installation of alarm and lighting||160 thousand rubles|
|Paperwork||40 thousand rubles|
|Advertising and marketing||100 thousand rubles|
In addition to the initial investment, you need to estimate the monthly expenses. These will include:
- advertising costs
- rent of premises
- communal payments
- payment of staff salaries and taxes,
- purchase of a new batch of goods
Current expenses will amount to 500 thousand rubles . The indicator is averaged and may differ from the indicated value.
Profitability of the jewelry business
The income of the store will depend on the number of customers, the size of the margin on the product, its final cost. Selling 10 pieces of jewelry every day with an average check of 5 thousand rubles. you can earn up to 50 thousand rubles a day, and up to one and a half million rubles a month, of which the net profit will be from 500 thousand rubles.
Of course, on weekdays, revenue may be less, and on weekends and holidays, on the contrary, increase. But in general, it will be possible to recoup the initial investment in 1-2 years of the store operation.
Selling jewelry comes with certain risks, most of which can be minimized at the business planning stage:
- Illegal actions of employees, customers or third parties in the form of theft of products
To prevent using the installation of a video surveillance and burglar alarm system, an insurance program, a monthly inventory
- Acquisition of unsold goods
To avoid this, choose a supplier who can pick up unsold products
- Increasing competition
A flexible pricing policy, quality and variety of goods , good service will allow you to stay afloat.
The jewelry business will bring success and prosperity to those who take a responsible approach to business and carefully calculate all steps in advance.
When opening a store, the main thing is to choose the right location, assortment, hire competent staff and adhere to the principle of value for money in work. This approach will allow you to quickly reach payback and get high profits.