In the first part we understood that most of the business owners assume that past practices are sufficient for present and future, present trends will continue and future is uncertain and dangerous.
At the same time the fact is, new practices, new methods, new products and new approaches are essential for sustainable progress. One must also understand that present trend will end and one must prepare for the worst and make an effort for best. What will occur is a differently better future. Let us realize that future is not only full of dangers but also full of opportunities. One has to look for hidden opportunities and utilize them to build better future.
So, what has been the biggest change in gold jewelry business in last 50 years?
Is it diamond jewelry?
Is it branded jewelry?
Is it light weight jewelry?
The biggest change is Hall Mark.
Hall Mark has been the single largest factor which has changed the face of entire business in last few years.
Hall Mark has removed the single largest selling point of every jeweler – QUALITY. Now, all are equal so far as quality is concerned.
Earlier, there were only a fixed set of people having established their individual quality brands over a period of many years could do the business, now any tom, dick and Harry can start the shop saying he is equivalent on quality aspect as he sells only hall marked jewelry.
Earlier you were in a position to maintain your clients over a generation because you would buy back your own old ornaments and provide customer a gold credit, using which he/she can purchase new ornaments. This facility was not available if customer tried to venture out to anybody else in the market. Tomorrow, your client can walk in to any other show room with hallmarked jewelry and can get the same credit for gold weight.
Earlier you were not required to understand the laws of marketing because you were operating in almost monopolized market of your own group of customers. Now you need to gain knowledge and wisdom of marketing principles or else you may be lost.
Earlier tax laws were having lots of short comings so you were not bothered to look in to taxation and you could manage the books of accounts even at the last moment. Today, government is strengthening the taxation net day by day and creating a reference base by introducing TDS, VAT and GST in next step.
Earlier customers did not have the options of spending on foreign vacations or resorts or other lifestyle purchases. Today’s lady has much more options to spend money apart from jewelry, reducing overall demand of jewelry.
But there are some underlying opportunities also behind all this movements.
All this can be made to work to your favor and it can help you to build a much better future. But that requires DIRGHA DRISHTY or visionary approach.
7 steps to increase profitability of your jewelry business is an attempt to help you in creating that visionary approach about your own business.
These 7 Steps shall provide you “KNOW – HOW” for fighting so called uncertain future…
They will help you to
Understand your current practices
Shows you how and where to improvise
Finally it will helps you in establishing SYSTEM which can generate opportunities for uncertain future
Thus, 7 steps are organized in 3 parts.
In the first part that is first 3 steps will help us to KNOW, your present status. If one wants to improve, first one should KNOW exactly where he is then and then he or she will come to know how much efforts are required to improve.
The next part comprising of next 3 steps will help in defining HOW we can change for betterment. Having known our own current status, we shall have choice to decide how and how much do we want to make efforts and what is our own goal or target.
The last step and the most important one will summarize the learning and finally help us in defining a SYSTEM which can be our ultimate weapon to the ever changing market scenarios.
So, be prepared to get lots of new insights or “KNOW-HOW” of becoming more profitable in the jewelry business in next articles.