In my last article I talked about some of the various business models I see as I visit other jewelry stores on my quest to learn and grow. In part one we talked about the use of CAD/CAM in more and more stores as well as the use of prototype mounting selling.
This month I’d like to shed some light on what I see many stores doing very profitably and that is either becoming an “Estate Jeweler” or offering an “Estate Jewelry” department in conjunction with your other departments.
Since I’m not far from the tourist area of the North Carolina mountains, I often visit various stores nearby to learn and I keep seeing the estate operations popping up. Now every person has in their own mind what the definition of “Estate Jewelry” is so let’s just say for simplicity that it is anything “Pre-Owned” 25 years or older.
One of the ways to stock an estate department is if you offer your own scrap gold buying services. I’ve seen this work in more than one operation. Often times, many unique scrap buys can be done this way.
Another way is to contact local attorneys that deal with settling “Estates” and offer to valuate items in an estate with an understanding that you get first pick of the jewelry items once the family is done.
Of course, there are many “Estate Dealers” you can also do business with to enhance your estate department and we’ve done this as well. Polygon has also been another invaluable source for estate items.
It’s not only quite possible to get very good buys through these methods, it is quite possible to make “Triple Key” when you sell as well. All of us remember the old adage that money isn’t made when you sell but instead when you buy!
Whether you base your business model by evolving and become an “Estate Jeweler” or if you simply offer a department or a few cases of these items, don’t overlook this wonderful potential profit center for your store!
Stay tuned - I’ll be sharing other various ideas and business models in my next article!