A phrase you do not often hear is, “I want to start a small business and sell gold.” Yet, jewelry stores work on profits of around 300% and more. What most people do not understand about selling gold and jewelry is that it plays into the hands of those who work both hard and smart. Some may complain and ask how somebody can survive when only making an average of 8 sales per week, but contrast that with the pressure of selling something else like shirts where you have to make 30 sales per week. Just as much effort goes into making eight jewelry sales, but the job rewards those who are smarter.
Start Small Business Selling Gold
If you wish to sell gold and jewelry, then start small. Buy a few secondhand pieces of eBay and see if you can sell them. The goal is not to trick people. The goal is to sell people the best and most wonderful things at the fairest possible prices. Yet, you have to make at least 100% profit if you wish to stay in business.
The reason you need to sell at the fairest price, and the reason you need to thrill and delight your customer is because repeat business is the same as printing money. There are people who will say anything to make a sale, and people who will sell terrible products at high prices. These are the sorts of people who live their entire working lives in dingy and tiny jewelers and pawn shops. The people who turn their small enterprise into a large and respected businesses are those who concentrate on thrilling customers on that they come back again and again.
First-Time Buyers Cost the Most Money
Another reason why you need to thrill and please your customers is because of how much a first-time buyer costs. Even those who walk through your door must have been compelled by some form of paid promotion or advertising. The first time a customer buys it is the most expensive for you. However, any return visits are free. If you thrill your customer when you sell to him or her, then the next time they return they are already a very warm lead, which means all you have to do is find them something else that they will love.
You may ask yourself why you should try so hard. You may ask yourself why somebody would return, but you will be surprised how willing people are to return if you treat them right the first time. They will return for birthday presents, wedding presents, and a whole host of other things you couldn’t have possibly predicted. What’s more, a second, third, fourth, visit is always more profitable than the first because the first sale from each customer will usually have its profits soaked up by the sheer cost of marketing and promotion that it took to get that person into your store.
Setting Up Your Business
How you get into the gold business is up to you. Nobody is suggesting you should do a little illegal mining in the amazon. But, before you start investing large amounts of money into your business, you need to figure out how you are going to start selling.
The “Selling” part is really the only powering force behind your business. You need to learn and practice if you wish to survive. Maybe you can start by selling over the Internet with your own website, or maybe with classified adverts or by selling on eBay. You may like to set yourself up in flea markets and car-boot sales to see if you can sell your goods there. Maybe you are the sort of person who likes to network and can use your knowledge of the local populace to sell top quality items. No matter how you do it, you need to concentrate all your efforts on the selling process.
Scale Up Your Efforts
Make a purchase of five or six items and start to sell them. Once you have made a profit on the items, start investing in other items. If you start with six and you have made you money back after selling four, then invest in another six (giving you a total of eight) and continue to scale up your business.
You will learn over time that buying is also a part of the process because it is possible to waste you money on items that never sell. However, the only part of the process you should dedicate most of your efforts to is the selling. Figuring out how to sell will help you scale up. You can start by doing more of what you are already doing and scale up further by experimenting with new ways of advertising and promoting your products. Only once you have started to sell consistently should you consider things such as getting a shop, hiring employees, and so forth.