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Tuesday, May 18, 2010

Jewelry Market Update

Ken Gassman was spot on. Many thanks.

Historically, the jewelry business has had low barriers of entry. Almost anyone could (and still can) open a jewelry store and generate some sales. The problem is that too many jewelers enter the business because they love the dazzle of diamonds and the glitter of gold; they fail to grasp the concept that this is a business proposition. We say that those people are in the “jewelry business.” They come and go; they don’t stay long because they aren’t good business people. In contrast to those people who are enamored with the sparkle and dazzle of jewelry, there are the people who understand that selling jewelry is just like any other business: you invest capital for a return. Those people could run any business, because they understand the financial dynamics that drive the business. We say those people are in the “business of jewelry.” These people are the long-term survivors in the jewelry industry. They have controls and systems in place to run their businesses. It’s not the color of the gemstones that captures their attention; rather, it is the color of money that captivates them.
- Ken Gassman

Useful link:
www.kennethgassman.com

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