Selling Sterling Silver Jewelry can be fun and rewarding. Sterling silver is the most lustrous of the precious metals. Even with the raw metal itself nearly tripling in price the past couple of years it is still a bargain. Due to its price, sterling silver jewelry comes in more designs than any other precious metal. This offers you a lot of opportunity to earn an income. In order to be successful their are ten rules you must follow.

First: Find your wholesale suppliers. There are a number of wholesalers out there and I suggest you don't lock yourself to just one. We all carry different items and as you see later, this is important when we talk about selection. However be careful. There are a lot of people calling themselves wholesalers when they really are not. Most true wholesalers will request your business information, will not sell wholesale pricing to just anyone and have minimum orders. Do you want to buy from someone who will sell to your customers at the same price you are purchasing it for? Be careful with overseas wholesalers. Even though the price may look good you may be looking at hefty shipping charges, duties and other hidden expenses as well as difficult returns, should there be a problem. Make sure to check them out thoroughly. Don't quibble over a few cents with wholesalers. Unlike retailers who have a large margin , true wholesalers work on very little profit(pennies) and have to deal with the current volatile silver price and other factors like the falling dollar  that can quickly turn a profit to a loss.

Second: When purchasing product remember everyone’s taste is different. One of the biggest mistakes we see is when retailers only buy what they like. This leaves a bunch of money on the table. Everyone who walks through your doors will have a different opinion on what they like or dislike. I can not stress it too much that selection is a big key to your success. So don't limit yourself. Every time when I was in retail and said, that will never sell, it was always one of the first pieces to go. Remember, people come in all shapes and sizes. Another rookie error in the business is to assume since you are size 7, or wear an 18 inch necklace that everyone else must wear that too. When you wonder why things aren't selling it is usually because they could not find what they were looking for or may be too embarrassed to say all the rings were too small or big.

Third: LOCATION!! While there are a lot of sterling silver lovers who will search out jewelry, the majority of sales are going to be impulse buys.This makes it important to get in front of as many people as possible. Try and locate your business in a high walking traffic area. With the numerous designs and styles in sterling silver jewelry you can easily grab their attention. Be very careful in your choice of business location. Other opportunities are setting up in Flea Markets (although there is usually a lot of competition), Home Shows, Trunk Shows, Festivals, Colleges, hospitals etc. Even if you have a brick and mortar store it would do you good to get out and do a couple shows to market your store. Tourist areas or areas with large colleges usually do incredible.

Fourth: Pricing is always a hurdle that needs to be overcome. Some people we see price themselves right out of the market while others price so low the business is short lived. So much depends on your market. Tourist areas and Malls tend to get higher prices but also have higher overheads. Just as one example used by a number of retailers, low cost items can be marked up 3-5 times while higher priced items may only be marked up 2 to 2.5 times. Don't be afraid to use specials or sales. Customers many times need a reason to buy and a 20% discount may turn a looker into a buyer. You can adjust your prices accordingly. Note: Since this writing the above pricing methods have changed slightly please see article on adjusting to the new silver price.

Fifth: Inventory, the more you have the more you sell....the more you have the more you sell...it was worth repeating. This goes somewhat with the second rule above. My wife used to always say when we were in retail double your show and triple your profits. Boy how right she was. If you can't start off with a lot that is ok. When I started in this business years ago I started part time and very small and have grown beyond my wildest dreams to owning a wholesale company for the past 16 years. See how in the next rule.

Sixth: This to me is the most important rule of all to truly be a success!! All the other rules need to be followed to get to this point but if I have to stress anything this is it. GROW YOUR BUSINESS! If you have, say a 3 time mark up, this would equate to 33% product cost,66% profit. DO NOT spend or take that 66%. Some people spend it all and borrow to buy more. How long do you think they last in business? Out of your sales ALWAYS take more than what the product cost and put it aside for reorder. This will increase your inventory which in turn increases your sales. So simple yet so many have trouble with this. In the above example I personally always put 50% or better away and kept 50% or less for profit and expenses. In a short time it was 50% of a whole lot more money. What this does is essentially brings you to a debt free business. Although you may have to borrow in the beginning it is those who keep borrowing, paying on time etc… that have the most trouble staying in business, should there be any down times or bumps in the road that may come along. Read this rule again!

Seventh: Make sure you display your products well. There are a lot of display companies and you can also create your own with a little ingenuity and some upholstery fabric. Make sure you keep your sterling silver jewelry clean. A professional polishing cloth works the best if you keep up on it. When jewelry is tumbled or buffed, the layer of shine is thin and liquid cleaners can eventually eat away at it to the point it needs to be professionally tumbled or polished again. If your display is in a darker area use lighting as it enhances the luster of the jewelry.

Eighth: People don't always tell the truth. Can you believe that? Some of the things you will notice is they will ask for a specific product and tell you how hot it is. Many times they know you don't have it and they are just using it as an out or an escape from making a purchase. A big rookie mistake is, we will get this call from a new retailer, telling us they need to order 100 porcupine charms being ridden by a cowboy because they are really hot now!. Ok maybe that's a stretch, but they do this only hearing one convincing person tell them about, or request this product. Make sure before you run out and order something, that more than just one person requested it. You may be sitting on that piece for awhile.

Ninth: Everything sells in retail! I had trouble believing that but it really is true if you handle it right. Even though I said above you may sit on it awhile it will sell. It would be nice not to hold inventory but it sometimes can't be helped. Some items sell better in the spring and others in the fall etc… If you have a few pieces that have been sitting, start a specials section in your store. Even if your profit is small on those items it is still a profit and saves you from cleaning it all the time and if the sale is right I promise it will sell. Items that get damaged work great this way as well. Scratch and dent sales. You get the idea. Keep the money flowing.

Tenth: And last for today at least. Don't sweat the small stuff! People get caught up in little things that distract from the total picture. If you find something missing or stolen don't panic. Understand it is impossible to watch every little thing and that some attrition is part of the business and move on. You should always do your best to avoid it but, It will all wash out at the end of the year. Keep the customer happy. If a customer comes back with a broken product 80% of the time it is something they did, like snagging a chain on something etc… I actually had one customer once say, “it just blew up in the bag before I took it out“, but you could see a tire mark on the bag. Just replace the item and guess what.... If you had a 3 time mark up you replaced it, kept the customer happy and still made a profit. Do not try to send the item back to the wholesaler/manufacturer. They know what happened, and although some will replace it, depending on their policy and take a complete loss, this practice will inevitably end up raising the prices of future products for all.

Finally, Just have fun and enjoy the moments when you watch your business grow. The speed bumps along the way will soon fade to minor pebbles in the road. These are just the basics but I hope it helps you on your way to success in your Sterling Silver Jewelry business. Remember when starting a business always check on your local and state laws.

 Do you have suggestions on selling sterling silver jewelry?  Submit your article to sales@qsiwholesale.com

Quality Sterling International

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