Top 5 Misconceptions About Jewelry Closeouts

sales@simplexdiam.com (Sales SimplexDiam) — Fri, 04 Jun 2010 18:00:00 GMT

The Following Are 5 Common Misconceptions About Jewelry Closeouts:

1. Jewelry closeouts consist of used merchandise.

No. Jewelry closeouts can consist of used merchandise such as from estate sales. However, items purchased from jewelry manufacturers, designers, and retailers are often brand new.

2. Jewelry closeouts are dated styles that have not performed.

No. Jewelry closeouts may not have sold for a number of reasons such as: they were part of a private collection, the original price exceeded what the market could support, a particular item was over ordered, an item was part of a "test" program that could not be rolled out in mass production (for such reasons as scarcity, gold price increase, manufacturing difficulty, procurement difficulty, etc.)

3. When purchasing from a jewelry liquidator, the price should be at melt.

No. This is not possible since liquidators have to often pay more than melt for desirable merchandise. A good jewelry liquidator will try to save his customer 20 to 60% off the wholesale cost. Also, although gold (or metal) value may be easy to calculate, other parts of intrinsic value (such as diamond or gemstone value) are not as easy to calculate and fluctuate significantly.

4. My customers do not want jewelry closeouts or liquidations.

Although there is a portion of consumers that do not appreciate liquidations, sales, or deals - most people appreciate buying something at below market.

5. Jewelry closeouts consist of defective merchandise.

No. Most successful liquidators would rather melt defective pieces than sell them. Selling such pieces harms their brand. Also, jewelry is not the same as electronics: a previously owned piece (used or unused) does not run the risk of malfunctioning or of becoming obsolete. Many beautiful pieces gain emotional value (and in certain instances, monetary value) as they age. That is after all one of the most magnificent qualities of owning jewelry compared to many other luxury products.