To Bead or Not to Bead
I’m not sure when it happened. But, somewhere along the line, some little round beads made of silver, a touch of gold and Murano glass (with starting prices of $25) became the great white hope of fine jewelry. The phenomenon of bead brands like Pandora, Chamilia and Trollbeads are all the rage in the industry — putting most jewelers in the middle of a very deep love/ hate relationship. It’s a real business quandary.
These little nuggets are a great source of revenue, but they may be slightly hazardous to your business health. Although popular, every jeweler who carries one of these brands (or another) is questioning how long this fad will endure. Fashion is fickle. And trendy items are, well, just that — trendy, meaning up-to-the-minute, all the rage and “in” for now.
Women are drawn to this look for one reason: they are affordable. The DPS was a little off the mark when they thought women would flock to stores to self-purchase a right hand diamond ring. It was never going to happen and it didn’t. Keep it under the $350 spending limit and you have us. We’ll drop that on a purse or a great top. Tell us we can actually purchase a piece of jewelry that “tells a story of our life” and the journey can begin for about $100, and we’re there.
Kudos to the creators. They figured it out. But, let’s be honest. Most of you did not get into the business to hover over a wood box with 50 dividers spending an hour with some indecisive woman on whether they should get the Blowfish or Chicken Little charm with the Heart Beats spacer.
I love them and hate them, too. Mostly I love them because right now, they’re a great source of income and a great stress-reliever. However, I’m not convinced it’s right for everyone in the long-term. And, I’m really nervous that no one is looking at the pros and cons or seeing the forest from the trees. So, I’m dropping a few thought crumbs that will hopefully lead you back home. And on the path that’s right for you.
Why you should love beads:
- They are a hot product
- They are a great entry price point
- Higher product price points are not selling in your market
- They are driving new customers to your door
- They are generating repeat purchases
- They are an affordable product buy-in
- Their turnkey promotions drive traffic
Why you should hate beads:
- Every store or corner gift shop carries them
- They bring down your average sale
- They keep you from focusing on your core products
- Many bead customers will never be your typical “preferred” customer
- Staff time expenditures on a low average sale
- They have become your number one (or two) best seller
- Manufacturers are inflexible on unique promotions
Want to discuss your love/hate relationship? Email us at suits@fruchtman.com
P.S. As of this publishing, I have never purchased a bead.