[Jewelry making - Article 01233] - Re: [Orchid] Independent jeweler in today's marketplace

[Daniel Spirer]

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>     When I asked about how much it would cost someone to start a
>     jewelry business, I was qouted a colossal sum -- I am talking seven
>     figures, 

    This was probably an amount necessary to set up a large
    manufacturing operation like they were running. A smaller one can be
    done much cheaper, I'm sure, although you should be prepared to pay a
    fair amount of money to get any new operation up and running if you
    are approaching it from a serious standpoint. It depends, however, on
    what kind of business you are starting up. If you are opening a new
    retail store and you want it to look decent (remember this will vary
    by area as well) you will probably need to go into 6 figures (unless
    you're one of those people who likes to do it all yourself). When the
    partnership I was in broke up and I opened my own place two years ago
    we sunk more than $150,000 into the new location (and I already had
    all of my own tools, a safe and inventory). Of course I'm selling
    stuff at an average price point well above $2500 so the place has to
    look better than someone who is selling all $50 earrings. I also am
    located in an expensive area with stringent building codes and have a
    landlord who wouldn't do anything at all for her tenants. But in
    terms of high end stores I'm actually probably at the low end of the
    start up costs. When Shreve, Crump and Low moved a year ago they
    spent close to 7 million getting the place redone. (On the other hand
    they can do in one day in December what I make in 6 months.) If you
    are starting up a manufacturing operation, really your investment is
    just in the tools, enough stock to get started and an out of the way
    location. If you have your own tools already you could probably get
    going for a couple of thousand dollars. If you're the only employee
    to begin with you can definitely do it for that much money. 

>     How does a small jeweler stay alive under these situations --
>     especially a jeweler that may not have the means or desire to make
>     their products overseas? 

    Find a niche and stick to it. You don't have to make the same
    designs as the overseas companies. You don't have to compete with
    them. You just have to find your market. There is a large market for
    custom work, high quality repairs and original designs if you promote
    yourself properly. There are a number of jewelers on this list who
    have highly successful businesses that have been ongoing for years.
    If you want to wholesale go to the high end craft shows and talk to
    all the galleries. If you want to do retail, get yourself set up
    somewhere and get started. Do craft shows. Hand out your business
    cards. Market yourself. It isn't really about the jewelry you
    sell---it's about you. 

>     I would really like for us to have a conversation about positive
>     strategies an independent jeweler can use to survive in today's
>     marketplace. 

    Here's the best single strategy you can do to make money in today's
    marketplace (assuming you are retailing): Make up a line of basic
    designs, easy to reproduce and simple. Then make up all of the fun
    stuff you actually like to make. Use the money you get from selling
    the basic designs to finance growth and the ability to produce more
    fun stuff. Keep on doing that for enough years and you'll develop a
    clientele that will appreciate both ends of your work. You'll make
    money (eventually enough so that your employees can make the boring
    stuff) and you'll be doing what you love. 

Daniel R. Spirer, G.G.
Daniel R. Spirer Jewelers, LLC
1780 Massachusetts Ave.
Cambridge, MA 02140
617-234-4392
daniel AT spirerjewelers.com
www.spirerjewelers.com
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