I have said it before and I will say it again – I am a BIG fan of precious metals, and I still think that they have a prominent place in the jewelry industry for wedding rings and wedding bands. But a few years ago, alternative metals like tungsten and titanium became all the rage. In fact, stores started loading up on titanium and/or tungsten wedding bands and wedding rings – by the truck load.
All seemed well, and the price points were less than gold and platinum wedding bands and wedding rings, but then something curious happened – online prices for titanium and tungsten dropped dramatically. If you did a little research – and in some cases VERY little – you could find a titanium wedding band or wedding ring
for between $29.99 and $99.99, and in many cases even the same for tungsten.
How can any retail store compete with these prices? Essentially, they can’t, and have to offer titanium and tungsten for a higher price in many cases. The problem is that they have to keep prices fairly close to what is available online, and then margins are skewed lower. Many retailers made alternative metals a priority over precious metals, and when the alternative metal price point crashed, so did a store’s ability to make money. To put it simply – they had to sell MUCH more to make the same amount of money as they did on a gold or platinum wedding ring or wedding band. MUCH MORE!
It’s a tough situation for a retail store. When trends change drastically, those who go “all in” with a trend will suffer the most. Keep positioning lower cost merchandise in front of the customer, and that’s all they will buy. Larger stores that have always featured a nice variety of wedding ring and wedding band merchandise (i.e. Tapper’s in Michigan, Reis Nichols in Indianapolis, Charleston Alexander in Virginia) seem to stay alive during such a tough economic time. Hopefully stores will start to educate consumers about their precious metal and alternative metal choices, and more of these same consumers will buy (or even invest in) their bridal jewelry purchases instead of just settling for the cheapest thing in the jewel case or on the Internet.
Cyber Monday deals on Amazon.com
