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Excess jewellery inventory website idea

Description: Final Venture Idea
In today’s economy, there is a large amount of consumers who are trying to either trade in jewellery or be in fashion and buy the latest trends. As a result, a plethora of small mom and pop retail shops have an abundant amount of jewellery stocked up in inventory that cannot sell. Today, jewellers will try to sell the inventory on eBay, sell the jewellery to other local retailers, or put the item(s) on consignment. Our website will solve the problem of keeping track of retailers’ inventory by allowing mom and pop jewellery owners to buy, sell, or trade existing inventory with one another. It will be a service that jewellery owners can log into and visually see what other excess inventory that local and distant owners are selling. Initially, the first few items will be free to upload and then a tiered pricing structure will be put in place if the jeweller wishes to upload more items. Additionally, it will sell data to marketing firms so they can understand what advertisements direct what traffic in a variety of niche jewellery markets. This will solve an ongoing problem that many jewellery owners have been facing for a long period of time.

Business Plan
Facts
Fact Finding
1. Retailers have a hard time getting rid of excess inventory.
2. This is true for all kinds of jewellery.
3. Typically they call a broker first to get a quote.
4. Usually they sell them at breakeven or a loss.
5. There are two central hubs with markets – NYC & LA.
6. Harder for jewellers in the Midwest because there aren’t as many brokers.
7. Diamond providers sell to wholesalers who sell to brokers who sell to retailers.
8. Don't know if Mom & Pops will buy in.
9. Some jewellery is “certified.”
10. Market is currently priced high.

Problem Finding
Jewellery retailers have trouble getting rid of excess inventory
12. The custom jewellery is more of the target.
13. There is no “blue book” for jewellery – there are standards for diamonds.
14. Brokers buying it back don’t see the piece before they buy it.
15. Chip thinks the certificate process might be flawed.
1. How might retailers know what inventory they have?
2. HMW standardize pricing on customized products?
3. HMW increase trust in our clients?
4. HMW certify customized pieces?
5. HMW share our inventory with others?
6. HMW sell excess inventory?
7. HMW generate a positive margin?
8. HMW centralize the link to the brokers?
9. HMW determine how much it is costing retailers to hold onto inventory?
10. HMW find other retailers to trade with?
11. HMW reach a larger audience and display our products to them?
12. HMW sell the excess inventory brokerage service to others?


HMW help mom and pop retailers to sell more?
1. Create niche products.
2. Create a link to more retailers.
3. Increase on-line advertising.
4. Advertise in niche magazines.
5. Advertise on radio.
6. Create an on-line site that links retailers together.
7. Create an on-line site that rates retailers based on previous transactions.
8. Track what is being purchased at the retail level.
9. Create a history of previous sales.
10. Put inventory management system on-line.
11. Create the jewellery Blue Book.
12. Write a column/article about your products to increase knowledge.
13. Create newsletters for jewellery stores.
14. Track existing clients for special sales.
15. Provide discounts for returning customers.
16. Sell data on retail sales to wholesalers.
17. Showcase the items for other retailers.
18. Offer on-line service for free - better placement for subscribers.
19. Create a market space for excess inventory – for retailers and consumers.
20. Create E-bay for jewelry stores.
21. Partner with inventory management company and interface with online site.

Action Plan
1. Find out who gets hurt by this business?
a. The Brokers will slightly get hurt since they will be selling less inventory that is now traded by my site.
b. Who are the stake holders?
c. The Stakeholders are the brokers, retailers, consumers, and advertisers

2. What margins are retailers working with?
a. Today Retailers are working with margins of 2-10% off of each sale for loose diamonds. In regards to watches and other jewelry, the margins are between 2-6%.

3. What’s the size of the market?
a. Total Market 55B
b. Real Jewellery 44B
c. Costume Jewellery 10B
d. I would like to get 3 – 6% margin of initial profits through advertisements.

5. What competition is there?
Retail jewellers will face increased competition from suppliers to the mass market, such as home shopping channels, mail order firms, Internet retailers and discounters. These mass merchants, which did not exist 30 years ago, have gained a share of more than 25% of the jewellery market.

6. What are people doing now?
a. Today retailers and mom and pop shops are selling excess inventory on EBAY, selling to pawn shops, to brokers, or on consignment.

7. Do customers prefer to see the jewellery before purchasing?
a. As long as the diamond or piece of jewellery is well described, gemmologists and jewellery retailers can figure out the 5 c’s and quality of the diamond.

8. Is it possible to incorporate larger retailers?
a. Yes it is possible but not plausible since larger retail shops can get increase inventory turns faster due to the large amount of stores and dealers across the US or the world. However, smaller mom and pop shops only sell niche jewellery in well off areas.

9. Could mom and pop buy larger stores excess/overstock?
a. Yes, if there is a large volume of excess inventory, larger stores will buy the excess inventory.

10. What is your niche?
a. To create a SERVICE that allows mom and pop jewellers to trade with one another. For now, I will just focus on small jewellers that have a lot of excess inventory on hand.


Interview with Jewellery Owner:
1. Broker System – RAPNet – the brokers use this system to trade jewellery with other brokers across the world.

2. Average Inventory Turnover currently takes 1-3 months for excess inventory.
a. Depends on the current trends in the market

3. How can we rate retailers that use the service?
a. Qualify Retailers - Get Retailers credentials and TAX information and reference it against county recorder data (Equalization Board) that is made public.

4. Do not get the larger retailers to use the service initially since they might purchase large volumes of inventory at low prices and put the smaller stores out of business.

5. Some of the clients to this service will be estate jewellers, consignment jewellers, pawn shops, local mom and pop jewellers, and ebay auctioneers

6. What are you doing now?
a. Selling items on ebay
b. Holding inventory that is not trendy in the store.

7. Do not get into the business of keeping the inventory. Leave that up to the retailers and have the retailers show the products to the customers.

8. Journals / Retailer Databases

a. Jewellers Board of Trade Journal
b. JCK Directory

9. RAPAPORT – monthly report that states the current price of loose diamonds.
 
Need from others:
Need Capital Need Capital
Need Business Partners Need Business Partners
Need Customers
Need Customers
This is just the initial idea and business plan. More to come... let me know if you have any suggestions.
I will need capital and business contacts.
 
Author: ytenuma from United States  Posting reviewed by: 1781 users
Country of business: world area Published on: 22 April 2009
Region of business: North America world area Posting ID: 2941
Business Sector: jewellery Image: Not available
Business Plan
or Presentation:
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