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How CUSTOM can actually SAVE you Money

When you hear that someone has had an item custom made, most of us imagine the astronomical costs that must be associated with it. To have something that is uniquely designed just for you sounds like such a luxury, many people believe they will never have the opportunity to own something like that.

It sounds counter-intuitive but custom tends actually be less expensive when it comes to engagement rings!

What actually makes engagements rings expensive in traditional jewelry stores

#1: engagement rings are expensive:…retail markups are not insubstantial but the cost of these goods are not inexpensive either…there is a significant amount of capital tied up in a jeweler’s inventory of finished goods

#2: engagement rings are a slow moving product: they’re not flying off the shelves…it takes that ‘special’ someone to come by and say ‘that’s the perfect one!’ and go ahead and purchase it…it may sit in a showcase for years before that person comes by.

What really makes engagement rings expensive is the holding cost of finished inventory. In order to make money on that engagement ring that took 2 years to sell, there has to be a significant markup value. In many traditional jewelry stores, it’s not uncommon to have profit margins in the 55 to 60% range. ($55 to $60 of every $100 is profit)

Think of all the overhead a retailer incurs in 2, staff, hyrdo…if a lot of money is tied up in inventory that sells slowly…you bet the markup has to be decent to make money.

Why custom is cheaper

With custom engagement rings, there is no inventory….except in raw materials (gold, loose diamonds, etc.) Raw materials however can be fashioned into any stye a client chooses and turns over at a much higher rate than finished jewelry. We pass these savings onto the client and find that custom allows us to work on smaller margins since inventory holding costs are not a restraint.

It’s a win-win. You get a personalized product (that may not even exist out there) and get it a better price than if you actually found it out there!