The business of buying and sell gold jewelry and other precious metals is highly profitable in Nigeria. Gold is usually sold in the form of jewelry such as necklaces and rings and not in its raw form. In Nigeria, Gold jewelry is a particular favourite during weddings; it is given as a gift to brides by their families or even by the husband.
Jewelry is a product desired by all. Even when many cannot afford it, they save up for it. The rich also patronize expensive labradorite Jewelry business. This accounts for most of the trade in gold and Jewelry business. The most prominent of the trading points of jewelry is in Kano state. The jewelry business in Nigeria is dominated by the Hausas who operate it as a pawn shop where people can exchange their old jewelry for new ones. This article provides you with information on how to start a jewelry business in Nigeria.
Read on below:
How to start a Jewelry business in Nigeria
Write a business plan
When writing your business plan, pay attention to the following:
- Decide on your target customers: Having in mind your target customers will help you in your choice of jewelry designs and marketing strategies such as having a luxury diamond wedding rings or watches collection exposition at the store.
- Unique selling point: When writing your business plan, think of how to create jewelry pieces that stand out from that of your competitors. This will help you create a niche and be easily well known for it.
· Do Your Market Research
Another crucial step in starting and building your jewelry making business to success is doing market research. Market research is an organized way of learning about your competitors as well and what collections are trendy such as the Ulysse Nardin Diver Watch Collection.
There are a few things involved in market research. These are:
- Exploring the market place: Here, you will find out the challenges encountered by those already in the market and device means to overcome these challenges.
- Finding out needs that have not been met in the jewelry industry
- Determining how you can meet your customer’s needs.
Always be aware of the latest price
The price of gold fluctuates easily; therefore you should ensure that you are up to date on the latest price figures. This is so you will not run at a loss such as selling at a lower price or buying jewelry at a higher rate than you should at the time. You can always find the present value of gold online or from other gold vendors you trust around you.
Rent a Shop
Find a good market place that is popularly visited or known by many in the state you are located and rent a shop there. Usually, it is best to be situated in a place where other gold merchants are and join in. You can also rent a shop in a shopping mall to sell your engagement rings. Shopping malls are always visited so you have a likely chance of getting more visitors. The jewelry business is most exclusive to cities. Bear this in mind when looking for a site for your shop. The jewelry business will fail woefully in mid-sized towns or villages.
Where to Buy Your Jewelry
You can purchase your jewelry from other Nigerian Jewelry stores at a wholesale price. Another option is buying from overseas. Pieces of jewelry are cheaper in places like Dubai. All you need is the contact of a reliable gold merchant who travels overseas often to buy his gold. He takes your order and extracts his commission when the goods are delivered.
Buying from the general public
In the jewelry business, people would want to sell their precious stone pieces of jewelry often times because they are desperately in need of money. You should be ready to take advantage of this kind of opportunity to buy gold at a giveaway price. Learn to save some money for this specific purpose. When buying jewelry from the general public, ensure that the person presents you with a receipt to confirm it is not stolen property.
When starting a jewelry business, you can buy a simple showcase to display your jewelry. This will help you to cut costss, instead of having to stock the shop like a provision store. Your showcase can be made of wood and wrapped in black cloth material and covered with glass. You will put the pieces of jewelry in the glass showcases.
Buy a Gold Testing Kit and Other Essential Tools
There are tools needed in this business. These include:
Gold testing kit: This is a combination of acids that will enable you to identify authentic gold metals. It also shows how much gold is used in a particular jewellery item.
A measuring scale
You will also need some other tools for picking really small pieces of gold
The amount of jewelry to be purchased at the start of your business, depends wholly on your budget. Start-up capital can range from half a million to a million or two.
· Mindful of Your Safety and Security
When involved in the jewelry business, you have to very conscious of safety. Do not leave your shop late at night so as to avoid being followed and attacked by robbers. Install serious security measures such as alarm systems, burglar proof steel doors in your shop that will ensure the safety of the goods. Also, dispose of cash immediately you obtain it
If you want to be successful at the gold business, you have to sharpen your sales skills. This is because excruciating bargaining is involved in order to yield maximum profit. Gold and pieces of jewelry can be bought at a lower/bulk price and sold to customers at a higher price. Therefore, the better you are at your sales pitch the more you will earn. You also need training on how to identify authentic gold materials; weighing the materials, testing of metals, etc. You can find an online training class or get training with a merchant. After being well trained, you are set to start your jewelry business.