I run a retail jewellery business. We sell mainly platinum engagement rings. We purchase castings which are then finished/sized/set by 3rd party workshops. We spend circa £6,000 per month on these 3rd party services. I am wondering whether at that level of expenditure we should look to set-up a small workshop at our premises to take on some of this work. I am thinking of 1 jobbing jeweller and some equipment like a laser etc. I believe I could save workshop costs as well as retain some of the precious metal filings. Plus we would also be able to offer a better service to clients. Are there any jewellers on this forum who have considered this problem?
Hi! I don't have experience in your field, but I just wanted to say congrats for the idea, and for your business in general: it sounds like you're doing good!
It sounds like you have two problems to overcome: money and the actual shop.
Money-wise, if you think 6k/month would cover salary, rent, utilities and other expenses, then you're already winning: like you said, you'd provide a better service to your customers, and that is very valuable on its own. Not to mention opening another line of business, which helps long-term.
Of course, you should factor in the initial investment in static assets; but I expect asset turnover to be quite good for you: you'll be able to maintain a steady flow of orders, so you're safe in assuming that your initial investment in lasers, etc will pay off.
So, all that remains is to find a good jeweller, right?
Sorry for my rant :) and best of luck!
Vlad
Answered 9 years ago
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