You don’t have to look very hard to find “diamond exchanges”, “jewelry marts” and “chain store” advertising 50% — 60% — 70% off sales, on a seemingly continuous basis. Can you really get a great buy at one of these places?
Unfortunately, many jewelry sellers (even large department stores) take quite a few liberties with their discount arithmetic. The main issue is 50% off what? What’s the “original” price they’re basing the discount on?
How long has it sold at that original price? How many were sold? How long has the “sale” been running?
I have personally caught department stores running 50%-70% sales on merchandise that was marked up five to six times the wholesale cost. You may ask how I know. As a retailer when I see an advertised discount and I already know the wholesale cost then I see a “regular” price that is 6 times the cost I have to wonder if the store ever charged the regular price. And if they had I feel sorry for the person that purchased at the “regular price”. I can guarantee you that if many Independent jewelry stores sold items at 70% off they would be selling at below their cost.
Even Independents; ourselves included do run sales. Many times the sales are to move older merchandise. Then you can get bargains. Many times we will sell at below cost just to get cash flow so we can buy new merchandise.
Again, I cannot stress enough retailers cannot “regularly” sell at 70% off a legitimate price and remain in business. It’s just not going to happen. You may think and hope for it but it cannot happen…period.
The Federal Trade Commission sets specifications for discount basis, rules which most reputable independent jewelers follow scrupulously. Unfortunately, others choose to ignore the regulations and hope to skirt around the law.
If a store doesn’t “play by the rules,” there’s nothing stopping them from doubling the price of an item on Monday, and then declaring a 50% (half off) sale on Tuesday and you should be very leery of any 50% off or greater discount. |
