There is such a huge gap in the knowledge available to consumers and the size of jeweler industry. In this series at mouthshut I will write about certain trade practices related jeweler retailing.
The idea of making charges in jewelery
taking precedence over everything else, especially how radio
is being used to dish the "oh-so low making charges" tune. Jewellers tend to gain from such’positioning’ as they can now "distract" shoppers from other real issues like Hallmarking.
The Trap: Jeweller advertises a low making charge of say Rs. 60/gm and sometimes even lower.
Gullible Shopper: Sees a deal at hand and goes happy hopping and cannot contain his/her glee.
Wise Shopper:
Goes to check out what the heck is this deal about. Finds the jeweller
is selling non hallmark jewellery, leaves the "deal" on the table.
What did the Wise Shopper know that the Gullible didn’t?
Besides
the common sensical thing that something that looks too good to be true
is usually that. There’s a rationale behind this.
Assuming the price of 22K gold is Rs. 9700.
Non Hallmark Jeweller:
Price of 22K gold is : Rs. 9, 700.
Price per gram : Rs. 970.
Making charges : Rs. 60.
Total price per gram: Rs. 1030.
Actual purity from such jewellers comes to about 16-18K( Our first hand experience). Averaging it to 17K.
Value of gold of 17K is Rs 7083 per10 grams.
Value of gold of 17K is Rs 708 per gram.
Jeweller’s margin a whooping Rs 262 per gram+( Rs.60 - actual karigar charges).
Hallmark Jeweller:
Price of 22K gold is : Rs. 9700.
Price per gram : Rs. 970.
Making charges : Rs. 150.
Total price per gram: Rs. 1090.
Jewellers Margin=( 150 - actual karigar charges)
Since
Jewellers’ margins are under threat as hallmarking leaves no scope for
manipulation in the purity of gold, they will charge more Making
Charges. Be prepared for that.
Actual
purity from such jewellers should come to 22K. Your value is retained
even though you feel you are paying more. You are actually getting more.
So my little piece of advice next time you go jewellery shopping: Turn off your radios and look for the blue triangle.
Disclaimer: I am the Marketing Director at Kathana Jewellers. This is a post from my blog’Sone Pe Suhaga’. You can read more articles related to jewellery at https://kathanajewellers.blogspot.com.