Why selling jewelry on consignment can waste time & money
If you have diamond jewelry to sell and are considering approaching diamond buyers or jewelry stores that buy on consignment, think twice. Selling jewelry on consignment means that the buyer will display your jewelry or look for a buyer, and in exchange, you agree to a percentage he’ll take for your item when – and if – it is sold. The problem is that it could take months before this happens. Consider approaching a diamond buyer who pays cash for your goods on the spot!
If you have diamond jewelry to sell and are considering approaching diamond buyers or jewelry stores that buy on consignment, think twice. Selling jewelry on consignment means that the buyer will display your jewelry or look for a buyer, and in exchange, you agree to a percentage he’ll take for your item when – and if – it is sold. The problem is that it could take months before this happens. Consider approaching a diamond buyer who pays cash for your goods on the spot!
What is selling on consignment?
According to jewelry consignment agreements, owners of a store will use their sales team, marketing tools, and display space in their window or shop to sell your items for you. In return, they take a percentage of the item’s selling price, to which you agree beforehand. This percentage is called the consignment rate.
Once your item sells, you are paid the percentage of the total sale. Generally, the consignment percentage is around 35 percent. However, rates can range from 20-50 percent, depending on the buyer and the contract.
Who benefits from consignment?
Consignment is excellent for consumers seeking out lovely cheap pre-owned jewelry at a bargain. However, this is not ideal for consignors who want to make as much money as possible from selling their old wedding or engagement ring, bracelet.
Many people are amazed at how little they receive when selling on consignment. What they make is far below the market value. Why? Because a consignment store needs to make a profit. This need is entirely justifiable given the high cost of doing business, overheads, a mortgage or rent on the physical property they inhabit, staff wages, insurance costs, utility bills, and competition from stores selling new trendy jewelry.
Drawbacks of consignment
Besides the low cost you receive, the process of selling on consignment takes time and money. Not only do you have to consign online or in-person, but you may have to pay for a professional jewelry appraisal, cleaning, and other costs. Also, pre-owned jewelry can sit for months before the right buyer turns up, and sometimes days pass when a store makes no sales at all. It’s a hard business! As they say, “location, location, location” – the more popular the store’s area, the quicker you might sell your jewelry as there will be more traffic into the store. However, the catch is that the store owner’s business costs will probably be even higher.
The better option
Luckily, there are other ways to sell jewelry that you no longer want or need. If you wish to sell your jewelry, but are worried about doing so on consignment, seek an honest and established, and trustworthy company, such as DNR Diamonds NY, that will buy your jewelry for cash at the highest market price. DNR also offers appraisals free of charge to give you a good idea of your items’ real value and what you should expect in cash. The process is quick and straightforward compared to selling on consignment, and you don’t have to part with a percentage of your earnings.