Raising jewellery prices while most retail items decrease in price. This is a hard thing to do and one that, as the founder of StyleRocks, I have resisted for as long as I can.
The premise of StyleRocks has always been about customisable fine jewellery, affordable compared to the traditional retailing jewellery methods.
So, while we are online only, this saves on various costs such as rent and other overheads – extortionate amounts in the Sydney rental market!
Also, our consumer-manufacturer business model means that we are able to bypass the middleman – the retail jeweller – which also assists the customer with the price of their fine jewellery.
The premise of StyleRocks always started out as being ‘pay for what you use’. So if you don’t use plating on an item, you don’t pay for it. If you have a smaller finger size, then you don’t need to pay for that extra metal that will be used. As you can imagine, this made it very tricky to maintain accurate prices and to be fair, customers didn’t seem to appreciate the difference!
However, this principle of ‘pay for what you use’ made the pricing architecture quite complicated. And with a migration to our new website late last year, presented a few challenges.
Certainly, dealing in jewellery – which is reliant on the commodities markets and the abundance of gemstones, precious metals – is contrary to the typical mass market, in which we see prices typically move down. For most consumer items – such as a toaster – the cost of goods moves down. But not for jewellery. This is something we’ve covered in this blog post here.
And in addition to rising commodities prices, the move to our new platform – where our payments are powered by Paypal has also brought increased costs. We love having Paypal, and especially Paypal instalments – where you can pay for your jewellery in over up to 4 instalments, per the picture below- but as a retailer, they are more expensive than our previous provider.
You know how you go to a restaurant or shop and you whip out your credit card, and they say ‘There’s a 2.5% surcharge?’ It’s the same thing as Paypal. But, as I said, we love Paypal – and it’s a really simple, frictionless transaction experience for most people – which is the main thing.
Finally, our suppliers have increased their costs. And, because there’s so much manual labour and craftsmanship involved with our jewellery, this of course impacts us. To remind yourself of what’s involved, you may want to watch this video here, showing how one of our gemstone cocktail rings is created.
So: all these things combined mean we have to lift prices across all products on our website. Some items are going to increase more (in terms of percentage) than others; this will be largely due the fact we haven’t lifted prices for some…18 months!
Please bear with us – and if you notice any price discrepancies, just shout out!