As a jewelry merchant, you are well aware of the hundreds of rich and famous who rent their jewels for a special night rather than buy them. Although this idea has crossed your mind for some of your high profile clientele, you are not sure just what the real benefits are to doing so. While you are not making any immediate profit by lending out your fanciest and most expensive pieces, your profits will come in time. The following illustrates the benefits of lending jewelry versus forcing a sale.
Free Advertising
That is correct-- you get free advertising out of lending jewelry. The clients you lend pieces to wear it to some special function. Admirers of the piece want to know where it came from and sometimes want the piece so badly themselves they will call the very next day to purchase it. It is a win-win situation because the wearer/client gets to wear something beautiful, and your shop's name is spread around the event like a stack of business cards.
Clients End up Buying More
Lending jewelry is a "try before you buy" sort of option. Men often come in to borrow a special necklace or earrings, and when the ladies in their lives swoon and beg, you have a sale. Lending baubles also encourages return visits to your shop, where clients may see something else they would like to purchase or borrow.
Wealthy Investors Hoard
Sometimes all it takes is a wealthy investor to notice the style and quality of jewelry you sell and then you really sell a lot. Jewelry, especially diamond jewelry, is a good investment because it is always in demand. The more carats the stone, the more investors want it for their collection. With any luck, the investor will look at the pieces you lend out and want to invest in your store or buy into some type of partnership just to have access to anything of particular interest or value.
Precautions for Loans in Jewelry
Despite the amassed wealth your high profile clients have, you will still want them to return the pieces to the store. As an insurance policy, you can request that the clients leave a valid bank or credit card in case of loss or theft. Most of your clients will not have a problem with this, and it aids in a smooth sale transaction should they decide to buy the piece after borrowing it.
For more information about loans in the jewelry business, contact an existing company that specializes in this practice.
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