With most luxury brands, there is the common assumption that the higher the price of an item, the better its quality will be, such as with a 1-carat diamond platinum ring. However, this is not always true. Lots of mall-based jewelers place a higher price on what they tout as superior quality, because of the fact that they have to tackle high overhead costs. Here are some of the reasons why these jewelers charge so much.
- Rental space in malls is more expensive than in an average office building!
- The fittings in a mall-based jewelry store are required to be state-of-the-art, and it is not a one-time thing. Some malls have regulations which obligate the jeweler to revamp their store every two years or so. This costs millions to keep up with.
- Mall hours are longer than what is permitted under the Employment Act. You will require at least a second set of staff, which will need to be given overtime pay, as well as public holiday pay.
- Insurance for the jewelry items in a store inside a mall is expensive, especially since there is a lot of foot traffic.
- It takes many diamond ring pieces to properly stock a jewelry store. Nevertheless, as trends change and the old pieces stockpiles up, these will have to be melted down and remade.