Another tale of two jewelry businesses

I’m just over here thinking in case studies again. As in compilations of a variety of businesses I get to see inside of (anonymized, of course) and stories that sometimes include my own experiences.

Case study one – A jewelry business at close to $195K annual revenue.

This business owner:

• Took a chance on a new jewelry-making skill and leaned all the way into it.

• Wants to grow and add another $100K in revenue, and wants to maintain profitability.

• Still offers a wide range of price points, including under $100.

• Has a mix of custom, production work and one of a kinds and maintains the strength of their storytelling through their jewelry.

Case study two – A jewelry business at $250K annual revenue.

This business owner:

• Leaned into luxury price points and has nothing for sale under $500.

• Focuses on premium materials and telling a story.

• Is at the upper end of their growth and doesn’t desire employees or physical expansion of their space

• Does want to focus on profit and sustainable growth of their audience.

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Scrappy starts, slow builds, sudden awareness for their jewelry businesses

They both spent time developing the artistry of what they do, and, most importantly, artfulness is their leading edge in their businesses. The decision to be design and materials forward for both of them has been a winning strategy, and in both cases I would be recommending that they maintain their design and materials commitments. It matters.

In both cases, these designers spent plenty of time making, making, and more making in the beginning. Then made sure they were selling anywhere and everywhere that would have them. This gave both designers a close relationship with their clients, built loyalty and built slowly and steadily until BAM! awareness. 

Sudden social media growth, new customers finding them, routine orders every time they sent email blasts (oh, yeah, forgot to mention that they both have strong email marketing habits. Hint. Hint.) They found their audiences after a sustained focus on growing their designs and their profits.

Do you prefer to listen instead of read? Great news! I have a You Tube video up on this topic!

With jewelry business owner number one, what do they need?

If they want to add another $100,000 to their top line, what do they need to do next? Well, it would probably help them to set a time frame for this goal. Is this doable in a year at their current pace? Or is this a goal that needs to happen over two or even three years?

Their next step is to give themselves a deadline for this goal in order to understand what their next steps are. 

$100K growth in a year would be a challenge, and would likely require growth in one of two directions – either they need large wholesale orders from prominent retailers (which means less profit, but greater growth, but also increased workload). Or they need to focus on their higher end, gold and platinum custom work – adding three custom rings per month could get them close to their ultimate goal and without adding that much work to their plate.

And this is why I would recommend setting a time frame for this goal – because the addition of new custom work would get them close, but not fully there within a year, but they’d almost certainly get there by year two. A focused goal with good boundaries helps take a goal and turn it into a plan and strategy.

With jewelry business number two, what do they need?

A plan for increasing profit without increasing their workload by too much will be key. Their current revenue is enough to cover all bills while also paying themselves a salary. But we all know how inflation is going these days and their current level of sales might not be enough in a couple of years, so some smart growth will be vital.

To date, their success has been directly linked to being design-forward and intentional. They have thrived as a result, but also need solid financial planning for their future. In their case, having the time and space to keep developing their craft would be smart! 

Their clientele relies on them to develop pieces that they can’t get anywhere else, pieces that are meaningful, and they need a handful of new clients while also maintaining interest from current clients. That is a role that art and design development can play in attracting and keeping customers.

Their growth will likely be more incremental, but would not only keep their clients’ interests in their work, but would also keep themselves engaged in their work.

Why I recommend different approaches for each jewelry business

You’ll notice that I am not currently recommending that designer number one drop their under $100 products. I do know that focusing exclusively on higher end products has been standard advice in our industry for years, and there are times that this advice works, but it is not for everyone. 

In the case of business owner one, they have a lot of consumers who will continue to stay loyal and may even grow into custom clients over time, but their clientele needs an approachable entry price point. In their case, so long as they maintain profitability per piece, and so long as they maintain efficient production practices, selling under $100 jewelry doesn’t detract from their other work.

You’ll also notice that I am not recommending that designer number two turn to mass manufacturing their pieces or find cheaper materials. Again, there are times that this is the answer for some designers, but in their case, the clientele that they built over years would be confused or might feel abandoned.

The idea that there is a single right answer has always rubbed me the wrong way. If there is a place for both GAP Inc basics AND the outlandish work of Dries Van Noten, can’t there be a place for success for brands that cater to an under $100 price point AND a brand that caters to an over $1000 price point? 

The answers to profit lie in your pricing and your business management, not whether or not you are following a carefully constructed path laid out for you by someone else. In both of these designers’ scenarios, following the path of success will naturally look different because they have cultivated different audiences and met the needs of those audiences. Their answers for growth will naturally look different too.

The idea isn’t to come up with a single formula for success, but to come up with YOUR formula for success.

In other news – did you hear about Shopify and their AI shopping?

If you have a Shopify site, did you also get that announcement about their Agentic AI integrations? 

I have thoughts and opinions because I ALWAYS have thoughts and opinions, and in this case my opinion is that no company should be opting you into anything without your express permission, so my current opinion is – this is not good. If you want to hear more, I put up a YouTube video about it. While you’re over there, I would not be mad if you decided to like the video or subscribe to my YouTube channel.