Refining can be an important part of any jewelry store’s business. If systems are set up properly, refining can help bring in business and improve cash flow.
Use Refining To Bring In Business
Everyone has an old high school ring, a broken chain or an outdated piece of jewelry that their husband bought on Christmas Eve. Advertise that your store will give great trade-in values for jewelry that is turned in. It works successfully for many other businesses that take trade-ins of old cars, old bikes and sports equipment. The beauty of promoting trade-ins for old jewelry is that a profit can be made on the traded-in item as well as the sale of the new piece of jewelry. Another advantage is that jewelry trade-ins can be promoted during slow periods and can be done more than once a year.
Use Refining To Improve Your Cash Flow
Don’t hoard your scrap gold, platinum, palladium and silver. Your goal should be to turn your scrap like the rest of your inventory, at least twice a year. Remember that scrap gold does nothing for you unless you trade it in and turn it into usable material or cash.
Find A Good Refiner
Hoover & Strong is the only refiner that challenges jewelers to split their scrap and test us against anyone else in the industry. Make sure the scrap is mixed as evenly as possible. If you only have one 10K ring and cannot snip it in half, pull the piece out. We have acquired many loyal customers through the split lot test because of our proven higher returns.
Estimate How Much To Pay Your Customer*
You may use these handy charts to buy scrap from your customers to generate profit and increase traffic into your store.
The table equals 75% of the actual metal value which allows you 25% profit. You can adjust your profit accordingly.
e.g. Market = $600/oz.
5.6 dwt of 14K scrap x $13.20/ dwt= $73.92
2.1 dwt of 18K scrap x $16.80/ dwt= $35.28
Total = $109.20
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