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| Cool Mens Wedding Rings > Articles |
Why Are Rings Cheaper on the Net?Mens Wedding Rings, as well as other jewellery, are cheaper if you buy them on the internet than if you buy them at a regular store. If you buy at Blue Nile or Mondera for instance (see articles - who are out recommended jewellers) then you can expect to buy somewhere around 30% to 50% below the prices that you would pay at a normal street based jewellers shop. For the more expensive items such as diamond engagement rings, where people who buy them get an appraisal of the value of the item for insurance purposes, there have been numerous reports of the appraised value exceeding the price paid for the item, often by a significant amount. Why would this be and why would it be cheaper to buy on the internet? Think about your average jewellery store. Where will it be located? Well it will be located where there are lots of customers to come into the store. If it isn't then it won't do very well. It must be in a high traffic location to be popular and often visited or passed by potential customers. What is the problem with a location like this? Well you may remember the old real estate maxim. The value of real estate is determined by 3 things, location, location, location. In other words the perfect location for your normal offline jewellery store is EXPENSIVE REAL ESTATE. Whether the jewellery store owner buys or rents the store it doesn't matter. It is expensive to buy, and if he wants to rent it will be expensive to rent. If he buys he will have to pay a lot of interest on the loan. And what does a jewellery store have? Well there's lots of pretty display cases, fancy lighting and highly paid sales staff. All these cost a lot of money, particularly paid staff. The bottom line is that it is very expensive to begin and operate a normal jewellery store. All that has to be paid for from sales before any profit is made, so sales, and prices, have to take this into account. And imagine how this adds up if you have 10 or 20 or hundreds of stores like some jewellery chains. Think of an online store now. Where can it locate? CHEAP REAL ESTATE. It doesn't need a shopping centre presence. Why would the owner pay such high prices when he can go somewhere where the cost of buying or renting is low? And he needs just one place of business even if he does heaps of business, not dozens of stores. What does he need to do business? Well he doesn't need highly paid sales staff because there is no face to face business done. All the sales are done via the website which is reasonably cheap to operate. No sales staff means low wages. He doesn't need fancy display cases, lighting or any of the other things that you will find in a normal shop. All this adds up to LOW EVERHEADS. How can the normal stores sell more expensive compared to the online stores? Don't they have to compete on price with the online stores or go out of business? No not really. Because there are still heaps of people who wouldn't think of buying on the internet. Maybe they don't even know how to use the internet (think of your parents, how many of the older generation would think of jumping on to the internet to buy jewellery?) The online and offline markets are 2 different markets. Regular stores compete in one market with one set of conditions and online stores compete in another market with another set of conditions. That is why the online jewellers can sell so much cheaper. There is no doubt that it is cheaper to buy online, and that doesn't just apply to jewellery. Lots of other things are the same. Once you know this there isn't anywhere else to buy but online, there's just lots of people who don't know this who go to the regular stores. Read our Inexpensive Mens Wedding Rings page. This article has been written for you by Peter Crump the publisher of Cool Mens Wedding Rings - your friendly experts in Mens Wedding Rings.You may copy this article without having to ask the publisher but you must not alter any of the HTML code in the post-article section
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