Running a permanent jewelry business without a solid strategy leads to costly mistakes that slow your growth and cut into your profits. Here are five common mistakes new business owners make(we've made them, so you don't have to!)—and how to avoid them so you can build a successful and profitable business.
1. Guessing Your Pricing Strategy
The Problem:
Underpricing your jewelry might attract customers at first, but it will eat into your profits and lower your brand’s perceived value. On the flip side, overpricing can push potential customers away, making it harder to close sales.
The Fix:
You need a proven pricing strategy that ensures profitability while staying competitive in the market. Here’s how to do it:
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Factor in all costs: Include material costs, time, overhead expenses, and transaction fees when calculating prices.
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Know your market: Research competitors and understand what your target audience is willing to pay.
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Use a pricing formula: A common approach is (Material Cost + Time) × 2.5-3 for retail pricing.
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Try our Pricing Calculator to take the guesswork out of your pricing and ensure you’re charging what your work is worth.
Use the Pricing Calculator Now
2. Not Stocking Enough Inventory
The Problem:
Running out of popular chains or charms mid-event results in lost sales, frustrated customers, and missed revenue.
The Fix:
Plan your inventory based on expected demand so you always have what customers want. Here’s how:
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Stock at least 4 weeks’ worth of your best-selling chains and charms.
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Track your sales trends to identify what styles and materials are most popular.
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Set reorder points so you never run out of essentials—keep a buffer for unexpected high sales.
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Regularly audit your inventory to avoid overstocking slow-moving items.
3. Lack of Organization & SOPs
The Problem:
Without clear processes, you’ll constantly feel overwhelmed. Inventory mishaps, scheduling conflicts, and missed opportunities become common, making it harder to grow your business smoothly.
The Fix:
Develop Standard Operating Procedures (SOPs) for every key part of your business to stay organized and efficient. Here are essential areas to systemize:
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Inventory Management: Use a tracker or spreadsheet to monitor stock levels and set reorder points. Measure, bag, label, and organize small scraps of chain that are too small for bracelets but can be used for rings.
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Booking & Appointments: Streamline scheduling with a booking app such as Calendly or create a separate Google Calendar for booking appointments. Create scripts for appointment reminders and rescheduling.
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Event Setup & Workflow: Have a reference photo to show your standard setup and display. Print out our Pop-Up Checklist to ensure you bring all necessary supplies.
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Customer Follow-Ups: Create scripts and templates for thank-you messages, styling tips to send to customers after appointments and events. Send reminders about your referral programs.
By creating SOPs, you’ll reduce stress, improve efficiency, and have more time to focus on growth.
4. Not Actively Promoting Your Business
The Problem:
Relying solely on word-of-mouth or social media without a strategic marketing plan leads to slow growth and missed opportunities.
The Fix:
You need a consistent marketing strategy to get in front of new customers and secure bookings. Try these actionable steps:
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Create a content calendar for social media posts, stories, and email campaigns.
- Capture content and photos of your customers' pieces at events and appointments. It will make them feel special, highlight the possibilities of designing your own PJ piece, and give you shareable content for your marketing channels.
- Capture content and photos of your customers' pieces at events and appointments. It will make them feel special, highlight the possibilities of designing your own PJ piece, and give you shareable content for your marketing channels.
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Secure local pop-ups by reaching out to boutiques, salons, spas, yoga studios, and small hotels. Be active in your community, attend networking events, join moms or women's groups on Facebook. Regularly check for events happening in your area and see if they need any additional vendors.
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Engage with potential clients online—post customer testimonials, behind-the-scenes content, and styling ideas. Post pictures of your customers' pieces and tag them.
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Collect customer emails at events and follow up with special offers and new product announcements.
Marketing consistently will keep your business top-of-mind and drive steady bookings.
5. Not Building a Strong Customer Experience
The Problem:
If you treat every sale as a one-time transaction, you’re missing out on repeat customers and long-term brand loyalty. A poor customer experience means fewer referrals and less repeat business.
The Fix:
Make every customer feel valued and keep them coming back with these strategies:
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Follow up after purchases with thank-you messages and styling tips.
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Offer a loyalty program with rewards for repeat purchases.
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Encourage personalization with charm add-ons—customers love designing jewelry that tells their story.
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Ask for testimonials and referrals—happy customers are your best marketing tool!
By delivering an exceptional experience, you’ll create loyal customers who will promote your business for you.
Now that you know what to avoid, it’s time to set your business up for success. Whether it’s fine-tuning your pricing, managing inventory efficiently, or stepping up your marketing game, these small changes can lead to big growth.
Need some extra guidance? Book a Customer Success Call.
