Professional Jeweler Archive: Reconsidering Platinum

August 2004


Reconsidering Platinum

PGI dramatically increases its support to retailers

The wild ride platinum prices took this year made many jewelers as leery of the metal as some people are of roller coasters. Though that sick feeling in the pit of your stomach might not be completely eased, you should not let the price deter you from carrying this most precious jewelry metal, says Platinum Guild International.

Platinum provides you with a clear opportunity to differentiate yourself, especially among the increasing number of affluent customers for whom price is not the first consideration. Carrying platinum elevates a store in a consumer’s mind and makes it seem more luxurious, according to PGI research.

Aspire to Platinum

Platinum’s aspirational quality should not be underestimated either, according to PGI. Generation X consumers and younger Gen Y consumers solidly prefer white metals and have the taste for finer things. You can whet their appetites for the future with platinum charms on leather cords or delicate chains. The key is to have a broad selection of platinum jewelry to excite customers with the diversity of available merchandise (see our cover story for ideas).

Push & Pull Too

Another reason to stock a wider array of platinum this fall, says PGI, is that PGI-USA’s new team, headed by President Huw Daniel, has produced an avalanche of new material and training programs to help you pull in consumers.

The new emphasis on retail support comes because PGI realized that though it was doing a good job pushing the metal through its consumer ads and promotions, it wasn’t doing enough to train jewelers how to stock, display and sell the jewelry once the consumer got to the store. This lack of retailer support in some stores, PGI found through consumer research, actually deterred people who walked in a store wanting the metal (“Why We Didn’t Buy Platinum”).

On the following pages, learn about all the new material available to help you increase platinum sales. Check out the schedule for PGI’s Sales & Technical Training Tour. And read about the approach PGI is taking to sales training. Also check our For Your Staff section for information on training your associates to sell more platinum this fall.

‘Why We Didn’t Buy Platinum’

Consumers’ top five reasons may surprise you

Most retailers think price is the chief barrier to platinum sales. Here are the reasons consumers actually cited:

1. No one showed it to me.

2. The salesperson convinced us to buy something less expensive.

3. We were made to feel there was nothing particularly special about platinum.

4. The salesperson assumed we couldn’t afford platinum – it was insulting.

5. The store experience was really disappointing ... so we left.

Consumers are wooed to buy platinum but then hit a wall when they get into stores. PGI aims to change this by offering more support to retailers.

Copyright © 2004 by Bond Communications