How to Start a Jewelry Repair Business From Scratch?

Jewelry is sold both during the economic downturn and during its growth. Weddings, anniversaries, and other celebrations, where a gold piece is either an integral attribute or acts as a gift. In this article, we will talk about how to open a jewelry workshop in your city, consider the basic steps of starting this business and conclude whether it is worth doing it or not.

Who is this business for? First of all, for people with a specialized education in this area, without it it will be difficult to learn everything from scratch, and quickly learn how to work with various equipment. You need to study the composition of precious metals, the technique of their processing and decoration, all this has been taught in universities for several years. 

If you are a creative person who loves to draw sketches of products, and knows the general technology of work in general, then you can take a technical specialist as a partner and promote your business together.

Room selection

You can start a business in the form of a jewelry workshop by renting premises from 20 sq.m. This is sufficient to accommodate equipment and a customer reception area. If you plan to conduct training master classes, then you need to look at rental options from 30 sq.m. and higher.

From the requirements for the room, one can single out the presence of a good electricity line and water supply with sewerage, since you will need to install a sink for work.

You can choose any location for work, since the main customers will be attracted via the Internet, and spontaneous sales practically do not work here.

Keep in mind that jewelry production is a noisy process, so look for either adequate roommates or soundproof your working area.

Repair can be done cosmetic, saving the budget for starting a business, and decorate the room with paintings, vases and other interior items.

What Equipment will be Needed to Start Jewelry Repair Business ?

  • Grinder – $ 480 – $ 500
  • Tumbling – $ 320 – $ 800
  • Rollers – $ 240 – $ 480
  • Ultrasonic bath – $ 250
  • Washbasin – $ 150
  • Burner gas canister – $ 140 – $ 150
  • Burner – $ 110
  • Safe – $ 200
  • Drill – $ 95
  • Special tools: graders, chasers, scrapers
  • Waste collection equipment
  • Measuring tools: scales, vernier caliper, special scale ruler, compasses, ring gauge, finger gauge.
  • Jewelry making tools: needle files and files, pliers and round nose pliers, wire cutters and scissors, hammers and anvils, drawing boards.
Additionally, you will need furniture for the work area, this is a table and a chair, and for the waiting area, this is a sofa and a coffee table + a rack with hooks for outerwear.
 

Advertising and Publicity Strategy for Jewelry Repair Business

There is no hard and fast rule on how to advertise or promote a jewelry repair business. The problem is that most jewelry repair shops do not have the money needed to advertise and advertise. The cash they hold is usually set aside to cover overhead and operating costs.

  • Encourage your loyal customers to help, use word of mouth advertisements (referrals)
  • Advertise your jewelry repair company in relevant magazines. , local newspaper, local TV and radio stations
  • Promote your activities online through our official website
  • List your activities in local directories (yellow pages)
  • Matches community program sponsor
  • Use on the Internet and social networks such as Instagram, Facebook, Twitter, etc. to promote our brand
  • Install your billboards in strategic locations
  • Direct coupon approach
  • Engage in roadshows from time to time in targeted communities
  • Distribute flyers and handbills in targeted areas
  • Make sure all of your employees are wearing your customized clothing and all your official vehicles are custom made and branded.

How Much Money Do You Need to Start Jewelry Repair Business?

To withdraw the amount of start-up capital, which will be different for everyone, you need to work out in detail a business plan for a jewelry workshop, and take into account all items of expenditure.

Starting costs:

  • redecoration of the premises – $ 1500
  • purchase of equipment – $ 3000 – $ 3400
  • starting purchase of material and consumables – from $ 3000 and above.
  • advertising materials (logo, business cards, website) – $ 650
  • paperwork – $ 250

Monthly costs:

  • Rent of premises – from $ 20 per 1 sq.m. + utility bills.
  • Taxes – $ 250
  • Replenishment of stocks of materials – from sales volume
  • Advertising – $ 200
  • Salary for an employee (if you plan to work not independently) – by agreement.
  • Part of the costs can be reduced by buying used equipment or renting an office in the budget segment.

How Much Can You Earn?

In order to understand the level of margins on products, one should proceed from the price of consumables, namely silver and gold.

A gram of silver for bulk purchase costs $ 0.50 – $ 0.53. For a ring weighing about 2.3 grams, you will spend metal – $ 1.2 – $ 1.5. They sell such a product at a price of $ 75 – $ 85. But here you need to take into account that design is valued in silver products, the development of which the author spends a lot of time.

The situation with gold is as follows. Here the cost of the finished decoration depends precisely on the mass of the metal used. The price of 585 gold is about $ 56 – $ 56.5. If we take, for example, a wedding ring weighing 2.5 grams, then its cost can be about $ 250 – $ 300, it all depends on the design of the product.

Conclusions.

A jewelry workshop as a business is a good option, but only if you have education, as well as experience in this market segment + a desire to create unique jewelry and gradually develop your business. 

There is a seasonality in this business, and it is tied to the period of the wedding season. In the winter months, there is a drawdown in sales, and you need to be prepared for this.

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