Have you ever noticed those eye-catching “60% off” or “70% off” discount signs in front of jewelry stores? You might wonder how these stores can afford to offer such seemingly incredible discounts. The answer lies in a pricing strategy known as “Triple Keystone Pricing,” where each piece of jewelry is marked up to three times its initial cost.
Understanding Triple Keystone Pricing
Let’s break down the math: if a jewelry store buys an item for $100, they typically mark it up to $300. That’s a staggering 300% margin! Even when they offer a 50% discount, bringing the price down to $150, the store still makes a healthy 50% profit.
However, these steep discounts are usually applied to items that have been in the store’s inventory for over 18 to 24 months, not the latest, trendiest pieces. With some savvy bargaining skills, you might secure a 25% discount on an item you love. For example, on a $300 item, you’d pay $225 plus tax. While this may seem like a good deal, you are actually paying 125% of the initial cost, not to mention an additional 7-8% in taxes.
Why 25karats.com is Different
At 25karats.com, we operate differently. We don’t have the high costs associated with maintaining a large inventory or a flashy storefront. This allows us to pass on the savings directly to our customers by offering the lowest prices possible.
When you purchase an engagement ring or a wedding band from 25karats.com, you can rest assured that you are getting the best possible price. Our streamlined operations and commitment to value mean that you receive high-quality jewelry without the inflated costs.
In conclusion, while those too-good-to-be-true discounts at traditional jewelry stores may seem enticing, it’s essential to understand the pricing strategies behind them. At 25karats.com, we believe in transparency and fairness, ensuring you get the best value for your money. Happy shopping!
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