Do you want to start a jewelry store business and want to know the cost? If YES, here is a cost breakdown to open a jewelry shop and the profit margin / ROI. In the United States of America, Saudi Arabia, India, Qatar, Kuwait, Switzerland, France, Italy, Egypt and all across the world, both highly and lowly placed people cherish jewelries, hence people go to all lengths to ensure that they adorn themselves with jewelries when they are dressed for occasions.
Without been told, the value and market for jewelries is not going to dwindle anytime soon. As a matter of fact, the jewelry industry will continue to grow because in most climes, jewelries are used as collateral when you go to borrow money from the bank or any lending financial institution.
Jewelry stores fall under the watch and jewelry stores and repair industry and players in this industry sell different types of jewelries and also provide watch and jewelry repair services, including sizing, polishing and battery replacement amongst others.
Firms in the industry also offer other repair and rental services and resell refurbished merchandise and parts. Please note that jewelry repair shops are stand-alone shops that do not sell new watches or jewelry.
The Estimated Cost Breakdown to Open a Jewelry Store
When it comes to starting a standard jewelry store business, one is expected to spend the bulk of the startup capital on renting a store facility. Aside from that, you are not expected to spend much except for purchasing a wide range of jewelries and watches and perhaps repair and polishing tools, paying of your employees and utility bills.
In view of that, here are the key areas where you are expected to spend your startup capital on;
- The total fee for registering the business in the united states of America – 0.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand opening of the jewelry store in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The cost for hiring business consultant including writing a business plan – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $46,000.
- The cost for kitchen remodeling (construction of security tight safes, racks and shelves) – $10,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500) – $3,000
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost for start-up inventory (stocking with a wide range of jewelries and wrist watches and packaging materials) – $150,000
- The cost for counter area equipment – $9,500
- The cost for store equipment (cash register, security, ventilation, signage) – $3,750
- The cost of purchase and installation of CCTVs – $2,500
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
- The cost of launching a Website – $600
- Miscellaneous – $5,000
From the rough estimate as listed above, you would need a minimum of two hundred and ninety – two thousand, nine hundred and twenty USD ($292,920) to establish a medium – scale but standard jewelry store business in any city in the United States of America.
Please note that this is a rough estimate and we usually advise our readers who are interested in opening a jewelry store to go to the market or directly contact sellers of the items (the types of jewelries and watches et al) they would need to get the real time prices of these items. The truth is that if you are a good bargainer, you can get a better deal that will help you beat down the estimated price as listed above.