The Value of Jewelry

The value of anything really, is how much it is worth to you. If you were walking through the desert for instance, and ran out of water, you might pay someone £100 to sell you a bottle. Unfortunately though, not everything is up for negotiation, and standardized pricing does exist. What is pricing based on? Well a few things. For starters once must take into consideration the cost of the materials, the time and labour required to make the product, and then of course a marginal mark-up to cover additional expenses such as manufacturing, distribution, suppliers cuts, marketing and of course some amount of profit for the company.

Where people get frustrated however, is when the mark-up on jewelry is above and beyond any reasonable profit. This brings us to another point about value and that is a product's popularity- not only in terms of supply and demand, but in terms of aspirational qualities.

An aspirational brand/product us defined as something a large portion of the market segment wishes to own but cannot because they can't afford it or because of it's rareness. Those that can afford it are known as the 'consumption audience'. The consumption audience together with the aspirational audience form the product's target audience. When something becomes increasingly aspirational, not only due to price, but brand associations, its value goes up.

This is precisely why high-end designer brands such as Chanel, Tiffany & Co or Philip Stark chairs are priced so high. Their marketing strategy was to reposition the brand within the marketplace. By directing consumer opinion about the brand, products can go up in value.

Product developers/designers should decide early on what type of associations they want their brand to have. Are they going after a mass market? If so then they ought to value their products at a low cost. Are they going after the mainstream or a marginal, but influential audience? How will they attract that audience and establish those types of aspirational associations?

That's where a strong marketing strategy comes into play. Celebrity endorsements, parties, launches, giveaways, etc might all be a part of it. You'll notice that even brands that might have started out small scale will become increasingly expensive as their products become more popular.

So, when you're out buying jewelry for yourself or a loved one, ask yourself whether you're buying something rare because you want to be unique, or if you're buying something popular because you know it will be a hit. Then ask yourself how much you're willing to pay to be unique, and how much you're willing to pay to fit in. Then have a look at the quality of the piece and determine a price you are happy with. Once that's all figured out all you have to do is find a retailer who has what you're looking for.


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Tateossian was established in 1990 by Robert Tateossian,
whose own international lifestyle and keen sense of aesthetics is at the heart
of the company's success.
To learn about our men's jewelry visit
http://www.tateossian.com/Mens