The debate about when and how to discount products is never-ending. Retail experts have conflicting opinions on this critical subject; however, we do know one thing for sure: even the smallest advantage can be the difference in today’s fiercely competitive jewellery market.
It’s been said many times that this is particularly true in the digital marketplace, where consumers are physically separated from products as they browse. In this setting, the presentation of the product, especially its price, takes on a heightened importance.
For the digital consumer, the only actionable information available to guide their decision-making process is an image, a description, and a price. Without the added advantage of touch and sight – and perhaps a charismatic salesperson – it’s critical that jewellers get these elements right.
As researchers explore the driving motivations behind purchasing behaviours and patterns among consumers, an arsenal of subtle strategies has emerged that gives considered retailers a competitive edge.
It goes without saying that there is never a one-size-fits-all approach to marketing, product, and pricing strategy for jewellery retailers. At the end of the day, jewellery is a luxury, wrapped in emotion, symbolism, and cultural meaning, and not a necessity.
With that said, while there may not be a ‘silver bullet’ that works in every jewellery store, researchers have identified many valuable principles – all you have to do is find the right one for you.
Math problems
Should you display implied savings as a percentage or a dollar amount?
As a blanket rule, many experts suggest that if the discounted price amounts to implied savings of less than $100, retailers should use a percentage. Conversely, if the implied savings exceed $100, retailers should outline the dollar value.
If you purchase a $50 ring that has been discounted, a label that reads ’20 per cent off’ sounds like a better deal than ‘$10 off’.
On the other hand, if you’re buying a $2,000 necklace, the implied savings of ‘$400’ rather than ’20 per cent’ is more immediately attractive.
The more extreme the example, the more obviously effective this principle appears. A $1,000 discount on a $20,000 diamond ring sounds more appealing than ‘five per cent off’.
While this principle is easy to follow, there are some additional caveats to consider. Consumers with lower purchasing power – perhaps the target market for fashion jewellery – were found to be particularly sceptical of percentages in advertising.
Others advised caution when providing a dollar value for implied savings on larger luxuries, as it may be an unnecessary reminder to the consumer that they are about to spend a significant amount of money on something that is not a necessity.
Saving for a rainy day
Infomercials are a common cure for insomnia. Have you ever wondered why those late-night broadcasts always feature the problem, the ‘old way of doing things’, in grayscale?
Meanwhile, the demonstration of the supposed solution – whether it be a set of knives, weight loss supplements, or gym equipment – is shown in bright colour.
Advertisers use this strategy because when two things contrast visually, they are perceived as distinctly different by consumers. The same is true for the display of pricing on products.
Discounted prices can be distinguished using colour in a range of ways, most commonly with the classic red tag – but you must be careful! Researchers have suggested that if you’re going to use the colour red when pricing products, it can’t just be one slowly-moving ring or necklace.
This singles out that product as inferior to everything else, and harms the chances of sales rather than improving them.
Beauty might be in the eye of the beholder, but other studies suggest that ‘ugly’ fonts can be used to enhance deals because they attract greater attention from consumers. Broadly speaking, larger fonts should be used for quality products, while smaller fonts should be used to convey a good deal.
When it comes to the layout of your website, should you provide a product description or a price first?
Whether online or in person, in nearly all sales negotiations, it is best to detail the benefits before the costs.
If you’re selling high-quality jewellery, you should always describe the product before providing the price. A study that used brain scans found that consumers are less impacted by price when they’ve previously been entertained by benefits.
If you’re selling more price-sensitive jewellery, you should show the price first and then the description. Consumers will fixate on the cost while evaluating the product, which helps build the budget-friendly association.
Final words of wisdom
It might be tempting to include some ‘pseudo claims’ in your advertising or promotional material. As an example, advertising a ring as featuring a ‘100 per cent natural diamond’ or describing a necklace as ‘100 per cent handmade’.
Broadly speaking, consumers dislike these kinds of claims and, according to one study, actively resist them. This research found that among consumers surveyed regarding two brands of orange juice, the ’99 per cent’ option was more appealing than the ‘100 per cent’ rival.
Researchers were even told by the participants that they disliked those who preferred the ‘100 per cent juice’, believing them to be less intelligent and successful based on their choice. Harsh!
While some, or perhaps none, of these examples may directly apply to your business, pricing philosophy is still a subject worthy of routine reflection.
At the very least, these insights shed light on the often-overlooked, intangible forces that shape consumer behaviour. Many of these influences operate beneath the surface, guiding choices in ways customers are unlikely to recognise.
Whether through pricing, design, or tone, every detail contributes to the overall impression your jewellery business shares with the world — and ultimately, to the consumer’s decision to purchase or walk away.
READ EMAG