23h • General discussion
Create value out of thin air
There is exceptionally crafted jewelry on Etsy that sells for super cheap.
You can find pieces with materials, quality, and design as good as TIffany & Co. selling for a 10th the price. (Barely over the price of materials)...
At first I thought the issue was audience size and awareness.
However, many of these artists have tens of thousands, if not hundreds of thousands, of followers on social.
Might not be as many as LVHM but certainly enough to have people in their audience that can afford $500-$1k jewelry.
So why are these artists selling for so little (if at all)?
IMO...
Story and location.
These artist have a product description like "[type of stone] on sterling silver wire."
That's it.
"The work is supposed to speak for itself" or some BS like that.
And they're selling on Etsy (location).
Which is a marketplace that turns their unique art into a commodity.
"Why should I pay $500 for a necklace from this artist when I can pay $60 for something looks nearly identical on the next listing over?"
My point I think there's an arbitrage play here.
Consign or buy some jewelry from half dozen artists.
Create a quick Shopify store with a luxury feel and add a compelling story to each piece...
Now you have more than just jewelry.
You have art.
Charge 5x-10x what the original artist sells it for.
Your story added to each piece of jewelry creates value out of thin air.
J. Peterman catalog has done this for decades with clothing.
Their clothing is nice but it's not special.
The J. Peterman Catalog writes a paragraph story to go with the clothing...
They paint a picture of the dream and life of someone who wears the clothing...
And sell a shirt for $120 that would have otherwise sold for $30.
Something else J. Peterman does?
They don't use pictures of the clothing.
(At least not for their "Owner's Manual" products.)
They use drawings.
Another way they remove comparison - making the price more elastic.
It's not a rental model like Travis prefers.
It's flipping, but...
Jewelry buyers are often like shoe buyers - my wife owns dozens of pairs of both.
So, over time, you'll have repeat buyers who you can nurture and create great LTV.
With a subjective "art" price that you can set way above anyone else with little to no justification needed.
Making it nearly impossible to make comparisons.
Especially when removed from the Etsy marketplace.
(No one shopping on Tiffany's website thinks "I bet I can get this cheaper at Kate Spade." Or Vise Versa.)
Can you think of any other markets adding story, or silo-ing from comparision, could allow for higher margins?
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Create value out of thin air
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