Fine jewelry makes a statement. And when a shopper buys authentic, quality pieces, the price tag also makes a statement. Consumers need financing options to shop your inventory and bring home the perfect jewelry without breaking the bank. Financing increases accessibility, affordability, and sales for your jewelry store. Read on to learn how.
Consumer Behavior and Financing in the Jewelry Industry
Before jewelry businesses implement a consumer financing program, it’s important to understand how today’s shoppers think about buying jewelry.
Jewelry is widely considered a luxury item, and that distinction puts shoppers in the mindset that they’re going to spend more on a jewelry purchase. But with many consumers tightening their belts or seeking cheaper alternatives to save money, jewelry retailers must provide alternative payment options that make these high-end pieces affordable, especially for younger consumers.
Millennials and Gen Z are the primary groups utilizing financing programs, with 56 percent of the former and 49 percent of the latter taking advantage of these flexible payment options. And according to the trends, these numbers will only increase. The rise of Buy Now, Pay Later (BNPL) services is reshaping consumer spending habits and the expectations shoppers place on retailers to offer flexible payment alternatives.
For more established consumers, payment flexibility allows them to buy the jewelry they want –– when they want –– for a low monthly payment. For younger shoppers, first-time customers, and those with limited credit or needing a cash alternative, financing is an open door to purchase.
The takeaways:
- 56 percent of Millennials use BNPL options
- 49 percent of Gen-Z shoppers take advantage of BNPL financing
Providing these options at checkout helps jewelry stores meet consumer wants and needs for payment flexibility.
Benefits of Offering Financing for Jewelry Retailers
Offering financing empowers consumers to shop with your jewelry store, facilitating immediate purchases, positive experiences, and long-term loyalty, all of which increase jewelry sales. Let’s explore the benefits of implementing consumer financing for jewelry retailers.
- Increased Sales Volume
Financing options break down large price tags into smaller, more manageable payments. Affordable payment plans help jewelry retailers overcome sticker shock with low monthly installments that fit within consumers’ planned spending. When shoppers can afford a new diamond, necklace, or engagement ring without charging it to a high-interest credit card or significantly impacting their savings accounts, they’re more likely to commit to the purchase.
Affordable financing plans help jewelry retailers attract a broader range of customers, including those who might not have the full purchase amount upfront. Payment plans help customers across all demographics feel more comfortable making larger purchases, helping you increase your sales volume.
- Higher Average Order Values
Not only do affordable payment plans help increase sales, but they also contribute to higher average order values. Low monthly payments can encourage customers to purchase pieces they might not have considered otherwise. Providing the means and options for upgrades is essential for jewelry stores and retailers.
When it comes to jewelry, shoppers want the best for themselves or those they love. Installment loans empower consumers by multiplying their purchasing power, allowing them to choose the bigger, better stone, more intricate piece, or a complete set without the commitment of a substantial upfront payment. Financing options maximize the value of the shopper’s dollar, helping them bring home more without feeling major financial strain.
- Make Immediate Purchase Possible
Consumers shopping for jewelry usually have a purchase timeline in their minds. Many high-value jewelry purchases are gifts, whether for a Mother’s Day gift, holiday gift, a birthday, or engagement rings. Financing empowers shoppers to purchase the pieces they want immediately.
Charging luxury pieces to a high-APR credit card can be disastrous for the shopper’s debt: even one missed or late payment can cause interest to skyrocket. Conversely, saving for an upfront cash payment can feel impossible. Often, if a shopper doesn’t have the means to affordably purchase the jewelry, they’ll look elsewhere for a better deal or more affordable options. In some cases, they feel that they must forego the purchase altogether.
However, when jewelry retailers offer affordable financing options, customers can make their selections and repay their loans over time. Many jewelry purchases are time-sensitive, and waiting or postponing isn’t an option. Implementing a consumer financing program for your jewelry store means immediate purchase is possible for all approved consumers.
- Gain a Competitive Advantage
Affordable, accessible financing options with low monthly payment plans set your jewelry store apart from competitors who don’t prioritize consumers. Customers want payment flexibility; 43 percent of consumers choose retailers based on the availability of financing options. Offering financing programs for luxury, high-end jewelry isn’t an option. It’s essential for retailers that want to compete in this market.
Keeping pieces affordable is key as luxury items edge farther out of reach of many shoppers. Breaking down a lump sum payment into low monthly installments paired with a fair, affordable APR gives jewelry retailers a competitive advantage that helps them sell more, earn more, and establish a loyal customer base.
The facts: 43 percent of shoppers choose retailers based on financing options
- Customer Loyalty and Retention
If customers can’t afford to purchase from your store, they will look elsewhere for jewelry. Retailers must provide affordable payment options to draw shoppers in, maintain affordability, and encourage them to purchase.
Consumer financing empowers jewelry store customers to choose the pieces that speak to them and bring them home same-day; no settling for a smaller, lower-carat stone or a piece that’s anything other than exactly what they’re looking for. By providing simple, straightforward financing options, jewelry retailers draw shoppers in and deliver an exceptional purchase experience that forms long-term customer relationships.
Offering financing helps jewelry businesses deliver a customer-first experience, providing convenience and accessibility that keeps them returning for future jewelry purchases.
Increase Jewelry Sales with Financing from UCFS
Jewelers and jewelry retailers face many obstacles to success. They must address and overcome the challenges of a competitive market, cheap imitation jewelry, and consumers’ financial limitations and purchase hesitancies. Providing jewelry financing through United Consumer Financial Services allows you to address those roadblocks to purchase –– plus more.
UCFS, the best consumer financing firm for jewelry stores, brings more than 45 years of experience to work for you and your customers. A Berkshire Hathaway company, we have the resources and expertise to help you implement a financing program that increases jewelry sales from day one.
In today’s market, jewelry retailers need the right tools to engage shoppers and outsell their competition. Payment flexibility and affordable financing options are the answer. Contact us today to learn how easy and fast it is to implement consumer financing and how doing so can transform your sales and profits.