Sourcing pearls on small scale for jewelry line

[Fashion208]

Hi all!

This is my first time posting and lemme say I have learned a great deal of information from all the post I have been reading.

I have a question and was wondering what would be the best move for me to make. I would like to start a small pearl jewlrey line to a niche market where profits would assist with providing scholarships to single mothers going to college. I dont need anything super high quality, just something decent quality for a middle class to upper middle class market. Since I would be funding this project on my own, is it best to source the pearls from Hong Kong at the fair since I would be purchasing on a small scale($10,000) budget, or would Shanghai suffice? I have been reading one needs a big budget when going to zhuji so I will stray away from that now. I am a flight attendant so getting to Asia wouldnt be a problem, I just want some advice on whats the best option for sourcing with a $10,000 budget where I can get decent quality and make a decent profit with markup. All help/advice would be appreciated. Thanks so much.

 

[jshepherd]

I used my first $10,000 pearl budget at the Hongqiao pearl market in Beijing, while working as a flight attendant.

I think the source location is not nearly as important as the market you're going to supply. You could do amazingly well at Hongqiao or get completely ripped off. That would happen in Shanghai or Zhuji too, and I can tell you from experience, there are a lot of hustlers.

Just go in knowing what you want to buy and what you want to pay and negotiate like crazy. Talk to a lot of different vendors and compare notes so you never settle. Always remember who you're buying for.

 

[Cees]

still remember when Jeremy showed us vdo's of his trips to China.

 

[amti]

I have never been to any of these pearl markets, but I've been to China a few times and my husband makes 6-9 trips there a year so we've had our share of negotiating. I stopped going to China about ten years ago, when my husband moved his company to Zhuhai, an industrial city, so I haven't attended any markets in a while. I have been to main markets in Shanghai, Beijing, Shenzhen, and a pearl shop in Sanya. I am not sure if our methods of negotiating would work in the pearl markets you plan to go to, but I'll share them with you. Maybe someone who goes to the pearl markets can advise whether or not these methods are good or if they'd get you kicked out.

After a few visits to the markets, I learned quickly to never buy the first thing you want because you're going to see it in many other booths (unless you're looking for the top of the line item). In your case, you want something middle of the line, so fwps that have great luster, rounder shapes, and are affordable is probably what you want, right? I think you're going to find a lot of what fits your idea in terms of what you want to buy. You may be overwhelmed at first so spend time training your eyes to know a good pearl from a bad pearl. Also watch to see how other buyers deal and see if you can overhear their prices so you get an idea how much to offer and don't appear like a newbie. Your eyes and ears and personality are going to help you a lot in negotiating.

To find out the best price of an item, we would offer really low (because we had no idea of the price, it is easier to go up than down, and the "we" was usually my children who didn't have a lot of money to spend) or ask a store how much... they will quote you high. And if you offer them a reasonable price, they will tell you it is too low if they think you don't know the market. What ever price you are offered, talk them down. Thank them and leave if you can't get close to your price. They will usually try to get you to come back and go lower. You will get a good idea how much a good price is by doing this because if your price is too low, they won't bother or give you their bottom line. Don't believe it is a bottom line unless you hear it from a few booths. And even then, go lower if you're buying in quantity or let them know in advance. If the store agrees to your price and you don't buy from them, they will get angry so you need to make sure the price you offer is one you're willing to buy at. You can always tell them you'll think about it too, if they come close to your price. If you find a store with something that you really like, get their business card and write the item/price/name so you'll remember if you want to come back to get it. You might even negotiate stringing and the clasps, but be sure if the item is gold, it is really gold. We got taken one time when we traded a white 14k clasp for a yellow 14kt clasp that was actually plated ss (that was pretty much our last jewelry purchase in China). Open and inspect everything before you pay too.

Since you are a flight attendant, I would also stress that you will be back to buy more if they give you a good deal. We used that often and did return to the same vendors who gave us good deals and would bring chocolate or little gifts. It is important to build a good relationship with people you're going to do business with so always be courteous and polite. I always found the sellers very likeable, charming, and sharp. However, negotiating gets old quickly (and is tiring) so the last few visits, I resorted to non-negotiating. I would show my passport (with the series of annual visas) and show my husband's business card with his China address, explain that I come to China once a year (and my husband comes 7 times), tell them I dislike negotiating and then give them my bottom price. If they balked at it, I thanked them and went to the next store. Many sellers weren't used to this but when they realized I was serious, they acted quickly. I always got vendors to sell to me at my price, shopped quickly, and I made sure to visit them each time I returned.

 

[Cicadalady]

Great tips for the markets, amti! It's certainly a different process over there than in western markets. One thing is in common, though - politeness is never out of place when doing business.

 

[Fashion208]

I used my first $10,000 pearl budget at the Hongqiao pearl market in Beijing, while working as a flight attendant.

I think the source location is not nearly as important as the market you're going to supply. You could do amazingly well at Hongqiao or get completely ripped off. That would happen in Shanghai or Zhuji too, and I can tell you from experience, there are a lot of hustlers.

Just go in knowing what you want to buy and what you want to pay and negotiate like crazy. Talk to a lot of different vendors and compare notes so you never settle. Always remember who you're buying for.

Thank you so much. I truly appreciate that. I figured it would be really more about the market im buying for so I will definitley keep that in mind. That was sound advice. I will try my stint with negotiating and if I have any more questions about if im paying too much or something I will reach out to the forum once more. Thanks a lot again.

 

[Fashion208]

Thank you for this as well! I know a few flight attendants go to one lady in particular shop for retail purchases and they give them really good prices because they know we are crew and they give them lower prices because they know they will be back practically every 3 days. I thought about maybe just starting with her based on other flight attendants using her and maybe being able to get good rates and decent quality from her. Also you are correct, the quality im looking for is something more middle of the line, doesnt have to be top quality but not poor quality either, like right in the middle. I will keep everyone posted on the journey and any tips or tricks of the trade would totally be appreciated.

 

[Cees]

on the Bangkok Gems Fair the fresh waters here are about 40 percent more expensive over Hong Kong on the Fair

 

[JerseyPearl]

on the Bangkok Gems Fair the fresh waters here are about 40 percent more expensive over Hong Kong on the Fair

Interesting...will you be going to Hong Kong?

 

[Cees]

Yes will leave Bangkok on the 13th early in the morning from Bangkok

 

[Yidanz]

I used my first $10,000 pearl budget at the Hongqiao pearl market in Beijing, while working as a flight attendant.

I think the source location is not nearly as important as the market you're going to supply. You could do amazingly well at Hongqiao or get completely ripped off. That would happen in Shanghai or Zhuji too, and I can tell you from experience, there are a lot of hustlers.

Just go in knowing what you want to buy and what you want to pay and negotiate like crazy. Talk to a lot of different vendors and compare notes so you never settle. Always remember who you're buying for.

Hello, I am new here, and learned a lot from your posts. One question, have anyone ran into any problems bring large quantities of pearls into the US? Do you need to declare anything or pay taxes when you enter?

 

[Katbran]

Well Jeremy could tell you but I'd have to believe that you would need to fill out a customs declaration of some sort. You obviously have a business is you are buying in quantity...I'd check with your accountant/lawyer as to the paperwork.

I certainly wouldn't recommend you go spend your money without some research. Start here.

https://help.cbp.gov/app/answers/de...sion/L3RpbWUvMTUwNjY4MjExOC9zaWQvY3ZEMkNWdG4=