Post by strmrdr » June 25th, 2005, 3:05 pm
Quick and incomplete Diamond store business plan.

Location: web based and by appointment locally.

Employees: myself and my wifey2b to start.

Contact: email, 1-800 number.

hours: 12 noon -10pm cst Monday tue thur fri sat 12 noon - 4pm wed.

advertising: local Christian radio station, pricescope and google, but mainly my web site.

Product: super-ideal cut SE/asscher diamonds and mid-range gemstones, other shapes available.

Source: Talk a certain cutter of ags0 princess cuts and super-ideals diamonds into cutting storm worthy SE diamonds for me. Contact 2 custom gemstone cutters I know about supplying products for side stones and center stones.

stock - 10-12 diamonds 20-30 gemstones.

settings - local benchman who does awesome work to start with.

margins %25+

terms = 15 day return. 90day 85% buy back on the diamond, 2 year upgrade at sale price and after 2 years wholesale price - 10% max depending on condition.
Must buy a diamond at least 25% more than the exchange value to upgrade.

First years sale goal 100 diamonds and 100 gemstone rings.

Pricing: ags0 princess price range.

Value add: yea like im going to give everything away :}

Average sale of $10000 to $14000 with setting for diamonds.
average gemstone sale $2500 with setting.

gross sales goal:
gemstone rings $250000.00
diamonds rings $1000000.00
total: $1250000.00

expenses:
stock. $1000000
merchant fees: 3% $37500
Advertising: $20000
Phone: $3000
Website: $300
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$1060530

Before tax profits of: $189470
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Start up costs of around $200000.00


5 year goal stock of 50-75 diamonds with sales of 500 per year and a line of custom settings and 4-5 employees.


edit to clarify > all diamonds and gemstones will be in stock that are offered.
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Karl has joined the diamond trade and is now posting as Karl_K