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How can we sell body jewelry at low prices ?
How we offer Piercings at the lowest wholesale price
Anyone would wonder how we can offer quality surgical steel piercings for as low as 0.09$. So here are the 10 simple reasons why our body jewelry is priced so cheaply despite our high-quality standards.
- Mass Production. The cost per unit will drop considerably when producing any product at scale. So, for example, a small piercing factory could have a production capacity of 1000 pieces of surgical steel labrets per day. Compare this to a large company that produces 100.000 pieces per day. It is clear that the small factory will have a considerably higher cost per unit than the large factory.
- Automated Production Process. Any industrial machine can perform repetitive tasks much faster than it is humanly possible. Of course, these machines are very expensive, and especially when we look at the top models with the best performance, prices can easily exceed over 100.000 USD per machine. So the cost to fully equip a piercing manufacturing facility may exceed 5 million USD. This means that high-quality and high-output machinery are only economically feasible for large Body jewelry Factories.
- CAD. Computerized Design of Piercings and CNC Production equipment means that for large body jewelry factories, the investment in labor cost is significantly reduced since all processes are automated.
- Buying raw materials in Bulk. If a small body of jewelry approaches a steel mill to buy a batch of 500kg of 316L steel, they will get laughed at and asked to go to a local distributor. Of course, this local distributor will then sell them the materials at a highly marked-up price. Large factories with a yearly consumption of over 50 tons of 316L steel per year can deal directly with steel mills and accordingly get much lower prices.
- Low Salary costs. As all piercing business owners will know, salaries and related costs are one of the most significant expenses of having a piercing studio. So since the factories are located in China, where salaries for skilled industrial workers are roughly 25% of what they are in the USA or Europe, this means huge savings in salary-related expenses.
- Profit Margin expectations from the owners. Body Jewelry Factories in Europe and the USA typically target the premium segment of the market and have relatively small yearly production compared to the factories in China. So if the owner of a US company that produces 100.000 Pieces of Jewelry per year expects to have an annual income of 100.000 USD, that means from the price of the jewelry you are paying, 1 USD is destined for the owner. The formula is different when we look at the Chinese business model. For example, one of our key piercing suppliers has a monthly production capacity of 5 million pieces per month, which means 60 Million piercings per year. So taking the same profit expectation of 100.000 USD per year, the owner's profit margin contributes only 0.001 USD to the cost of the piercing.
- Short and efficient supply chain. Since our manufacturing partners are geographically very close, this means we can get resupplied by our supplier in a matter of just 10 – 20 days and not 2 – 3 months, which would be the norm if we are located in Europe or North America. Accordingly, we do not need to hold very high stock levels or spend significant money on shipping and logistics from our suppliers to our warehouse.
- Long product live items. Most companies selling body jewelry take it as their mission always to have the most innovative products for their client. New products are undoubtedly exciting but cost a lot of resources including money to develop and introduce into the market. And what tends to happen in most companies is basic items such as your surgical steel initial piercing will have the same or even higher profit margin than those new products even if these initial product development costs do not apply to these basic items anymore. We believe that most of our customers place their orders with several suppliers. Accordingly, our mission is not to bring you the hottest trends for the next season but instead to be the supplier with the lowest price on all those basic items which will never go out of fashion, such as basic surgical body jewelry, basic titanium g23 body jewelry, and silver nose jewelry.
- Efficient operation, making our operations as efficient as possible, is an ongoing project for us. This means we constantly try to find ways to offer you the same or better service more efficiently. Cutting down on this administrative cost as much as possible allows us to keep our prices even lower.
- Low profit margins. Our business model is not focused on milking the market and extracting as much money from the company as possible as quickly as possible. Instead, we want to grow steadily and sustainably and focus on growing together with our customers.
- Minimal advertising budget. Many modern wholesale internet body jewelry companies spend as much as 5 – 10% of their yearly budget on advertising, be it with Google pay-per-click advertising or other means of online advertising. We believe this money is better spent on quality products and keeping our prices low so that our customers will promote our company due to word of mouth.
Combining all of the above points allows us to enjoy a much lower cost than any competitor in the market without compromising the quality of our items and service. And since we are looking to forge long-term relationships with our customers, we are happy to pass those serving on to them. Ultimately, our target is to allow our customers to have profitable piercing studios or body jewelry shops and grow together with them.