Sales mechanism is important to every business, it determines the volume of sales, percentage of profit, and the overall performance of a business. Businesses that have structured sales processes increase revenue and performances, and can accurately predict long-term business outcomes. Every sales manager should focus primarily on how to maximize profit and deliver the best value to customers.
To increase sales, startup jewelry brands need to build an online business to create more reach and showcase their stuff. People buy more online now than ever before, since the pandemic. Online jewelry direct sales to customers have been on the increase since the pandemic with more people in the United States buying fine jewelry and total sales reaching $68.8 billion.
Various jewelry brands have taken advantage of online sales to maximize profit and create more value for customers. Diamond Hands is a jewelry brand that has taken to tokenization as a sales approach to increase value to customers, increase use cases and maximize profit. Its tokenization approach allows customers to have unique items and earn profit as well.
Best Sales Mechanism Jewelry Brands Should Adopt
Jewelry has always been a thing of value, it attracts admiration and appreciation from people all over the world. They can be used as gifting and also a store of value because their prices appreciate. So, jewelry brands should adopt sales mechanisms that can increase and retain value.
Tokenization will add value, and retain the uniqueness of already valuable pieces of jewelry such as gold, diamond, silver, emeralds, pearls and increase their use cases. Brands can use NFTs to add value to real-world assets like jewelry. DESIRED is one such platform that has created an exquisite collection of Bitcoin-inspired gold rings called Diamond Hands.
Non-fungible tokens have become a new way to add value to tangible assets and bring them into the world of crypto. NFTs are assets that cannot be interchanged with something else, it retains its uniqueness.
When items like jewelry are recorded in the blockchain, each piece is assigned a token that can be used to represent its uniqueness and gives it an exclusive value that cannot be redeemed for something else. NFTs will create higher value for these precious metals and make their ownership permanent.
Tokenization will increase sales and maximize profit since people will know the pieces of jewelry are worth the value they will get for their money due to its uniqueness.
Bonding Curves Sales Mechanism
Tokenization will enable a brand to apply the bonding curve pricing method and create more value for customers. Diamonds Hands is a brand that uses the bonding curve approach to maximize profit and create value for customers.
As such, they tokenized Bitcoin-inspired gold rings with its limited collection, the limited edition represents redeemable tokens. Currently, the brand listed the 01/100 edition ring at Binance NFT marketplace; the token it's also available at their platform.
The bonding curve method enables a price to be controlled by supply, instead of selling at a fixed price, the second market determines the value. Every time a piece of jewelry is purchased, the price increases by 6 percent. As the number of circulating tokens increases, the price increases.
The system creates opportunities for early adopters to earn more profits as the prices increase after every purchase.
This method will drive more sales as so many will desire to be part of the early adopter and earn higher.
A better sales mechanism for jewelry brands to increase revenue and maximize profit is through tokenization. It helps brands to maintain the quality and uniqueness of precious metals, with the bonding curve sales mechanism, they can also create investment and earning opportunities for customers.