Starting a gold plating business is an exciting think to do but is not the easiest type of business to succeed in.
Whilst being incredibly profitable and requiring no skills whatsoever to produce the perfect product, you cannot just apply a factory like mindset and produce thousands of items to retail – no one will buy them unless it is inexpensive gold plated jewellery, and the high streets of the world are full of them!
To be successful you must fully understand where the energy will come from to generate sales and the subsequent profits that come from those sales.
For this you must be aware who your typical client will be, and what is their motivation to buy something that, in its unplated form already does the job it was designed to do.
Across the developed world high streets have consistently offered a huge range of standard factory produced products that have resulted in many successful national and international retail outlets.
It has been a formula replicated which has now expanded to online selling companies offering those same products but without the high costs attached to selling from shop premises such as high rents and staffing costs.
In contrast to this however there has been little progress made on high quality products that have been created by hand and sold in boutiques, art galleries and high-end retail outlets.
These products are like the ones sold generally in the high street but far superior in both design, quality, and originality – and of course price.
The thing that defines the customers of these more selective retailers is of course the fact that they have more disposable income than the rest of the buying public.
The reality that clothes, furniture, restaurants, houses and flats, motor cars, holidays, sound systems, etc, all come in different price sectors is nothing new.
It is the buyer that is solely the arbiter of what is ‘good value’ in relation to how much they are prepared to pay for any of these things.
A Burger meal with cola from a fast food restaurant is much less expensive a chateaubriand meal with a fine red wine, but the majority of people will enjoy either – it is the occasion that maybe lets the burger meal down for some.
Having for example the shaft of a brand leader putter club plated in 24k gold will not reduce a golfer’s handicap at all, but for anyone who has ‘actually’ seen one it does make them smile with admiration.
A chef using a gold-plated meat tenderiser to make Wiener Schnitzel will not be awarded a Michelin start because he used a meat tenderiser, but he will ‘feel’ better as he makes it.
In both cases the user would probably never buy the gold-plated item themselves but would be proud to own one if it were given as a gift or presented as an award for their skill.
This after all is the surely the point of giving a gift and would turn that gift into a gift and a memory due to the uniqueness of the item.
So, if you are considering starting your own gold plating business – and you should take note of the fact that you probably do not know of someone who is already doing this locally, and that you have probably never seen anything uniquely gold plated.
You will now be fully aware of the potential of such a business as well as the only way you will succeed if you do.
Terry George (Founder)