Jewelopedia

The shop owner or retailers buy their jewellery in bulk from the wholesalers. For them the difference between the wholesale rate and the retail rate will give them the profit. In case, the shop owner has regular suppliers then he does not have to discuss the price. They just have to place the order and make payments. Even in the event, if they want to pick up two or three pieces they will get the same at wholesale rates.

However, if the shop owner is dealing with the wholesaler for the first time he has to bargain and the wholesaler will not be able to offer discount on one or two pieces.
If they are buying from their regular supplier, they do not have to worry about the quality of the goods as the stuff is tried and tested. Again, if it is a new supplier all the jewels are to be tested for the quality and the customers should be satisfied with what they are getting is a value for money.

The relationship with the regular wholesaler is already established and the better deals or more credit terms can be negotiated. The credit term can be increased. If ever find that the wholesaler is giving out low quality stuff and is not being truthful to you, it is time to change the wholesaler.