JEWELERS VERY UPSET ABOUT OBAMA’S DECISION ON KEYSTONE

imageWASHINGTON, D.C. (The Adobo Chronicles) – Thousands of jewelry retailers are very upset at President Barack Obama’s announcement yesterday rejecting the Keystone Pipeline project that would have facilitated the flow of 800,000 barrels a day of carbon-heavy petroleum from Canada to the United States.

A spokesman for the jewelers told The Adobo Chronicles that Obama’s decision practically would kill the already struggling jewelry retail business.

Keystone is a pricing practice widely accepted in the jewelry business, and it has nothing to do with carbon imprints.

Keystone pricing = the wholesale cost of an item x 2

In other words, we are talking about a 100% markup on an item. If a jewelry retailer buys a gold ring for $100, then he or she will sell it for $200. This is the standard default method of many traditional jewelers.

Some higher-end or name-brand jewelers will go as far as charging was is called triple-keystone pricing. This is the wholesale cost of an item x 3 (hence triple markup).

It was only after The White House held a conference call with U.S. jewelry retailers that the group realized it was just a matter of misinformation and miscommunication.

So the 100% and 200% mark-up continues. But now jewelry buyers fully understand why their favorite jewelry stores can offer discounts or sales of up to 50% off!

 

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