What are the 3 major leakage points in your jewellery showroom’s business?

 The first of its kind analysis found loopholes in the lending process, over-invoicing and fake bill discounting as modus operandi used by parties involved in the jewelry business:

 

1: Benefits Sharing With Customer

a. Metal Rate Manipulation in Bills

Customer care executives are often involved in manipulating the metal prices on the bills/receipts provided if they are not bound by Jewellery Software. The prices of individual metals, like prices for any commodity, are essentially determined by supply and demand. However, to assume that information on supply (production and inventories) and demand (consumption) is readily available, accurate and transparent, would be a big mistake, regardless of the type of metal.

 

b. Polish Wastage Manipulations

The concept of wastage charges originated because jewelers used their hands, but even modern machine-made jewelry has a wastage charge component. An advanced Jewelry Billing Software can prevent this from happening.

 

c. Weight Manipulations in Bills

Almost all the customers who buy gold jewelry get conned by the jewelry shop owners in the city and the amount fleeced from them ranges from Rs 2,500 to Rs 7,500 per 10 grams of the precious metal purchased because jewelers manipulate the actual weight.

 

2: Benefits Sharing With Supplier

 

a. Metal Rate Manipulation in Bhav Fix Entries

There are many variations of this theory: some say that precious metals are under the thumb of central bankers, while others blame big banks and their use of derivatives (‘naked’ shorts) and high-frequency trading for the declines in the price of metals. Using Jewelry Billing Software would help you overcome this.

b. Wastage Manipulation in Purchase Bill

Wastage’ is often expressed as a part of the costs by traditional jewelers in terms of ‘percentage’. And the wastage charges typically vary from 3% to 35% with most traditional jewelers in India. In addition, if your jewelry has any precious or semi-precious stones and pearls, that cost will be added up as well. This is where they manipulate the actual price on the bill you get. You can ask them to calculate this through Jewelry Accounting Software. 

 

c. Discounts Manipulation in Purchase Bill

When you get the final bill from them, they state different figures and % that define the total amount you pay, and then there is GST which you won’t get the discount for.

 

3. During payments done with clients

 

a) Fake Credit Sale

Credit sales refer to a sale in which the amount owed will be paid at a later date. In other words, credit sales are purchases made by customers who do not render payment in full, in cash, at the time of purchase. If the card used for the sale is acquitted by the bank before the money is transferred, things would go sideways.

 

b) Cash Debit Entry in Anonymous A/c

They add the funds into an anonymous bank account which makes it really hard to track the transactions and parties involved, beware of this as well. A Jewelry Accounting Software will tell you the exact details of the transaction and help trace them.

 

c) Sale to defaulters/anonymous account

When they want to convert the black money into white, they would print bills showing sales made to anonymous accounts and register it as a valid sale. 

 

4. Error done by staff

 

a) Back Date Entries 

Your staff members can enter a sale on a date that has already passed to generate the bill for a friend or relative and save them from tax but you would need to pay the GST on the sale.

 

b) Fake Expenses Entries 

5% of a jeweler’s annual revenue is lost due to fraud. This 5% is made up of expense fraud cases with varying risk levels. Expense fraud can range from an out-of-policy travel seat upgrade to having your showroom pay for a joy ride in a private jet with your friends. It sounds unbelievable, but it has happened. Track their expanses using advanced Jewellery Software.

 

c) Items Tag Replacement

You mark each item with a tag to ensure the correct price is obtained upon sale but some replace an expansive item with a low-cost tag to sell it under a price that would cost you dearly.

 

 

Conclusion:-

You should have well-crafted and advanced Jewellery Software that can track your employees, transactions, and inventory while delivering the best priced, quality products to your clients.

This is where https://jwelly.com/ comes into the picture, talk to us today for a customized solution.