Buy gold in the UAE without paying manufacturing fees. Here's why these deals are spreading across Dubai stores

Dubai: Consumers said that a number of gold shops have recently expanded their offerings of gold jewellery without including manufacturing fees, or what is known as ‘zero manufacturing fees’ offers.

They explained that these offers are no longer limited to used gold jewellery as was the case in previous periods, but have extended to include new jewellery with different designs and styles, noting that these offers are among the positive aspects that encourage buying.

For their part, specialists in the gold and jewellery trade attributed the widespread availability of this type of offer to increased competition and a drive to boost sales, especially since it is among the most attractive to different segments of consumers looking to buy at reasonable prices.

In detail, consumer Hassan Rashid said that he noticed the expansion of a number of gold shops in offering deals to sell jewellery without labour costs, explaining that these offers are no longer limited to used jewellery, as was the case in previous periods, but have also come to include new jewellery with different styles and designs.

Consumer Amin Abdelghani stated that sales offers bearing the slogan ‘zero manufacturing fees’ on gold jewellery have become more widespread among different stores during the recent period, considering this trend to be one of the positive aspects that encourage consumers to buy, especially with the expansion of the scope of offers to include new and used jewellery, after it was previously focused only on used jewellery.

For her part, consumer Manal Mahmoud said that the spread of zero-cost manufacturing offers on gold jewellery prompted her and her family to search for stores and outlets that offer these deals and take advantage of them when buying various gifts.

She explained that the importance of these offers for consumers lies in providing an opportunity to buy without getting into the problems of calculating manufacturing fees or negotiating their value, as the consumer can buy jewellery based on the price of gold only, which gives consumers greater clarity regarding the cost of the purchase process, according to her.

For his part, gold trader Ayten Raju said that many shops have recently started to offer deals to sell gold jewellery without manufacturing fees, in light of the increased competition in the markets and the desire of shops to increase their market share.

He pointed out that the trend of stores expanding these offers to new items, and not just used items, comes in light of the fact that zero manufacturing offers are among the most attractive and appealing to different categories of consumers.

Raju added that stores achieve good sales through these offers, and they also benefit from the differences between the purchase prices of products in the past and their selling prices according to current local prices, in addition to some stores relying on selecting a number of pieces of handicrafts and offering them without labour, while other pieces are offered with a reduced labour charge.

Gold trader Ashwin Mahesh stated that offering zero manufacturing fees on gold jewellery is related to the different marketing policies adopted by stores, in addition to the different sales strategies and profit margins from one store to another.

He said that some of those offers are on older models, so it is better for stores to sell them rather than melt them down again.

Gold trader Ricky Dahnak confirmed that sales offers without labor costs, or what are called ‘zero labour costs’ offers, which have spread recently among a number of stores, provide a range of benefits to consumers, most notably the possibility of buying gold jewellery without bearing the burden of labour costs.

He pointed out that these offers simultaneously provide benefits to the stores that offer them, by contributing to higher sales and greater profits through increased sales, whether for used items or new items offered within the offers, thus enabling stores to dispose of large quantities of items available to them.

Dahnak explained that stores can achieve suitable profit margins from zero manufacturing offers, either by clearing out their available products instead of resorting to remelting models from previous seasons and then using the gold to buy or produce new models, or by taking advantage of the difference between purchase and selling prices.

He added that some stores also benefit from calculating product prices in full, including the beads and stones in the items, which allows them to generate revenue from sales even when offering deals that include waiving or reducing manufacturing fees, depending on the nature of the pieces and the pricing policy adopted by each store.