• We don’t know how to properly price our products.
• We wanted to see if we could get you to pay this price first.
• We apologize for pricing it like this.
• We really need your business, so I’ll take a price dive to get you into this today.
• We can also discount service and parts.
• You’re gonna have to play the haggling game with me.

Are these good messages to be sending your customers? You may think you’re creating friends, but all you’re doing is training them to get the lowest price, in which case you’ll see their car at the jeweler down the road just as often as at your store.

I used to be caught in this fear aspect of discounting — in a way, apologizing for the price and trying to build a customer base by doing them a favor. I was giving away the store, causing cash flow problems, profitability problems and sending out all these signals I mentioned. We had trained our customers to expect a discount, and we had to retrain them to know that the price on the ticket was the price.

I discovered that the one thing we weren’t doing through all this discounting was adding value. We learned how to add value to all of our merchandise by finding out from the customer what was important to them. An easy example is Brenda and Mark coming into the store for an engagement ring. After some discovery questions, we learn that Brenda has to have a pear-shaped diamond and that she’s a physical therapist. Brenda says the important thing is that she has a ring that she doesn’t have to take off at work.

Armed with that knowledge, there’s no need for discounting. We simply design a ring with a solid, safe setting in palladium or platinum with a proper V prong or even full bezel set. How would it look if I designed exactly what she wanted, including casting and mounting, and then took off 20%? It wouldn’t make sense. If we know the customer’s reason for the purchase and why it’s important to them, price becomes no object.

Now when it’s really time to discount for legitimate reasons such as closeout or dated inventory, we can simply state the honest truth. Honesty about discounting lends credibility to your organization and can build your relationships. So, don’t apologize to your customers through regular discounts. Learn to sell them on the reasons that are important to them, and you’ll be a much happier jeweler.

The post Here’s How to Change Your Discounting Mindset appeared first on INSTOREMAG.COM.

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As in years past, we’ve devoted every possible section of the magazine to engagement and wedding jewelry. But for 2023, we thought we would take a slightly different approach to our lead story, focusing on how to sell more wedding bands after the initial engagement ring sale. After all, it’s an oft-overlooked part of the business, yet the wedding band sale is just as evergreen (and important) as the sale of the diamond and mounting.

Two years ago in our annual Big Survey, 61% of respondents said that more than half of engagement ring clients return for the wedding band purchase, but to be honest, I think that’s a little bit of wishful thinking. The general consensus is that only about half of jewelry retailers see that kind of success. And honestly, it should really be 100%. If you sell someone an engagement ring, why would they go anywhere else for their wedding bands?

As Engagement 101 founder Severine Ferrari says, it’s a “blind spot” for the industry, but we hope you have your eyes wide open to the opportunity that wedding bands present to your bottom line. Enjoy the issue and stay committed to bridal success!

Trace Shelton

Editor-in-Chief, INSTORE
trace@smartworkmedia.com

The post Why the Wedding Band Sale Is Just as Important as the Engagement Ring Sale appeared first on INSTOREMAG.COM.

Tell us about your worst experience ever with a bridal customer.

• Unbeknownst to us, our customer recommended her boyfriend get the engagement ring he gave to her from us. We made a beautiful set but with a 3-carat CZ center. Three months later, she came in crying her eyes out. Her fiancé had stolen her car and all of her money and fled the state. The only asset she had left was the wedding set with the 3-carat CZ center stone, and she needed to sell it to pay her bills. Informing her the center “diamond” in her ring was worthless was beyond the worst experience ever with a bridal customer. — Scott L., Scottsdale, AZ
• A famous Olympic snowboarder and his Olympic skier fiancée came in two days before their wedding. They picked out designer rings after several hours, but of course they didn’t fit perfectly. So that left us Friday to modify them. We finally got them sized and looking perfect Saturday morning. We drove several hours to their exclusive wedding and delivered right before the ceremony. No gratitude … just entitled. They came back to complain about us arriving so late with the rings, shouldn’t they get a discount and how we made their day more stressful. Grrrr. — Caitlyn W., Brattleboro, VT
• You mean my first marriage? Well, my legal team has advised me not to discuss it. — Cliff Y., Lowell, MI
• I was sued for asking to be paid on the balance due. — Jeremy A. Los Angeles, CA
• After spending four months working with a bridezilla and her mom, Karen. Her check bounced, she claimed one stone was 3 microns out of line with the other stones. The average human hair is 50 microns thick. The judge awarded me two times the amount of the check, costs and stated he wished he could fine her more. Took three years to collect the funds. — James D., Kingston, NH
• The one who picked out our most expensive diamond, announced, “This is it! I’ve made my decision!” then left us with six pages of instructions about her ring and her absolutely necessary pile of accompanying eternity rings, then texted a week later to say she had changed her mind and bought a stone somewhere else. “Sorry! [smiley emoticon]” Hard to not feel performed upon … — Gretchen S., Sherman Oaks, CA
• The child the couple had together dirtied his pants in the diamond room. Not a great experience … Yes, I sold the diamond! — Eileen E., Decatur, IN
• The day the client arrived with his mother, future mother-in-law, sister of the bride-to-be, sister of the groom and the dog. P.S.: They’re now divorced. — Stew B., Natick, MA
• I had one demanding lady and I feel like I was the one that screwed up … and she let me know it. She had been in twice before with other staff and looked for literally hours. Then she came in one more time and it was a crazy busy day, when one staff called in sick and another had some other issue, so I was short two people and I got her. As she looked at every ring for the third time with me, I was inpatient and rushed her. I also was not at my best with the phone going off every few minutes and nobody able to answer. She did have her fiancé buy the ring but left a review that I was impolite and created a very poor experience for her. She was correct, and while she was demanding, it reminded me of how to improve and not let it happen again. — David B., Calgary, AB
• The couple who brought his mother in to “help”. Everything the girl liked, the mom hated. They finally picked mom’s favorite and the girl left barely holding it together with me humming, “Why do fools fall in love?” in the background … — Dorothy V., Tallahassee, FL
• I sold a D flawless emerald cut 1.5-carat engagement ring in a white gold setting. However, the diamond showed to be yellowish. Of course, the customer couldn’t care less that the stone had a GIA report; they returned the ring to me very mad. When I removed the diamond from the setting, under the prongs had never been polished and still had the yellowish color from the casting. Live and learn. — Barry F., Bardonia, NY
• Got in about six large diamonds and three mountings for a customer. He never came in, and then the customer went to a mall store and bought something. I heard that a few diamonds fell out and the marriage never happened. — Tommy T., Perry Hall, MD
• A customer chipped her diamond. Complained that was how it was when they picked it up five months earlier. She said she knew she didn’t chip it, that it was that way, and he replied, “You didn’t chip it.” The sob story of how special it was and how careful she was began. I explained that diamonds can chip and gave some references from reputable sites for them to investigate on their own. I also told them that there are several inspections of their diamond before it is sold. The vendor inspects before selling to retailers, I inspect upon purchase, the goldsmith inspects before setting and it was inspected and photographed for the appraisal. They still tried to blame us for selling them a “flawed” diamond. He said he wasn’t informed and didn’t know what he was buying. He also said another jewelry store said it shouldn’t happen and that there was an inclusion hidden under a prong that we were trying to hide to try to discredit us (this is something those in the industry must stop doing, it makes us all seem untrustworthy). All of our customers are “educated” and look at their diamond with a loupe when they are choosing a loose stone. I finally sent them an email with the synopsis of the situation including: the process of his purchase, proof that diamonds can chip, five solutions for the problem of the chip and a couple of photos he sent to us when they got engaged, the close-up photo clearly showing a non-chipped diamond from five months earlier. — Julee J., Mankato, MN
• After selling the engagement ring, the couple came in for wedding bands and sat down for hours learning and trying on all the styles of bands. The width, half round vs flat, comfort fit, finish, everything you could imagine. When it came down to inside engraving, which they just learned was possible, they said they needed to think about what they should engrave. When I called to follow up, they said they found it cheaper online. Now I charge for an appointment, if you want to use me as the internet showroom. — Niki N., Lyndhurst, OH
• Made a custom ring to exact specs, she loved it till 48 hours prior to wedding and wanted a refund for the ring and a whole new set made in 48 hours. She couldn’t understand why we couldn’t get new stones, recast piece set and polish set in 48 hours. “It’s not like you do anything else.” Needless to say, she wasn’t happy but used the original set, which we bought back 18 months later as part of the divorce. — Trisha C., Lowell, MA
• Middle-aged couple came in looking at engagement rings. She was surprised when he wanted to purchase the ring she liked. She cried. They were so happy when they left the store with the ring. We were having a 10% off event and she was excited to receive a discount. Our associate looked up the ring and offered her a slightly larger discount to close the sale. He proposed on the spot and they left the store happy. The next day, she returned alone and asked for the 10% discount in addition to the discount she had already received. We explained that she had been given a larger discount than 10% and because we are a small, independent business, we could not offer an additional discount. She then demanded a refund! She told the manager that she was made to feel “icky.” After several more minutes of trying to appease her, we realized there was nothing more we could do and we refunded the full amount. It was a snowy, stormy day and she left everyone involved with the transaction feeling very “icky.” — Theresa P., Edgewater, CO
• I’d rather not respond to this. Too traumatic!! — Phil P., Pickering, ON
• Customer refused to get engaged to the young man when he wasn’t going to purchase the 2.0-carat that she felt she was entitled to get. — Bruce B., Lyndhurst, OH
• Two young adults came into the store to look at diamonds and rings. I pulled out a 1.0-carat to start and only showed the diamond to him. He kinda shook his head at the price. She said I want a bigger stone. He started sweating. I brought out a 0.75-carat lower in price. He smiled. I asked him if he wanted me to bring out any more stones? He responded no, he really liked that diamond. She was not happy and made a scene. Embarrassed, he said that they had to go. Boy, I hope they work through whatever they can before he puts a ring on her finger. — Karen H., Batavia, IL
• A “bride to be” was six months out from her wedding. She was “anxiety eating” as preparations were being made on a lavish celebration. We had to size her engagement ring set four times. To keep the peace and not offend in any way, we had to insinuate we were simply not able to “get the size right” because of the width of the set. Sometimes being diplomatic can be expensive … — J. Dennis P., Johnstown, PA
• Customer wanted a cushion shaped diamond set in a halo setting but wanted it set high. Not just in the prongs, but so high it was a weapon. He came back five times to correct the height for her until she finally came in to have the diamond set as high as she wanted. We called it the “Tower of Terror.” — Cindi H., Foxboro, MA
• I get a phone call on a Friday asking if we could size a ring. I say we do offer that service, but we do not have an in-house goldsmith. It will be 2-3 weeks. No problem. Next day a woman walks in with a ring to be sized, it’s too big. I say of course, it will be 2-3 weeks. “NO! I called yesterday. I’m getting married in two hours. You said it could be done!” I informed her I was the only one here yesterday and explained I spoke to a woman (that was not a bride) about our services. She then changes the story to say her mother called and did not tell her about the wait. But do not worry readers! I saved the day. I put a plastic ring guard so she could wear her grandmother’s something borrowed down the aisle. — Ellie M., St. Michaels, MD
• I was patiently waiting on a couple when the guy suddenly turned on me and accused me of trying to “hit” on his girlfriend. I calmed him down by making him realize that wouldn’t be a very effective sales technique. I did still make the sale! — Jon W., Virginia Beach, VA
• The worst bridal customer I had was not really my customer. Many years ago when I was first starting out, a gentleman stopped in with an older engagement ring that needed sizing. The ring was a solitaire with a round diamond approximately 3/4 carats. It was a promotional quality I2 clarity from one of the majors. This gentleman had purchased the ring from his friend and wanted it sized and refurbished like new. He was very happy when he picked it up and paid extra in case his future fiancée needed an adjustment. My mistake was supplying him with one of my store boxes. He asked that if she came in to make any needed adjustments not to mention he had purchased it from a friend. She did return the following week screaming that she could not believe we would sell her fiancé such a poor-quality diamond. I did not tell her directly that the ring did not come from us, but I believe she got the hint when I politely said that she really had to discuss it with her fiancé. Thankfully this was pre-internet days and there was no such thing as online reviews. After she left, we never saw her again and I learned never to provide a store box for product that we didn’t sell. — Eric S., West Springfield, MA
• Our worst experience with a bridal customer included multiple renders, wax molds, and remaking the engagement ring three times because the bride wanted the point on her pear-shaped halo to be more “pointy.” Less than a year later, the customer brought the ring in, the shank completely broken into multiple pieces, with missing stones, from catching it on a shopping cart. We remade the ring a fourth time for her. Thankfully, Jewelers Mutual covered the physical damages. Our bench jeweler is still recovering. — Beth G., Binghamton, NY

The post Jewelers Tell of Their Worst Experiences Ever with Bridal Customers appeared first on INSTOREMAG.COM.

Do you have a private area for diamond presentations?

Yes: 36%

• Clients have an expectation of IMPORTANCE. When we built our private showrooms in 1991, it was a game-changer. Continue to utilize for selling and buying. — Eileen E., Decatur, IN
• People like privacy when spending larger amounts of money, plus it’s great for younger guys that we can teach more about why QUALITY costs more but is better in the long run. — W.J. S., Franklin, VA
• It works well by allowing customers to ask questions without concern of what other customers hear. It lowers the inhibitions of customers. It helps establish a “personal touch” to the purchase and the store staff is devoting private time to the customer. The customer feels empowered and more knowledgeable because they can look at the diamond under a scope or viewer. — Gary R., Granger, IN
• We have a private room available for showing, but clients and our team prefer to work on the sales floor. There is an energy and an excitement of looking at all the styles, having other excited people working in the floor and a comfort of not feeling separated and seated at the desk working. We’ve done it both ways, and most people prefer working at the cases. — Heather W., Des Plaines, IL
• It’s not quite a private room tucked away, but we do have two tables for custom design where clients can sit down with the designer/salesperson and spend some time learning about the diamonds and their characteristics. People often say they were intimidated coming in, but that it was easier and more relaxed than they thought. They appreciate being able to take some time to make a decision rather than being sold to at a counter. — Joe K., Milford, OH
• We have our diamond room in its own nook of our store … high ceilings with skylights and the interior look of a log cabin. It’s beautiful and the customers love it! — Mary Jo C., Rutland, VT
• Privacy in a special office and one on one with refreshments always works well. — J. Dennis P., Johnstown, PA
• We dedicated an area designated for this purpose when we built our store based on prior experience. The reality is that we didn’t use it and have since used the area for appraisal purposes. We sell diamonds everywhere in our store and close many sales outside on the sidewalk! — Jon W., Virginia Beach, VA
• It performs exactly as planned; we take private clients there. Most clients do not know the area exists. — Steven B. ., Bellevue, WA
• We have two private viewing rooms set up like small offices. They are right next to our diamond and engagement area of the showroom so that if the associate feels a private setting better suits their presentation or the client’s needs, they can move to that area. Each room has a desk and three chairs, and they are equipped with diamond lighting. Each room has a microscope as well as other tools needed for a diamond presentation. — Eric S., West Springfield, MA
• Sort of, working on a better space for that. — Nicholas P., Dickson City, PA
• It’s not made much of an impact. We even made the room smaller. — Kelly V., Geneva, IL

No: 64%

• We have a semi-private area but I have never been a fan, nor have my customers when asked, of being led into a totally private room. — Gary Y., Ames, IA
• For a long time we did, but we found out the hard way new diamond buyers fill like they will be pressured into buying if you take them somewhere more private. — Tim S., Mobile, AL
• I think that would be great, there’s nothing worse than when a guy is looking at an expensive diamond and there’s a lady over your shoulder commenting and sticking their nose in trying to get a better view. Right now, our store is too small. — Niki N., Lyndhurst, OH
• We used to have one, but customers seem not to like being separate and staff didn’t have easy access to the diamonds and rings. — Connie S., Friendswood, TX
• It has not been necessary up till now. Most of our inventory is priced under $30,000. — Theresa P., Edgewater, CO
• I would love to have a private viewing area. We will include an area when we design the new store. — Christopher S., Wexford, PA
• The store is too small for a private area. — Frank S., Plantation, FL
• I don’t have the floor space, otherwise I would. — Pamela R., Lauderdale by the Sea, FL
• We don’t have a private room because it feels intimidating. We do, however, have a seated diamond viewing area away from the showcases. — Dianna R., Lafayette, LA
• We work by appointment only. Therefore, our entire area is for private presentations. — Alex W., Torrance, CA
• Small rural store with no extra space. — Stacey G., Edson, AB

The post One-Third of Surveyed Jewelers Say They Have a Private Area for Diamond Presentations appeared first on INSTOREMAG.COM.

Supply and demand: The price for any product will be found at the equilibrium point.

Moore’s Law: The cost of producing products using evolving technologies will decline over time, with a consequent increase in value offered.

Disintermediation: As supply chains become more efficient, the elimination of intermediaries will lead to lower prices.

The result is clear: Prices have fallen. There is, of course, a point at which growers will no longer willingly sell rough, but we’re not there yet. And remember, unlike CZs, which can be cut using entirely automated processes, diamonds require a far more intricate cutting process, creating an ultimate floor to the price of polished goods. Fortunately, just as the three principles listed above are applying downward pressure on price, evolving trends may serve to support current, and perhaps even higher, price levels.

Domestically, consider that Signet alone will metabolize enormous quantities of lab-grown diamonds as they attempt to maximize their share of the category. Costco hasn’t even gotten in the game yet, in part because of inadequate levels of supply. And companies like JC Penney are now contemplating a shift to lab-only strategies, leading the rest of the majors towards CVD. On the independent side, lab has become a runaway freight train, with no apparent end in sight.

Globally, the scenario for dramatic increases in demand is even brighter. Nearly every major retail chain in Europe is currently engaged in lab-grown diamond tests, tracking approximately two years behind the US trend line. Indian consumers are embracing super high-end lab, primarily D-IF/VVS. And China Gold, a chain with over 1,000 stores, has launched a major lab-grown diamond program, forcing the other Asian majors to follow suit.

Finally, recent strides in diamond chip technology research will likely result in a significant redirection of CVD growth away from gemstone use and into computer applications.

All of this presents a new set of mathematical curves. While lab-grown diamond supply will track in concert with the installation of new machines as an arithmetic progression (e.g., 2,3,4,5…), CVD demand will track as an exponential progression (e.g.,2,4,8,16…). In a horse race between different types of numerical progressions, the smart move is always to bet on the exponential curve.

So, how low will lab-grown diamond prices go? Mathematical models suggest we are approaching a bottom.

The post What Mathematical Models Can Tell Us about Future Lab-Grown Diamond Prices appeared first on INSTOREMAG.COM.

From a legal standpoint, not at all, says Jo-Ann Sperano, a mediation specialist and paralegal at the Jewelers Vigilance Council. “When it comes to (legitimately acquired) diamonds, you are responsible for detailing the quality of the diamond, not where or how you received it. If the diamond needs polishing, naturally you would make it look like new with no signs of wear. That’s about it,” she says. Philip Johnson, the CEO of haveyouseenthering.com, which deals in pre-owned rings, tells his customers to keep in mind that diamonds have long histories. “All diamonds are old, billions of years old to be exact, so purchasing a pre-owned diamond is one that is a billion and five years old,” he says, adding that it’s really up to the couple to infuse the stone with memories and karma from the life they build together. If you think a notorious stone really does have bad back story that will upset a customer, have it recut. No more ju-ju.

Should I use co-op advertising to support my bridal sales?

It’s a question we receive often, especially with regard to wedding lines. And our answer remains unchanged: Everyone’s situation is different. Do your customers often ask for a particular brand? Will the message enhance your position in the market as the place to go for wedding rings? Bottom line, this is not free money. If you’re paying for half of the advertising cost, at least be sure half the message is about you.

Is it true you need to dress conservatively to sell bridal, especially big-ticket diamonds?

To be sure, Italian chandeliers, a baby grand piano and a staff dressed to the nines can add to the special air that supports a $100,000 ring sale. And maybe they will just scare away a nervous young man with $2,000 in his pocket. So, first thing, figure out who you are selling to. The average 28-year-old bridal shopper may gravitate toward the father figure in a suit and tie, or he may be more comfortable chatting with a younger guy who dresses more like he does — say, dark, fashionable jeans and a collared shirt. “This clientele is really expecting to be given information by people they trust,” says jewelry stylist Michael O’Connor. “And they don’t necessarily trust or relate to that older-style, conservative dress. They want to trust someone who is their peer.” That could mean Hawaiian shirts, cowboy boots, black T-shirts and tattoos … you name a dress style and we can name a jeweler who has succeeded with that approach. Still, if you’re unsure, sales trainer Shane Decker believes it’s better to err on the side of too formal than not formal enough: “Young bridal shoppers still expect you to look good, no matter how old you are.”

A customer bought a $10,000 engagement ring six months ago, but they’ve decided not to go through with the wedding and he wants his money back. What should we do?

Consult your store’s policy manual … and if you find a blank entry under “Returns,” give yourself a kick. This is one of those issues all jewelers will face in their careers and should be prepared for. If it’s a client with whom you want to stay on their good side, offer them a store credit for the same value. The other non-money-losing options are to offer to take it on consignment, offer to take just the diamond back (and brace for the tough talk over value), or, if it’s a custom job, commiserate. Six months? Really, is there any other product in the world people will wear close to their body and expect to get a full refund after such a long period of time? His demand is unreasonable. Stick to your guns.

I just lost my third huge diamond sale in a matter of months. Should I be worried about my sales techniques?

When you lose a big sale, especially one you’ve possibly worked weeks on, it can be tempting to try to immediately banish it from your mind. But a better strategy, says sales trainer Dave Richardson, is to heave its offending carcass onto the cold slab of the morgue and call a sales inquest. “You want to examine what mistakes were made, what possibly could have been avoided, what you could have done differently, and how you could have reacted to certain comments and objections brought forth by the buyer,” says Richardson. Perhaps there was absolutely nothing you could have done to save the sale. But if you review it with mentors or other staff, you may well learn one of those lessons that only failure seems to teach.

The post Do I Need to Disclose a Diamond’s Dark Past and More of Your Questions Answered appeared first on INSTOREMAG.COM.

This was also a quality that her team at the store recognized and appreciated about Linda, and they loved to be involved in “giving back” locally. From her salespeople to her bench jewelers, part of the value they felt from their employment at Williams Jewelers was the good feelings they experienced from contributing to so many charitable efforts.

Local charities knew that when they needed to raise money, Williams Jewelers was one of the first businesses to call. In fact, it finally reached a point that Linda felt the need to limit the store’s charitable gifts; they just couldn’t afford to support every charity that came calling. She convened a team meeting and asked her team for ideas about ways that they could focus their giving.

As a mother of three, Linda had always felt a close connection with charities that served kids and teenagers in any capacity. She shared that with her team, and to a person, they all felt that giving back to local children seemed like the perfect way to focus the store’s charitable efforts. Linda began working closely with organizations that had a stated goal of benefiting young people. While she felt bad about turning away other charities, Linda was energized by the feeling of putting more money and effort into a cause that was near and dear to her heart.

So it was that when Get Well Soon, a local youth hospital charity, approached Williams Jewelers about donating a piece of jewelry for their annual black-tie gala, Linda not only agreed to contribute a piece, but she and her staff wanted to design something in-house especially for the event. After meeting as a team, they decided to create a pearl and diamond necklace at a retail value of $4,500 (which was published in pre-event press).

Unfortunately, Linda was unable to attend the gala herself because of a family commitment, but Get Well Soon was thrilled with the necklace donation, telling Linda that a gentleman had bid more than double the retail value of the piece. Linda shared the news with her team, who were all excited that their contribution had been so well esteemed by the gala attendees.

However, about a week later, a woman named Allison Glass walked into the store and brought the necklace out of her purse. Linda’s heart sank when she saw that it was the necklace that Williams Jewelers had donated to the gala auction. She said that her husband, Gordon, had cast the winning bid and had gifted her the necklace. She explained that while it was a beautiful necklace, it “just wasn’t her style.” She knew that the necklace had a retail value of $4,500 and that her husband had paid more than twice that, so she asked Linda if it would be possible to exchange the piece for something else in the store.

Linda was at a loss. The necklace had been designed specifically for the event and wasn’t the type of piece that could easily be placed in the showcase and sold. There was obviously no vendor to return the necklace to in exchange for another piece. If Linda decided to take the necklace back and allow Allison to choose something else — even if Allison agreed to an exchange for something that was near the $4,500 retail value of the necklace, rather than the $9,000-plus that her husband had paid — the store would be out thousands of dollars in the cost of the second piece, in addition to what it had cost to design and build the custom necklace in the first place.

Robin H.
Pennington, NJ

A resounding NO, small businesses are often put on the spot like this. It has happened to me in my store. The jewelry store should have made the donation with fine print. Most small businesses like ours just cannot afford that kind of loss, and she was kind enough to make a grand donation! I have a client that won a Porsche Boxster in a raffle years ago. Car was not changeable or exchangeable!

Peter L.
Ithaca, NY

Take it back instantly. Do not let her think this is an imposition on you. Let her know that if she doesn’t want it, you don’t want her to have it, either. Reason No. 1: A customer has an expensive piece of jewelry from your store that she is unhappy with. That sentiment needs to be dispatched instantly. Get her something she loves and will rave about, instead of denying the return and give her something to complain about. Turn this into a positive experience for her and she will never forget it. Build TRUST! Reason No. 2: Hubby just spent $9K on a necklace. He loves to spend on her. It was a high-profile purchase. Do right by her and him and you’ll have a good customer for life and maybe more residual customers through word-of-mouth. This is a chance to provide awesome customer service. Don’t mess it up. The potential “loss” (you donated it, remember?) is far better spent providing excellent service and winning a big client than any other form of advertising. Win-win.

Richard S.
Seattle, WA

This was a gift, therefore, no monetary value to the store since no profit was received as a result of the sale. The woman should have a conversation with her husband about donating the piece in kind to their favorite charity and be as generous in her actions as the jeweler was in making and donating the piece.

Eric L.
Allentown, PA

No exchange. Her husband was going to donate $10K anyway to the cause. The client can put the necklace up for sale and enhance her husband’s donation.

Bill M.
Old Saybrook, CT

First of all, she should have made it very clear to the charity that she donated to that “this item is a gift from x jewelers to x charity and is not eligible for exchange or return, and it is your responsibility to inform the winner accordingly.” We always include this statement in the paperwork accompanying any charitable donation that we make. Secondly, she designed something specifically for this event that otherwise would be a difficult piece to sell — big mistake! Donations are a great way to move dated merchandise, estate pieces and other items with low cost and high margin. Considering that the recipient does not appear to be an existing customer, the owner needs to evaluate whether she can convert her to become one, what PR damage may result from not accommodating her, and if she can break up or modify the piece to make it more saleable. But she should allow the woman to pick out a piece close to the $4,500 retail value and make the exchange.

Bruce M.
Milton, MA

We donated a special pair of earrings I made for the hospital’s gala, and the lady who purchased the winning ticket wanted to exchange them for something else. I didn’t realize the hospital had given her tax papers on the value of the earrings, and she was pissed. When I offered to only give her $1,000 for a trade-in, she blew up and has badmouthed me for a decade! Remember, she only paid $25 for a raffle ticket, so she had no investment. Why try to win something you don’t like? In our case, it was the taxes she was so upset about. And yes, we lost a customer, but there was no way I would give her any more money than what I had invested. Since there would be no winner in this fight, I decided to protect my checkbook.

Leo A.
St. Louis, MO

Having raised more than $1.6 million dollars doing what is in this scenario, I have experienced this exact thing. I always allow exchange, as it’s the store’s image and charity’s image at stake. I am clear that anything above the retail value they paid was their donation, which they are still giving to the charity. In many cases, I just tell them they can pick any item with the same cost. This way both our donations are intact.

Don D.
Tampa, FL

I’ve had similar incidents with donated jewelry to charities. Eventually, I started giving gift certificates. To answer the question, my typical response has been, “I’m sorry, but we donated the item to the charity with the expectation that only people interested in owning the item would place a bid. If you want to trade the item in, we will give you $4,500 credit toward any in stock item selling for an equal additional amount (meaning $9,000 or more).” However, if this were a longtime customer of my store, I may have taken a different approach. I believe the husband is entitled to a charitable tax deduction for any amount over the $4,500 value.

Amy C.
Grove, OK

This is probably pretty common — it actually happened to us! The woman who purchased the item decided she wanted something different after all. I stood firm, thanked her for donating money to the charity and told her that was a gifted item to the charity and she would not be able to exchange it. She could donate it back to the charity, however. I think my incredulousness at her request (and her realization of such a ballsy request) must have come through, because she never spoke of it again. She was not a customer of the store — if she had been a good one, I might have traded. Maybe.

Deb L.
Appleton, WI

This is a very tough situation for Linda to have to deal with. First of all, it does take nerve for the customer to come in and want to return it, knowing it was specially created and donated for a special cause. And the fact that her husband thought that she would look amazing in it, that alone should be reason enough for her to want to keep it. I believe that Linda should explain the truth to the customer about how much time and money was put into it to be made for this occasion. Tell her that it would be hard to sell being a one-of-a-kind masterpiece and that the customer should be proud to wear it. When we donate anything to any organization, we tell them that there is a no return or exchange policy with donated items. We also have this information printed on the receipt.

Stew B.
Natick, MA

Hds this happen once. Was not nearly that value nor custom. Since that time, I require that the advance publicity and auction program clearly state the piece is for this auction/raffle, etc. and may not be returned or exchanged. We also do not give rings. The one time turned into a nightmare sizing situation. Experience, the cruelest teacher.

Jim D.
Kingston, NH

What you see is what you get … it would be best to include a business card with the donation that states that the item can be exchanged or if there is a cost for sizing, lengthening, etc. I have had a few people try to return items after buyer’s remorse sets in, but I politely refuse. Try that at Tiffany’s after buying something from Sotheby’s. At one time, I donated gift cards from my shop, but I stopped that after people assumed what they bid (and won) at the auction should be the new value of their gift card!

Susan S.
Tulsa, OK

I have been in this position in the past myself. It is very awkward. My solution later on in the donations I gave was to stipulate that the piece would not be returnable for the same reason, that the piece was made specifically for that auction. But I did give the charity the idea that if someone else was bidding on the piece, they should call them and see if they were still interested in owning it and tell them it was available again at the original cost. The charity would need to return the remaining money to the original winner of the auction, or perhaps not. Fortunately, I never was faced with this predicament again.

Joseph V.
Austin, TX

There may be two possible solutions here. First, let the individual know that the item was uniquely designed and made for the charity event. Therefore, the item is not returnable. However, we can offer the following: 1) Offer to take in the piece on consignment to resell, or 2) offer the individual a store credit of $4,500 (which was the stated value of the item at the gala) towards something in stock. At least this way, the individual has been given a few choices and not just a flat out “no we cannot help you.” In the end, it is really the charity organization that is the client and not the bidder (Allison Glass) from the charity event.

Geralyn S.
Chico, CA

Giving back to the community is something that I am very committed to also. Often, auction items are “won” for less than the retail price. She had said her husband paid $9,000. But, this doesn’t appear to have proof of purchase. Even though he may have paid $9,000, I would explain the importance of the piece being created for the fundraiser and promotion of the event with press in the media with images and details was specifically for the charity to raise funds. The amount was donated to the charity and is a tax deduction for the buyer. The store donated the item to give back and support youth in their community. It’s a win-win for the charity, which was the reason both parties gave their donations. I would remind her the item was a custom piece for their event, therefore it is not eligible for return or exchange, and thank her for supporting the community and the charity.

Greg T.
Murfreesboro, TN

Absolutely, take it back on store credit for $4,500. This was a custom design the store thought was beautiful enough to properly represent the quality of merchandise the store is proud to produce, and it should be something that could be sold out of the showcase. If you custom make something at the customer’s request, it’s all sales final.

Jo G.
Oconomowoc, WI

We have had this happen several times, and the answer is always the same. “No ma’am.” You bought it from the charity, only they can refund your money. It was a donation to the group, and only they can return it. People feel giddy and kind when plied with pretty food and cocktails aplenty, but the reality in the light of day is something else. They want to be big payers in the eyes of the charity, but not in reality. Be kind. Be firm.

Marcus M.
Midland, TX

The obvious and simple answer here is NO. This has actually happened to me before, and my answer is always NO. People that do this are disrespectful and tacky and it makes me sick. They will never be your customer and just want to use you. It’s not your fault the husband bought something she doesn’t like, so how does that fall back on you? Dummies. Is making them happy, losing money and your integrity worth it for someone as unappreciative as this? Absolutely not! You can politely explain to them that it was a custom piece given for free to a charity event and that you’re unable to exchange it. If they can’t accept that, then they need to leave and you need to tell them so.

Tracy W.
Sierra Madre, CA

We’ve had something similar happen on a smaller scale, but with a stock item. The best I would do is to offer to consign the piece. If I can sell it, I will put that amount toward any new purchase. Since this was a one-of-a-kind piece, intentionally created for this event, we simply cannot take it back. Perhaps the woman who received it knows someone who would love it, although pulling it out of her purse is kind of disrespectful. Explain that it was designed for this circumstance and it is not normally the kind of item your store sells. Make doubly sure it is all intact and in new condition before taking it back. Did the charity place that auctioned off the piece have a second or third runner-up for the necklace? If the wife of the auction bidder is willing to take a loss “for charity,” maybe it can be sold this way.

Robin J.
Colorado Springs, CO

I have been down this road! I told the winner that we created the earrings (in my case) specifically for the event and we had no return or exchange privilege. I recommended the recipient re-donate the earrings to the same cause next year. The following year at this same fundraising event, I ran into the above-mentioned winner, and she was proudly wearing the earrings we wouldn’t take back and they had become her favorite pair of earrings!! Funny how things turn out.

Stuart T.
Reisterstown, MD

Under no circumstances should they give in to the request. This piece was designed and manufactured specifically for this event. We once many years ago had something similar happen, except that our customer got a bargain on the piece. In our case, the wife was nasty and rude to us and our help. Like in this case, she tried to make her problem ours. When you give a donation, it is not open to return or exchange, it’s a GIFT.

Lorah A.
Honolulu, HI

The charity piece should have stipulated that it was a special piece custom designed for the charity and regrettably is not available for return or exchange.

Keith J.
Vancouver, BC

Absolutely not. This was a custom piece created for a custom event. End of story.

Peter T.
Show Low, AZ

My knee-jerk response would be somewhere between “no” and “no way in hell!” However, since we have to pretend to be nice to even the most self-centered idiots, a gentler response would be in order. I would thank them for supporting the charity — just like I did when I donated the time, money and materials that it took to make that item especially for the event. If she’s not going to wear the jewelry, she might want to further support the charity by re-donating it back to them, but I would not be able to accept it as a trade-in.

Elizabeth Blair K.
Harbor Springs, MI

When you donate a finished piece, you need a disclaimer! Such as, “This is NOT a gift certificate. this was commissioned and made especially for …” When challenged in this way by an exuberant bidder, I also say that 100% of their generous bid went to the organization and that the organization was the owner of the piece. It has nothing to do with my shop any longer. I think people TRY to push the envelope and actually know better and are just trying to see what they can get away with. Of course, if it is a regular client of yours, I would make an exception and honor the retail value of $4,500. They are writing this off anyway; it isn’t the store’s responsibility. Gift certificates also need to have a very large, clearly stated “use by” expiration date. And finally, try not to make a piece that would not be in your normal inventory.

Gloria H.
Topeka, KS

“This is a custom-made, non-returnable necklace. The only thing we are able to do is adjust for size, such as adding an extender for a perfect fit!” Then talk up her husband on how generous he was to go above and beyond to help the charity that is near and dear to our hearts.

Bill M.
Granger, IN

As a business owner, there’s not much more frustrating than having your gift horse’s mouth thoroughly examined and rejected. Alas, we live in a political world, and finding a compromise is often the best course. Don’t offer to exchange it … ever. But offer to consign the item at a reduced commission to cover your administrative costs. Prepare a signed agreement that states the ‘net proceeds must be applied as a store credit.’ The auction winner gets a new piece they love and your cash flow is intact as you are simply trading one sale (with a small profit) for another that meets your target margin. Win-win.

Megan C.
Poulsbo, WA

Anytime we donate an item for charity, we always place a disclaimer that the donated item may not be exchanged or returned. If Linda didn’t include language stating her policy, she’s in a sticky position. She needs to be clear with Allison that while she values her as a client, this piece is a custom designed piece that was created for a specific purpose; it cannot be returned or exchanged. However, the situation doesn’t need to be black and white. We try to find ways to say “yes” to clients, even if we want to say “no.” Could the item be placed in the store on consignment? Could Allison pay it forward and donate it to another charity? I’d try to be creative with the client, but I wouldn’t take it back or exchange it outright.

Jeffrey J.
Greenwood, IN

We were faced with a similar situation when a “prize winner” from a charity golf outing tried to exchange a very nice watch we had donated. I pinned him down, and he reluctantly admitted that was a “big ask”! We now with EVERY donation provide a form stating the item is “non-returnable and non-exchangeable”… No problems since! My reply would be to her: Donate it to another charity auction!

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When asked, “How much?”, the first digit of a number should always be the first sound out of your mouth. That’s the advice of sales pro Gene Chamberlain. If you start with a sales line like, “Sir, you have excellent taste in diamonds,” followed by a list of the features, then the person stops listening. Start with the price, followed — without pause — by the features, and all those things you list make the price seem cheaper and cheaper.

MARKETINGMark the Milestones

For the last few years, the “Wizard of Ads” Roy H. Williams has been urging jewelers to invest more time, effort and marketing dollars in “anniversary diamonds.” The logic is compelling: There are only slightly more than 2 million weddings in the U.S. each year versus 62 million married couples who will celebrate some sort of anniversary. Couples are usually in a better financial position to mark such milestones as they grow older, and so it’s a chance for the ring-buying partner to say “I love you” twice, three times, six times as much as when they were married with a diamond six times as large, says Williams, who has even thrown in a radio segment that jewelers can use for free. It can be found here: mondaymorningmemo.com/newsletters/a-note-to-jewelers-worldwide.

salesTime to Tune In

Talk less, listen more. We know you’ve heard it before. But professionals who are smart and know what they are talking about are often the worst listeners — even those who write about communication for a living! Best-selling business author Tom Peters, for example, calls listening “the bedrock of leadership excellence,” but at the same time admits he’s a terrible listener and “a serial interrupter.” So, to help him stay focused on the other person, he writes the word “listen” on the palm of his hand before walking into meetings. “The focus must be on what the other person is saying, not on formulating your response. That kind of listening shows respect for the other person, and they notice it,” he says. Keep it in mind — or on your palm — the next time a young couple is trying to tell you what sort of ring they want.

STORE DESIGNBrighten Up Your Office Space

Beige and gray are great colors to allow diamonds to shine, but they don’t make for the most invigorating mental environment for a meeting room, employee back room or your office. As John Brandon explains in INC, colors can affect how you feel and think. Blue stimulates your brain, yellow your emotions, red your body, and green your balance. “Ditch the gray. Add a poster or a splash of paint to brighten up the space and your ideas,” he says.

MARKETINGPerception Trumps Reality

Who should be paid more? A jeweler who takes 10 minutes to fix a bent prong, or one who takes two hours? Clearly, one is experienced and the other is not particularly skillful. But in such situations, consumers show over and over again that when it comes to paying for services, they tie value to effort. Capitalize by providing regular updates on the effort a job is requiring and using language that implies effort in the creation and sourcing of the jewelry. It’s why words like “artisanal,” “handcrafted” and “fair trade organic” resonate with customers.

HIRINGAsk What They Admire

In the sci-fi novel Engines of God, the codebreaker Maggie Tufu says, “Tell me what a person admires, and I’ll tell you everything about them that matters.” It’s profound and true, and a great interview question the next time you’re hiring.

The post The Compelling Logic of Anniversary Diamonds, the True Value of Effort and More Tips appeared first on INSTOREMAG.COM.

I jumped into all the features and benefits of the watch. Not only was it a super rare, limited edition, it was No. 2 out of 300. Seiko often keeps No. 1 for themselves or high-profile collectors, so this watch was truly the lowest serial number that could ever be found for this model.

I told him to also keep in mind that when Seiko does limited editions, often they are in the thousands; the fact that this watch had only 300 made is incredibly rare. I followed up with the statement that all of North America usually only gets about 10% of these limited-edition watches — that’s 30 total pieces for all of the USA, Mexico, and Canada.

“I get all those reasons make the watch cool, but I need you to tell me why I should buy it.” He emphasized the “I” particularly hard. It occurred to me that as salespeople, we talk up what something does and how it benefits customers, but we don’t do a particularly good job of conveying to people why they in particular should actually make the purchase.

My close to him was personal because I know his collection inside and out. I told him, “Well first, I know you like limited editions, and the fact that this is No. 2 means that you get the first commercially available number. That’s a huge feather in your cap as a collector. Second, you don’t have anything this color in your collection, which means it should get plenty of wrist time. Besides all that, your wife just picked up her custom ring last week, so it’s your turn for something nice.” He bought that watch and actually bought another limited edition the following week because we had the same conversation.

Now anytime it gets down to closing time with a client, I have that Backstreet Boys song playing in my head. Don’t simply tell people the features and benefits of what they are buying; tell them why they should buy it and why they are better off to buy it than not to buy.

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