Let's Get Frank!

It's time to stop pussy-footing around important issues in our industry.

The world has become increasingly open to talking about things that were in the past considered indelicate.  Feminine hygiene, bladder leaks, bum-wiping and impotence are all boldly addressed during prime-time commercial breaks.  The world seems willing and even eager to brashly dive-in head-first to tackle problems formerly hidden in closets, and buried under mattresses.

Is the jewellery industry keeping up with the times?  Are we brashly standing up for our industry and our businesses?  Why do we pull punches.  Are we the embodiment of the polite Canadian stereotype?  Are we afraid of getting sued?  Do we have too much respect for our competition to somehow maliciously degrade them?  We probably don’t want to appear negative by putting someone else down.  Maybe we just don’t have good answers to some of our more embarrassing problems.

I enjoyed hearing about how a jeweller in Ontario posts a sign in his store titled “travellers alert.”  This sign points-out the real risks of buying jewellery while on vacation.  We can all testify about friends and clients who bought ridiculous jewellery while under the influence of margaritas, sunscreen or whatever it is that causes the irresistible urge to buy stupid things.  Independent jewellers can do a better job of warning our clients of the risks.  At the same-time you can also coach them on what kinds of things they should feel free to buy while on vacation.  How many times have I sold someone a $1,000 or $2,000 setting for a  $25 gemstone they bought on a cruise?  You’ll have a hard time competing with the experience of picking-out an opal in Australia, but if you tell them what kind of opal to look for, and then help them create a setting for their precious souvenir, you can be a hero and make a few bucks yourself.

Internet retailers are slamming you every chance they get.  They’re not afraid of telling your clients how inconvenient it is that you’re not open 24 hours, how much pressure it is shopping with you and how much you overcharge for your jewellery.  Are you just going to just take that lying down?  How about reminding your clients that you offer 60 more hours per week of opportunities to see, touch and feel real live jewellery (before they buy) than internet retailers?  You can stand-up for yourself, and say, “we who live in, work and support this community appreciate and need you shopping local.”  Spend time, effort and money reinforcing the value of hand-selected quality designs that are waaay more sought-after than the photo-shopped trashy leftovers available 24/7 on the worldwide dumping ground.

If you’ve invested the time actually looking at jewellery sold by volume retailers you might just be appalled enough to begin calling a spade a spade (or a F---ing shovel).  There’s so much frozen spit, misrepresentation, tinfoil-thin settings, rejection quality gemstones and truly impractical designs out there that you should be indignant, insistant and assertive when it comes to blowing your own horn!

Do you believe that you can’t compete against the volume buying of chain stores?  If you do, give up.  Do you think the industry will eventually get swallowed-up completely by the interweb?  Might as well pull the plug right now.  If you are convicted that as an independent retailer you have unique and high-quality jewellery, and that your delivery provides clients with unparalleled benefits, then I think you just might go somewhere in this business.  Don’t be shy.  Stand up for yourself!

Incredibility

It's a big leap from credible to "incredible."

The English language is full of words where prefixes and suffixes can adjust the meaning 180 degrees, turn it sideways, hyperspace it into superlativity (I made that one up!) or completely change the intent.  “Hospitable” and “inhospitable” are opposites, but what about “credible” and  “incredible?”

In the jewellery business credibility is a huge asset.  How will consumers buy something so easily fudged from us without trust?  We want to be perceived as “credible.”  So do cruise ship jewellers, Caribbean port shops, internet retailers, home shopping channels, chain stores and the dishonest jeweller right down the street from you.  They all want to make sales, and they all know that credibility, or the appearance thereof is the key.

What do our competitors do to build credibility?  Cruise ships spend time educating passengers about jewellery while building rapport.  Port shops bribe port lecturers,  boast of their New York head office and international warranties.  Internet retailers build credibility through transparency of information and no hassle return policies.  The chain stores take advantage of their long histories to leverage lifetime trade-ups and long-lasting warranties.  The television vendors have extensive “risk reversal” policies to assert “we’re so sure you’ll love it, we’ll pay double the return postage if you’re not happy.”  The dishonest guy down the street peddles half-truths and lacklustre promises.

I still visit perfectly honest retailers who have no BBB, Chamber of Commerce nor CJA stickers on their doors.  Their hand-written signs behind the counter that say “NO REFUNDS, EXCHANGE ONLY,” make me think that numerous clients have desired refunds for suspicious reasons.  When asked about warranties, trade-ups and exchange policies there’s no document to clearly state the expectations.  “We’ll take care of you,” sometimes will lose to the chain store’s clearly stated documentation.  I love to see cork-boards full of thank-you notes and wedding photos of happy couples.  They confidently assert “others have tried us and appreciated the service, so you should too.”

Here’s the thing.  If your customer comes to you and says, “Peoples will give me my original cost towards something of double the value…” you might choose to match that deal in order to gain the sale, and the trade-in of something that might actually have some value to you.  If your customer says, “I think this was a manufacturer’s defect,” you often give them the benefit of the doubt and cover it anyway.  For ALL of those benefits you give to your clients after the fact, you could formalize them (to protect you against abuse) and use them as a selling feature to make more sales.

You need to prove your credibility in your long-term actions, but you also need to be able to articulate your credibility in a short sales presentation.  If you A) have credibility, B) clearly communicate how you back-up your claims of  credibility, and C) live it and prove it every day of your life, then you will surely achieve the status of “incredible.”

Let’s Think This Through…

In Vegas, Martin Rapaport stood-up and made a haunting statement.  With regards to the various grading standards among competing diamond grading labs, he stated “at least we have something to complain about.”  So, let’s think this through.  Were there no diamond labs, what would our industry look like?  Well, assuming there is still an I3 through FL clarity scale and D-Z color scale, I would speculate that there will still be diamond dealers who apply those descriptions with strict integrity, and those who “stretch” a bit, and then those who “stretch” a lot.  There would remain those jewellers who choose their dealers based upon their own level of integrity.

What would be missing?  The official looking piece of paper that can be used to convince unwitting consumers that they’re getting a great deal; and which can also be used to assure savvy consumers that they’re getting the quality they desire.  If there were no diamond labs, that might be good for Gem Scan, I.G.L. and Harold Weinstein because some consumers would insist upon an unbiased “second opinion” because they don’t trust their local jeweller.

In all likelihood our Canadian appraisal labs would generate their own reputations, and you’d end-up with one taking the moral high-ground, one catering to those who want a preferential grade and one would land in the middle. 

Is this just human nature, or is it our industry?  I’m not totally sure, but I’m going to interview people from various other industries and just see if there are similar problems elsewhere in our crazy world.  Watch for the results in an upcoming Canadian Jeweller Magazine article by yours truly…

How to Spot a Good Prospect

Two disparate thoughts crashed into my brain this morning.  The first was how difficult it is to find good staff; especially among the younger generation.  Many seem to lack the drive to acquire product knowledge and the confidence to ask for the sale.  It’s not universal by any means, but I hear the frustrations from retailers trying to identify effective prospects.

A second thought entered my head as I drove by my old highschool.  It brought-back memories of playing little league baseball on those fields, and the outstanding experience I had taking drama in highschool.  Our drama program was the best.  To our teacher, “Agrell” (Ken Agrell-Smith) drama was his life.  His dream was to one day portray King Lear, and he exuded incredible enthusiasm for stage-craft.  He confidently empowered us to direct and produce our own one-act plays in grade 12, and we always won scholarships at the Provincial one-act festival.  Being part of a most excellent team effort gave me the first-hand knowledge that even if you don’t know everything you need to know, you can work hard, acquire knowledge and achieve great things.  I’m not saying that I’m anything special, but I believe that what I achieved in my dramatic activities gave my confidence a huge boost at a young age.

Two conclusions.  If you have kids or grand-kids, look around and see where excellent leadership has a history of outstanding results, and get those kids involved.  Secondly, if anyone you interview has achieved highly in a team-sport, military, music, dance, academics or other cooperative achievements, that should be a sure sign that you’re looking at a good prospect.

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Smart Show Day 4

The third show-day and the final day of The Smart Show started off with some much needed energy.  After the Sunday night beach-party Shane Decker was unsure of how many would show-up for a Monday morning keynote address, but the crowd was pretty decent and I didn’t see one person fall asleep.  Some of you, like me, have seen Decker several times.  I enjoy the experience every time, but the last few presentations his material has evolved and I appreciate the newness of his messages.

He began by talking about something that’s a bit unfair in our business.  We must NEVER prejudge clients who walk-in because those who dress down might be disguising their wealth, and those who dress up might be pretending.  The unfair part is that they will prejudge you – to the point that they will decide within 30 seconds if you’re worth spending money with.  As he continued talking about meeting customer expectations, he struck a chord by stating that customers “pay us to listen.”  Some people need to pay a councilor to air their secrets, but if you listen to them and sell them something then they get to walk away with something tangible for their money spent.

Why do shoppers buy on the internet?  Shane answers that price is 4^th on the list.  The first reason is that they had a bad experience at the brick-and-mortar retailer, followed by convenience and expansive (virtual) inventories.  His best suggestion to defend the awesome advantages you offer clients is by considering his punch-list of 28 things that can happen when a client walks in.  Training staff to provide a consistently great customer experience is more important than advertising in his mind.  You can win referrals and loyal clients by your service, while you can lose clients by attracting them with clever ads and letting them down once they get into the door.

Some of the 28 items on the punch-list included fairly common customer service items (prompt-greeting, body language, selling techniques), and others are less common.  Always exchanging names, wowing repair customers with product, even after the sale (or sales) are made show one last knock-out piece to the client in the last 30 seconds, clean and polish everyone’s jewellery, etc.  It’s hard to keep it brief, but the conclusion was; if you always do these things for every client, you’ll build a reputation for amazing service, and add value to what you do.

The final day on the show floor was a bit slower, but it seemed there were more buyers taking the time to explore new product.  My final impressions of The Smart Show is that the educational forum and interactive features were indeed impressive.  InStore Magazine has created a bit of a cult following, including their “cool stores”.  We thus expected a large draw from the entire United States, but from the viewpoint of an exhibitor, it’s a regional show.  Many of the exhibitors are in common with any major US show.  We saw a couple of jewellers from Ontario, three from Manitoba, one from Saskatoon, one from Calgary and one from Victoria, but the great majority of US retailers were from the Mid-West.

Smart Show Day 2

Today (Saturday) was the first day of the trade-show portion.  The 8:30am session with Martin Lindstrom on “Buyology” was packed.  It was indeed evident that attendees to this show are motivated to learn.  Lindstrom started out by proving to the audience that consumers are irrational.  We knock on wood, and we buy things we don’t really need.  “Jewellery” he claims, “is irrational; it’s emotions in a little box.” 

Lindstrom’s best selling book, Buyology is about focusing on escapism, nostalgia, story-telling, sensory stimulation and community.  Note, none of these factors have anything to do with what cert your selling, which brands you carry or what your competitor is doing.  His emphasis on they psychological stimuli that make people buy had the packed conference room riveted. 

Particularly poignant was his revelation about Alfred Hitchcock’s writing.  He wrote blue scripts and green scripts.  The blue script was all about the words, and the rational parts of his screenplays.  The green scripts contained the suspense and emotion he sought to evoke from his movies.  If you don’t have a green script for the experience you’re trying to create for your clients, you’re destined to struggle against discounters, unscrupulous retailers and internet sellers.

According to Lindstrom it’s not about competing on price with that no-good competitor, it’s about under-promising and over-delivering.  Create an experience worth your clients gossiping about, and you’ve got a viral brand; whether you’re a master of social media or not!

Being the first day of a three day show, many of the buyers were previewing the show and exhibitors reported a relatively slow start to selling.  As for Customgold, The Colored Diamond Family Ring Collection is officially INTERNATIONAL.  We’ve got a good start and look forward to higher crowds tomorrow. 

Enthusiasm

Massive kudos to those of you who are focusing on creating a winning customer experience.  I’ve been in some rare stores (not yours) where customers seem to be a distraction to their busy-work.  I’m glad that my best clients are happy to greet new customers and ecstatic to welcome-back existing clients.  Whether you are naturally outgoing, and very easily connect with people, or you have a system in place to ensure that clients receive a methodically welcoming, inviting, compelling and effective shopping experience, it’s fabulous to see so many stores turning their focus from order-taker to advisor.  From cashier to cache.  From reluctant to rejoiceful.  From insecure to inspiring.

Remember that selling someone a piece of jeweller earns you a sale, but selling someone on you and your store earns you a client.  It’s easy to get lost in solving the puzzle of “what can I show this person that they’ll like.”  Until you know a little bit about them, and tell them features and selling points that line-up with their values or their unique requirements, you can easily be replaced by a robotic jewellery retrieval system.

Once you’re enthusiastically focused on the people who ultimately put food on your table, and their needs, you can sell them things they didn’t know they wanted to buy.  Guys come into jewellery stores thinking that they “need” a piece of jewellery to satisfy a “gift-giving occasion.”  What he needs is to show her how much she means to him.  They may need to say, “sorry I screwed-up.  I sacrificed some of what I was saving for that new quad to give you something to symbolize that you’re more important.”  She needs to celebrate his job promotion by giving him something that will make him feel important and fashionable.

After every sales presentation see if you can answer two questions.

Was I as effective as I could be in solving their reason for coming in today?

Did I draw them closer to me and our store so that they desire to give us their future business?

16 x 9 News Article

Thank you Kathy for letting me know about the Global News 16-by-9 article about security in the jewellery industry.  For those of you who haven’t seen it, I’d recommend watching the 20 minute segment.  In the news piece they claim that they “couldn’t find a jewellery traveller willing to talk about security on camera.”  Well Duh!  I would have done one of those silhouette interviews with the voice altering thingie, but they didn’t ask me.

One of the assertions of the news piece was that Columbian based gangs have moved North from the US into Canada because US law enforcement has done such a fantastic job of deterring them, and that Canada is softer on criminals.  I’m not so sure about that; I think it might have something to do with our more buoyant economy.

Once again I thank all of you who help reps maintain their anonymity by:

·      Offering back-office viewings where available

·      Not asking about our travel plans (we know you’re just being friendly, but we don’t want you to be the only one who knew where we are staying or where we were headed to if something does happen.)

·      Walking us out to our vehicles or at least watching us enter our vehicles until we pull-out of your parking lot

·      Not responding to strangers who might say, “hey, I used to go to school with that guy, what was his name again?” or otherwise trick you into giving information about us

As many of you well-know, I often am willing to meet with your clients for custom design work.  I’m less anonymous than would be ideal, but by taking every other precaution, I continue to enjoy travelling, and I have a deep faith that I’ll remain safe and healthy on the road.

Have a great couple of weeks while I’m in Haiti.  If you’re interested in reading what we’re up to, we’ll be blogging at www.facebook.com/nanaimotohaiti or you can visit www.nanaimotohaiti.weebly.com and click on the “blog” tab.  Congrats to Richardson’s Lloydminster for collecting the highest amount of gold for our Haiti orphanage fund.  They have won a free sales training session for their fabulous staff from yours truly.  With your support plus a top-up from Customgold, we’re taking $5,000 down with us for building and supplying orphanages and free schools that benefit the Haitians who need it the most!

Beeeee Positive!

As some of you know, Mrs. Toddwaz is a realtor.  Jana hosted a “realtor open-house” for a new fourplex listing the other day.  Some of the realtors from her office spent time commenting about the hookers a few blocks away, the limited parking and all of the negative aspects of the property.  It’s actually in an area of rapid urban renewal, close to downtown and a perfect starter resident for an active young single or couple. In a B-to-B (business to business) situation, the onlooker might feel an inescapable obligation to tear-apart the product in front of them, fully believing that their expert criticism is helpful in some way.  It sometimes works that way with jewellery presentations. 

When I look at a line of 3-400 rings, I don’t see sellers and non-sellers.  I see each piece as the answer to someone’s quest.  There is a buyer out there for every design you’ve ever looked at in a travellers bag.  Maybe you haven’t conditioned your marketplace to respond to a certain styling.  Maybe the craziest looking design that you summarily dismissed would have sold to the tourist who came in the next day.  Maybe you’ve just overlooked a ring that would have sold 4 times in the coming year because in your opinion it was too high, too low, too wide, too narrow or too “froofie.”  (Don’t laugh, I’ve heard that before!)

This is a tough business and you can’t buy everything that comes along.  I appreciate a retailer telling me why they think a new design won’t sell quickly in their store.  I really do.  Maybe it will cause us to modify a design if few enough jewellers choose to stock it.  But, I’m invigorated by buyers who look at designs and identify what kind of client will love that piece.  Looking for the positive in jewellery designs makes for a more enjoyable supplier visit, and I believe a much more productive one for selecting profitable designs.  Looking for the positive in every customer that walks in has its’ own rewards.

Enjoy this video, featuring Sir Paul McCartney and Nanaimo’s very own Diana Krall…

Exclusively yours…

**Attention: Haitian Heroes Go For Gold collectors: Please send-in scrap-gold contributions to Customgold by January 23^rd.  Thank you.**

WARNING:  The following is a guest-blog from a fictitious “cranky supplier”.  I publish this to illicit responses from those who care about this issue.  If you have thoughts, please chime-in.  If you respond by email, please indicate whether I can publish your reply to Toddwaz Report readers.

I’m sick and tired of retailers asking for exclusive distribution of my product.  My line contains hundreds of items, so why should I limit my network for a dealer who carries less than 5% of my designs; let alone the ARMS guys who want to cherry-pick my top 10 designs and return half of them for stock balancing. 

How big is an exclusive territory anyway?  One shopping mall, one town, South of the river, 50km radius???  I can’t figure it out.  With the dollar at par and more competition at-hand there’s no loyalty anyway.  I’ve been busting my butt for Canadian retailers for years and in the last few years these glitzy branded goods made in some sweat-shop who-knows-where have come-in an diluted my business anyway.  How do I tactfully tell a jeweller that they’re no longer buying enough to maintain an exclusive when they might just drop me altogether?

If I’m spending over $30,000 per year travelling my territory I’ve got to make it count.  Why can’t we just get back to the good old days?

I believe the issue comes down to true loyalty.  Dealers who give suppliers a good dose of loyalty will get a good dose in return.  I don’t think our industry is that much different from others.  The world is shrinking, borders are becoming more permeable and competition is increasing.  The tactic of exclusivity is now only one piece of a much more complex puzzle.  The good old days may have been good, but they’re gone.  Better days could lie ahead for those who learn to adapt to the changing tide.

This Too Shall Pass

How do you cap-off the achievement of a really daunting goal like publishing 300 blog posts in one year?  Well, since we’re approaching a new calendar year, maybe some thoughts about turning the calendar over to a fresh new start.

I’ll share with you a bible verse that has kept me both humble and motivated.  It comes from Matthew 13:53, which states “And it came to pass …”  Did you have an off-year this year?  Don’t worry, it will pass.  Did you have a great year?  This too shall pass.  (This message was borrowed from comedian Mark Lowry) 

We can’t control the results of our past efforts.  We did what we did and we got what we got.  Because we are in a business where so much of our success comes from the final part of the calendar year it makes sense to join the masses in reflecting on the past year and making plans for the new year now rather than at your fiscal year-end.  So go ahead.  Give yourself a kick-in-the-butt or a pat-on-the-back.  Make resolutions.  Don’t forget to announce your resolutions to people who care about you.  It will help you to keep them.

If you’re not big on making resolutions, here’s a great way to start the New Year.  Write yourself a job description.  Start with the phrase, “If I were training someone to take over my job, and I received a royalty from their performance, here’s what I’d tell them to do…”  Then staple it to the file where you put your pay-stubs or some other locale that you have to look at on a regular basis.

I’ll end with a nice story about a jeweller who on December 6^th had an SUV drive right through his store, and with a positive attitude, managed to make the best of it.  Click HERE to read the JCK Online story.

Happy New Year!

Blog post #300 with a 2012 tally of 88,054 words.

Wearability

Ahhhh, boxing day!  My favorite time of year to join the hordes looking for unparalleled deals.  Boxing week is proof that if the price is low enough, consumers will sacrifice their quality standards.  What I like to call wearability (my spell checker doesn’t recognize the word) is a combination of durability and universal appeal.

A nice piece of jewellery can stand-up to daily wear and goes with many things.  But on boxing day, a person might buy a piece of costume jewellery with maybe 10 wearings in it before it starts crumbling if the deal is good enough.  A person might buy a piece of jewellery with an odd combination of colored gemstones if the deal is good enough. 

Besides the electronics stores, who had the biggest line-ups on boxing day?  Old Navy, and Wall-Mart.  Wearability?  Well, neither of these are the place to go for long-wearing clothing.  Fashionable?  Well, whatever is left-over is what is discounted, so items voted the least appealing before Christmas are blown-out after.  Simple formula.  Good business.

Your job?  If you’re one of my typical store owners, your job is to put an attractive incentive on older merchandise in order to get rid of it.  If you’re a sales associate, I charge you with selling the best wearable merchandise that your clients will buy.  If they’ve got money burning a hole in their pockets, show them the good stuff and see if they will start a layaway on something awesome rather than walking out with cheapo left-overs.  As always focus on the good stuff, and work your way down to the best they are willing to purchase.

Shaving Cream

Wow, are you kidding me?  Here I am laying low, and not sending-out daily blog-posts because I know how busy you are (also because I’m extremely close to accomplishing my 300 blogs in 2013.)  Here’s what I’m seeing.  Due to a new product line with a time-limited offer, I’ve made a couple of sales pitches during the busiest month of the year and got timely responses back.  I’ve also received many thoughtful responses to some of my blog posts.  Is it that slow out there?  Nope.  Reports are pretty good so far.

I always wondered how long a can of shaving cream would last if I always used the small (but entirely sufficient) amount that I squeezed-out for the last couple of shaves before starting a new one.  In the same way I wonder how much we could accomplish if we worked as efficiently as we HAVE to in December.

This December, make sure you take just a few moments to observe how quickly product gets tagged and put into the showcase.  How much time it really takes to wipe-down the counters.  Note the urgency to call people when repairs or special orders are ready.  There’s no dilly-dallying.  No lolli-gagging, and certainly no shilly-shallying.  Now get back to work and enjoy the hustle (and the bustle!)

Smoked Meat on Rye!

When I was doing a lot of jewellery-insurance claim work in Edmonton, my office was right around the corner from Mansfield Importers.  This was an old-school store just off Jasper Avenue where luggage, kitchen accessories, hardware and other treasures could be found just beyond the jewellery counters.  Since the owner Mike Mann had been buying-up close-out merchandise and he bought kilos of Italian chain, I often was able to find a Seiko Lassalle or just the chain I needed to complete an insurance claim. 

Every December, when I would go in there for a visit (if Mike wasn’t on the phone loudly negotiating a real-estate or stock transaction) he would come over, shake my hand, look way up into my eyes and say, “It’s good to see you my friend.  HEY, SHERRI, TAKE TODD UP STAIRS AND GET HIM A NICE SMOKED MEAT SANDWICH.”

This was the way it was at Mansfield’s in December.  He brought in a special shipment of smoked meat from a deli in Montreal.  Along with rye bread from his favorite kosher bakery, it was a delicious and familiar way to treat customers.  It was hospitality.  It was tradition.  It was part of his Jewish culture.  It made going into Mansfields something special.

For you it might be over-the-top decorations.  It might be live music.  It could be “special” egg-nog, home-baking or a free Christmas decoration.  Think about the best received Christmas treat and imagine 365 days, 730 days and 995 days from now what kind of experience your clients can enjoy through your hospitable traditions.

Independent = Dead End?

First it was Marjon Jewellers in Kamloops, now McCallums and Warringtons.  Three perfectly good effective businesses have or are closing their doors, rather than selling to the highest bidder.  What is it about independent jewellery stores that a savvy businessperson wouldn’t just snap it up and keep the ball rolling?  Is it that inventory liquidation is more lucrative than negotiating 2.5X annual earnings plus inventory and fixtures?  Is it that aged inventory requires such a steep depreciation?  Is it because it takes more than just any businessperson to run a jewellery store?  Is it because an independent jewellery store isn’t profitable enough to justify the outrageous mall leases being asked?

People buy into franchises all the time.  The typical franchise prospectus asks the new franchisee to have $100,000 to $500,000 in unencumbered cash, plus additional net-worth to back equipment leases, credit lines and real estate leases.  And then they have perpetual franchise fees and royalties to deal with.  Why aren’t more of these people making you offers on your jewellery store?

 Most of the answer lies in the book The E-Myth.  According to Michael Gerber, your store is only entrepreneurial, franchiseable and resaleable if you’ve defined and documented all of the functions so that others can step-in and do what you do.  If purchasing, pricing, hiring, training, appraisals, and key client management are all done by one very capable owner, then the only buyer for your store will be a protégé already working along-side you.  This is where key-staff reading this should pay attention: you may be a unique candidate to buy-out your owner one day!

Best wishes to Orm Schulz (who with his son Parker will continue to run Jonathan’s Jewellery) and Brent McCallum as they enter a new phase of their lives.

The Geller Prize

Repair pricing is a two-edged sword.  By instituting the Geller repair pricing system many retailers have instantly doubled or tripled revenue from repairs.  One of the ways in which this happens is by putting down on paper the services performed that we don’t always disclose.  For instance a sizing might also require checking and tightening of gemstones, polishing and rhodium plating, and in the Geller system, you are urged to provide a warranty on work done.

My take on this system is this: the real prize is that when you’re getting a better price for repairs, your goldsmith is free to spend the time actually doing a proper job.  He or she doesn’t resent the time checking and tightening shoulder-stones and properly rhodium plating. 

If you’re going to charge more than the competition, make sure you’re worth more.  If you’re not worth more, what are you?  You’re worth less.  Worthless.

Todd’s Communication Theory

Following up on yesterday’s article on breaking bad news, I have come-up with a theory about communications.

There are very few people who could be described as “an open book.”  When you talk to someone face-to-face, in a specific context you can hear their words, along with inflection, see their eyes and their body language.  If they’re not completely an “open book,” and are holding something back from the conversation, you should be able to understand them 80 to 90%.

On the phone, you might hear their words and perceive intonations, but without actually seeing their eyes and reading body language, maybe you’re only getting 60 to 70% of the story.  While texting (144 characters at a time) or emailing, even with “emoticons” ;}>, and common abbreviations (lol!) you get no eyes, no body language and no context.

Let’s remind our junior staff that the most effective way to build clientele, sell and resolve problems is by far face-to-face.  If we focus on that as the primary way to do business, then, guess what?  We’re conditioning our marketplace away from doing business on the internet.

Breaking Bad News

I teach a lot about selling techniques, including scripts, product knowledge, motivation and closing.  Ours can be a “Barnum and Baily World” – a carnival that takes people’s money and then moves on down the road whether the client is satisfied or not.  Most of you are in business for the long-haul and have to deal with the odd unhappy client.  Here are a few thoughts on doing-so without harming your reputation.

My father was told to expect biopsy results in 10 days, but after 5 or 6 days the doctor called him in for an urgent meeting without specifying what it was about.  This is a good example of how to stress-out a client for nothing (and by the way, the urgent meeting held no firm conclusions, good, bad or otherwise.  The doctor just discovered he had some time to go over some of the potential outcomes of the tests.)  Jewellery is less critical than health, but it is still emotional.  It’s best to be direct if there’s a problem.

·      Due to quality control, there’s a chance that your job will be done later than expected.  Can we take a few extra days to get it done right for you?

·      While taking every precaution, a small chip was noticed in your emerald after it was reset, so we’ll have to discuss your preferred course of action.

·      Our gemologist has determined that your “investment gemstone” was actually a man-made variety.  Do you still wish to proceed with the design we’d planned for it, or would you like us to quote on a natural gemstone to replace it?

If you leave someone hanging with a message like, “we’ve got some concerns about your job,” someone in our stressed-out society will have time to wildly imagine their own conclusions.

When I was new to the industry (before call display,) knowing that sometimes jewellery is a surprise purchase, I avoided telling the voice at the other end of the phone what I was calling about.  When he asked, I panicked and said, “it’s a personal matter.”   Wrong answer!  I should have said, “it’s about a completed repair job at our jewellery store.”  It might have been a little white lie, but it would have done the trick without causing the poor fellow to wonder what “personal matter” she hadn’t told him about.

C2A - next staff meeting have everyone bring real-life stories of miscommunications.  I have the feeling that with text messaging, Facebook, voice-mail and call display, erroneous conclusions are on the rise.