Secret Millionaires

According to a recent CNN news article there are from $21 to $32 TRILLION hidden in offshore tax havens by some 10 million of the earth’s “super-rich.”  The amount adds up to the economies of Japan and the U.S. combined.  Just to let you know, Toddwaz is not among them.  The article focused on the tax implications; in that hundreds of billions are not being channeled into governments’ coffers.

I’m more offended that this money is being removed from local economies.  Through taxation, investment and spending the money would trickle-down through all areas of the economy; including jewellery stores.  As one of my clients discovered, there’s more money out there than we can fathom.  A $170,000 diamond purchase would make anyone’s day.

My lawyer once commented that he’s amazed at the wealth of some of his clients who NEVER spend any of it.  They live in a modest house they’ve had for decades, they go on simple holidays or travel in their 80s vintage motorhome, and it pains them to touch the $6Million capital they’ve accumulated.  They are “secret millionaires.”

The money is out there, and that’s precisely why we need to continue promoting big diamonds and high-end jewellery design.  While we spend most of our time catering to people who have to sacrifice much in order to afford a nice jewellery treat, some of our time must be devoted to driving demand for luxury jewellery.

If the most expensive bauble we are able to show a secretive multimillionaire is $15,000, then it’s no wonder these people are tempted to sock-away their cash in the Grand Caymans.  Through trunk-shows, diamond promotions and working closely with suppliers, you might be able to expose more clients to bigger and bigger pieces.  

Pride in his Cool Store

Robert Grey Kaylor was interviewed by InStore Magazine in response being awarded America’s top Small Cool Store.  Watch the video and take note of the pride Robert takes in this award.  At first I wondered if he was a bit arrogant, but my conclusion is that he worked so hard at creating an amazing experience and selection for his clients, he has earned the right to a healthy dose of pride.

Post a message below if you disagree.

Building a Better Business

This article was issued in a March 2007 issue of my Road Reflections Newsletter, but remains an important message.  Enjoy this Toddwaz Classic.

Big corporations have boardrooms, and great corporations use them.  It’s important to get your key people together (for most of us it’s all of our people) to correct, instruct and inform.

Staff meetings can be really boring, so there are four things that exemplary jewellers do to make them efficient and valued. 

First, most of you’ll be holding these meetings either before or after work, so provide a snack and beverages.  Mike Ungrin of Marjon jewellers cautions that if you’re not careful snack-time can burn-up valuable meeting time, so keep it simple!  He keeps his meetings to a maximum of one hour as it seems the outside limit for information retention without a recess.  While it is lawful to provide a meal as compensation for being there, all of the jewellers I spoke to said that their staff members are paid for their attendance.

Secondly, any meeting needs an agenda in order to keep conversations on-track.  While open-discussion time is important, there are urgent matters that will quickly be put on the back burner if conversations wander down one rabbit-trail after another.  Dick Jewell of Mitchell & Jewell rotates the task of recording secretary.  If you record your minutes and post them on the bulletin board, then staff are reminded of the new expectations that came out of your meeting.

Some common agenda items are:

·      Sales stats

·      New product knowledge

·      Workplace issues (incl. security)

·      Sales training

Thirdly, use these meetings to clearly outline expectations.  Everyone I spoke with discussed the ongoing challenge of developing and maintaining consistent customer service and operating procedures.  By discussing expectations, you give staff freedom and power to exercise creativity without acting outside your parameters.

 The fourth common element for successful staff meetings is “open discussion.”  Allow time for questions and comments when going over agenda items.  If, for example, one person questions a new repair tracking system; chances are they’re not the only one who lacks understanding.

Also allow time for “new business.”  Great ideas sometimes go unsaid without an appropriate forum.  Grumbling about petty issues may continue behind backs unless given a chance to publicly vent.  If you are honest enough to, as Dick Jewell says, “praise and whip,” then your staff will echo a similar openness about their issues.

What if you’re just a small operator? Curtis McLeod of Ken’s Goldsmithing, along with the owners is part of a team of only 7 to 8 people.  They hold their meetings mid-day during the shift cross-over once or twice per month.  They usually talk about workplace issues and work on sales training.  Even though they all work with each other so closely, Curtis claims that “it’s a must” because “it helps keep everyone on the same page.”

Here’s what others said about holding staff meetings:

Dick Jewell – “will make life easier for management.”

Mark Tuttle (Independent Jewellers Edmonton) – “Without them, we would have chaos” and “it definitely increases productivity.”

Mike Ungrin –“Staff meetings essentially help clear the air.”

So, if you’re not currently holding regular staff meetings, here’s a start:

·      Get a box of donuts and some drinks

·      Arrange a time for everyone to attend

·      Set an agenda; taking into account your expectations that need to be met

·      Use the agenda to keep the meeting at a lively pace, while leaving room for open discussion

Post the minutes on the bulletin board to remind your staff of the new or renewed policies and expectations.

Bathtub Races

Yesterday marked the 46^th annual Bathtub Race in my new hometown Nanaimo.  It started as a novelty event featuring all kinds of bathtubs with all sorts of propulsion.  Today the “tubs” are made of fiberglass with fast hulls and 9.9hp outboard motors.

My lovely wife Jana works for Royal LePage Nanaimo Realty, who have a long history of support for the bathtub race and the Nanaimo Marine Festival.  This year they weren’t able to enter a boat in the race, prompting Jana to comment that she might try her hand next year in order to keep the history alive.  Jana made it clear that it was more important to participate than to be “competitive.”  Even though she has never piloted such a craft, I don’t doubt that she will do it to show her passion for the town where she grew-up.

No matter what the theme, every community has something that they’re known for.  These celebrations put the “unity” in community, and give businesses like you the chance to demonstrate your esprit des corps.  I’ve always said that promoting yourself has more to do with effort and enthusiasm than with slick marketing.  By showing active involvement in community events, you are sewing generosity into your community. 

 

What goes around, comes around.

By the way, does anyone have a serviceable 9.9hp outboard they’d like to donate?

Have a festive summer!

Discounts Vis-à-vis Visa

I know that some of you have straight-up pricing policies, and I admire the brave commitment you’ve made.  I almost say that tongue-in-cheek because there are always sales where some negotiation comes into play.  My favorite strategy for dealing with those who ask for a deal is to first ask them what method of payment they’d like to use.  In fact, I got good at consciously avoiding the issue of payment method until after they’d asked the inevitable, “so what’s your best price on this.”

Now, I know your service agreement says that you can’t levy a surcharge for the use of credit-cards.  I never did-so, but who hasn’t given a couple percent higher discount for cash or cheque?  When they ask the question, “what’s your best price,” I’d reply, “how do you want to pay?”  The fact is that most of our clients either need to use their credit card or want the reward points for doing so.  To say, “well if you’re using Visa, that’s going to cost me 2.15% (or whatever you’re paying), and I’ve rounded up the price by $120 to get to that $3,995 price point, so I’ll give you the $120 back for Visa or I’ll give you $200 off if you give me a cheque. 

When you approach discounts in this manor it starts you off in the region of 5% rather than 10 or 20%.  It gives the client and either/or choice with a higher discount available for their less-preferred payment method.  This method also acknowledges what consumers expect; that your nice round numbers probably aren’t generated in their favor.

A recent class action suit in the US has punished credit card companies for prohibiting retailers from charging premiums for credit card purchases.  Because it’s already a pretty well-anticipated cost of doing business, I don’t expect you to begin announcing surcharges for credit card use.  Knowing that you could if you want will help you fine-tune discounts without worrying about contravening your credit card service agreement.

On-Line Sales Tax

The specter of an on-line sales tax in the U.S. is giving bricks-and-mortar jewellers increased confidence.  In Rob Bates’ recent article on the matter, he reveals that part of Blue Nile’s strength has been built while dodging sales tax in 50 out of 52 states.  Are you kidding me?  With e-tailers’ operating costs already so much lower than traditional retailers they’ve also been skirting state sales taxes all this time???  It’s bad enough we have to put-up with the misrepresentations that happen by online jewellery e-tailers!

Maybe it’s a good thing to be in little ol’ Canada.  We do put-up with competition from e-tailers, but if the Jewelers of America are successful in pushing the enforcement of sales tax it could put upwards pressure on pricing from the internet.  At the same time, as I wrote a few weeks ago, more and more internet e-tailers are opening up bricks and mortar depots because consumers seem to distrust purely virtual vendors.

Is it just me, or are internet jewellers now trying to be more like us?

Pike's Peak

“It pays to advertise. Remember there are a lot of peaks in Colorado higher than Pike's Peak--but try to name them.” (Unknown)

I want to explain why I find this quote problematic.  Pike’s Peak is notable due to it’s rich history and its’ location near Denver and Colorado Springs.  Nobody decided 200 years ago that they were going to advertise it into prominence.  There’s pink granite, a gold-rush, and the Pike’s Peak Hill-climb race.  It’s said that her view from the 14,000ft summit inspired Katherine Lee Bates in 1896 to write the song America the Beautiful.

Now, as far as modern day commercial advertising and merchandising goes, there are T-shirts, post-cards, Hill-climb race posters, gold coins and all manor of souvenir merchandise available branded “Pike’s Peak.”  The Colorado Convention and Visitor’s Bureau promotes visits to Colorado and feature Pike’s Peak among the attractions.  Because of its’ storied past and popularity there is a fully paved road that ascends to the top as well as the Pike’s Peak Railway.  Marketing is being done by newcomers to Pike’s Peak and they’re taking advantage of the Pike’s Peak brand to build their businesses. 

Are we not sitting on a goldmine ourselves because we sell diamonds?  We didn’t tell Archduke Maximilion to have a diamond set into a ring in order to propose marriage.  We didn’t discover the curious octahedral stone on a beach in South Africa that sparked the African diamond rush.  None of us I know wrote the phrase “A diamond is forever.”  We didn’t advertise diamonds into popularity.  We just get to tell the story and reap the rewards.  We can use advertising, social media, press releases, advertorials, speaking engagements, posters, fliers or any other elements of marketing.  But, it remains our privilege to promote something that is monumental in its’ recognition.

Out of all the brands who are seeking to advertise themselves into prominence, none of them will ever supersede the brand that diamonds have achieved.