Sell Big Diamonds

In an article regarding the July rebound in jewelry sales, I found the following quote. (Idex News).

“There is an old American adage that we’ve cited before: When the going gets tough, the tough go shopping. For all kinds of psychological reasons, Americans view shopping as a stress-relieving recreational and social activity.”

Now that we know that the people want to go shopping, the trick is where will they go?

What can you do in your store to fill the needs of those seeking stress-relief or social activity?

Could you host an afternoon tea? Bring in a Jazz trio? Turn a sales evening into a networking event?

There are probably many ways that you can make the shopping experience more then just shopping. Imagine the result if people came to your shop, just because they like being there.

Let’s try and start a list of the more interesting ways to encourage footfall into your store. I’ve thought of three. Your turn. Post your ideas in the comments section by pressing the ‘comment’ button.

Larry

Summer is over. School is back in session. The stretch drive to Christmas season is here.

I listen to the news, same as you. I hear about the credit market, the housing market, the stock market. One pundent says this, the other expert says that. Personally, I’m positive. I don’t know what is going to happen!

I do know what I have to do. I have to have a positive attitude. There will be a good Christmas season! Any other appraoch is counter-productive!

If you are not thinking positive, it will show in your business. I am buying diamonds for the season. I am advertising for the season. I am shipping goods to stores for the season. Only by positive action will sales take place.

If I don’t buy, I will have no inventory. With no inventory I garauntee myself a lousy season. It’s to late to buy when the customer is already at the door. Buying now, when business is soft gives me the chance to buy diamonds at the best possible prices.

We are fortunate in the diamond and jewelry business. Our inventory has no spoilage date. The markups from dealers and manufacturers is small percentage points. My absolute, drop dead, worst case scenario is to sell some goods at a few percent loss. Never enough to endanger my continued business.

So I say prepare for the GREAT season! That is the only way to have a GREAT season!

What are you doing to have a great season? _Please click on the comments button.

Larry

Please go to this link http://diamondsandgems.blogspot.com/ Wink Jones has written an excellent series of articles describing the differences between fine and poor quality jewelry work.

Larry

This is a true story that happend to a very reputable diamond dealer in the US.

He bought a piece of rough from another dealer. Paid $1000. While examing the stone, an Israeli dealer comes to his office, sees the stone and offers to cut it for him at his factory.

When entering back into Israel with the stone in his briefcase, he declares it at customs. Customs officials ask for the certificate of origin, as per the Kimberly Process.

Of course the thought had completely skipped the mind of both dealers. The stone was confiscated, and now the owner is out $1000.

I’ve heard it said that the only way to lose money on rough is by cutting it. Now it appears you can lose money by just “wanting ” to cut it.

Larry

How much should I pay…… Dealer vs. Public?

Should there be a difference in the buy price between buying from a dealer or buying from the public ? In my way of thinking, an item bought at the price I am willing to pay is basically the “right price” regardless of where it comes from……..right ?

Example:
A dealer comes into my office and offers to sell me a diamond. This is the weight, color, clarity and make I can always use. GIA certified. I end up buying this stone for $ 4000

The next day on a recommendation, a friend of a friend (the public) comes in to sell me the EXACT, EXACT, EXACT same type of stone as I bought the day before for $ 4000.

What is the most I should pay for THIS stone ?

For the sake of our discussion, let’s assume the following:
I am a consistent buyer of this particular type of stone and can never have too many in stock.
The stone is not stolen.
The “hold” period of between 10 to 30 days is not a problem.
My running out of money is not an issue.

Many dealers I know are of the opinion that they will not pay the public as much as they would pay a dealer for the same item. Their view is that when buying from the public, they must either “steal it” or get a great, great deal or they just won’t buy it.

Shouldn’t the item and its price stand alone no matter where it comes from? Because at the end of the day, when the dealer or the private leaves your office, you are ultimately left with the item at a price. Nothing more, nothing less.

Please let me know your thoughts on this. Click on the comments button. I would be very interested to hear what others think.

Stan

Now that summer is drawing to a close, our industry is gearing up for the coming holiday season. I have always felt that in our industry many companies, even some of the biggest, are run in an old-fashioned manner. This can be good or bad. It all depends on the company. But I think we can all benifit from some good business ideas. So, I will begin posting items which I find of interest. I hope you will read them, learn something you can use and impliment them for your benifit. Please add your thoughts and suggestions.

What follows can be adapted to our industry. The writer is Michael Flint. He has been in the business of marketing Law offices for many years. I have in the past hired him to give my company marketing advice. Should you wish to read more the site address is…..http://lawmarketingsuccess.com/

Better Hiring Brings Better Results
Whether you need to hire an attorney or a support staff member, most lawyers make the same hiring mistake. They hire based on the resume and the interview, then they try to see if the new hire is actually a good fit.

In the last 20 years, I have helped my clients make better hiring decisions and cut their losses early when the wrong applicant was hired.

Before you advertise to fill your next opening, take the time to outline the new hire’s first 30 days on the job. Specifically, What do you want to know that he/she is willing to do in the week one, week two, etc.

Let’s say that you want to hire a support staff member to assist in legal work and administration of your firm. As an example, you need a paralegal who will also make calls to clients who are behind in replenishing their retainers. In your outline of duties and responsibilities for week one, you have them on the phone, making those AR calls.

When you show an applicant a plan for their first 30 days with you, you will see one of only two responses. They will either say nice things and you will never see them again (saving you the hassle of hiring a person who assures you he could do the job but never does) or they will actually get excited about having a map to being successful in the job. Hire the excited one!

Further, If the new hire does not make calls in week one, you can have a brief meeting with him reaffirming the importance of this duty. If in week two, he still does not do it, let him go and hire someone else.

Avoid keeping the wrong people on payroll. My clients have successfully used this process to make better hiring decisions, which allows them to spend more time practicing law and less time dealing with (wrong) personnel issues. And the best part is that it even works when hiring attorneys.

Try It!

Latest government findings released……..

High Income Consumers Love Jewelry – Higher income consumers spend exponentially more on jewelry than lower income consumers. The average household earning $70,000 and above spent $1,206 on jewelry in 2005, about 2.4 times the amount of the average household. Why? High-income consumers have dramatically more discretionary income. This trend has been solidly in place for many years, and data from the 2005 Consumer Expenditure Survey reconfirms this trend.

Isn’t it just great when we learn this helpful infomation. Come on, all you store owners, tell the truth, you didn’t know that rich people spend more then poor people. Now armed with this info you can market so much better. No more ads tacked to telephone poles. Join that country club and hang with the rich and make more sales!

Too sarcastic?

Seriously, the high end is the market we all want. I personally do think that country clubs and other venues where one can mingle with money is a slow ,but proven way to do business. If you have other ideas, please add your comments and share.

Tiffany & Co has sold the Little Switzerland stores. These store were found in the Caribbean. It was through one of these stores that I had one of my most convaluted sales.

I was called by one the stores in the Virgin Islands and asked for a larger Pear shape D-Flawless. I sent it down there for the store manager approval. He approved it. Then it was sent to the customer in Aruba, he approved it. Then I was told to send it to Hong Kong. That was where the jeweler making the ring was located. The money finally came to me.

The stone had a nice trip around the world.

Recently I was offered an estate piece, all diamonds. One look and I knew the piece was worth the price. Paid it without question. I never bothered to break down the weight of the diamonds in the piece.

I put on a fair percentage profit and sent it to sit in a store window. Eventually the piece was sold. The store even asked me what the weight was and I was embarrassed to say I didn’t know. After a couple of days the store asked me could my jeweler make a small adjustment to the piece so that it would fit better. Sure.

When I had the piece back in my office I decided to calculate the diamond weight. I found that the price was a bargin!! I could have fairly asked even more.

So I made a sale and profit. The store made a sale and profit. The private had a beautiful piece. But the question remains was I foolish in not making a greater profit? Or was I increasing my chances for future sales by insuring that there was meat on the bone for everyone?