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Real Deal: The Case of the Custom-Made Disaster

To be eligible for publication in INSTORE, responses must include your name, store name, and the city and state in which your store is located.

Alice McDonald loved to tell all her friends about David Rae Fine Jewelers. They carried all the most fashionable lines and always had the newest designs in stock. She knew the store was a little pricey, maybe a bit of a stretch for some of the less "self-sufficient" of the girls — but it never hurt to look, did it? Alice smiled as she thought about how much she appreciated her own husband's "laissez faire" nature when it came to her little indulgences. He hadn't the time or the patience to shop for her — but he never challenged or questioned when she brought home a trinket or bauble she picked up for herself. In fact, he said he really liked it when she dressed up for their many social outings.

realdealbulletin.jpgRae Fairborne and her husband David opened David Rae nearly 20 years ago, after leaving the large company where they both worked as top salespeople to follow their own dream. They had always imagined a store that would offer exquisite custom-made designs and brand name, high fashion product in a warm, fun, casual environment.

David spent the first seven years in the store working as the apprentice of one of the finest master craftsmen in the business, while Rae ran the front end with the help of two salespeople — one of whom was her mother! David joked that if he could be an apprentice employee in his own store while taking orders from his wife AND his mother-in-law, he was certain there wasn't much he couldn't do! It didn't take long before the word about their unique style and cozy environment got out and the customers started to come in. Their initial investment paid off, and they haven't stopped growing since.

Alice especially liked dealing with Rae. She loved her sense of style and the way she made everyone in the store feel at home, even when it was clear they wouldn't make the top of the "big spender" list. After nearly 10 years as a regular customer, Rae knew exactly what Alice liked, and even went out of her way to bring in special pieces from Alice's favorite designers when she thought Alice might like to see them. Alice appreciated that despite Rae's ready attention and high-energy nature, she never came off as pushy or aggressive.

Rae was just putting out a new collection sent in by a fresh, young designer she'd met at a recent show when Alice walked into the store one Monday. She said she'd just been out at her weekly tennis clinic at the club, and decided to stop by for a little "retail therapy." She had gotten rather depressed to hear two of her friends talking about how romantic and generous their husbands were and showing off pretty (though a little small for Alice's taste) pieces they had both received as anniversary gifts the previous week. Alice couldn't remember the last time her husband had surprised her — and the idea of "romantic" just didn't fit anymore — unless she could consider the no-limit platinum card in her name a "romantic gesture."

Rae continued to provide a friendly ear as Alice browsed the new collection. At one point, she came across a ring that seemed to have been made just for her ...  except maybe for the too-small diamond in the middle. It had been a while since Rae had seen Alice so animated and lively over a piece of jewelry --- and it gave her an idea. The ring was designed as a semi-mount. Alice had just finished telling her about how the diamond in her original engagement was not much bigger than the 1-carat in the center of the new ring, and about how she never wore her original diamond these days because neither the style nor the ring size were right for her any more. When Alice said she wanted to take the new ring and asked to see a bigger diamond to put into the center, Rae thought quickly. She told Alice she would need to contact the designer about having the ring custom made to Alice's specifications, and that she would get back to her within a few days. In the meantime, she added the style to Alice's wish list and promised to e-mail a digital picture for show her husband.

The minute Alice was out of the store, Rae made a few calls and got a direct phone number for Tim McDonald, Alice's husband and the CEO of the largest biotech firm in the state. She managed to get past Tim's secretary and to his desk. When she introduced herself, she could almost hear the smile in Tim's voice as he said, "Of course, I know you. You are the only one in this town who is truly expert at keeping Alice happy!" She explained about the new ring and relayed the conversation about Alice's original engagement ring. She then pointed out to Tim that Alice's 50th birthday was just three weeks away. Tim loved the idea and promised to drop by the store in the morning on his way to the airport.

Sure enough, Tim — in a much less "cheery" mood, ran into the store, handed Rae an envelope containing Alice's original engagement ring and said to have it ready the Saturday before her birthday — when he was planning a huge surprise party for her at the club. He said he was headed out of the country till the afternoon of the party and would be out of touch till then, and he asked Rae to take care of everything for him. He was in and out of the store within two minutes. Rae ordered the ring from the designer, requesting that it be made to accommodate the side diamonds from Alice's ring as well as the center. She then called Alice and told her the designer was going to work on coming up with a few new drawings for her — but that she wouldn't get to for at least two weeks. Alice was fine with waiting.

The ring was ready and in hand at David Rae within a week of the order being placed, and in the opinions of both Fairbornes, it was stunning. On the Thursday before Tim was due in to pick it up, Alice stopped by the store to retrieve a watch she had left for repair. In the course of the conversation she remembered to tell Rae to cancel the sketches from the designer, since a friend of hers at the club was on a shopping junket to New York and managed to come back with the exact same ring --- with a 3-carat diamond in the center. There was just no way she could have anything even close to that style now. On her way out, she said she'd be back in a few days to pick out her birthday present.

Rae was totally dumbstruck, and at a complete loss for what to do. The ring had been custom made with Alice's diamonds in it. She had no way to reach Tim, so he wouldn't know about all this till the afternoon of the party. She couldn't very well tell Alice...

Big Question: What can Rae do to minimize the fallout?

Editor's Note: Real Deal Scenarios are inspired by true stories, but are changed to sharpen the dilemmas involved. The characters should not be confused with real people.

This story is from the September 2009 edition of INSTORE

To be eligible for publication in INSTORE, responses must include your name, store name, and the city and state in which your store is located.

Comments (14)Add Comment
owner
written by curt, June 17, 2009
she can talk with the customer and give her a credit and add the cost of the cancelled ring to the price of the new one she will be taking
OWNER
written by NEAL ELINOFF, June 17, 2009
GIVE THE RING TO HER HUSBAND WHEN HE RETURNS AND GIVE HIM THE BILL, TOO. EXPLAIN THAT BECAUSE OF THE CIRCUMSTANCES, YOU WOULD BE DELIGHTED TO GIVE HIM A CREDIT, BUT NOT A REFUND. REMOVE THE DIAMONDS AND RETURN THEM TO THE HUSBAND. SEE IF THE DESIGNER WILL ACCEPT THE RETURNED SETTING, OR SUCK IT UP, PUT IT ON DISPLAY AND TRY AND RE-SELL IT WITH A (NEW, TEMPORARY) CZ CENTER.

AS LONG AS YOU HAVE THE CUSTOMER'S MONEY, HE'LL GET SOMETHING ELSE WITH HIS CREDIT, AND YOU MAY SELL THE SETTING, ANYWAY. YOU'RE OUT NOTHING, REALLY, AND THE CUSTOMER WILL UNDERSTAND THAT HE HAS TO PAY FOR THE CUSTOM WORK.
The Case of the Custom Made Disaster
written by Joe Cheslock, June 17, 2009
This isn't really all that hard. Pick out another piece for Tim to give Alice at the party. Pull Alice's stones out of the custom piece and mount your stones into the ring for stock.

When Tim comes in, explain what happened. Since Alice doesn't know anything about the surprise, she should feel really good about Tim being romantic and surprising her with whatever Rae and Tim agree on.

Tim still gets to look good and well, Rae has a beautiful ring in stock that she will sell eventually.
owner
written by james Levinson-James Levinson,, June 17, 2009
leave the ring as is until the husband see's it. Tell him of your conversation with his wife and offer several alternatives. One being a larger than 3 carat center stone for that mounting. Have a selection of larger stones for him to pick from and other similar mountings available-tell him you'll set the new stone in whichever mounting he chooses and deliver it in time for the party. Since Rae said she had a wish list for this customer, she could also offer one or all of the items that are on it.
owner
written by Daniel R. Spirer Daniel R. S, June 17, 2009
There are a series of issues here. First of all, did she actually get a deposit from the customer's husband? If she didn't then she has less recourse in my book. If she did, and she has had a clearly posted credit only policy (or clearly duscussed this with the husband) then the customer should be obligated to use that amount towards something else (but not, IMHO, the balance due if the piece isn't acceptable).

But as a real custom jeweler for over 25 years, my belief is that the customer always has to be happy with the piece. She ISN'T going to be happy with the piece, so something else has to be done. Either the jeweler pulls the customer's stones, replaces them in the original ring, and puts her own into the piece and puts it out for sale (not a big deal since apparently she likes the work of the designer) or she offers to redo it in another style that wouldn't conflict with the one the customer's friend had gotten. Given how long the customer has been buying from the jeweler, however, the jeweler should pretty much do anything that would make the customer happy. The customer has spent some significant sums of money in the past and she will continue to do so, if she's treated properly.


Contrary to the prevailing opinions in the earlier postings on here, in today's marketplace, any good, long term customer needs to be coddled, not bullied. That's just my opinion, but then maybe that's why my custom order box is stuffed to the brim right now.
President - Carats, Inc.
written by Eric Phillips, June 17, 2009
Rae started the deception, and needs to accept responsibility for it. Rather than wait for the crisis, try to collaborate!!! Rae needs to tell Alice what Rae has done, and how anxious Tim was to do whatever Rae said would please Alice. Let Alice be a part of the conspiracy. Jointly pick a different style, get it made, and present it to her husband. He needs to know that Rae discovered the problem and solved it, and be assured that if for any reason Alice is not thrilled, Rae will do whatever it takes to make her happy. (He does not need to be told that Alice is in on the deal and WILL be thrilled.) This will allow Alice to get exactly what she wants, Tim to feel like a hero, and Rae to solidify her relationship with both of them.
...
written by Joe Pankratz, June 18, 2009
I like Eric Phillips idea better that
what I would have done, though very similar...his creates the best of all worlds
...
written by David Squires, June 18, 2009
Just a QUICK reminder to everybody.

Names and locations, names and locations. If we can't identify you, then we can't publish your responses and win you everlasting fame amongst your fellow jewelers.

Thanks.
Owner Steve Quick Jeweler Stores Chicago
written by Steve Quick, June 22, 2009
Our responsability is the customers happiness. If Alice gets the ring Tim ordered...not happy. If Tim has no present to give at the party....not happy.
I would call Alice, tell her about my dilema and have many great alternatives in store to show her. I would make sure that Tim had that present to give when he returned. I would also call the designer to see what can be done. If I have to stock a mounting to keep my best customers happy, so be it. It sounds like Tim could be spending a bit more money than he originally thought anyway.
Store Manager, Bailey Banks & Biddle
written by Guy Kramer, July 22, 2009
This type of client represents an important, long term investment for any business. Alice is obviously very attached to the luxury shopping experience at Rae's and buys frequently. She is probably well connected in the community- and with their key demographic; and probably tells friends and relatives to shop there.
When you have a customer of this value, many exceptions apply. Most importantly, you can not concern yourself with the short term burden of owning the mounting. Rae will see the husband soon enough and she can inform him of his wife's wishes at that time. It's the thought that counts in any gift. So, even if Alice finds out about the attempt, she will still love the thought behind it.

Rae comes out looking great either way because she took action to do the very best for her clients!
Owner
written by Louise Cannon, July 29, 2009
Rae should not have taken it upon herself to redesign an original engagement ring of someone's until that person has been asked about it. This is a sentimental item that is huge and should not be tampered with by anyone until that person has o.k.'d it. Most ( but not all ) men do not understand the attachment a woman has to just a personal item. Rae should understand that when she in in the business. I would offer to maybe set a colored gemstone in the ring, maybe a birthstone or a anniversary stone that would create another sentimental item for the customer. Tim should be the one to pick out the colored stone. It could be set in a matter of minutes, Tim would have a present to give at the party and if it didn't work out then it could be corrected after the party. Everyone saves face.
owner National Jewelry Replacements
written by kris frederickson, July 29, 2009
Rae lost control at the outset. She should not have accepted his terms (just get it done) without adding a couple of her own. She should have insisted on a manner to contact him should a reason occur, and she needed to clarify this was a sold order.

Nevertheless, this can be saved where both are heroes. Since the custom ring has been made, keep it and prepare it for delivery. Then bring in two or three alternates that Rae knows
Alice would love. There should be a three carat (plus) and one or two that are even larger. When Tim comes for the expected ring have it ready along with an invoice. Explain what you have learned and then present your solutions. Have them priced to include only your hard costs for the original order in the event he opts for only the improved present. He will either purchase the original order, one of the alternates, or both. You win with any of his choices.
VP Ralph Miller Jewelers & Gallery
written by Daniel Niebauer, July 30, 2009
Having specialized in the manufacturng of custom made items for over 35 years in a store that is 111 years old. There is really no problem here for Rae and David - "The customer is always right," so remove the stones, suggest to Alice's husband to have a stunning pendant made to match here newly purchased ring. We could have in ready in hours hopefully Rae & David could as well with all that bench training. If not than a store credit option would be course of action to resolve the sticky situation.
V Pres
written by Laura Stanley, August 05, 2009
I think the only thing to do is to have a really fantastic alternate gift of equal or larger dollars ready for the husband when he comes in to pick up what he thinks he's buying. That way, he has a gift, his wife is surprised, and the store makes a sale.

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