These three small changes can yield big results to your bottom line.
If you’ve been the owner of a retail fine jewelry store over the past few years, you may feel like you have a target on your back — and it has nothing to do with being vigilant about security. We are being squeezed by internal forces, like the inability to find qualified sales help and a decline in overall store traffic, as well as external forces like deep internet discounting and the fickleness of millennials. So what’s a jeweler to do?
Here are three solid ways you can make some extra profit without much extra effort.
1 Update your watch battery pricing and offer lifetime contracts. Jewelers do a huge business by offering this service (which can’t be easily duplicated online), so make sure you are charging at least $15 installed with a one-year warranty. Offer your customer a lifetime battery contract for $29.95 and you’re guaranteed to increase your profit and keep that customer coming back to your store.
2 Change all of your pricing tags to end in 99 cents. The majors have been doing it for years. Your customer won’t care or probably even notice since they’ve been conditioned by Wal-Mart and Target to expect it. If you sell 3,000 items this year, it’s a free $3,000. You can use that money for an inexpensive company car or an awesome employee party after the holidays.
3 Charge to clean those pearls you restring. Most jewelers offer a pearl stringing service, and as you know, those pearls always need to be cleaned before they are restrung. We have been conditioned to do that at no charge. Explain to each customer that you will professionally clean their valuable pearls before restringing for only an additional $29. I’ve never had a customer say no to this offer, and they always thank me afterwards.
In this troubled retail environment, who doesn’t need a few ways to make some extra money?
Evan James Deutsch is founder and president of Evan James Limited, a 30-year-old AGS Fine Jeweler located in Brattleboro, VT.
This article originally appeared in the October 2017 edition of INSTORE.