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Ask INSTORE: June 2006

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Smoother social exits, boosting a salesperson’s confidence, getting newspaper coverage for your press releases, and more.

[h3]Exit Lines for Sticky Social Situations[/h3]

[dropcap cap=Q.][h4][b]Sometimes I get into social situations that are hard to get out of. What are some diplomatic exit strategies I could use?[/b][/h4][/dropcap]

[dropcap cap=A]Remember that scene from the movie Animal House when Flounder and Boon were rushing fraternities and kept getting ushered to the backroom to be repeatedly introduced to Mohammed, Jugdish, Sidney and Clayton? It’s an old party-escape trick that still works.[/dropcap]

When you’re in a business setting, though, it might help to add: “Jugdish may be a good person to discuss some of the opportunities you have.” Other exit lines you could try, from networking expert Andrea Nierenberg:

“It was great meeting you, and I hope we can continue our conversation sometime over lunch or coffee.”
“Thanks for sharing the information about your new project. It sounds exciting. Hope it’s a success.”
“Please excuse me, I see a friend I’d like to go and visit. Enjoy your evening.”

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A final suggestion before making your exit is to ask for a business card. Remember to follow up with at least a short email and perhaps a phone call for a meeting.

[componentheading]SALES[/componentheading]

[contentheading]Get a Backbone[/contentheading]

[h4][b]I’ve got a salesperson who loves people, but never seems to show much confidence when he sells. Are there any techniques that would help him?[/b][/h4]

Start by telling him to avoid “weasel words” like “should,” “may,” and “might”, says Brad Huisken, sales trainer and author of Munchies for Salespeople. “People are looking at you to show confidence and certainty in the merchandise you sell,” he says. “If you’re not convinced the product will be exactly what they need, perfect for them, or that the recipient will absolutely love this gift, how can you expect your customers to feel they are making a good, sound decision?” Words like “definitely, “we will” and “I know” tell your customer that you’re confident in what you’re saying

[componentheading]PUBLICITY[/componentheading]

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[contentheading]Be the News[/contentheading]

[h4][b]I can’t get our local reporters to call back when I send out press releases. How can I increase their interest?[/b][/h4]

For a reporter to pick up a story from someone they don’t know, it’s got to have something that jumps out at them immediately. So you can do one of two things — send press releases only when your news is stop-the-presses unusual, or become known to your town’s local reporters. How can you get known? Contact the reporters when you’re not pitching anything, says Jeff Crilley, Emmy Award-winning journalist and author of Free Publicity. Praise their work. Leave a voice mail or email saying, “Hey, just wanted to let you know how much I enjoyed that report. Keep up the good work.” Or, contact the reporter and tell them about a story that doesn’t benefit you. Either way, you’ll slowly work your way into their life … and their good graces

[componentheading]LEGAL[/componentheading]

[contentheading]Instore Confidential[/contentheading]

[h4][b]We have a small-to-medium-sized store and our salespeople have access to most of the business information we keep on the computers. My lawyer brother says we should be more careful. Is he right?[/b][/h4]

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Listen to your bro; you don’t want to get “Lieberted”. Okay, the word hasn’t really caught on — but we suspect it might. Liebert Corp recently lost a case it brought against four former salesmen who had plundered its database for client lists before jumping ship to a rival firm. The judge’s reasoning was that Liebert had not done enough to signal the information was private and proprietary. Apart from labeling such information as confidential, here are some other things you should do:
• Allow computer access to critical information only on a need-to-know basis.
• Restrict access to physical copies.
• Advise employees that lists are confidential. Require a separate log-on for confidential pages or files stating that, by logging on, employees agree to keep the information confidential.
• Require employees to sign confidentiality agreements. (Hey, why not ask your brother for a family discount on the contract work?)

[componentheading]SECURITY[/componentheading]

[contentheading]Danger Zones[/contentheading]

[h4][b]How does one safely ship goods to “hot zones” like 10036 or 10017 in New York or Hill Street in Los Angeles?[/b][/h4]

There is no sure-fire way of protecting your packages, says Mike Lazorchak, G4S International/ OneService director of marketing & communications, since thieves are constantly thinking of new ways to pilfer them. Still, there are a few things you can do to reduce the risk:
— Make sure you are insured properly either through a third-party provider or your block policy, especially if you use couriers such as UPS, DHL or FedEx. Courier shipments will never be secure, says Lazorchak, so insurance is a must.  
— Avoid easily identifiable routines. Consider switching couriers for each shipment. Also, try shipping to an address outside the zone for pickup there.
— From major cities, using a secured service is the safest way, but it can be tough on the budget. Elsewhere, the safest method is generally registered mail, but it is also the slowest and least convenient.

[componentheading]MARKETING[/componentheading]

[contentheading]Celebrity Function[/contentheading]

[h4][b]I’m looking to get some celebrities to endorse my store and its products but I’m worried it’s not worth the cost?[/b][/h4]

If you partner with the right celebrities, people who are very visible to your customer base, it can be a win-win deal for both of you, says Kip Hunter-Epstein, president of marketing for Levinson Jewelers (Plantation, FL). “The celebrity receives additional PR and goodwill, and your store will be associated with a strong personality who can drive additional sales,” says Hunter-Epstein.

Some local celebs may even be willing to work for store credit. While it’s hard to quantify celebrity impact on sales, their real value is the additional PR they help to generate for your events (both pre- and post-). It’s a good idea to tie the event to the celebrities’ favorite charity, adds Hunter-Epstein. Additionally, get extra mileage from celebrity involvement by using them in your print ads, on duratrans in your store, billboards, and your annual catalog.

[componentheading]STAFF[/componentheading]

[contentheading]The Boss’s Pet[/contentheading]

[h4][b]I have one great salesperson, who I assign to maintain my most important accounts. I know this causes resentment among the other staff. What do I do about “boss’s pet” talk?[/b][/h4]

First, understand that fairness doesn’t mean uniformity, says Marcus Buckingham, author of the business bestseller the One Thing You Need to Know. Every employee is different and will feel fairly treated if his or her differences are recognized and accommodated.

Your B-grade performer can be perfectly happy with a star getting the best projects — as long as they have a chance to show off their best talents as well. Employees will repay you with loyalty if they know what’s expected of them, have the resources and the chance to excel, feel that someone cares about them at work, believe their opinions count, and know that merit is rewarded, says Buckingham. If you can do that — all of your employees will feel like they are your favorite.

[span class=note]This story is from the June 2006 edition of INSTORE[/span]

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What to Do with a Conservative Business Partner, How to Set Goals You Can Achieve and More of Your Questions Answered

Plus, how to get your staff to actually listen more.

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Apart from telling them to talk less, how do I actually get my staff to be become better listeners?

Robin Dreeke, a former head of the FBI’s Behavioral Analysis Program, says the secret lies in an appreciation that good listening is more than simply shutting up. “Listening is having nothing to say. There’s a difference there. If you just shut up, it means you’re still thinking about what you want to say. You’re just not saying it,” he writes in It’s Not All About Me: The Top Ten Techniques For Building Quick Rapport With Anyone. The reason is that customers can tell you’re not focused on what they are saying. Instead, Dreeke suggests, do this: “[A]s soon as you have that story or thought you want to share, toss it. Consciously tell yourself, ‘I am not going to say it.’ All you should be doing is asking yourself, ‘What idea or thought that they mentioned do I find fascinating and want to explore?’” Get your sales staff or jewelry designers to take such an approach in their interactions with customers, and the results could potentially be revolutionary. No sales pitches. Just responding to what customers are telling them. That’s listening.

Year after year, I’ve carefully plotted SMART goals for my staff, but we never attain them. Any idea what we’re doing wrong?

To the rational mind, it’s hard to argue with the SMART mnemonic — Specific, Measurable, Achievable, Relevant, and Timely — when it comes to goals. At the heart of it is “achievable,” after all. Except, of course, when it comes to managing humans, it’s best to be wary of anything that gives off the clinical odor of rationality. In the place of SMART goals, we thus propose an experiment for you: This year, try some Vague and Seemingly Irrelevant goals (yep, the sort of targets that can’t even be counted on to form a clever acronym). Clear goals such as “Increase sales by 20 percent” can be motivating, but also set extra hurdles to fail at, which can throw the human mind into a tizzy (like a yellow Post-it sticker on your mirror that says “Don’t eat a cream bun today!”) Vague goals, on the other hand, can be liberating. As for “seemingly irrelevant,” the key word is the first: “seemingly.” This is management at a higher level. Identify the secret drivers to business success, be it the cheery baristas at Starbucks or actions in your store that result in a positive review on social media, and you may actually get the specific financial results you desire. In his book The Antidote: Happiness For People Who Can’t Stand Positive Thinking, Oliver Burkeman recounts the story of a Formula One pit crew whose members were told that they would no longer be assessed on the basis of speed targets; they would be rated on style instead. Instructed to focus on acting “smoothly,” rather than on beating their current record time, they wound up performing faster. It’s a seductive story. Could you do the same with your staff?

What’s a good rate of growth to aim for?

Some growth is necessary for any business to keep up with competitors, benefit from economies of scale and provide new opportunities for its people, but there are more important things you should probably be focusing on. As Brazilian businessman Ricardo Semler noted in his book Maverick, the only things in the world that grow for the sake of growth are businesses and tumors. “Growth needs to be balanced with margin, operating expenses and inventory levels, otherwise it can result in working harder but having nothing to show for it,” notes David Brown of the Edge Retail Academy. Worry about cash flow, profit, taking care of your staff and customers, and basically just doing a good job. Growth should then take care of itself.

I had an embarrassing encounter with a customer earlier this week, and now I can’t get it out of my mind. It’s tormenting me. Help!

The old-school psychoanalyst would say we need to revisit this in punishing detail (these thoughts of perfection, where do they come from?), but it doesn’t sound like you want to go there. In place of that approach, we recommend substitution (come up with a funny version of the story) or distraction. The latter gets a bad rap, but recent studies have shown it’s actually pretty effective. Want to forget that screw-up at work? Do what Gary Gordon of Samuel Gordon Jewelers used to recommend after a sale went badly and go polish silverware for 30 minutes. Or start plotting a complex dinner tonight. Your brain has trouble focusing on more than one thing at a time, so a new action interferes nicely with recollection. And running the same movie reel over and over in your head really helps no one.

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Handling the Salesperson Who Bombed at Christmas and More of Your Questions Answered

Plus, what’s a fair repair warranty?

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After reviewing my sales team’s performance over the holidays, I found I have one who underperformed. She’s a lovely person and tries to implement the training we give her, but her numbers just don’t improve. Do we just persist with training?

It sounds like she has the right attitude and work ethic to succeed, just not in sales. Almost anyone can learn how to describe a product’s features (the knowledge), they can even learn how to ask the right open-ended questions to elicit a customer’s exact needs (a skill), but they’ll never learn how to push that prospect to get excited about jewelry and to commit at exactly the right moment. That is a talent some people just seem to be born with, says Marcus Buckingham, a leader of the play-to-people’s strengths school of business management. “In the minds of great managers, consistent poor performance is not primarily a matter of weakness, stupidity, disobedience, or disrespect. It is a matter of miscasting,” he says. You’ll be doing both your store and this woman a possibly life-changing service by forcing her to apply her talents and strengths in some other field.

Any thoughts on how to breathe some fresh air into our business? We need to shake things up.

Every good idea requires not only a fresh catalyst, but also a new way of looking at things. In the words of design consultant Tom Kelley, you want to achieve “the sense of seeing something for the first time, even if you have actually witnessed it many times before.” That explains the success of asking new employees (about a month after they’ve been added to payroll) what changes they would make to the way your store is managed. Constraints, such as radically slashing a budget for a certain department, are another well-proven way of generating new ideas and inspiring creativity. Reconsidering an issue in a different physical context seems to help, as does picking some specific type of person — a doctor, an astronaut or a historical figure — and imagining what they’d do in your situation. The key is to shift perspective as randomly as possible.

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What is an acceptable warranty on a customer’s repair?

A one-year warranty on repairs from defect is the norm, according to Blaine Lewis, a master diamond setter and metalsmith. “For example, to replace a Tiffany head in four or six prongs, your store would guarantee the setting and the stone for replacement up to one year from service if, with normal wear, a problem occurs. The warranty should state that the guarantee is not applicable if abuse beyond normal wear is at fault.” Lewis says to make sure your repair prices are high enough to let you provide a strong guarantee, which can give you a competitive edge. Keep in mind that while you do offer a strong warranty, you’ll find that you seldom have to honor it (and maybe never if you’re really, really good).

Should I encourage my sales staff to use mimicry to build rapport with customers? It seems too obvious and manipulative.

If you’re worried about getting caught, take comfort in studies that show that most shoppers are actually really bad at noticing it. In his book Honest Signals: How They Shape Our World, Alex Pentland cites research showing subjects identified mirroring of their words and body movements only about 10 percent of the time and mostly only when it was a really unusual gesture. The students also liked the mimicking agent more than a neutral one, and rated him or her as being friendlier as well as more interesting, honest, and persuasive. Just adding mimicry, the research found, made a sales pitch 20 percent more effective. We humans like people who are like us, and whether it’s social background or word choice, emphasizing this similarity improves social relations. Besides, if your salespeople are paying such close attention to everything a customer is saying, they may just discover exactly what it is that customer is after and provide excellent service, which can’t be a bad thing.

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How To Decide Between Equal Job Candidates, Splitting Staff Chores and More of Your Questions Answered

Plus how to market your engraving capabilities.

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I have two good candidates for the position of sales associate, but I can’t decide between them. Can you suggest a tie-breaker?

Toss a coin and let fate be your arbiter. If they’re both equally appealing candidates and you can’t reduce the uncertainty by doing further research or interviews or trial runs, then your decision doesn’t much matter. That likely sounds like rash advice, but this paralysis you’re experiencing has a name: Fredkin’s Paradox. The computer scientist Edward Fredkin summed it up as, “The more equally attractive two alternatives seem, the harder it can be to choose between them — no matter that, to the same degree, the choice can only matter less.” To be sure, it will probably turn out to have mattered in hindsight, but by then it’ll be too late. Given that you’re unable to know how things will turn out, overthinking this one — or any similar tough choice — is futile.

How do you share the chores among sales staff fairly and in a way that is easy to enforce?

Store consultant David Geller suggests breaking your staff into groups and rotating the responsibilities. “Put some easy chores with some bad ones like vacuuming and cleaning the bathroom,” he recommends. The people whose names are under the different groups of chores (see table) do them for only one week, and then they move onto the next group of tasks. This shares around the bad and light chores and also makes it easy for the store owner to raise the issue when a job needs doing. “After doing this, I no longer complained to a person; I complained to a group,” Geller says. “If I go out and see the glass in a showcase is dirty, I don’t expect everyone to clean it, just Group 2.’”

I recently purchased an engraving machine. Any ideas on how I can market it?

One of the biggest mistakes jewelers make is keeping their engraving machine in the back room, says Annette Peloquin, marketing manager of Signature Engraving. Putting the engraving machine in the front of your store, even if it’s just for special events like Mother’s Day and Christmas sales, has a “curiosity” factor that will attract new clients into your store. Also, regular direct-mail pieces with coupons or discounts on engraving services are another way to promote your services. “Be sure to aggressively promote the wide range of engraving possibilities,” such as logos and photos engraved on charms, she says. Hand out flyers to bridal shops and bridal planners that may wish to engrave picture frames or champagne glass or guest book foiling. Also, says Peloquin, engraving corporate gift items for small-to-medium-sized businesses can be another lucrative sideline.

I found a honey of a deal at an estate sale, but I’m worried about paying so little for a piece worth far more. Are there any state or federal laws regarding the purchase of jewelry that is marked at a grossly understated value?

While laws vary widely between different states and municipalities, Elly Rosen of the AINetWork’s Gems & Jewelry Trade Reference says, “We may seek guidance from the general principles involved.” For Rosen, the simplest answer is that “we can buy as low as we wish and make as much profit as we can … so long as we do nothing to deceive or take advantage of the seller.” Estate sale buying is the easiest to answer as it’s a free and open public sale with the seller in control. In such a situation, Rosen says, “We can offer as low as we wish and it’s their option to accept. If it’s an auction and our low bid gets the hammer — it’s ours to resell at whatever profit we can fairly obtain. If we’re on the street and someone offers to sell an item far below its value, we can accept their offer. We don’t know each other, so there’s nothing leading them to believe we have special knowledge they might otherwise rely on.” However, when buying over the counter in your store, things change. “[Customers] may believe they can rely on our knowledge, so greater care is needed not to say or do anything implying low value. They ask for $50 for a $1,000 item, we can accept their offer.”

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