Connect with us

Ask INSTORE: June 2011

Published

on

Shaking up your sales contests, perking up your displays, non-compete pacts, and more.

 [h3]MIX IT UP WITH INCENTIVES [/h3]

[dropcap cap=Q.][h4][b]I put up a weekly “sales report chart” for our associates, so they can see how they are performing against each other. We rank the associates by gross sales and pay performance-based bonuses, but after two years I think we need to spice it up a bit. Any suggestions?[/b][/h4][/dropcap]

[dropcap cap=A.]We’re guessing that your real problem is that the same people keep winning, which is the challenge with numbers: They can be as discouraging as they are encouraging (especially if you’re the associate stuck at the bottom of the table). Also, while gross sales aren’t a bad indicator, they are not always the best gauge of store performance. We know of several store owners, such as Leo Hamel of Leo Hamel Fine Jewelers in San Diego, who hammer into staff that the only thing they care about is margin, meaning profitability. When setting target-linked bonuses you should have two goals in mind — to ensure they encourage the right kind of sales behaviors and that anyone can win. So mix it up. One month offer a prize for most sales, the next month most new customers, then most repeat business or most add-ons. Identify what’s important for your store’s performance and away you go.[/dropcap]

[componentheading]DISPLAYS [/componentheading]

[h4][b]I want to perk up my showcase displays at little or no cost.[/b][/h4]

Advertisement

Start with a rewrap of your floorboards and then add some accent displays, says Larry Johnson, senior VP of Pacific Northern and the author of The Complete Guide To Effective Jewelry Display. “Ask your display vendor about closeouts, show samples or other discounted displays. Focus on diamonds first and use some of the profits you’ll make there to redo other cases,” he says.

[componentheading] LITIGATION [/componentheading]

[h4][b]I’m worried about California’s new regulations on recording ZIP code information. How do I ensure I don’t
get sued?[/b][/h4]

We understand your concern. The ruling by the California Supreme Court that retailers who request ZIP codes during a credit card transaction, and record that information, may violate the state’s Song-Beverly Credit Card Act, has resulted in some commentators predicting a wave of such litigation. Already, some class action lawsuits are seeking $1,000 for each customer whose information was sought. But be careful and you should be OK. “The court held that ZIP codes constitute ‘personal identification information’ and should not be requested and recorded,” said attorney John Powers of Los Angeles-based Drinker Biddle. “The act does not prohibit a retailer from asking for identification information to verify the identity of the card holder — as long as that information is not recorded. In addition, the act exempts situations where customers’ addresses are necessary for a ‘special purpose’ such as delivery, servicing or installation, nor where retailers accepting credit cards are contractually obligated to provide personal identification information in order to complete the credit card transaction,” he noted. Given the law has a federal counterpart, the Fair and Accurate Credit Transactions Act of 2003, it will be worth watching for all retailers.

[componentheading]CONTRACTS [/componentheading]

[h4][b]I have asked a potential new hire (a jeweler) to sign a two-year non-compete agreement but he says he doesn’t want to sign for longer than six months. Is there a standard acceptable term? [/b][/h4]

Advertisement

Yes, one year is pretty much the standard, says Suzanne Devries, president of Diamond Staffing Solutions, adding it’s difficult for a non-compete agreement to hold up in court for more than a year. “Make sure you have a good labor attorney look it over, or write it for you, or it will not be worth the paper it’s written on,” she advises. This might also be a good time to ask yourself why you think you need such a long period of protection. Our advice is to focus on what you can do to grow your business and stop worrying about imaginary threats. Business is about execution. Get that right, and you won’t have to be concerned about people stealing your customers.

[componentheading] INTERIOR DESIGN [/componentheading]

[h4][b]What’s the best color of walls to show off diamonds? I have good lighting but the jewelry is picking up the peridot color with a 24k wash on a Tucson finish.[/b][/h4]

Walls finished with a pale gray, pale mushroom, sage green or pale taupe work well for diamond or presentation rooms — basically anything that doesn’t have gold or yellow in the color, says Ruth Mellergaard, a principal at interior design firm GRID/3 International in New York. “In the showroom, we have found fewer problems with the walls but definite problems with the ceiling. A white or off-white ceiling is by far the best over diamonds so that there is no negative reflection, i.e., yellow, and so that the most light reflects back into the cases and onto the customers and merchandise,” Mellergaard says.

[span class=note]This story is from the June 2011 edition of INSTORE[/span]

Advertisement

SPONSORED VIDEO

After 139 Years, A Family Legacy Finds Its Perfect Exit With Wilkerson.

When third-generation jeweler Sam Sipe and his wife Laura decided to close Indianapolis’ historic J.C. Sipe Jewelers, they turned to Wilkerson to handle their retirement sale. “The conditions were right,” Sam explains of their decision to close the 139-year-old business. Wilkerson managed the entire going-out-of-business sale process, from marketing strategy to sales floor operations. “Our goal was to convert our paid inventory into retirement funds,” notes Sam. “The results exceeded expectations.” The Sipes’ advice for jewelers considering retirement? “Contact Wilkerson,” Laura says. “They’ll help you transition into retirement with confidence and financial security.”

Promoted Headlines

Most Popular

Ask INSTORE

Ask INSTORE: June 2011

Published

on

Shaking up your sales contests, perking up your displays, non-compete pacts, and more.

 [h3]MIX IT UP WITH INCENTIVES [/h3]

[dropcap cap=Q.][h4][b]I put up a weekly “sales report chart” for our associates, so they can see how they are performing against each other. We rank the associates by gross sales and pay performance-based bonuses, but after two years I think we need to spice it up a bit. Any suggestions?[/b][/h4][/dropcap]

[dropcap cap=A.]We’re guessing that your real problem is that the same people keep winning, which is the challenge with numbers: They can be as discouraging as they are encouraging (especially if you’re the associate stuck at the bottom of the table). Also, while gross sales aren’t a bad indicator, they are not always the best gauge of store performance. We know of several store owners, such as Leo Hamel of Leo Hamel Fine Jewelers in San Diego, who hammer into staff that the only thing they care about is margin, meaning profitability. When setting target-linked bonuses you should have two goals in mind — to ensure they encourage the right kind of sales behaviors and that anyone can win. So mix it up. One month offer a prize for most sales, the next month most new customers, then most repeat business or most add-ons. Identify what’s important for your store’s performance and away you go.[/dropcap]

[componentheading]DISPLAYS [/componentheading]

[h4][b]I want to perk up my showcase displays at little or no cost.[/b][/h4]

Advertisement

Start with a rewrap of your floorboards and then add some accent displays, says Larry Johnson, senior VP of Pacific Northern and the author of The Complete Guide To Effective Jewelry Display. “Ask your display vendor about closeouts, show samples or other discounted displays. Focus on diamonds first and use some of the profits you’ll make there to redo other cases,” he says.

[componentheading] LITIGATION [/componentheading]

[h4][b]I’m worried about California’s new regulations on recording ZIP code information. How do I ensure I don’t
get sued?[/b][/h4]

We understand your concern. The ruling by the California Supreme Court that retailers who request ZIP codes during a credit card transaction, and record that information, may violate the state’s Song-Beverly Credit Card Act, has resulted in some commentators predicting a wave of such litigation. Already, some class action lawsuits are seeking $1,000 for each customer whose information was sought. But be careful and you should be OK. “The court held that ZIP codes constitute ‘personal identification information’ and should not be requested and recorded,” said attorney John Powers of Los Angeles-based Drinker Biddle. “The act does not prohibit a retailer from asking for identification information to verify the identity of the card holder — as long as that information is not recorded. In addition, the act exempts situations where customers’ addresses are necessary for a ‘special purpose’ such as delivery, servicing or installation, nor where retailers accepting credit cards are contractually obligated to provide personal identification information in order to complete the credit card transaction,” he noted. Given the law has a federal counterpart, the Fair and Accurate Credit Transactions Act of 2003, it will be worth watching for all retailers.

[componentheading]CONTRACTS [/componentheading]

[h4][b]I have asked a potential new hire (a jeweler) to sign a two-year non-compete agreement but he says he doesn’t want to sign for longer than six months. Is there a standard acceptable term? [/b][/h4]

Advertisement

Yes, one year is pretty much the standard, says Suzanne Devries, president of Diamond Staffing Solutions, adding it’s difficult for a non-compete agreement to hold up in court for more than a year. “Make sure you have a good labor attorney look it over, or write it for you, or it will not be worth the paper it’s written on,” she advises. This might also be a good time to ask yourself why you think you need such a long period of protection. Our advice is to focus on what you can do to grow your business and stop worrying about imaginary threats. Business is about execution. Get that right, and you won’t have to be concerned about people stealing your customers.

[componentheading] INTERIOR DESIGN [/componentheading]

[h4][b]What’s the best color of walls to show off diamonds? I have good lighting but the jewelry is picking up the peridot color with a 24k wash on a Tucson finish.[/b][/h4]

Walls finished with a pale gray, pale mushroom, sage green or pale taupe work well for diamond or presentation rooms — basically anything that doesn’t have gold or yellow in the color, says Ruth Mellergaard, a principal at interior design firm GRID/3 International in New York. “In the showroom, we have found fewer problems with the walls but definite problems with the ceiling. A white or off-white ceiling is by far the best over diamonds so that there is no negative reflection, i.e., yellow, and so that the most light reflects back into the cases and onto the customers and merchandise,” Mellergaard says.

[span class=note]This story is from the June 2011 edition of INSTORE[/span]

Advertisement

SPONSORED VIDEO

Retiring? Let Wilkerson Do the Heavy Lifting

Retirement can be a great part of life. As Nanji Singadia puts it, “I want to retire and enjoy my life. I’m 78 now and I just want to take a break.” That said, Nanji decided that the best way to move ahead was to contact the experts at Wilkerson. He chose them because he knew that closing a store is a heavy lift. To maximize sales and move on to the next, best chapter of his life, he called Wilkerson—but not before asking his industry friends for their opinion. He found that Wilkerson was the company most recommended and says their professionalism, experience and the homework they did before the launch all helped to make his going out of business sale a success. “Wilkerson were working on the sale a month it took place,” he says. “They did a great job.”

Promoted Headlines

Advertisement

Advertisement

Subscribe


BULLETINS

INSTORE helps you become a better jeweler
with the biggest daily news headlines and useful tips.
(Mailed 5x per week.)

Latest Comments

Most Popular