Connect with us

David Geller

David Geller: How To Make Money Giving Away Dogs

Want to make a lot of money? Give away dead merchandise.

mm

Published

on

This idea came from a jeweler I visited who’s a great marketer and understands what “dead merchandise” is. Anything over 1 year old is dead. REAL DEAD is anything over 3 to 5 years old. Decomposing inventory is anything more than 7 years old.

You may be like this jeweler and me — raised on the bench and with a love of gemstones. We buy gemstones because they are beautiful and we hope we sell them for a great margin. We hope. We pray.

I’m betting you have boxes and trays of loose colored gems you’ve had for centuries. They don’t move. This is what this jeweler did, and he had a fantastic weekend:

He gathered all his old stones to give away, from $10 amethysts to $800 emeralds. Yes, even emeralds! (Sorry to break it to you, but a 5-year-old emerald is worthless. If it were to sell for $800 for a profit of $400, then selling it just once a year would bring in $2,000 (5 x $400) in profit. Selling it for $800 today effectively loses you $1,200. So just GIVE IT AWAY.)

He put each gem in a small plastic foam case, tagged on the back with the gem’s name, weight and retail price.

He went out and bought gift bags and gift paper to stuff inside the bags so they would stand up while also looking very colorful.

Advertisement

He dropped one boxed gem in each bag (although you can’t see it, it’s lying at the bottom of the bag).

He placed these bags with their gems on the showroom floor on the customer’s side right in front of the showcases. They looked like poinsettias at Christmas time.

This jeweler had a lot of blank mountings and remounts that had had their center stones removed. He polished them and put them in the showcase along with a retail price.

Then he sent out a mailer to his customer list, saying something like this:

“Because we love you as a customer we are giving away free gemstones this week, Wednesday through Saturday. No catches! They are all in grab bags. Everything from $10 amethysts to $1,000 emeralds, rubies and sapphires. You get one chance to grab a bag and see what you’ve been given. Again, no purchase is necessary, we just love our customers. Only while supplies last.” (Of course, with Facebook/Twitter/email blasts today you could do even better.)

The placed was mobbed. Many people just grabbed a bag and left. Some took a bag, looked at the stone and said “Citrine just isn’t me.” And the store let them try just once more.

Advertisement

A whole bunch of people decided to sit down and have their free stones remounted. The store had some mountings in the case and also did some custom designing.

The result? By giving away dead merchandise, the store did over $88,000 in remounting and design jobs in just four days.

But of course YOU don’t have any old gems, do you?

David Geller is a 14th-generation bench jeweler who produces The Geller Blue Book To Jewelry Repair Pricing. David is the “go-to guy” for setting up QuickBooks for a jewelry store. Reach him at [email protected].

Advertisement

SPONSORED VIDEO

Wilkerson Testimonials

If It’s Time to Consolidate, It’s Time to Call Wilkerson

When Tom Moses decided to close one of the two Moses Jewelers stores in western Pennsylvania, it was time to call in the experts. After reviewing two candidates, Moses, a co-owner of the 72 year-old business, decided to go with Wilkerson. The sale went better than expected. Concerned about running it during the pandemic, Moses says it might have helped the sale. “People wanted to get out, so there was pent-up demand,” he says. “Folks were not traveling so there was disposable income, and we don’t recall a single client commenting to us, feeling uncomfortable. It was busy in here!” And perhaps most importantly, Wilkerson was easy to deal with, he says, and Susan, their personal Wilkerson consultant, was knowledgeable, organized and “really good.” Now, the company can focus on their remaining location — without the hassle of carrying over merchandise that either wouldn’t fit or hadn’t sold. “The decision to hire Wilkerson was a good one,” says Moses.

Promoted Headlines

Advertisement

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