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David Geller: Sell Your Repairs Or Pay the Price

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Repairs are sales too. They require the same salesmanship as any other product. And you must price them to make money.

{loadposition davidgellerheader}

[h3]Sell Your Repairs Or You Will Pay the Price[/h3]

[dropcap cap=I]t’s been a pretty typical morning: A gift buyer, followed by an engagement ring tire-kicker and then a “No, thanks, I’ll think about it”browser of diamond studs.[/dropcap]

Of the three, you sold one — the gift buyer. Not a great morning but fairly standard closing ratio — 33 percent, and an average product sale in the store is $450, which is not bad.

But then come the repair customers — 10 in a row. Watch batteries, ring sizings, prongs and tips, lobster claws, new half shanks, two need new heads, one lost a 5-point diamond. You take out your pricing book and quote people.

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[inset side=right]But these customers are mean! On being quoted a price, four or five say “OK, when can I pick it up?” But the other five or six actually start yelling at you.[/inset]But these customers are mean! On being quoted a price, four or five say “OK, when can I pick it up?” But the other five or six actually start yelling at you.

Every repair sale is an argument. But surprisingly, more than 90 percent still tell you to go ahead and fix it. Why is this? It’s because repairs are not price-sensitive, they are trust-sensitive.

So why do they give you such a hard time? Because they don’t understand the pricing of jewelers’ labor multiplied by time and adding in findings.

You don’t do as good of a job selling a repair as you do selling a bracelet or a loose diamond. You think selling repairs is “clerking.”

But you’re wrong. Selling anything in a store requires salesmanship. Think about all of the words that come out of your mouth selling an expensive watch. The same approach is required to sell repairs and custom design.

Ten customers, nine sales, average repair sale is about $100. It required very little inventory to do the job. You have a 90 percent closing ratio, and you’re exhausted because you’re a nice person, but it seems as if all of the customers hate your guts. You think you’re charging too much. You start now lowering your repair prices. You start doing more free repairs.

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Ten repair customers walk in, and still nine out of 10 buy. You were correct about lowering your repair prices. Instead of five or six calling you a cheat and a liar, it’s four or five. But now because you’ve tried to take the easy road (lower prices) your repair department is barely breaking even.

David Geller is an author and consultant to jewelry-store owners on store management and profitability. E-mail him at [email protected].

[span class=note]This story is from the June 2009 edition of INSTORE[/span]

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SPONSORED VIDEO

Wilkerson Testimonials | Zadok Master Jewelers

Stick to the Program — And Watch Your Sales Grow

When Zadok Master Jewelers in Houston, Texas, decided to move to a new location (they’d been in the same one for the 45 years they’d been in business), they called Wilkerson to run a moving sale. The results, says seventh-generation jeweler Jonathan Zadok, were “off the charts” in terms of traffic and sales. Why? They took Wilkerson’s advice and stuck to the company’s marketing program, which included sign twirlers — something Jonathan Zadok had never used before. He says a number of very wealthy customers came in because of them. “They said, ‘I loved your sign twirlers and here’s my credit card for $20,000.’ There’s no way we could have done that on our own,” says Zadok. “Without Wilkerson, the sale never, ever would have come close to what it did.”

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David Geller

David Geller: Sell Your Repairs Or Pay the Price

mm

Published

on

Repairs are sales too. They require the same salesmanship as any other product. And you must price them to make money.

{loadposition davidgellerheader}

[h3]Sell Your Repairs Or You Will Pay the Price[/h3]

[dropcap cap=I]t’s been a pretty typical morning: A gift buyer, followed by an engagement ring tire-kicker and then a “No, thanks, I’ll think about it”browser of diamond studs.[/dropcap]

Of the three, you sold one — the gift buyer. Not a great morning but fairly standard closing ratio — 33 percent, and an average product sale in the store is $450, which is not bad.

Advertisement

But then come the repair customers — 10 in a row. Watch batteries, ring sizings, prongs and tips, lobster claws, new half shanks, two need new heads, one lost a 5-point diamond. You take out your pricing book and quote people.

[inset side=right]But these customers are mean! On being quoted a price, four or five say “OK, when can I pick it up?” But the other five or six actually start yelling at you.[/inset]But these customers are mean! On being quoted a price, four or five say “OK, when can I pick it up?” But the other five or six actually start yelling at you.

Every repair sale is an argument. But surprisingly, more than 90 percent still tell you to go ahead and fix it. Why is this? It’s because repairs are not price-sensitive, they are trust-sensitive.

So why do they give you such a hard time? Because they don’t understand the pricing of jewelers’ labor multiplied by time and adding in findings.

You don’t do as good of a job selling a repair as you do selling a bracelet or a loose diamond. You think selling repairs is “clerking.”

But you’re wrong. Selling anything in a store requires salesmanship. Think about all of the words that come out of your mouth selling an expensive watch. The same approach is required to sell repairs and custom design.

Advertisement

Ten customers, nine sales, average repair sale is about $100. It required very little inventory to do the job. You have a 90 percent closing ratio, and you’re exhausted because you’re a nice person, but it seems as if all of the customers hate your guts. You think you’re charging too much. You start now lowering your repair prices. You start doing more free repairs.

Ten repair customers walk in, and still nine out of 10 buy. You were correct about lowering your repair prices. Instead of five or six calling you a cheat and a liar, it’s four or five. But now because you’ve tried to take the easy road (lower prices) your repair department is barely breaking even.

David Geller is an author and consultant to jewelry-store owners on store management and profitability. E-mail him at [email protected].

[span class=note]This story is from the June 2009 edition of INSTORE[/span]

Advertisement

SPONSORED VIDEO

Wilkerson Testimonials | Zadok Master Jewelers

Stick to the Program — And Watch Your Sales Grow

When Zadok Master Jewelers in Houston, Texas, decided to move to a new location (they’d been in the same one for the 45 years they’d been in business), they called Wilkerson to run a moving sale. The results, says seventh-generation jeweler Jonathan Zadok, were “off the charts” in terms of traffic and sales. Why? They took Wilkerson’s advice and stuck to the company’s marketing program, which included sign twirlers — something Jonathan Zadok had never used before. He says a number of very wealthy customers came in because of them. “They said, ‘I loved your sign twirlers and here’s my credit card for $20,000.’ There’s no way we could have done that on our own,” says Zadok. “Without Wilkerson, the sale never, ever would have come close to what it did.”

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