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How to Promote Healthy Competition and More Of Your Questions Answered

It all depends on how you present it.

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How can I promote competition among staff without it turning my store into the setting for Lord Of The Flies?

The key to fostering healthy competition, according to new research done by a team at Harvard Business School, lies in how you communicate the competition. When employees feel excited, they’re more likely to come up with creative solutions and new ways to better serve customers. When they feel anxious or worried they might lose their job or be publicly humiliated in some way, they’re more likely to cut corners or sabotage one another. Leaders can generate excitement by highlighting the potential positive consequences of competition (such as the recognition and rewards that await outstanding performers) rather than creating anxiety by singling out and highlighting low performers (think of the steak knives scene in Glengarry Glen Ross).

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A Packed Store Like the Day Before Christmas? Wilkerson Makes It Happen
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We want to lay off a sales associate, but we’ve never done it before. If we are to give them “a month’s pay,” does that mean their base pay, or do we factor in their average commission earnings as well?”

Suzanne Devries, president of Diamond Staffing Solutions, says that legally, you’re required to give them only the vacation, sick and personal days they have accrued, although she recommends that you base your decision on how valuable an asset this person has been to your organization, and how long they have been with you. “If it’s a long time and they have been loyal, you should definitely consider a certain amount of days per year. Second, make sure you have documentation that states why you are having layoffs.” She also advises you do an exit interview and have the person sign documentation stating that they understand why “they are part of a force reduction.” An important thing to keep in mind is how other staff will view this. They will want to know that they will be treated fairly even when times are tough.

I keep hearing contradictory advice: Set goals or don’t set them. What’s your take?

There are three main arguments against setting goals: One, that they can lead people to focus on the wrong things (by, for example, becoming too aggressive in chasing sales targets) or cut ethical corners; two, that they become demotivating when it becomes clear they can’t be reached; and three, that it’s healthier to live your life focused on the present. The secret to smart goal setting, then, is to do it in a way that addresses these problem areas. That means:

1. Set challenging goals, but don’t make a big deal of it if someone falls short.
2. Structure goals that focus on behaviors, so your people are learning and improving, rather than wildly chasing a financial goal.
3. Be specific. Setting vague goals can produce higher rates of success with motivated staff, but if your employees are normal human beings, being specific will prevent procrastination.
4. Make the first couple of milestones easy so that people can build momentum toward the major goal. Progress is a huge motivator.
5. And finally, don’t make goals a death march; have fun trying to accomplish them.

I’d like to hire a trainer, but I’m worried about the return on investment. How can I be sure it will be worth it?

To really get your money’s worth, you need to focus on two things: 1.  Hard skills. Overinvest in training that helps to increase ability, rather than motivation. Focus on small but vital aspects of your staff’s sales skills. It could be when to pause in a presentation, how many features to stress, or phone manner tips. Break tasks into discreet actions, practice within a low-risk environment and build in recovery strategies. 2. And this is just as important: Follow up. Bring in a trainer, but only if you yourself are willing to buy into their lessons and do ongoing training and reviews.

Over the years, INSTORE has won 80 international journalism awards for its publication and website. Contact INSTORE's editors at editor@instoremag.com.

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What To Do With That Sales Person Who Bombed Over Christmas, The Secret To Generating Terrific New Ideas 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.

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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Your Holiday Questions Answered, Including Security, Aged Inventory and Sales Presentation

Plus a tip for making shoppers feel comfortable in your ‘decompression zone.’

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What should I do to reinforce security measures at this time of year?

Here’s some advice from Jewelers UnBLOCKed:

  • Create obstacles. Use display cases and holiday décor to block thieves from running straight in and/or out of your store. All areas that contain valuable merchandise should be visible to both customers and staff. Avoid any blind spots.
  • Stay under the radar. If you’re planning a vacation, don’t advertise your absence; refrain from posting vacation pictures until after you return. Posting while traveling makes your store, employees and even your home susceptible to invasions, crimes and thefts.
  • Double and triple check seasonal employees. Even if they’re temporary, you need to ensure that all employees are trustworthy. Don’t forget to perform background and reference checks.
  • Limit the number of pieces that can be presented to a customer to between one and three pieces of jewelry or watches at a time, and post signage of this policy. If a customer complains, sales associates can point to the sign and mention its store policy. Deter potential thieves from trying to take off with a stockpile of jewels.
  • Keep store windows clear. A cluttered window blocks criminal activity from being seen outside.

We’re expecting to see a lot of old faces over the next few weeks. What should we do about aging inventory our customers may have seen before?

Stop fretting. Start polishing. “The majority of your customers don’t remember your stock,” says Dick Abbott, owner of the Edge POS software. “They may recognize a specific piece they have looked at previously, but the majority of it will look new to them, as long as it looks new.” Make sure each item is clean and sparkling and has a fresh ticket on it to adjust the retail to reflect today’s prices. Add a different chain to a pendant. Rearranging your cases makes everything “new” in the eyes of your customers. Identify the items you wish to clear and give your sales team a sense of ownership by brainstorming ways to clear old stock and then review your results and strategies every day.

What last-minute things can I do to sharpen my sales presentations?

Sales and display consultant Larry Johnson recommends enriching your vocabulary. There are adjectives that carry more emotion than the usual ones salespeople tend to use, he says, suggesting words like stunning, glowing, bold, brilliant, glistening, radiant, elegant, natural, fabulous, attention-grabbing, sparkle, romance, edgy, and timeless. “Upgrade your sales presentation to include these descriptive words that add impact. Start out today using one or two until you are more comfortable with adding more.”

How can I get shoppers thinking about buying as soon as they cross the threshold?

Pay attention to your store’s decompression zone, according to VEND, the global cloud-based POS and retail management provider. The decompression zone is the first few feet of your shop. Shoppers who are in this part of your store are prone to distractions, which is why most experts agree that retailers should keep the decompression zone simple and uncluttered. In addition, having greeters in your store makes people more aware of their surroundings and helps them focus.

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