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Shane Decker

Shane Decker: Better Deal

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Shane Decker helps you fight the discounter down the street with reasoning about prices your customers are sure to understand.

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Better Deal

“I can get it for 40 percent off down the street.” Next time you hear this, I want you to do something for me — instead of being defensive, remember that you’re an independent jeweler.

Why do people shop at independent jewelry stores? Because you make personal connections, you’re real with your customers, and you and your customers place a premium on quality and integrity.

Discounters, on the other hand, are in the business of building illusions. They do price presentations only — no romance. It’s all about how much off the item is and what a great deal the customer will get. Problem is, other jewelers may have the same item at regular price and still be selling it for less than the so-called discounted rate. After all, how long would you stay in business if you sold your merchandise at cost?

You know that and I know that — but your customers often do not. If you told them how low diamond margins are, they wouldn’t believe you. So what is the answer to beating discounters? Several things:

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CREATE PROFESSIONAL DOUBT

I’m not talking about slamming the competition — never a good idea — but you can create doubt that the “great deal” down the street is not really everything they’re making it out to be. You do this by asking about aspects of the purchase that the discounter probably didn’t talk about, like the lab report. Was it GIA or AGS? If not, is that really the color and clarity they say it is? Some labs are very liberal in their grading. You can also ask about the cut if yours is triple-zero, ideal or very well made. Many people selling diamonds don’t understand cut, and so they don’t discuss it.

Tell your customer that independent jewelers personally select their diamonds, which have to meet strict tolerances — and when you buy diamonds, the rejection factor is very high. For the chain discounters, they don’t have a voice in buying diamonds — they just get what is sent to them. And while some discounters may say “we go direct to the source and buy cheaper,” you can remind customers that the price that De Beers offers to the sightholders is non-negotiable.

SELL QUALITY

Quality means the quality of the diamond itself, or the workmanship of the jewelry. The discounter’s price presentations don’t cover quality — because their case would crumble. (At 50 percent off, what is being sacrificed? Cut, color, clarity and carat weight!) So this is where you build your presentation, discussing your product details openly and honestly. Tell the customer, “Our company made the decision to price our jewelry fairly, according to its quality, right out of the gate. There are no bargains in diamonds — quality has its price.” When you hold your price in the face of a discount down the street, the customer will begin to doubt the quality of the other jeweler’s product — and rightly so.

SELL VALUE

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Value means the worth of your product. You build value by romancing the occasion (the reason the customer came in), romancing your product, and talking about store benefits (trade-in guarantees, ring sizing while you wait, graduate gemologists on staff, etc.). And discounters and chains can never make this statement — “owners on premises.” Then, make sure the diamond is in their hand when you tell them the price. Look them in the eye and believe that it’s worth it. You may be surprised how often you’ll close the sale through this technique alone.

The bottom line is this: Being an independent jeweler is about having integrity, and your integrity is in your price. Customers are smarter now. They’ve been on the Internet, and they’ve seen information and pricing on diamonds. They want to believe your price hasn’t been marked way up. Not only that, when you negotiate price, customers will expect you to go down a little more every time they come in — all because you didn’t believe you could close the sale at the price marked.

The success of your store depends upon your ability (and that of your staff) to eradicate the “poverty-level mentality” and believe that your diamonds are worth every penny. And guess what? That belief is something no discounter can ever match.

Person be you?

Shane Decker has provided sales training for more than 3,000 stores worldwide. Contact him at (317) 535-8676 or at ex-sell-ence.com.

This story is from the February 2007 edition of INSTORE.

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Shane Decker

Four Sales Meetings You Must Hold Before the Holidays

Cover these topics to maximize your selling opportunities this season.

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FROM DECEMBER 1ST TO the 24th, closing ratios double and impulse sales skyrocket. The problem? It’s too easy. Salespeople tend to slip into lackadaisical sales practices because the sales happen either way.

Unfortunately, this endangers repeat business and could even cost you holiday sales.

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To prevent this from occurring, hold sales meetings over the next four weeks and address each of these topics in turn.

1. Store Floor Awareness: Emphasize that your team must know what’s happening at all times with all clients. There’s an old wives’ tale that whoever is closest to the door is the greeter; not true. If you’re near the close, you’re not going to turn away to greet a new customer. That means someone else needs to be ready. Has the client been greeted? Does a salesperson need an assist? Is the client about to walk away? Teach your team how to recognize and react to these situations.

2. Wowing All Customers: Salespeople say they are too busy to do this, and that everyone has what they want already. Wrong. This is the time of year that impulse buys greatly increase. All you have to say is, “Guess what’s in the vault?” or “Guess what just came in?” Let the rest take care of itself. Show your team how to “wow” every customer and emphasize just how critical it is.

3. Closing: Clients want you to close. At Christmas time, no one is just looking; everyone is just buying. Learn to professionally create a sense of urgency, but always be honest. You can say:

  • “We only have one of these left.”
  • “These have been really popular this year.”
  • “We can’t get any more of these until after Christmas”
  • “She’s going to love it; you should do this.”
  • “We sell this item faster than we can get it in.”
  • “You’re going to be a hero; she won’t believe you did this.”

If it’s on December 24th, you can even say, “We close in 10 minutes. There’s not another place you can go and just look; this is it!”

4. Add-ons: Too many salespeople spin and walk to the point-of-sale after the first item is sold. When you do this, you tell the client they’re done. Instead, purchase some beautiful, small sharp scissors. From now on, once you’ve sold an item, take out your scissors, cut the tag off and lay it on the counter pad. That says you’ve sold the item, but you can continue selling.
The average Christmas buyer buys 15-20 gifts, and the average salesperson sells just one. Instead, after the first item is sold, say one of these add-on lines:

  • “This is part of a set.”
  • “We have what matches.”
  • “I gotta show you what goes with this because she’s gonna love it.”
  • “How many others are on your list?”

These are called lead-in lines because they lead into the next presentation. The average add-on takes 30 seconds because you don’t have to sell; they’re already sold.

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Shane Decker

This Is the Fastest Way to Kill a Jewelry Sale … Even If You Mean Well

It’s one of the surest ways to ruin a client’s experience.

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TRUE SALESMANSHIP MEANS bringing skills and professionalism, knowledge, truthfulness and politeness to a presentation — as well as always making the client feel like she’s the most important person to come in all day, even if she is the 101st. We also have to bring a friendly attitude and be ready to support our teammates. But doing these things in the wrong way can backfire. Occasionally, when you try to be too friendly, it’s a sales killer. Let me explain.

Sometimes when a client has just come in and someone else has greeted them and started a presentation, another sales associate sees the client. They think, “I know them,” or “I’ve waited on them before,” or they’re a friend or a neighbor. But the client didn’t ask for that sales associate when they came in. This can create a big problem.

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The salesperson who is with the client is in the middle of the presentation and the other salesperson comes up and says, “Hello!” or “How are you doing?” This totally interrupts the presentation and now they may have to start over. They may even be in the 30-second window about to close the sale. The closing opportunity may now be lost.

There is a time for small talk and being neighborly, but this is not the time. Interruptions are deadly.

If the client had asked for the other salesperson, it would have been their responsibility, but never interrupt a sales presentation. When the client is ready to walk to the door, that’s the time that it’s OK to make your approach and speak to them. No one should ever walk in on a sale besides the sales floor manager, the manager or the owner, and even then they should only do it to assist in the presentation (not “take over”; assist).

Some salespeople do this because they think they own the client and they think they deserve the sale, so they unprofessionally walk in uninvited. This is very uncomfortable for the client and it’s uncomfortable for the salesperson who is with the client because they feel pushed out.

Clients do not like pushy salespeople. The salesperson also knows they could never team-sell with someone who is so unprofessional.

Our job as a sales team is to help others be successful. When one of your teammates is giving a presentation, your job is to grab tools, get drinks and cookies, and be a servant. Be a team player and don’t worry about who is with the client; be aware if something is needed. If the client wants to talk to you, they will let someone know. I don’t care whose name is on the ticket, but I do care that there is a ticket.

Our goal is a client who leaves happy and gave us money for something beautiful. Don’t be an interrupter!

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Shane Decker

Did You Know that When You Close a Sale, You’re Helping Your Customer?

They want to leave with their chosen product in a bag.

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TODAY’S CLIENTS DON’T have time to shop tomorrow. They buy the day they shop; you do the same thing. Millennials shop online before they decide to come to your store. Older generations might go from store to store to find what they want, but they too buy the day they shop. Most of us start with the store where we want to leave our money.

Clients want you to close the sale. In part, they are paying you to make a professional decision for them and trusting you to do it. Sixty to 70 percent of your clients cannot make up their own minds. That’s why you should never say, “Can I wrap it up for you?” They will walk because you’re asking them to make a decision.

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Moreover, approximately 90 percent of all clients who say I’ll be back never come back; 7 percent do. And, around 80 percent of all clients who say “I’ll be back” buy elsewhere within the first one to two hours after leaving your location.

The No. 1 reason clients leave empty-handed is not inventory or price. It’s that they were not closed. Too many salespeople do show-and-tell presentations rather than show-and-sell presentations. Independently owned stores’ closing ratios are between 27-33 percent, yet 80 percent of shoppers buy the day they shop. If you shop today, do you have time to shop tomorrow? Didn’t think so.

Never believe the client is coming back. This is the time for a team-sell or a T.O. When they say “I’ll be back,” that means they are leaving to shop somewhere else.

When you let the client leave empty-handed, you’re giving money to one of your competitors.

The best way to preserve client loyalty is to close the sale. A client is successful when they leave with a bag, give you money and they’re glad they came in — not when they have to leave and start the process somewhere else.

One of your most successful opportunities should be your referral clients, but remember, they have high expectations. Someone bragged about how awesome you or your team was. If the expectations are met, closing ratio with referrals are usually over 80 percent. Interestingly, this is a higher percentage than even clients who come in two-three times per year. Another type of presentation that should have a high closing ratio (80 percent) is the appointment.

The more money the item costs, the easier it is to close it. A $500 item is harder to close than a $5,000 item and so on. Why? Because the client can. Never decide for the client how much they can spend. Let them decide that. Do not do price presentations.

Owners, track clients coming in with a door counter and see how many sales slips are written up. This will tell you your closing ratio, which is the most important number in your entire company. You’ll also learn what your team is doing. Ultimately, your store’s closing ratio should be 50 percent or more.

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