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Shane Decker

Shane Decker: Like a Rock

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When that inevitable stare-down over prices occurs, don’t blink, says Shane Decker.

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Like a Rock

“All my customers care about is price.” Sound familiar? In all my years of working with jewelers, I don’t think I’ve heard a more commonly-used excuse for low sales, or low profitability, or both. “But Shane, you don’t understand. In our market…” You can stop right there, I’ve already heard it. And I don’t buy it. People everywhere have gotten used to the idea that they can negotiate the price of jewelry. Why? Because we jewelers gave them that notion!

Let the car dealers cope with the stress and worry of plummeting profit levels. So many jewelers worry about their competitor’s year-round “sale,” or their own staff’s inability to sell, that they authorize their salespeople to give a 10% discount (or more!) at the customer’s first sign of distress. But you are losing hundreds or even thousands of dollars when you do. What’s more, that customer will now expect a discount every time he walks through your door!

It doesn’t have to be that way. Let the car dealers cope with the stress and worry of plummeting profit levels. You can be holding firm on your prices and still close more sales. How? By offering your customer options.

Let me explain. Say you’ve gone through the entire anatomy of the sale — you’ve romanced the product, you’ve asked the right questions, you’ve educated the customer when needed — and now you’re ready for the close. But his response to your one-carat diamond for $6,950 is “That’s a lot of money.” Rather than panic and negotiate on price, imagine that you had answered in the following manner:

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You: “Sir, how much were you wanting to spend?”

Him: “I don’t know, but that’s just a lot of money.”

You: “Well, this diamond is $6,950, but what we can do is take out this carat diamond and put a half-carat in for $3,950.”

Him: “No, I don’t want a half-carat. I’ve got about $4,900 to spend on a one-carat diamond.”

You: “Well, we can put in a diamond with lower clarity or color, and you’ll still have a one-carat.”

Him: “No, no, that’s the diamond I want.”

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You: “Sir, this one is $6,950.”

Now, what have you done? You’ve proven the value of the diamond and maintained your integrity of price. You gave your customer options to meet his price demands. And, you found out that he really wants that diamond. The next time this customer comes in, he will know not to negotiate — your prices are as rock-solid as they can possibly be. This builds trust, and helps you to establish a personal trade. You maintain your price and profitability, and yet you still close customers because you give them options. In other words, you let them choose what’s more important to them: price, size, or quality.

[inset side=left]The customer is usually willing to spend double whatever he tells you, so don’t even ask.[/inset]This is not to say that you should begin your presentation by asking a customer how much he is planning to spend. In fact, that’s a cardinal sin of selling. The customer is usually willing to spend double whatever he tells you, so don’t even ask. Furthermore, if he’s with his girlfriend or wife, it could embarrass him to give you a price range. You should only broach this subject if he says, “That’s more than I wanted to spend.” Or, if the sale is going great but he rejects your close, you can ask him if he’s comfortable with the price. However, the best strategy is to head this off at the pass by asking the right questions throughout your presentation regarding size, shape, clarity, and color. His answers should tell you where to go on price.

So what’s it going to be? Continue to cave in to customers as you helplessly watch profits dwindle? Or stand up for the integrity of your store and your prices? Let your customer know there’s no wiggle room, but give him the options he needs. He’ll leave feeling great about the value of the jewelry he bought, you’ll have a new customer for life, and your bottom line will look a whole lot cushier.

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 November 2004 edition of INSTORE.

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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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Shane Decker

What Not To Do During the First 30 Seconds of Any Sale

Huddling at the back is a big no-no.

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HAVE YOU EVER walked into what appeared to be a nice store, only to spin and leave faster than you came in? Or, have you ever walked into a nice place of business and watched two salespeople look at each other, then you, then each other again, like they’re seeing which one of them is going to wait on you?

You’re not alone — we’ve all had this experience, and jewelry stores are no exception. At too many stores, you’re not greeted at all, and sometimes, you can’t even find anyone to take care of your needs. This is one reason the Internet is doing so well.

People today are time-starved, and they will decide within the first 30 seconds of entering your store whether or not they’re going to give you their money.

Let’s begin with the first five seconds: every customer must be greeted — ideally, from the “sweet spot” in your store (15 feet inside your door to the customer’s right as they walk in). When you’re a client and you’re acknowledged, you feel important. It’s a relief subconsciously to realize that the sales associates know you’re there.

Never allow your sales floor to be vacant when clients come in. Many say they are just looking, but that’s an opportunity for you to use your first close by saying, “I always do that before I buy; let’s get started!” or “I’m glad you came in to take care of that today.”

“I’m just looking” means “I’m just spending.” It means “I’m on a mission, and when I find what I’m looking for, I’m gonna buy it.” It does not mean, “Leave me alone.” Like I said before, we are a time-starved nation, and nobody is just looking.

Do not come from the back of the store to the front; you should be there already. When you come from the back, your mind is focused on the busy work you were doing or the donut you were eating.

Never greet a customer from a group huddle. It’s good to laugh in your store, but if you’re all laughing about something when the client walks in, they may think you’re laughing at them.

Do not use canned openings like “Hi, how are you?” or “What can I help you with?” Clients don’t need “help”; they want professional assistance to make a purchase or information about a service needed. Likewise, don’t say, “Good morning, welcome to Smith Jewelers.” That gets old, fast. What if they come in three or four times a year and hear you say the same thing? Keep your greetings creative and make sure they’re welcoming. Your greeting should be professional and make your client feel glad they came into your place of business.

Be present for the start of the sale, and keep it professional. Starting strong allows you to make it to the end (and hopefully close the sale). By doing so, you’ll keep your client from wanting to go to the Internet — after all, we do want to talk to real people, especially when it comes to jewelry.

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