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Shane Decker

Shane Decker: Rare Earth

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Shane Decker shows you how to prove diamonds are underpriced, in the first of a two-part series.

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Rare Earth

No matter who you are, where your store is, or how closely you guard your margins, you should be making more money on diamonds. Why? Because no jeweler in the world charges nearly enough for this amazing gemstone. Customers who are agonizing over spending several thousand dollars on a diamond need to understand this. And it’s your job to help them.

In my next two issues, I will give you six reasons that diamonds are ridiculously underpriced. Copy these two articles and make them required reading for every sales associate whoever works in your store. (The information I am about to share with you is compiled from sources including the GIA, the AGS, and DeBeers, as well as my own research … so you can take it to the bank.)

Rarity

Eighty percent of all diamonds mined are industrial quality. Of the remaining 20% that are gem-quality, it takes one million to obtain a single 1-carat diamond. It takes five million to get one 2-carat diamond. Think of it … a thousand piles of diamonds, each pile with a thousand diamonds. Only one of those will be a one-carat diamond, and none of them will be two carats … we’d need five times that many to find one. I’ve asked DeBeers how many are mined before a three-carat stone is discovered, but nobody knows the answer.

Additionally, gem-quality diamonds are found in very few places: Africa, Russia, Australia and Canada. The first diamonds were located in India, 3,000 years ago. And for 2,900 of those years, every diamond was mined by hand. Eventually, all the diamond mines in India were mined out (by hand, remember).You could put a price tag of $25,000 on a one-carat diamond for its rarity alone.

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Mining Cost

Not only are diamonds extremely rare, but they’re very difficult to come by. 250 tons of the earth’s crust must be removed to find one 1-carat diamond. Think of it another way: you’d have to sift through 250 one-ton dump trucks full of earth to locate said diamond — that’s a lot of dirt to find something the size of a large pea that weighs one-fifth of a gram! Furthermore, diamond miners have gone into savage territories to search for diamonds… and never come back. They have mined secret crevices in the heart of lands where only explorers have gone before… and found nothing. Companies have invested in state-of-the-art technology to dive to the darkest depths of the ocean and vacuum diamonds off its floor.

Centuries ago, countries even fought wars over diamond mines, with the mining interests caught in the crossfire. As a matter of fact, diamond is the most sought-after substance on Earth with the least amount of return! How can you negotiate price when you understand how much it costs to obtain that diamond?

Cut

People who cut diamonds must serve as apprentices for 10 years before can even touch a one-carat diamond. They start on three- and four-pointers, then move up to 10- and 12-pointers, mastering the ability to cut stones of that size. From there it’s quarter-carats, and they have to learn to cut and polish each shape.

Over the years, they’ll continue to improve their capabilities on one-third carats, half-carats, three-quarter carats … in fact, they’ll cut thousands of diamonds before ever touching a single one-carat stone. Now, because of society’s obsession with size, 90% of all diamonds are cut to retain weight, sacrificing brilliance and beauty. Only 10% are cut to fine make criteria, and only one-tenth of 1% are cut to ideal standards. The better the cut, the more expertly-skilled the cutter must be. They are therefore more difficult to find, and more costly to employ. Very few cutters have the ability to cut fancy-colored diamonds. These are not skills learned in college, but are rather passed on through families, and trained over many years. These cutters have hands as skilled as a surgeon’s, and can tell that a facet is correctly polished by the sound it makes on the wheel!

You were already at $25,000 for the incredible rarity of diamonds. Add $25,000 each for the extravagant mining costs and extraordinary skill required for cut, and you’re up to $75,000 for a one-carat diamond. But wait … there’s more! Tune in next month to discover three more critical reasons why a diamond is the best value for anyone’s dollar. Meanwhile, do me a favor, and don’t undersell those diamonds!

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.

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This story is from the April 2005 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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