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Here’s When the Real Jewelry-Buying Cycle Begins

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Don’t let that 40-something leave, warns Shane Decker.

One of the biggest myths in jewelry retailing is that we win customers for life when they purchase their engagement rings. Sure, they may buy a wedding set and some pearl earrings.

But the problem is, they’re young, just starting out in life, and they have no discretionary income!

The real jewelry buying cycle begins when a customer is 45 years old or so. The house is paid for, the kids have moved out, the wife is bored and back at work, and the couple has extra money for the first time. These customers will become habit customers, coming into a jewelry store twice a year — once for a small pop, and once for a big pop.

This buying cycle will last about 20 years! With that in mind, consider this: If you walk that couple, you are walking about $500,000 in business.

Let me explain: A gentleman walks in, he’s about 50 years old, and he’s got $10,000 in his pocket. It’s his 25th or 30th wedding anniversary and he wants to buy something really nice for his wife. For whatever reason, we don’t greet him like we should, our presentation is not that great, and he walks. That’s $10,000 we’ve lost for now, but worse, we’ve lost him forever.

Why? We’re creatures of habit. We like to go to the same doctor, the same grocery store, heck, we even drive the same routes on our way to familiar places. When this customer’s in the market for more jewelry, he’s going to go back to the place where he was closed.

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Anyway, back to our story. So the man gives his wife a $10,000 diamond bracelet from your competitor, and she loves it. She sees a friend at the golf course who asks her, “Where did you get that bracelet?”

“Oh, my husband bought it for me from H & H Jewelers. Isn’t it spectacular?”

The next year, he buys his wife a pair of 2-carat diamond studs, and the friend thinks, “Wow, he really likes that store!” So she tells her husband, and he says, “You know, I’ve been thinking about trying them out.”

So the first couple tells 10 people, and then those people each tell 10 people, and now you’ve got 100 people walking around spreading the good news about your competitor. Over the next 20 years, you’ve just lost $500,000 (give or take)!

All because you were “a little off” in your original presentation.

Remember, the customer at the beginning of their buying cycle may not look like anything special. In fact, if they’re anything like me, they’ll walk in wearing sandals, old socks, and a sweatshirt. It’s their day off, and they want to be comfortable.

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Despite their appearance, they’re spending a good amount of money, and they want more attention. They’re savvy customers. They want to know you really appreciate that they came in.

What closes the habit customer more than anything else is building the relationship. You have to get to know their spouse and family. How many kids do they have, what’s their job, what are their interests? What are their past jewelry purchases? What are their likes and dislikes?

Remembering this information will make them feel that they know you personally, and you know them. The more you know, the more they’ll brag about you to their friends. And accordingly, the more business they will refer your way.

After the customer makes his purchase from you, always tell them, “Your business is really important to us; we’re glad you came in.” If they shrug you off, reiterate it. They’ll be impressed when they realize that you really mean it.

The cost of the walk is high. So treat every customer like they’re worth a million bucks … because they just might be.


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 February 2008 edition of INSTORE.

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Wilkerson Testimonials | C. Aaron Peñaloza Jewelers

Wilkerson Paves the Way for the Future

After serving the San Antonio, Texas community for decades, C. Aaron Peñaloza Jewelers closed its doors earlier this year. Aaron and Mary Peñaloza, the store’s owners, chose Wilkerson to handle their retirement sale. “In the first six days, we did six months’ worth of business,” says Aaron. “In the first three weeks, we did a year’s worth of business.” Mary Peñaloza says Wilkerson’s ability to tailor the sale to their store’s requirements really made it all so much easier. “They are professionals,” she says. “They know what they’re doing. They have a plan, but they will listen to you and adjust that plan to your needs.”

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Shane Decker

Here’s When the Real Jewelry-Buying Cycle Begins

mm

Published

on

Don’t let that 40-something leave, warns Shane Decker.

One of the biggest myths in jewelry retailing is that we win customers for life when they purchase their engagement rings. Sure, they may buy a wedding set and some pearl earrings.

But the problem is, they’re young, just starting out in life, and they have no discretionary income!

The real jewelry buying cycle begins when a customer is 45 years old or so. The house is paid for, the kids have moved out, the wife is bored and back at work, and the couple has extra money for the first time. These customers will become habit customers, coming into a jewelry store twice a year — once for a small pop, and once for a big pop.

This buying cycle will last about 20 years! With that in mind, consider this: If you walk that couple, you are walking about $500,000 in business.

Let me explain: A gentleman walks in, he’s about 50 years old, and he’s got $10,000 in his pocket. It’s his 25th or 30th wedding anniversary and he wants to buy something really nice for his wife. For whatever reason, we don’t greet him like we should, our presentation is not that great, and he walks. That’s $10,000 we’ve lost for now, but worse, we’ve lost him forever.

Advertisement

Why? We’re creatures of habit. We like to go to the same doctor, the same grocery store, heck, we even drive the same routes on our way to familiar places. When this customer’s in the market for more jewelry, he’s going to go back to the place where he was closed.

Anyway, back to our story. So the man gives his wife a $10,000 diamond bracelet from your competitor, and she loves it. She sees a friend at the golf course who asks her, “Where did you get that bracelet?”

“Oh, my husband bought it for me from H & H Jewelers. Isn’t it spectacular?”

The next year, he buys his wife a pair of 2-carat diamond studs, and the friend thinks, “Wow, he really likes that store!” So she tells her husband, and he says, “You know, I’ve been thinking about trying them out.”

So the first couple tells 10 people, and then those people each tell 10 people, and now you’ve got 100 people walking around spreading the good news about your competitor. Over the next 20 years, you’ve just lost $500,000 (give or take)!

All because you were “a little off” in your original presentation.

Advertisement

Remember, the customer at the beginning of their buying cycle may not look like anything special. In fact, if they’re anything like me, they’ll walk in wearing sandals, old socks, and a sweatshirt. It’s their day off, and they want to be comfortable.

Despite their appearance, they’re spending a good amount of money, and they want more attention. They’re savvy customers. They want to know you really appreciate that they came in.

What closes the habit customer more than anything else is building the relationship. You have to get to know their spouse and family. How many kids do they have, what’s their job, what are their interests? What are their past jewelry purchases? What are their likes and dislikes?

Remembering this information will make them feel that they know you personally, and you know them. The more you know, the more they’ll brag about you to their friends. And accordingly, the more business they will refer your way.

After the customer makes his purchase from you, always tell them, “Your business is really important to us; we’re glad you came in.” If they shrug you off, reiterate it. They’ll be impressed when they realize that you really mean it.

The cost of the walk is high. So treat every customer like they’re worth a million bucks … because they just might be.

Advertisement

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 2008 edition of INSTORE.

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SPONSORED VIDEO

Wilkerson Testimonials | Sollberger’s

Going Out of Business Is an Emotional Journey. Wilkerson Is There to Make It Easier.

Jaki Cowan, the owner of Sollberger’s in Ridgeland, MS, decided the time was right to close up shop. The experience, she says, was like going into the great unknown. There were so many questions about the way to handle the store’s going-out-of-business sale. Luckily for Cowan, Wilkerson made the transition easier and managed everything, from marketing to markdowns.

“They think of everything that you don’t have the time to think of,” she says of the Wilkerson team that was assigned to manage the sale. And it was a total success, with financial goals met by Christmas with another sale month left to go.

Wilkerson even had a plan to manage things while Covid-19 restrictions were still in place. This included limiting the number of shoppers, masking and taking temperatures upon entrance. “We did everything we could to make the staff and public feel as safe as possible.”

Does she recommend Wilkerson to other retailers thinking of retiring, liquidating or selling excess merchandise? Absolutely. “If you are considering going out of business, it’s obviously an emotional journey. But truly rest assured that you’re in good hands with Wilkerson.”

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