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The 19 Contrarian
Rules of Business

Don’t promise excellent service? Run annoying ads? Business leaders insist these counterintuitive principles work.

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TO MAKE A POINT about how our brains operate, the American neuroscientist Gregory Berns likes to encourage people to close their eyes and imagine the sun setting on a beach. If you just tried it, odds are the image that arose was the clichéd one — a warm tropical island scene, most likely framed by the frond of a coconut tree, awash in orange, as opposed to, say, a dark, wind-whipped pebble beach off the coast of northern Scotland.

The brain “is fundamentally a lazy piece of meat,” Berns writes in his book Iconoclast. It needs energy to operate and has evolved to use it as efficiently as possible. As a result, it defaults to shortcuts as it can — past experience, other people’s opinions, common practice — to avoid the taxing effort of perceiving or imagining afresh.

There are, of course, people who make it a habit to buck convention, who have a knack of seeing something no one else does. Berns refers to these disruptive original thinkers as “iconoclasts.” Generally, they are probably better known as contrarians. These are the brave and often odd souls whose questioning of the conventions of society or their professional field have repeatedly caused history to change course or leap forward.

In business, entrepreneurs are often contrarian by definition — they see value and opportunity where others do not. The contrarian investor Bill Gurley notes that “you can only make money by being right about something that most people think is wrong.”

The idea of being an independent spirit appeals to many. In a recent Brain Squad survey, 58 percent of our readers identified themselves as contrarians compared to 30 percent who said they were conformists and 12 percent who said they were neither. Of course, by definition, it’s not possible for the majority to be contrarian, even more so in a tradition-bound industry like jewelry. We suspect the result reflects most jewelers’ thoughts of themselves as independent operators charting their own destinies in a world where most of their fellow citizens opt for the security of more regular employment.

It is not easy being a true contrarian. There is the risk of ridicule, having to live with constant uncertainty. Being contrarian for the sake of contrarianism is pointless.

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There is, unromantically, much to be said for doing things the timeworn “best practice” way. We thus begin our exploration of contrarianism with a caveat — doing something differently is exciting, possibly liberating, often far more lucrative than the conventional way … and often dangerous. Go charging away from the herd with care. Ultimately, you want to choose the ideas — new or old, intuitive or rational, bizarre or conventional — that serve you best.

The customer is not always right

1It’s actually irrelevant if a customer is right or wrong. This is, after all, a commercial transaction, not a debate. Just because a customer wants, needs, or expects something does not mean that delivering it is the best thing for your business. Indeed, “keeping certain customers happy can be a horribly inefficient and downright distracting way to run a business,” note Brent Adamson, Matthew Dixon, and Nicholas Toman in an article in the Harvard Business Review. It’s also not much fun.

As a business owner, you need to make decisions that best apply your company’s capital, intellectual energy, and product capabilities. Rather than customer satisfaction, the ultimate goal should be running a sustainable business. Have a written, legally defensible terms of service statement, warranties, guarantees, and a simple process to determine which clients or customers deliver the strongest ROI and which are actually costing you money. In some cases, it’s better for long-term growth (not to mention store morale) to jettison a high-maintenance client and focus on improving the quality of your customer base.

Ignore terrific opportunities

2One of the dangers of business success is that it leads to more opportunities. Pursue them at your peril. In business, there is always a trade-off. Doing one thing well invariably means you can’t do another at a high level as you spread yourself too thin. The result is a damaging mediocrity.

In his book, Essentialism: The Disciplined Pursuit Of Less, Greg McKeown cites studies that show the loss of focus is a key reason companies fail. The antidote? Spurning good opportunities. “Not just haphazardly saying no, but purposefully, deliberately, and strategically eliminating the nonessentials. Not just getting rid of the obvious time wasters, but being willing to cut out really terrific opportunities as well,” he says. “Few appear to have the courage to live this principle, which may be why it differentiates successful people and organizations from the very successful ones.”

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Don’t give your staff the resources they need to fix a problem

3Constraints breed resourcefulness. This is an idea that has been gaining influence in business circles for the last few years. “Is there something in the nature of constraints that brings out the best creativity?” writes Scott Berkun, the author of Mindfire: Big Ideas For Curious Minds. Consider a good haiku or sonnet, and the answer is obviously yes: it’s precisely the limits of the form that inspire new ways of working inside them. In the workplace, that means no more “blue sky” brainstorming: if you want the best answers to a question, focus it narrowly; consider a time limit, too. Google sometimes puts fewer engineers on a problem than it needs; it inspires ingenuity. Behind all this is the counterintuitive insight that discipline and structure are often the path to freedom, not its enemy. See constraints as a game. Not only are games about fun, but they are distinguished by the rules that govern them.

Forget trying to fix your weaknesses

4In a series of bestselling books, the Gallup consultant Marcus Buckingham has made a persuasive case for a strengths-based approach to life and business: it’s both more effective and more enjoyable, he argues, than struggling to fix your weak spots. According to Buckingham, most people try to “plug” their weaknesses, while the really successful focus on exploiting strengths. You’ll rarely improve a weakness beyond mediocrity, argues Buckingham, not least because it’s hard to invest sustained energy in something you don’t enjoy. If you truly know what you’re bad at, you’re already ahead of the pack. Don’t throw that away by wasting your time getting slightly less bad.

Don’t believe in long work

5Few things are as American as the belief in the merit of hard work. The problem is too many small business people confuse work and progress. A day when lots of things get done, when you arrive home exhausted after holding six meetings with staff and vendors, clearing 300 emails from your inbox, and finally straightening those old files in the backroom, sort of feels like a productive day, but it’s unlikely to have helped your business take the next step forward. Marketer Seth Godin calls this bias for efficiency over effectiveness “the trap of long work.”
“Long work is what the lawyer who bills 14 hours a day filling in forms does.
Hard work is what the insightful litigator does when she synthesizes four disparate ideas and comes up with an argument that wins the case—in less than five minutes.

“Hard work is frightening because you might fail. You can’t fail at long work, you merely show up.”

The management guru Peter Drucker suggested the best way to address this issue was by constantly asking yourself the question, “What’s the most important thing for me to be doing right now?”

Think small

6In his 1994 book Built To Last, Jim Collins introduced the world to Big Hairy Audacious Goals, or BHAGs, his term for the ambitious long-term goals that he argued galvanized successful companies. And it seems the term is rolled out in every discussion of good business practice. But the problem is that the excitement, energy, and envelope-pushing boldness stirred up by such endeavors often dissipates quickly in the face of the day-to-day running of business. Worse, such big-picture thinking, telling yourself something is epic and of crucial importance, often leads to fear, resistance and ultimately inertia and disappointment. As the psychologist John Eliot writes in his book Overachievement, “Nothing discourages the concentration necessary to perform well … more than worrying about the outcome.” The marathon runner who’s reached a state of “flow” isn’t visualizing the finish line, but looking through a narrower lens, focusing on one stride, then another, then another. Like the formula for contentment (happiness = reality – expectations), it’s often better to forget the end goal, aim low and just focus on the process if you really want to get things done. This can apply to everything from setting low targets for salespeople (spurred on by achieving the goal, they will often break through and hit a higher number) to big projects. The young Jerry Seinfeld’s scriptwriting technique involved marking an X on a calendar for every day he sat and typed. His goal was an unbroken chain of Xs. If he’d aimed instead to write masterful jokes, he’d have been distracted and intimidated.

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Forget audacious. Just go do it.

Get rid of the rules

7Too often, managers assume the key to improvement must be clearer procedures, more exactingly enforced. But the result is organizational structures that permit zero autonomy — and extremely annoying customer service (“Sorry, sir, our policy doesn’t allow you to …”). Perhaps even worse is that such management fails to capitalize on the talents of those lower down the hierarchy. Zappos’ contrarian founder Tony Hsieh made headlines a few years back when he said he was rolling out “Management by Holacracy,” which eliminates the traditional oversight role of the manager and instead relies on the employees themselves to decide how to get their day-to-day responsibilities completed on the basis that they probably know best. That may be too much for most business owners, but according to Harvard Business School research, “loose monitoring” of employees makes for higher profits as well as happier workplaces. Striking the right balance between autonomy and control is very likely the essence of being a good manager.

Give away your time

8Overwhelmed by work? Feel you are in a constant race against the clock to get things done? Try making some time for others. “While it might seem counterintuitive to sacrifice some of the very thing you think you don’t have enough of, our research shows that giving a bit of time away may, in fact, make people feel less pressed for time,” Cassie Mogilner Holmes, an associate professor at UCLA and Michael Norton, a professor at Harvard told the Wall Street Journal. Another hack to deal with time scarcity — erase a day from your schedule. Busy? Don’t schedule anything for Fridays. The work you didn’t get done will flow over, and you’ll finally knock off those to-do list items.

Hire more introverts

9On the surface, introverts don’t seem to have the makings of great salespeople or even managers. Social interaction tires them, they have trouble with insincere flattery, they don’t like to push people, and they don’t tend to contribute vocally to meetings or brainstorming sessions. But there are positive flipsides to all this: introverts tend to demonstrate a higher degree of sensitivity in emotional interactions, they are more likely to be experts in their field, they are less likely to be yes-men or women, and as for managing people, they do better than extroverts when the staff itself is full of self-directed go-getters. “Although extroverted leadership enhances group performance when employees are passive, this effect reverses when employees are proactive, because extroverted leaders are less receptive to proactivity,” says Susan Cain, author of Quiet: The Power Of Introverts In A World That Can’t Stop Talking.

Be last to market

10Among business gurus, few things are as unquestioned as the notion that innovation is the path to success. “Innovate or die!” goes one mantra. Yet if innovation were a surefire way for companies to achieve dominance, the world might look very different. White Castle, RC Cola, and Diners Club were all innovators, but think of fast-food, soft drinks and credit cards, and those are unlikely to be the first names that come to mind. The upsides of unoriginality are clear: imitators let others make the costly mistakes, and then incorporate the lessons learned into a far better product. (Exhibit A: the iPhone.) In his book Copycats, the management theorist Oded Shenkar argues we need “to change the mindset that imitation is an embarrassing nuisance.” Rather, it’s a “rare and complex” capability, one we could all do with cultivating, he says. In his book Zero To One, Peter Thiel argues that “it’s much better to make the last great development in a specific market and enjoy years or even decades of monopoly profits.”

Run annoying ads … often

11There’s a reason that grating TV ads work: the more they grate, the more you’ll notice them, and noticing — thanks to what psychologists call the “mere exposure effect” — leads to liking.

Depressingly, whatever we’re repeatedly exposed to, and regardless of any other reason to like or dislike it, we’ll end up growing fond of. According to Roy H. Williams, author of The Wizard Of Ads, there’s actually no way for successful advertising to avoid being irritating to some degree. “Ads that twist our attention away from what we’d been doing are always a bit annoying,” he says. But if you fail to get your audience’s attention, your ad has failed at the first hurdle. “Consequently, most ads aren’t written to persuade; they’re written not to offend. But the kinds of ads that produce results make us answer yes to these three questions: Did it get my attention? Was it relevant? Did I believe it?” Williams claims 98.9 percent of all the customers who hate your ads will still come to your store and buy from you when they need what you sell. “These customers don’t cost you money; they just complain to the cashier as they’re handing over their cash.”

Stop holding meetings

12Jim Buckmaster, chief executive of Craigslist, has a simple policy: “No meetings, ever.” There are several reasons why meetings don’t work. They move, in the words of the career coach Dale Dauten, “at the pace of the slowest mind in the room,” so that “all but one participant will be bored, all but one mind underused.” A key purpose of meetings is information transfer, but they’re based on the assumption that people absorb information best by hearing it, when only a minority of us are “auditory learners.” The key question for distinguishing a worthwhile meeting from a worthless one is this: is it a “status-report” meeting, designed for employees to tell each other things? If so, it’s probably better handled on email or paper. That leaves a minority of “good” meetings, whose value lies in the meeting of minds itself — for example, a well-run brainstorming session.

Drop some F-bombs

13The jewelry world is one of refinement, education and professionalism, not the place for profanity. Yet swearing, when done judiciously, according to various psychologists, boosts endorphins, promotes social bonding and makes people more persuasive. Periodically, let your staff and customers know you’re human.

Stop asking, “Where do you want to be in 5 years?”

14Hiring employees who will challenge management is another staple of business advice, but everyone has probably worked with “yes, but” employees who basically oppose every new idea and approach. To find true contrarians, Thiel in his book Zero To One recommends asking the following question when interviewing employees: “Tell me something that’s true that nobody believes in.” (God, global warming and aliens don’t cut it.)

Don’t ask for the sale

15The traditional approach to selling says tout the benefits, close throughout, close with an assumption and then push for the add-on followed by another. You’re just efficiently taking the customer in a direction she wanted to go anyway. In contrast, the “slow sales” movement, which has been gaining ground for a few years, argues that there are intelligent, deliberate customers who prefer an almost “do-it-your self” zero-pressure environment. Granted, getting them to the cash register may take longer. But according to INC magazine, this technique alleviates the extra costs of post-purchase dissonance from returns, customer service time, negative feedback, and customer churn.

Look for mentors and staff who do it the “wrong way”

16Tim Ferriss has an interesting approach to considering contrarians: Be on the lookout for the anomalies, like the wispy girl who can deadlift 405 pounds. They’re performing with techniques rather than genes. “These iconoclasts show the differences in techniques and attributes,” he says. “If someone has become really good at doing something in a very nonstandard way, you can infer that the standard path isn’t necessarily the best methodology for learning a skill.”

Don’t promise excellent customer service

17Ask independent jewelers what is their point of competitive advantage and they’ll overwhelmingly say excellent customer service. But, something big corporations know (but never publicly say) is that delivering excellent customer service ultimately results in unhappy customers. Thus the field of “expectations management.” “If you want satisfied customers, it’s certainly wise to act in ways that will satisfy them. But it’s also wise to pay attention to (and, if possible, influence) their criteria for feeling satisfied,” writes Oliver Burkeman in The Guardian. Training customers, employees, and partners not to expect a “yes” in response to every single request might be crucial for preserving sanity. Far better to have a reputation as a jeweler who, for example, turns around a repair within three days than one who does it overnight — because in the latter case, as soon as you fail to deliver on that tight deadline, you’ll be seen as underperforming.

Ask customers for favors

18The “Ben Franklin effect” states that if you want to get someone to like you, you should ask him or her to do you a favor. The strategy, named for the founding father’s habit of borrowing books from opposing politicians to win them over, works because humans hate cognitive dissonance: we can’t stand a mismatch between our actions and thoughts. So if we find ourselves helping someone out, we’ll unconsciously adjust our feelings for them. The implications are striking. Don’t suck up to your customers — ask for favors or even just their opinions (“Where do you think the economy is headed?”).

Don’t be so professional

19We live in an era with more opportunity than ever to burnish the image we’re projecting, and more pressure than ever to do so. But in her new book, Cringeworthy: A Theory Of Awkwardness, Melissa Dahl makes a persuasive case for celebrating those times when “someone’s presentation of themselves … is shown to be incompatible with reality in a way that can’t be smoothed over.” Awkwardness pierces that facade, exposing the imperfect life behind it. Quoting the words of the philosopher Adam Kotsko, she says it creates “a weird kind of social bond” — a solidarity arising from seeing that behind the fakery, we’re all just trying our best to seem competent. The awkward you, then, is the real you, the one without the defensive performance. And people will like you for it.

Click here for 8 more Contrarian Rules, as well as the exclusive online article, “12 Contrarian Rules of Jewelry Retail.”

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Cover Stories

THE INSTORE DESIGN AWARDS 2019 – Winners Announced!

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Jewelry design is the lifeblood of our industry, and those on its forefront are constantly challenging the status quo, pushing boundaries in creativity and wowing jewelry lovers with their skill and passion. These are the creators we seek to honor with the INSTORE Design Awards.

For 2019, we expanded our categories from eight to 25, allowing designers more freedom to enter the best category for each piece. And we received more than 171 entries as a result. In order to determine the best of the best, we recruited a judges panel composed of nine retailers, all of whose businesses carry multiple designer lines, to vote on their favorite jewelry in a “blind voting” process. We also opened voting to all North American jewelry retailers online at instoremag.com, where more than 9,300 votes were cast to decide the “Retailer’s Choice” winner in each category.

And finally, as we have since our competition began, we recognize one up-and-coming designer who embodies the inventive spirit so long encouraged by our former colleague Cindy Edelstein, who passed away in 2016.

Now, turn the page and see the very best that our industry has to offer. Who knows, maybe you’ll find your next hot-selling line right here in this story!

Best Men’s Jewelry

Best Statement Piece

THE JUDGES

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Cover Stories

3 Simple Ways a “Good-Better-Best” Display Can Make You More Money

The success of these pricing strategies has been proven beyond dispute.

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The success of thoughtfully implemented “Good-Better-Best” (G-B-B) pricing strategies has been proven beyond dispute. Look around. Airlines offer coach class seats with variable options. Allstate offers auto batteries with warranties ranging from 12-48 months at prices that vary disproportionately. Heating oil suppliers sell plans based on a monthly fluctuating rate as well as a “premium” package in which the rate is fixed for the season.

I read a recent article in the Harvard Business Review (“The Good-Better-Best Approach to Pricing,” by Rafi Mohammed) that made me wonder why retail jewelers were not taking full advantage of this strategy in their stores.

Twenty years ago, Allstate conducted research to determine just how much price really mattered to their insurance customers. They learned that drivers are very concerned that if they are involved in an auto accident, their rates will go up. They introduced three new policy levels to add to their “Standard” level policy. They have a “Basic” policy at 5 percent below “Standard,” a “Gold” policy (6 percent higher price), and a “Platinum” level policy (15 percent higher price). Last year, only 10 percent of their customers downgraded to “Basic,” while a whopping 23 percent upgraded from “Standard” to “Gold” or “Platinum.”

So what can we do in a retail jewelry store to take advantage of this tendency of consumers to move up in price when given attractive options?

Implementing a “Good-Better-Best” plan in your store has three benefits. One, it can entice new and existing customers to spend more. Two, it allows you to compete directly with lower-priced competitors, including Internet shops. And three, a G-B-B strategy will change your customers’ actions through consumer psychology.

Successfully offering a G-B-B option depends on the following considerations:

  1. The price level of the “Good” option should be no more than 25 percent below the price of the “Better” option. The “Best” option should be no more than 50 percent higher than the “Better” option. For example, if we have a $1,000 “Better” item, the “Good” option should be about $800, and the “Best” option about $1,400.
  2. There should be a perceived important difference between the “Good” and “Better” options that motivate the customer to opt up for the “Better” selection. Limit the number of features in your “Good” option to improve the perceived value of the “Better” option.
  3. Each option should be explained in four attributes that differentiate it from the lower-priced option.
  4. Signage should clearly explain the differences and costs of each option. Name each option intelligently. Don’t use descriptions that confuse the merchandise. There is nothing wrong with simply using “Good, Better, Best.”

When you are determining the price points for your G-B-B offerings, consult your “inventory performance by category” report in your inventory management software. This will tell you the average selling price of your current sales for each different category and style of merchandise. Your goal is obviously to sell more at higher prices, so consider a price about 10 percent higher than your current average sale as your “Better” option. For example, if your average diamond stud earring sale is $1,000 now, make your price points $899, $1,099 and $1,399.

Retail jewelers should benefit from the thoughtful implementation of the G-B-B principles. Here are some display suggestions for your store.

Diamond stud earrings and anniversary bands

Offer three grades of earrings in the most popular styles. The differences in stud earring prices are obviously predicated by diamond size and quality as well as mounting material.
Start with 14K white gold mountings with round diamonds in sizes ranging from one-eighth, one-quarter, one-third, one-half, three-quarters and one-carat sizes. Develop a source (internally or externally) that can provide three different qualities in all six sizes. Obtain a display arrangement that allows the three qualities and sizes to be shown with descriptions, as well as prices and monthly payment options. Add signage that explains each of the four differentiating points between the qualities offered. Put in place a reorder procedure that quickly refills the empty space when sales occur.

Bridal

Make your most popular styles of engagement rings (halos, solitaires, sets, three-stone, etc.) and create a display with a G-B-B variation of each in a single tray. If you can, include several of these in each showcase. If you can direct your customer to those trays, you stand a better chance of easily up-selling the customer to a bigger size. Feature payment amounts to make it easier for your staff to sell up.

I am a big believer in organizing your bridal showcase by style, not by vendor brand (unless it is a very recognizable national brand) or diamond size. That is how your customer shops. With all your halo choices collected together in a single part of the showcase, you’ll find it much easier to move up in price and keep your customer from having to visit several showcases in order to see your selection.

Other merchandise

Follow this same strategy. Choose your most popular designs and identify what you can do to that item to be able to sell it at 25 percent less. Maybe it is a smaller stone or a metal change to silver. Make that new item your “Good” selection. Now revisit the original piece and ask what you can add to the design to make it worth 25 percent more. Make that your “Best” choice, and display them all together with prices and payments.

If you are successful with such a strategy, it could make both your customer and you very happy. Your store would be easier for your customer to shop, and your inventory could shrink to fewer pieces offered since your sales are more concentrated in your G-B-B offerings.

Give it a try and see what happens to your average sale. If it works, expand it. If it doesn’t, try something else. Be sure you track the results of your efforts to know what has worked and what has not.

Retail jewelry is hard enough without leaving money on the table when the customer is already in your store and poised to buy. Implementing this strategy might just move your results from “Good” to “Better” to “Best.”

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E-Commerce for Everyone: Let Your Customers Buy Something Where & When They Want To

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E-commerce has been vilified by many independent retail jewelers as an under-cutting, price-conscious evil entity intent on stealing hard-earned business from brick-and-mortar stores while ripping their profit margins to shreds.

At this point, though, it’s more or less a matter of if you can’t beat them the way you’ve been operating, you’d better consider joining them.

It’s time to rethink e-commerce as a viable option for you, the independent brick-and-mortar-based jeweler, but also to understand what it takes in dollars and time to drive traffic to a website, says Ben Smithee, digital-marketing expert and CEO of The Smithee Group. The big online players didn’t get where they are without investing considerable time and money into marketing, social media and search-engine optimization.

In other words, simply enabling e-commerce is not like flipping a switch and watching the money pour in. Instead, imagine you’re opening a second store. How much planning and preparation would you put into that? You’d work with a store designer. You’d hire more staff. You’d invest in advertising.

“Most people grossly underestimate what it takes for advertising to send people to the site,” Smithee says. “A lot of them expect to have overnight sales. Start with realistic expectations — they should be thinking about selling one, two, three things a week or a month to start and ramping up from there. Without realistic expectations, they will decide it doesn’t work and will quit,” Smithee says.

Independent jewelers like Tim Wright of Simply Unique Jewelry Designs in Yorktown, VA, have been reluctant converts in recent years. Wright says he realized in the past year that his company has to be searchable and sell its wares online. If not, he says, “We will go away like other independents in our area.”

It took time for Wright to wrap his head around the idea. “I cannot imagine people ordering jewelry, especially our one-of-a-kind pieces, off the Internet, but we are working on a new website to be more searchable and to be able to sell off of it. The basics we all have survived on over the years are not selling in the store anymore because of the Internet.”

Shane O’Neill, vice-president of Fruchtman Marketing, advises independent jewelers to temper their expectations when they turn to e-commerce.

Most jewelers are not going to see significant amounts of e-commerce, he says, because the marketing perspective is much different between traditional stores and online stores. “If they are marketing around a 20-mile radius, we still know that people want to touch and feel the jewelry,” says O’Neill. Plus the data that millennials don’t shop in stores isn’t necessarily true. They shop in bigger numbers than Gen X or baby boomers do. But they shop online with the idea of browsing and checking out pricing, and so they expect a shopping experience with all of the details revealed, O’Neill says.

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The preparation it takes to be ready for e-commerce almost certainly will result in increased sales in the store.

“They probably have checked all the boxes in terms of a good user experience, descriptions, photos, categories of metal type and have galleries of multiple products,” O’Neill says. “When someone comes to the website and they have the ability to have a great browsing experience, they make purchasing decisions based on that. When they stop in the store, you should have a higher closing rate. To me, that’s an e-commerce transaction, too.”

The website should be like your second store, O’Neill says, in terms of how you relate to the customer online: “How you flow people through your site is like what a sales associate does in the store.”

For Janne Etz of Contemporary Concepts in Cocoa, FL, e-commerce has grown steadily over the past two years from 35 percent of her business to a solid 50 percent. “You have to pay serious attention to it,” she says. “It is not a set-it-and-forget-it operation. What works with e-commerce this month will evolve into something else next month. It’s a constant learning process. I continue to study and learn and implement the newest techniques, so I can continue to grow!”

Stephenie Bjorkman of Sami Fine Jewelry in Fountain Hills, AZ, says an e-commerce-enabled website seems like a huge project, and it can be. But start somewhere, she says. “Just do it, or just do something,” she says. “Get ready to flip that switch. Take on little bits and pieces at a time and set goals. I am so far from anywhere near where I want to be, but my marketing department and I sat down and made a monthly calendar so that we could plan all of our marketing, social media, blogs etc.” Bjorkman’s team also worked on posting pieces for sale in groups of 24 at a time.

If even this seems like too much, start with making time for your own social media. Friend your top 100 clients and start from there.

“I think you need to make a plan, then work your plan,” Bjorkman says. “You can begin by doing this in the evening when you get home. Or have one of your employees spend an hour a day on it. The first step is that every day you should be posting on social media. Post real pictures and start creating your online image. Connect your posts to your website and tell them how to buy.”


Borsheims

E-Commerce Continues to Evolve in an Omni-Channel World

Borsheims of Omaha, NE, has been selling online since 1998 and today has seven associates dedicated to e-commerce.

“We’ve seen tremendous growth in the channel,” says Adrienne Fay, director of marketing and business sales — a 40 percent increase year over year in online sales for the past two years. This year that trend continued with a huge lift in January and February. The e-commerce staff is involved in navigation, digital photography, answering questions and virtually holding hands as needed. They also fulfill the orders — 99.9 percent of the inventory is in the store already.

In March 2018, the company introduced a new website that made online purchases easier on all devices, while updating their ring-builder tool to make it both more user-friendly and more luxurious-looking, says Andrew Brabec, director of e-commerce. “A lot of our customers will utilize their mobile device first and then make a purchase on their desktop. They prefer the process on the mobile device; it’s easier, faster.” Chat is used more than ever by customers looking for a promo code or to ask a quick question, but few purchases take much hand-holding.
One reason for that is that the new website is designed to anticipate questions that shoppers might have. Photographing jewelry items next to coins, for example, allows customers to gauge the size of the piece quickly and easily. “The main questions we get are: What size is this? And how does it look on someone?” Brabec says. One goal is to provide more views of each product.

“We try to replicate our customer service online,” says Fay. “It’s a strategic investment. We look at shoppers in an omni-channel fashion. Not as an e-commerce customer, not as a store customer. Simply a customer. We want to be able to knock their socks off in all channels.”

Shoppers who convert to online sales represent a wide demographic — established customers, gift shoppers, fine jewelry shoppers. Average order fluctuates, but recently it was $263. “We definitely have sold items that retail in the tens of thousands. Not every day, but it’s not unusual,” Fay says. Customers log in from all over the U.S. and the world; international checkout is available with exact pricing.

What’s next? Borsheims is testing out products to provide shoppers with 360-degree views of products, a technology that is increasingly common in other industries. Another huge goal is to get 97 percent of their products visible online; currently that number is about 74 percent. “We want to see more items in the cart, too, so we’re working on ways to up-sell in the cart by showing related products,” Brabec says. “In addition, we are going to evaluate pages to make them faster and more effective.”

The year 2020 represents Borsheims 150th anniversary. “And you don’t survive that long if you don’t evolve and grow and roll with the punches,” Fay says. “We used to say we at Borsheims are going to tell you as customers what you need to buy. Now we respond to what they are looking for with content and expertise and education.”


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Ringcrush

Growing Fast on Etsy

Bailey Lehrer founded Ringcrush, a start-up online jewelry store, selling $30 to $60 jewelry items on Etsy. She started the business with $700 and turned a profit immediately.
“We were able to grow in two years really quickly,” Lehrer says. “I did a little under $1 million on Etsy and another $300,000 on Amazon. It made sense for me to start up online. Etsy is really friendly to people who want to experiment.”

Lehrer says that while high-end diamond solitaires aren’t the norm on Etsy, moissanite rings are moving fast, as are other non-traditional types of diamond engagement rings, usually with an artisan design or a unique setting. “Etsy is primarily for 25- to 35-year-old women,” she says. “A lot of them still want that look and they can swap out the stone later. One of the most popular rings looks like a hand-carved band with a diamond solitaire in the center.”

Bailey Lehrer, founder of Ringcrush

The process of opening a shop on Etsy is easy, Lehrer says, because they hold your hand through the whole process. Still, there’s more to it than just opening. “You have to understand your competition and price point. It can be cutthroat with common items, and there are people from other countries selling items with razor-thin margins. You need something unique. That way you can raise your price.”

Her point of differentiation is pieces of raw gemstones. “So I still focus on precious stones like emerald and sapphire, but I’m able to sell them at $60 because I get them uncut. They’re still blue if it’s a sapphire; still green if it’s emerald. It’s kind of a unique aesthetic, so it’s easy to stand out.”

Another thing to keep in mind, Lehrer says, is that there is clear evidence shoppers will convert to making a purchase if the product is photographed on a white background. “Know how to take great pictures,” she says.


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Mullen Bros.

They Want to Be Your Local Jeweler, No Matter Where You Are

Bob Mullen is owner and founder of Digital Jewelers Academy, as well as an owner of the family business, Mullen Bros. Jewelers in Swansea, MA.

For several years, Mullen and his family pondered the “what ifs” and the concerns they imagined would come with e-commerce while they experimented with product catalogs on their website. “What about stock? What about if we sell things that are sold out? What about fraud? But it’s like having children: If you wait till you’re ready, you’re never going to do it.” In 2014, they began selling online through Shopify and realized $100,000 in revenue the first year.

“In terms of problems, the same things that I thought in my mind would be problems DID happen, but it was not that big of a deal to overcome them. In terms of inventory, it was about keeping things on the site that would be accessible and in stock, unless it’s something like bridal. We only work with designers who have products available that we can get quickly.
“Like anything else, there is no one thing that made it happen. It’s like Jim Collins wrote in the book Good To Great. You build momentum, and it gets easier and easier. It’s the trial and error of learning our audience, learning what they respond to, and looking at Google Analytics.”

Now Mullen, a marketing major in college, is working with other retailers on e-commerce goals. Digital Jewelers Academy, in partnership with Gemsone, administers a private Facebook group with instructional videos and an online posting service. “It’s about e-commerce, creating engaging content, Facebook ads, email strategy, website conversion.”

How much time does e-commerce take? “If you’re budgeting 10 to 15 hours a week of someone’s time, you can make a lot of progress if you know what you’re doing. You can be much more efficient in three hours knowing what you’re doing than 10 hours wandering around.”

Bob Mullen, owner and founder of Digital Jewelers Academy

“The No. 1 question I’m asked is regarding differences in inventory and pricing between the website and physical store. A lot of jewelers feel like they should treat the website like a separate store with lower prices to attract business. But unless you’re trying to build a nine-figure company, you should target a customer most like your own.

Mullen’s average ticket online is around $600, which is higher than in his store. “Our biggest sale was $17,000 and it goes down to $99 here and there. The sweet spot, like anything in jewelry sales, is $200 or $300. But the idea that people are just going online and plunking down 10 grand is a myth.”

The key to success is to provide the same level of service you do in your store. “In my opinion, I can service people a lot better than whoever is manning the call center at Blue Nile,” says Mullen. “You can sell an engagement ring in 10 minutes or have multiple visits over four hours in the store; online, it might take three to six emails. It’s about being proactive and being prompt about responding when people email.”

Local limits mean little when it comes to e-commerce, Mullen contends. “People respond nationally to the same things people respond to locally. Our industry loses 1,000 stores a year. When their jeweler closes, people have to go online or find another local store. More and more people are going online as a result, and are happy to work with a local jeweler, wherever you are. Meet them where they are.”


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SAMI’S FINE JEWELRY

“We Are Definitely on Our Way to Our Goal”

Last year, Stephenie Bjorkman of Sami’s Fine Jewelry decided that her website and online sales needed to be a priority. But she also knew it was tough, if not impossible, to find time to own the store, work with vendors, manage employees, pay bills, oversee marketing and launch e-commerce.
So she hired one person and then a second person to make it happen.

Stephenie Bjorkman of Sami’s Fine Jewelry

“The only way I could do this was to have a dedicated person to take pics, write descriptions, update events, blogs, social media and more. What is really scary is that I see such an importance in this job, I have already hired her an assistant.”

It hasn’t necessarily “worked” just yet, says Bjorkman. But it is working. “Since I hired devoted staff members, I have seen a 30 percent increase in online sales, along with tons of daily mentions in the store. All of this proves that in the end, having a marketing person is well worth it.”

Online, Bjorkman sells branded items, including her own Animal Rockz line, a custom sterling-silver line of jewelry available in 38 different pet breed varieties. “My store is full of animal lovers, so this is easy for us to be passionate about. We seem to sell at least one of these a day. Prices range from $35-$60 plus shipping. The magic numbers seem to be in the $250-$500 average range. But, with that said, I sold a $30,000 diamond off my website and a $25,000 estate diamond from my e-blast.”

Sales are considered and tracked as “online sales” if everything is done online.

“If you do sell it 100 percent online, you need to handle them like any other client. Answer quickly, make them feel special. We do chat by phone, by social media messengers, text them, and even send them videos. It is a lot of work, but the good news is that it works.

“Our e-commerce actual sales do not currently represent a large amount of my overall business. A two-year goal for me is to sell as much as having a second store. E-commerce also represents the best type of marketing you can do for your business. Long before you advertise in a newspaper, magazine, etc., you should take time to do your online marketing, social media, e-blasts and blogs.”

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