Tips and Tricks to Turn Your Shop Into a Profit Center

IN-STORE SHOPS for repairs and custom work can be a profit center if treated like one. Surprisingly, that’s a more complicated move than one might think.

Good shops require talent, tools, clear steps to track jobs and the time spent to execute them, along with a willingness to charge appropriately for the work. In theory, it all sounds logical, but in practice, it’s anything but simple.

A jewelry school can teach bench basics, and Geller’s Blue Book can offer guidance on pricing jobs (“Some 6,500 independent jewelers use it,” notes Jonathan Geller, who owns Geller’s Blue Book to Jewelry Repairs and runs three D. Geller & Son stores in Georgia), but everything else can be difficult to manage. Opinions and practices are wide ranging — if in doubt, log onto the Jewelers Helping Jewelers (JHJ) Facebook Group to see any discussion of the day; if it’s not about an item for sale, then it’s related to repairs (and oftentimes, pricing them).

“Everyone is fighting to be the cheapest,” observes Jo Goralski, vice president of The Jewelry Mechanic, Inc., in Oconomowoc, WI. “I treat my bench jeweler as the special person he is, and I do not apologize for my prices.”

If that quote got your attention, keep reading. INSTORE talked to some of your peers about their in-store repair shops — from tools to training to tips to make them more efficient and profitable. Your next best shop insight could be on the pages that follow.

Clockwise: Custom ring from a cut bullet; before and after shots of a ring that survived a bonfire. All courtesy The Jewelry Mechanic, Inc., in Oconomowoc, WI.

Train Your Front-of-House

What stands out as the biggest problem with in-store shops is the disconnect that happens with front-of-the-house intake. Customer-facing associates who lack proper training often misunderstand work that needs to happen on items for repair, so they misquote jobs, often assigning a much-lower repair price to it than it warrants. Then there are the personalities: chipper and bright in the front of the house, and many times, less so at the bench in the back because they’re focused on their detail-oriented tasks at hand.

“I wish the front of the house would be more respectful to the back,” says Goralski.

“The front has no idea of the value of what’s in the back and how precious they are with skill sets so rare. Bench jewelers don’t want to wear a suit and tie, yet they’re so mesmerized by what they can do.”

Training is so important at Sissy’s Log Cabin (with stores in Arkansas and Tennessee) that it recently debuted the Jewelry Sales Academy for other merchants to learn their methods. William Jones is president and chief operating officer of the store and founder of the Academy, and at press time, had just held two classes for new hires to learn about repairs. Each one of Sissy’s seven — and soon to be eight by fall — locations has a shop because repairs and custom are profitable. In Sissy’s training, sales associates learn how jewelry is made, how it is worn, and what happens after long periods of wear.

Bench jeweler at Sissy’s Log Cabin with stores in Arkansas and Tennessee. Each of Sissy’s seven locations has a shop.

“If a diamond falls out of a ring, that is a normal occurrence of wearing jewelry,” explains Jones. “We ensure that sales associates understand the basics of repairs, such as ring sizing and retipping. Almost all revenue issues from a shop originate when the sales floor prices repairs. At Sissy’s, new hires are paired with experienced associates to take in repairs. This cuts out 98% of issues. When jobs are complete, quality is checked by the jeweler and the associate who took in the work, so they examine it and make sure all the repairs have been performed before notifying the customer.”

Another smart move? Training associates to offer to clean jewelry so they can inspect it. Some find that stones are missing, and the client didn’t know. “We can upsell on repairs, too,” says Jimmy Butts, co-owner of Stacy James, LLC, a consulting outfit specialized in helping bench departments.

Train Your Customers

Once the front-of-the-house understands the techniques and time it takes to make repairs, they can better convey that to customers, showing them the exact work required to fix their jewelry. Then jewelers must charge — appropriately — for their work.

Many clients can be surprised by costs, and some jewelers use a car repair analogy to explain. Consider prongs as tires on a car, and the more they’re worn (driven), the sooner they need to be replaced.

“If you take a sports car with performance tires off-roading, you will ruin them,” says Katrina Sustachek, certified gemologist appraiser at Rasmussen Diamonds in Racine, WI. “Think of your ring as this sports car and avoid off-roading (housework, yardwork, moving, working out, etc.). I would never expect to drive my car for 20 years without maintenance. Your jewelry needs maintenance, too.”

Sissy’s training thwarts many of those complaints. “When associates explain the repair process and the time it takes to make repairs to customers, any price objections at the counter tend to go away,” observes Jones.

Butts maintains that one free sizing on a ring purchase is fine but cautions against “giving away” other repairs. “The message you’re sending to the customer and the shop is that the repair has no value,” he says. “You would never give away a piece of jewelry on the sales floor, so why would you give away a repair for free?”

Other jewelers agree.

“Being overly generous doesn’t mean that you’ll get respectful or lifelong customers,” says Samantha Swift, store manager of McCoy Jeweler in Dubuque, IA. “We’re not afraid of charging what our team is worth. And if a customer brings in a piece purchased online and wants repairs, they will pay more than someone who purchased from us. We have very few people who walk away.”

Entitled customers irk Laura Kitsos to no end. The owner, buyer, and jewelry designer at Gem Jewelry Boutique in Oak Park, IL, has encountered plenty of clients who think a repair should either be free or cost next to nothing.

“Even if they’ve had the piece for several years!” she says. “You wouldn’t buy a pair of jeans and then two years later expect a free pair because they wore out. There is this expectation that jewelry, no matter what the price, should last forever and never break.”

To Repair or Not to Repair?

Many jewelers will repair most items if folks are willing to pay. If clients are bringing it to your store, it has some value—even if it’s costume jewelry. “I’ll try to fix it for them,” says Butts. “I don’t like giving people an opportunity to go elsewhere.” When something has a low value, Swift lets them decide. “Sometimes we tell them, ‘The repair is more costly than the piece, do you still want to do it?’” she explains.

Ultra-thin diamond bands, online or mass-produced jewelry (read: low quality) and cruise ship buys can also be nightmare repairs that not everyone is willing to endure.

“I could make a good living just repairing ‘internet’ jewelry,” says Goralski. “I can make a [bleep]-ton of money off that.”

More frequently spurned fixes include invisible-set gemstone jewelry. This is at the top of nearly every respondent’s no-can-do list. “Doing anything to invisible-set jewelry is a no-no!” proclaims J. Dennis Petimezas, president of Watchmaker’s Diamonds & Jewelry in Johnstown, PA. “Unless it’s your excellent merchandise, and if so, it should be sent to the manufacturer for service. Most of the invisible-set pieces are of inferior quality — lots of flash but poor quality.”

Some jewelers won’t even clean invisible-set pieces. “I got burned too many times,” reveals Klaus Kutter, owner of A Jour Jewelry, Inc., in Bristol, RI.

Another hated repair is hollow jewelry. It shouldn’t exist, according to most jewelers. One caveat: some will fix chains. “They are a little harder to refuse, but we will charge two to three times the normal chain repair price,” says Loann Stokes, goldsmith at Stokes Jewelry in Stillwater, MN.

But beware, cautions Jennifer Farnes, owner of Revolution Jewelry Works in Colorado Springs, CO. “Once you get a break, it will break everywhere,” she says. “We encourage people to just buy a new chain instead of fixing a hollow one. It’s just a dumpster fire.”

Finally, resizing rings with diamond shanks significantly up or down is another task most decline. Any ring requiring a resize of more than four sizes is going to be tough, particularly ones with shared prongs or diamonds down the side. “If a ring has shared prongs, we won’t size up or down more than one or two sizes,” Jones says.

Shop Tips to Be More Organized & Efficient

Your shop needs a plan! Those with robust in-store operations outline some specific steps to take. First, establish a timeline for repairs to occur based on past experiences. For example, give your bench jeweler a day (or less) to complete a simple resizing. He or she should execute the task within the given time frame. Reward systems are helpful, too, to keep employees incentivized to hit deadlines or finish jobs early, provided the work is being masterfully completed.

The main sticking point that Butts sees in most repair shops is leapfrogging over jobs staffers don’t want to do in the name of ‘efficiency’.

“All shops do this, saying ‘First I’ll do all the resizings, then I solder all the broken chains, etc.,’” he reveals. “Just do the work in chronological order — do Tuesday’s work to completion before you start on Wednesday’s work.”

Labels are also a big help. Farnes has myriad tackle boxes in the shop filled with findings, casting grains, and other necessary tools of her trade. “Materials are easiest to maintain when everything is labeled,” she says.

Others — often those working in the front of the house — use software to track jobs and leave the bench jewelers to structure their space as they see fit.

“The shop is their world,” says Goralski. “It’s artists’ chaos, but my software helps me track everything.”

Having the right tools close at hand may be the best way to remain efficient. It’s a move that Holly McHone, vice-president of Holly McHone Jewelers, Astoria, OR, swears by.

“Have the tools — from the smallest burr up to a grinding wheel — at arm’s length or next to you to minimize moving around,” she says.

The shop setup at Troy Shoppe Jewellers in Calgary, ON, Canada. It is well stocked with tools and equipment.

Some corporate shops won’t replace tools “until they’ve caught fire or are held together with duct tape,” insists Farnes. “From a business point of view, if your bench jewelers have the tools they need, you’ll just make more money and not lose time fighting with the wrong or broken tool.”

And if you have more than two bench jewelers at work, consider enlisting a shop foreman. He or she will check in all the work, make sure parts are always available, color-code jobs by dates, and be constantly prioritizing jobs in the system — ideally in chronological order for those who subscribe to Butts’ way of conducting business.

The extra set of eyes that a foreman provides comes in handy.

“You don’t want to mess with how your bench jewelers like to work, but it’s nice to collaborate with what they like,” observes Geller.

Tips to Be More Profitable

As Geller pointed out in the beginning of this article, 6,500 jewelers rely on his family’s Blue Book to price jobs. Many jewelers — you can find a bunch quickly on JHJ — argue that the repair prices in that book are too high, that their customers won’t pay it. But have those folks tried using them? Goralski and others swear by Geller’s figures and live a good and profitable life thanks to them.

“[The Geller book] is a good source,” agrees David Blitt, owner, Troy Shoppe Jewellers in Calgary, ON, Canada. “And to quote David Geller, ‘Repairs are not price sensitive; they are trust sensitive.’ How long can your shop last if you’re losing money on repairs?”

Still reticent to rely on Geller prices? Start increasing markups gradually. Or look at the average (or median) cost of your top 30 repairs and rethink your own pricing.
Profitability also means measuring your productivity, how long it takes to repair something. Do your own time studies.

“We have expectations for what jobs should take,” explains Joe Bonasso, president, JAB Jewelry Works in Bethel Park, PA. “We’ve tracked our own time studies for years and years.”

The shop setup at Troy Shoppe Jewellers in Calgary, ON, Canada. It is well stocked with tools and equipment.

Benchwork is specialized and there are few around doing the work anymore. Have you tried to hire a bench jeweler recently? Good luck finding a good one.

“Jewelers are craftsmen — people don’t know how to do what you know,” says Geller.

This rarity of skills that only a select group now know adds to the specialness of the work. “There’s value in the humans that do the job,” notes Goralski. “That makes it precious.”

One final tip from Farnes: Consider spiffs for the bench department, some friendly competition. “Whoever does the most production in a single quarter,” she suggests. “In the last half of the month, our team is pushing really hard to get their spiff!”

3 Tools Every Modern Shop Needs

1. A Good Microscope. A loupe can only show you so much. “So many things get missed when you’re only looking at an item under 10x magnification,” says Farnes. A good microscope, however, can reveal overcut prongs and miscut or chipped stones — “where the problems are happening,” she adds.

2. A Laser Welder. Nearly every jeweler interviewed insists on one! “It’s a really good investment,” confirms Geller. It saves a lot of time and is ideal for use on heat-sensitive materials like moissanite, emeralds, crystals, and delicate work. “We scraped together every penny to get one when we opened,” says Goralski.

3. Ongoing Education. Even after 35 years of Butts working as a bench jeweler, he still can’t get enough. “I still go to classes every other year,” he says. “Settings change, exotic metal trends change. A laser welder is one of the more key components to have in a shop, but after that, it’s education — 100%.”

3 Ways to Level-Up Your Shop

1. Recognize the Shop’s Significance. Treat it like a revenue stream and it will be. It is also a steady source of new customers and potential new custom jobs. Do the work well and properly, and word spreads. “I have work from all over the country,” explains Goralski from her tiny Wisconsin town with a population of less than 20,000. “I’m doing work now for the grandkids of my first customers. It all starts with attitude.”

2. Track Everything. Butts is shocked at how few track shop productivity. “It’s imperative,” he says. “Auto dealerships used to treat their shops like a necessary evil, but then they figured out they could make money on them. Now they make big money on repairs.”

3. Invest in Technology & Staff. Stay current on tools and techniques as business evolves. If your staff stays with you, give them training opportunities. “If an employee is with me for 90 days, they qualify for $2,500 of continuing education a year,” says Farnes. “I pay for flights, training, etc. People told me, ‘You’ll be out of business in five years if you do it that way,’” she recollects. Almost 12 years later, custom work accounts for upwards of 70% of her business. “I’m fully aware that if all my bench jewelers walked tomorrow, I couldn’t open my doors, so I must treat them as valuable.”

Bonasso agrees, sending some employees to the New Approach School for Jewelers in Arrington, TN. “We are willing to invest in them if [staff] show a desire to learn and to be part of the team.”

PHOTO: ISTOCKPHOTO

10 of the Trickiest Repairs Jewelers Have Completed

1. Vroom, Vroom. “A 1920s art deco platinum ring run over by a car.” John Przeclawski, Monarch Jewelry, Winter Park, FL
2. Stress Test. “My goldsmith had to address prongs on a platinum-set 68.90 ct. cushion-cut diamond. Hijinx, for sure, but all was well.” J. Dennis Petimezas, Watchmaker’s Diamonds & Jewelry, Johnstown, PA
3. Hot Potato. “Any ring that has been cut off by someone other than a jeweler. They get absolutely mangled!” Becky Bettencourt, Blue River Diamonds, Peabody, MA
4. All Torn Up. “We did a wedding ring that went through a garbage disposal. The other jeweler in town refused to repair it; they only wanted to remake the ring. I was able to reshape, fill in the cracks and dents in the shank and make it like new.” Sue Parker, Nyman Jewelers, Escanaba, MI
5. Handmade Snails. “When I was a young watchmaker, I had a good customer bring in a minute repeater (about a size 18) that was supposed to have been owned by some South American politician or dictator. Someone had taken out the snails that ran the chimes. I had to hand-make new ones. It was an interesting job and took a number of tries working on it after hours. I finally got it, and the boss was happy but did not charge the customer because, at that time, watchmakers were a loss leader. I left that job soon afterwards.” Edwin Menk, E. L. Menk Jewelers, Llc, Brainerd, MN
6. Glass Gone Wrong. “Anything with enamel.” Gretchen Schaffner, Eytan’s Designs, Sherman Oaks, CA
7. Emotional Rescue. “Reviving a turn-of-the-century, 1920s vintage engagement ring and diamond wedding band due to the time it takes and delicacy of them, plus factoring 100 times the sentimental value on those pieces. The customer is always very afraid, and it is on us to ease that feeling.” Liliana Martinez, Patchogue Jewelers, East Patchogue, NY
8. Other People’s Problems. “Jewelry that other jewelers have repaired because you never truly know what solder they used or the repair they did.” Autumn Knight, Arizona Watch & Jewelry Service, Tucson, AZ
9. Risky Business. “Building four new prongs on an emerald and platinum ring. The emerald was a 3 carat oval and the laser did just fine, but it was risky.” Tim Wright, Simply Unique Jewelry Designs, Yorktown, VA
10. Pride & Problems. “A paper thin 14K yellow gold pocket watch case that was ripped and squashed. That was a tricky one. I should have refused it; too much pride and ego can cost a lot of time and money!” Klaus Kutter, A Jour Jewelry, Inc., Bristol, RI

5 Schools to Source Bench Jewelers

1. Texas Institute of Jewelry Technology, Paris, TX
   parisjc.edu/main/tijt/
2. New Approach School for Jewelers, Arrington, TN
   newapproachschool.com
3. Miami Jewelry Institute, Miami
   miamijewelryinstitute.com
4. Jewelry Arts Institute, New York City
   jewelryarts.com
5. Metalwerx, Woburn, MA,
   metalwerx.com