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What To Do When a Large Chain Competitor Opens Nearby, and More of Your Questions Answered

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What To Do When a Large Chain Competitor Opens Nearby, and More of Your Questions Answered

We’ve had a large corporate jeweler open up in our area that does a huge amount of advertising, offers five years to pay and lifetime guarantees on diamonds. How do we respond?

Don’t panic. The future might require you to make some difficult adjustments, but there should still be enough air to breathe for a smart small independent. First, grab a pen and paper. Visit the store and make two lists: where your products and services overlap, and where you do things differently. From that, a picture should begin to emerge of areas you can emphasize and areas you can improve to keep your customers loyal. Merchandising expert Tom Crossman also recommends you review the look of your store. All chain stores look alike, he says, and even though you may sell some of the same brands, your products will be more appealing with better, different fixtures that reflect your independent spirit. “Light wood fixtures, for example, create a warmer environment while still being neutral. And stay away from vendor displays so you can reinforce your own brand,” he says. Finally, try not to view the big store as an unalloyed enemy. Instead, try to get to know the staff and managers. More than a few stores have told us they get a steady flow of referrals from the local Walmart for repair work. There’s a good chance they might be able to send work your way, too.

How can we add some Halloween spirit without dressing up?

Yes, traipsing around the store in red underpants and a cape can get inconvenient fast. Accents in the form of nail art, hair clips and maybe some extra makeup (liquid liner is a great way to add a cobweb effect) can send the right message at the right volume for a jeweler. Also, this is the right time to get staff to model your onyx and red agate bracelets and gothic charms.

I’ve created a funky new ring design I’m hoping will sell well this holiday season. Should I seek copyright protection? 

Although a copyright is automatically secured when “an original work of artistic expression is created and fixed in a tangible medium,” it’s better to go ahead and register, advises Sarah Yood, senior counsel for the Jewelers Vigilance Committee, as filing for registration with the copyright office will help you prove you had the design at a certain date. Done electronically, it’s a straightforward process and fairly inexpensive, with registration costing just $35. To help you better understand copyright law and the implications of filing, the JVC has published a guide titled, “JVC’s Guide to Intellectual Property Law.” See jvclegal.org for more information.

I’ve been summoned to meet an IRS auditor. Any last-minute tips?

Accept that the fresh-faced inquisitor across the desk is the boss and show him the due respect. Don’t argue if you disagree with something. If the auditor wants to disallow a deduction, state once why you don’t agree. If he’s not swayed, hold your tongue. Antagonizing an auditor will only encourage him or her to search for other areas of potential tax liability. Remember that you can plead your case with several layers of people above your auditor, and ultimately all the way to tax court if you feel you’ve been wronged. Surprisingly, most IRS auditors aren’t tax experts. Most are fairly recent graduates whose major was in an unrelated field, so don’t feel intimidated, and don’t underestimate your own tax knowledge.

Over the years, INSTORE has won 80 international journalism awards for its publication and website. Contact INSTORE's editors at [email protected].

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