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Why That Minor May Be Eligible for a Refund and More of Your Questions Answered

It’s always good to be at the right side of the law.

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One of our employees is starting to show signs of his age. He’s losing his hearing and seems to be getting more forgetful. He wants to work until age 70 — three more years. What do we do?

This is a tough one. You want to be loyal, and don’t want to be perceived as cold-hearted, but you and your business can’t afford sales-floor errors or to allow other employees see you tolerate costly mistakes. The best strategy is to stay focused on performance, not the person. Treat your older associates the same as you would your younger ones. “Deal with issues for what they are — not for the reasons behind them,” says Kate Peterson, president of Performance Concepts. For example, if your older associate hears something incorrectly and his actions lead to a customer problem, address the immediate issue — the customer problem — regardless of the underlying cause. A person can easily deny that his hearing or memory is failing, but he cannot deny the obvious outcome. If you decide your store can’t continue to support a failing employee, consider investing in a retirement package. Perhaps you could employ the associate as a “goodwill ambassador” for your store. If you decide it’s time to part ways, ensure every detail is handled correctly. “Clearly defined performance standards, daily coaching and fair rewards and consequences must be applied consistently for all associates. You can’t terminate an employee for failing hearing or memory — but if necessary, you can for continued failure to deliver to the job requirements,” Peterson says.

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Podcast: Holiday Sales These Jewelers Will Never Forget

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Podcast: Get Your Employees to Act Like They Own the Damn Place

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I carry two competing brands in a fairly narrow, small-dollar jewelry category. Now one of them is implying I should drop the other slightly-less-popular brand or it will cut off supply. Is this legal?

There are some instances when you could take such a case to court and expect to win — such as when an unreasonable restraint of trade or similar antitrust violation can be established, or when a store’s ability to conduct business is damaged, say, supply is cut off after you’ve invested heavily in marketing and training, and the brand accounts for a big portion of sales. But for the most part, these are exceptions; the law allows a miffed vendor to cut you off cold. “In general, companies in the U.S. are free to decide when to do business and when to stop doing business with another company,” says attorney Barbara Mandell, a member of Dykema Gossett PLLC, which focuses on antitrust law.

I have a no-return guarantee on all my products. But somebody told me that if a minor buys jewelry from me, it is possible for them to return it for a full refund and I can’t do anything about it. Is this true?

Yes, says Elly Rosen, director and founder of the Appraisers Information Network. “The bottom line is that selling to a minor may leave us at the whim of the minor,” says Rosen. He notes that numerous court decisions have supported the long-standing “common law” understanding that minors do not have the capacity to contract. This means that while a sale may have been made, it might not be an enforceable contract if challenged. If you sell to a minor they, their parent, or other legal guardian can demand return of monies paid. And that’s not all. Says Rosen: “In many jurisdictions the minor will only have to return ‘whatever they can.’” Whatever is left! So, even if an item is damaged, they might only have to return what’s left and may still be entitled to get all their money back.

As I start my financial planning for 2019, do you recommend a bottom-up or top-down approach?

It’s a new year, a new beginning … start at the bottom. “Top down is quicker but invariably leads to existing costs being left in rather than being properly evaluated,” says David Brown, CEO of the Edge Retail Academy. Brown explains that when he works with clients, he asks his clients to set the financial goals they want to achieve and then work “backwards” to determine the sales and earnings they are going to need to achieve those targets. “This results in a complete budgeting process,” he says. “If an owner has planned a retirement nest egg in 10 years and they know they need $50,000 into a retirement plan each year to reach the goal, it provides them with the incentive to hit the sales target each year.”

What kind of discount should I give my bookkeeper on my merchandise, given that she knows exactly how much I paid for it?

We’d say very little. Your bookkeeper should be a pro who understands how discounts impact your bottom line. If she asks for a “good price,” offer her the employee discount or trade merchandise for her services. And to keep it fair for both parties, trade full retail for full retail. Unless your bookkeeper is willing to discount her services, you should not feel obliged to cut the price of her purchases.

Over the years, INSTORE has won 76 international journalism awards for its publication and website. Contact INSTORE's editors at editor@instoremag.com.

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Ask INSTORE

How to Prepare for 2019, Finding a Good CPA and More of Your Questions Answered

London Business School prof advises, “Keep your vision fuzzy and your priorities clear.”

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The sales experts you quote often recommend role-playing exercises. But my sales staff always slinks away when I suggest them. How can I get them to play along?

That may be because the focus is negative, says Dave Richardson of Jewelry Sales Training. Make the role-playing positive and fun. First, play the role of the salesperson and let your salespeople critique you. Then, when it’s your turn to play the customer, instead of saying, “Here’s what you did wrong,” start off by telling the person what you felt they did well and what you would change if you had the opportunity. Always finish on a positive, encouraging note, Richardson says.

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Podcast: Holiday Sales These Jewelers Will Never Forget

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JimmyCast

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Podcast: A Classic Holiday Poem is Reimagined in a Jewelry Store

Our marketing team’s images were recently lifted and used by the vendor for their advertising without crediting us. When I contacted them, they said, “We’re sorry; it was the intern’s fault.” How should I handle this?

If it was “the intern’s fault,” who approved the final vendor layouts? But regardless of whose fault it is, you should get some compensation for the use of your images, says consultant Kate Peterson. The vendor would have paid for the images had they used any other marketing professional to create them, so they should have no issue with paying your in-house team. “I would suggest that the retailer assign a fair price (what she typically pays her team per image) and send an invoice directly to the head of the company with pics of their ads and an explanation. If applicable, tell them you will apply the amount of the invoice against an outstanding balance,” says Peterson.

“The key here is to remain positive and confident, as opposed to challenging. Assume they are expecting to compensate, and communicate in a tone that expresses confidence in their interest in doing the right thing.”

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2019 seems like it’s going to be a volatile year. What should we do to get ready?

Eight years of economic growth and cheap credit allowed many business owners to gaze far into the future and craft successful, long-term strategies, but it does seem those times are coming to an end as trade wars, rising interest rates, political turmoil, spooked financial markets and ongoing technological change cast a shadow over what otherwise is still a strong economy. In such a shifting, unstable environment where visibility is low, Donald Sull, a London Business School professor, recommends “active waiting.” Contemplate alternative techniques, explore likely scenarios and focus on general readiness. This is a time of threat but also opportunity. “Keep your vision fuzzy and your priorities clear,” Sull says. “Maintain a war chest and battle-ready troops. Know when to wait — and when to strike. When you grab an opportunity or move to crush a threat, amass all your resources behind the effort.” At the same time, continue making routine operational improvements such as cutting costs, strengthening distribution, and improving products and services. “Though mundane, these initiatives foster efficiency, which can position you to snatch a golden opportunity from rivals’ jaws,” Sull says. It all sounds rather dramatic, but then high drama surely awaits.

Where do I find the best CPA?

There are more than a few sloppy accountants around, so it pays to be picky. A good CPA will be a stickler for details and accuracy and very time-conscious. So a useful initial indicator is how long it takes them to reply to your first inquiry (although if it’s April 10, cut them some slack). Look for someone with a history of working with small businesses, but be careful about relying too much on the recommendations of business friends. Draw up a list of three or four prospects and make a decision after you’ve sat down and discussed your particular needs with each of them. If they want to charge for the time, look elsewhere. Final word of wisdom: as good as the person may be, never abdicate your responsibility to know what’s going on with your finances. Get tax smart.

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Is it legal for retailers to say they are selling at wholesale prices?

In short, no — unless they really are. Many states, including Arkansas, Georgia, North Carolina, Kentucky, Texas, California, New York, and Michigan, have strict laws prohibiting the use of the word “wholesale” in retail advertisements. In some states, this is a criminal offense, due to the word’s ability to mislead consumers. “If a jeweler advertises it is selling at wholesale prices, it must sell at the wholesale price,” says the Jewelers Vigilance Committee. Some states define this as the price the jeweler paid for the item from the supplier. Other states, and the federal government, say the price must be lower than the average price retailers would pay in the area.

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How to Find Good Employees, Reward Customers and Answer Phones — Plus More Reader Questions

There are no shortcuts made to quickly fill a staff gap.

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How can I find millennials who will take the job seriously?

It is possible to shape millennial hires into serious salespeople, but, as Joshua Pruschen, manager of Maxon Fine Jewelry in Springfield, MO, notes, you’ve got to take hiring seriously yourself, first. That means no shortcuts made to quickly fill a staff gap. Figure out who the job candidate is before he or she shows up for the first interview. Before the interview, ask each candidate to take a personality and skills assessment; then, interview them two or three times. Make sure they’re interested in and capable of committing to a career.

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Video: Gene the Jeweler Thought He’d Heard It All … Until This Tardy Employee Told His Story

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An employee keeps telling me she is frustrated with different aspects of her sales job. How do I respond?

Start with her. Ask her what she thinks the answer is. If that doesn’t yield anything helpful or realistic, ask her to come up with three lists made up of:

The good stuff. The part of the job that makes her feel worthy, satisfied or accomplished.

The everyday parts of the job — those things that don’t suck and are part of pulling a pay check.

The “Ugh, I hate this!” stuff that is frustrating her. Put these into three buckets and then find ways, together, to spend 10 percent less time on the “ugh” stuff in Bucket C and increase by 10 percent time spent on the engaging activities in Bucket A. Of course, sometimes she’s just going to have to suck it up and do the ugh jobs but at least you’ve gone the extra yard. The point of this exercise isn’t to pander to your staff. People do better jobs when they’re doing what energizes them. And you may be surprised what excites an individual: some people get a kick out of filling in spreadsheets. Others enjoy the challenge of a cold call.

I have a small store. What’s the protocol when you’re busy and the phone rings? Answer the call and put it on hold, or let it go to voicemail?

This is really about personal preference. But Pauline Blachford of Pauline Blachford Consulting prefers the latter for two reasons: the customer you are serving at the time the phone rings (or even the job you are working on at the bench) deserves your undivided attention. And often, the caller who just has a “quick” question usually takes time. This can be frustrating for both you and the customer in the store. “This also breaks the train of thought of the service provider and causes a disconnect between the two,” she adds.

However, Blachford says that if you do choose to always pick up and put the caller on hold, then be sure to ask their permission to be put on hold. When it comes to voicemail, the greatest fear for incoming callers is that they never know when their call will be returned. For this reason, Blachford recommends the recording say something like: “Thank you for calling ABC Jewelers. We are presently taking care of another client. Your call is important to us. Please leave your name and number, and we will get back to you within the hour.” In committing to the hour, it sets the precedent that every team member knows that accessing those messages and responding ASAP is the top priority. Lastly, she offers this bit of advice: “The phone should always be answered by the third ring whether picked up in person or the answering service.”

The banker who has always handled our account and knows our business is moving to a larger lender. Should we follow him or stay with our existing bank?

It’s never just about the bank or just about the banker. Smaller banks are usually set up to allow you to develop more personal relationships with their officers, while a larger bank will have a wider range of products, be more secure (in theory) and will be able to offer nationwide or even international services should you need them. The most important thing is that your banker has influence within his or her institution. He or she needs to be able to get things done, either through his professional credibility, knowledge or connections. Talk to the banker. Ask him if he feels his new bank will be the right fit for you.

Is it absolutely necessary to reconcile our books to the last penny?

There are some areas where you can disregard small discrepancies, but when it comes to reconciling the bank account to the general ledger, you need to be “bang on all the time,” says David Brown of the Edge Retail Academy. It primarily has to do with security: a common embezzlement technique is to skim small, seemingly random amounts of cash from revenue. Over the years, these mysterious discrepancies can add up to tens of thousands of dollars. Keeping everything in order shouldn’t be that hard if you’ve computerized your accounting and your checking account reconciliation.

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Best Catering Practices, How to Deal with Impatient Repair Clients and More of Your Questions for November

Hire a food truck to feed attendees at your next store event.

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How often should I be looking to change my window display?

There is no hard and fast rule. Rather, the decision to change windows should be more about the flow of traffic in front of the store. The purpose of a window is to capture a customer’s attention and to keep him or her engaged. That means that if a store is in a location where many of the same people pass by every day, it is in your best interest to change the look of the window as often as possible — in some cases, every week or two. The change can be as simple as keeping a display theme for a month at a time, while changing only one eye-catching element and rotating through various product samples, says Kate Peterson. “For other stores, where foot traffic is not as significant an issue, changing less frequently might be acceptable — but nonetheless, keeping a fresh look — for theme and for product, should be at minimum, a monthly goal.” She adds that successful stores also know that keeping a consistent theme or look — between windows and between windows and interior displays, is a very important part of getting the customer to focus on the product and not on the prop. “The decor should set the scene, but the merchandise should tell the story.”

For a fun, easy store event, hire a local food truck.

What’s a quick and easy way to cater an event?

We’re going to recommend an idea we saw employed by a small, independent optical practice in Minneapolis, MN: Bring in a local food truck. “We hire a food truck for our trunk show guests, serve wine and beer, turn up the music, and give out a promotional item to the first 100 guests,” says Sarah Jerome, the owner of Look and See Eyecare. “Our events are packed, our patients ask when the next event will be, and they bring their friends. We make it a party, and every event generates our new biggest sales day to date.”

What’s the best way to deal with a waiting repair customer who interrupts a sales presentation because he doesn’t want to wait?

Denise Oros, owner of Linnea Jewelers in La Grange, IL, knows your frustration and is convinced impatient customers are getting worse. But, she notes, it is the duty of a business owner to adapt. Her brainstorm: A self-service drop-off bin. For the customer who can’t wait, Linnea provides inner-store repair bags on its counters, pens, and instructions to write a detailed description of the item and fill out personal information. “We will photo log (the item) and call if further estimates or repairs are needed,” she explains. “It’s mostly watch batteries, but we had to do something to curb the constant interruptions.”

I’ve used my free email address for work for years and don’t really want to change it, but does it look unprofessional?

True, a lot of people don’t care, but a not insignificant portion of your customer base will make a judgment of some sort. And these aren’t completely unfounded impressions. Numerous marketing studies have found Gmail users to be predominantly younger city dwellers with more liberal views. Hotmail and AOL users are more likely to be found in the suburbs, while rural inhabitants are more likely to use Yahoo! Only two months ago, The Times newspaper in Britain reported that a major insurer, Admiral, was quoting a higher rate to car owners who provided a Hotmail address. The firm argued some domain names were “associated with more accidents” than others, raising applicants’ risk profile. Given the way people make irrational mental assessments, and given how important it is for a jeweler to be viewed as professional, technologically savvy and trustworthy, we’d recommend you make the change. It doesn’t cost much and doesn’t even have to involve a platform change. For $3 a month, Gmail, for example, allows you to upgrade your account to get your own domain name and have more control in managing your account as well as the emails of your staff.

I’ve discovered a shrinkage problem at my store, but when I contacted the local police, they didn’t seem that interested.

When it comes to offenses that spur urgent police action, retail crime lags a long way behind murder, drug dealing or even car theft. This means you’re going to have to show the police you have a good case and that, as Detective Richard Milburn of the Mesa, AZ, police department said at a recent NRF event, you understand the difference between “Probable Cause” versus “Probably Cuz.” First, be sure you contact the right agency, and that you have anticipated the need to establish evidence (What will be needed to pursue a case? Do you have video or other evidence?), Milburn said. Be aware too that you may have to “re-sell” the case to another law enforcement agency if the first one declines. The key takeaway from all this? Never forget that safeguarding your goods starts with you and the processes you use to track merchandise.

Have a question? We’ve got the answer. Email: ask@instoremag.com.

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