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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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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 80 international journalism awards for its publication and website. Contact INSTORE's editors at editor@instoremag.com.

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How to Tell When that Struggling New Hire Can’t be Saved, and More of Your Questions Answered

Also, the Golden Rule of Triggers and a better way to set goals.

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I got really angry at a customer the other day and left a pretty rude message on their voicemail. So, OK, I’ve lost that client. But how can I keep this from happening again?

If you feel that anger management is an issue that’s affecting many parts of your life, go see a mental health professional. However, if you’re like the rest of us, and anger is more a cause for periodic embarrassment or regret, we fully recommend business author Tony Schwartz’s Golden Rule of Triggers, which is “Whatever you feel compelled to do, don’t.” Instead, he says, take a deep breath, and “feel your feet” — a distraction tactic that allows you to pull your head out of the red mist. You can no doubt remember occasions when you’ve told yourself (or others) to “take a deep breath” or to “count to 10” before exploding in rage. What Schwartz’s rule removes, though, is the need to reflect on whether we’re in such a situation. Instead, it recommends interpreting any sign of compulsive behavior as an indication that the action is probably imprudent. Rather than battling compulsion, his rule co-opts it as a warning system. The Golden Rule of Triggers may seem ridiculously simple, but in that tiny gap between the total grip of “flight or fight” survival mode and doing something you’ll regret, more likely to be an ill-considered email or text message these days, simple rules are all you’ll be capable of following.

How do you know when a new employee can’t be saved? How much time should you give someone?

When you have coached someone carefully and repeatedly, invested large amounts of energy and they show no signs of improvement, that’s a solid signal you probably need to act. The clincher comes when their co-workers start showing their frustration and stop trying to help the person. This is often at about the three or four month mark. A lot of bosses will let it drag on past that, but it’s really in everyone’s interest for both parties to pursue new opportunities.

What should I do if I think my store is being “cased”?

There are several immediate steps that can reduce the likelihood of a robbery or burglary. Jewelers Mutual offers the following advice. First, alert your employees by using a pre-established code word or phrase. When that happens, your employees should take the following steps:

1. Have an employee with a cellphone leave the store to observe from a safe distance.
2. Make more employees visible on the sales floor.
3. Write down the description of any suspicious people and, if possible, their license plate number.
4. Make sure cabinets, showcases and safes are locked.
5. Greet the individuals and attempt to engage them in conversation. If they are robbers, your attention will be unwanted and they will leave.
6. Call the police and ask them to visit your store as soon as possible. Explain that you think your store is being cased for a potential robbery or burglary.
7. Store customers’ merchandise in a safe place out of sight.
8. Review procedures to follow should a robbery occur — stay calm, do not resist, obey the robber’s orders, do not say or do anything unless you are told to do so.

Morale is bad and moaning seems to be part of our culture. Any ideas on how to turn it around?

Bring an upbeat attitude to the store every morning and make it clear you expect the same positivity from your charges. In this new era, it’s expected your employees will take responsibility for their own happiness and effectiveness. For truly disgruntled staff, there’s not much a manager can do except to make it known they are on the wrong bus. (And it’s often a couple of bad seeds that will set the toxic tone for a store.) A jewelry store is no place for people who throw their hands up in the air and declare, “This place sucks!” at every setback.

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What To Look For In a Mentor, How to Deal With Negative Employees, and More of Your Questions Answered

Ask your resident “Negative Nelly” these questions to get them thinking positively.

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What should you look for in a mentor?

The most important thing is that you and your mentor click on a personal level. Such a relationship should be undertaken with a long-term view, and you need to want to spend time together. As for more specific things to look for, Daniel Coyle’s excellent book, The Little Book Of Talent: 52 Tips For Improving Your Skills, suggests the following:

1. Avoid someone who reminds you of a courteous waiter.
2. Seek someone who scares you a little.
3. Seek someone who gives short, clear directions.
4. Seek someone who loves teaching fundamentals.
5. All things being equal, pick the older person.

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And when it comes to asking for help, don’t be too backward. Advice-seeking is a powerful way to make a connection with someone. Most people love to help and to know they’ve made a difference in someone else’s life.
Are we liable if we’re storing a salesperson’s line and it gets robbed?

“Laws vary from state to state, but a jeweler may be liable in many cases,” warns Elie Ribacoff of the Worldwide Security Network, a firm offering assistance to jewelers on insurance and security matters. “A salesman’s line may be considered under the custody, care and control of the jeweler who accepts it for storage, making the jeweler responsible. If a salesman ‘consigns’ or has the jeweler sign a memorandum for the line, the line may be covered by the salesman’s insurance policy. If there is no documentation generated by either party, the jeweler may claim he was assuming no liability, and the salesman may claim the jeweler was showing the line to a potential client.” To avoid a legal battle, Ribacoff suggests jewelers sign a memorandum, “clearly stating that he accepts the line for storage only, and that it is the salesman’s responsibility to provide insurance coverage for his line at all times.”

It seems every time we try to introduce a new project or way of doing things, there are certain staff members who will find a reason to reject it. How do I deal with such people?

There’s typically some underlying reason for the pessimism, such as insecurity, a need for attention, or resistance to change. Regardless, your strategy should be much the same: appear to turn the problem over to staff. Agree with their position and objections and ask: “Now, what do you plan to do about it?”, although perhaps in not such a direct way.

Be positive rather than confrontational, let them know how much you appreciate their opinion, but always end with a pivot to how the problem will be addressed.

Amy Gallo, author of The Hbr Guide To Dealing With Conflict, suggests these phrases to help you deal with such situations:

  • “You’ve made a good point, but if we x, then y.”
  • “When you keep pointing out the negative, we lose the enthusiasm we need to be really creative and productive. But you’ve shown me x, and I believe that you can y.”
  • ”May I explain why I disagree with you?”
  • ”Can you rephrase that in a positive way?”
  • ”Perhaps so, but here’s the good/alternative I see.”
  • ”You’ve identified a valid problem. Let’s brainstorm on how to fix it.”
  • ”I’d appreciate it if you could give me some alternatives.”
  • ”Thanks for sharing your thoughts. Now let’s … ”
  • “Can we get a second opinion on that from … ?”
  • “What would you do instead?”
  • “What do you need to fix it/move forward?”
  • “I can see why you’d think/feel that way. What’s your next step?”
  • “You sound upset/pessimistic. Is that what you were trying to convey?”
  • “Can we approach this from a different angle?”

Gallo says it’s important to remember that a pessimist usually isn’t out to hurt you on purpose. “They might not even realize how much they come across as a downer,” she says. “Aim to truly listen and empathize rather than passing judgment, and over time, they’ll trust you and learn not to stay in the pits.”

I’m closed on Sundays and Mondays. Am I leaving sales on the table by not being open seven days a week?

Not necessarily. In fact, you may actually be improving business by giving your team some regular time off. Roger Beahm, professor of marketing at Wake Forest University School of Business, told radio station WFDD that you should first consider the “personal values” of your business. “We know that there are a lot of businesses, for personal reasons, that like to keep their doors closed on Sunday, give their employees a day off for family, to go to church, and those kinds of things.”

Beahm also points out that while national businesses may be accountable to stockholders, independent retailers are usually accountable to a few owners at most. Thus, the pressure to generate massive amounts of revenue usually isn’t there, and the focus can move to employee happiness, which can translate into “efficiency, a high-quality product, and a loyal customer who keeps coming back.”

Beahm says that work/life balance should lead to profit. “While they may be leaving money on the table in the short run, it’s probably assured that in the long run, they’re continuing to generate revenue because of the satisfaction level of both their employees and their customers.”

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How to Get Chatty Cathy to Close the Dang Sale, and More of Your Questions Answered

Also, evading overtime and tips on displaying men’s jewelry. (Hint: Not too close to the ladies’ goods.)

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I’ve got a woman on staff who simply adores jewelry, and she never fails to engage a customer in a lively discussion, but for the life of me, I can’t teach her how to close the sale! Help!

Failure to close is most often a combination of lack of basic skill and fear of being too forward or pushy, says Kate Peterson of retail consultancy Performance Concepts. Be aware, she says, that you can’t effectively teach “closing” as a separate and disassociated thing. If your associate is good at engaging the customer in conversation, focus on teaching her how to make emotional connections between what the customer wants and what the merchandise provides, and to listen for signals that indicate it’s time to close. When it comes to more expensive fashion wear, remind her that most customers are often looking for permission to buy. “Providing good service means giving it to them by asking for the sale,” says Peterson. There are also situations when your salespeople will be grateful to be “let off the hook” with a particularly chatty customer via a personal intervention from the boss, meaning you. Finally, consider your commission structures. A motivated staff will use their time in the store as efficiently as they can … because it’s in their interest to make as many sales as possible.

I’ll admit I’m a helicopter manager, but if I didn’t keep a close eye on everything and constantly intervene, nothing would get done properly. How can I get my staff to show more initiative and responsibility?

It sounds as if you’ve micromanaged your staff into drones. Basically, you’ve got two options: go big picture, where you give them ownership of their responsibilities on a day-to-day basis, or go small, where every procedure and system is mapped out in detail. The first requires employees with the right personality and experience who will know what to do when you say, “OK, our goal is to wow every person who comes into the store. Go to it!” The second requires a lot of work from you in putting systems in place and providing the necessary training. In such cases, David Geller recommends imagining that you’re planning to open another business 3,000 miles away and putting in writing everything you’d want the remote employees to know about managing the store, from how to run the point-of-sale system to how to make deposits to who to call if there’s a building problem. With such a reference, you’d be able to step aside, and in theory, be confident your staff would be equipped to tackle most situations. Keep in mind, though, that these situations often reflect as much about the manager as the staff. Taking action is how micromanagers deal with anxiety — just as surrendering control is how under-functioning staff deal with challenges. Breaking the pattern is tough, because the manager needs to step back and do less, which means potentially letting bad things happen and tolerating the resulting anxiety. Can you handle that?

Juggling employee schedules to avoid paying overtime is increasingly becoming an issue in our growing store. Should we just move several employees to salaried positions? No more messy rosters. No more overtime. Right?

Likely very wrong. This is a strategy that “has been used so often to avoid paying rightful overtime, that it is written into the law through the Fair Labor Standards Act,” says Scott Clark, a lawyer and founder of the HTC Group. Yes, there are salaried positions for which there are exemptions from overtime rules, but they tend to be “true” management roles and jobs that require a college degree or technical training. They must also pay more than a minimum of $455 per week, and the salary must be the same every week (so if your employee wants time off to see the doctor, you still have to pay his full weekly salary — no more docking wages for hours not worked). If it seems that the government is uncharacteristically protective of lower-income workers in this instance, never fear, it really isn’t. On the contrary, the government IS very particular about all the taxes and Social Security that get paid on overtime. We’d say a better approach is to view your employees as an asset who make you money, not as an expense. Invest in your employees to make them more efficient, and they’ll make you even more money. Or hire the staff you actually need.

What happens if I let a customer into my workshop? Am I liable if they get hurt?

Yes, you are, say the legal minds at the Jewelers Vigilance Committee. However, no more so than if a customer was injured on your sales floor — or your sidewalk (although the potential risk to a customer may be greater in your workshop, depending on the level of manufacturing that goes on). It’s always a good idea to regularly review your insurance coverage to check the limitations on how you are covered and under what circumstances.

What are some tips for displaying men’s jewelry?

According to Larry Johnson’s book The Complete Guide to Effective Jewelry Display, men’s jewelry should be displayed in cases that are less than 6 feet in length with no less than 3 feet of space allocated for displaying merchandise.

Given the infrequent nature of jewelry self-purchases by men, men’s jewelry should be out of the store’s normal traffic area.

Men tend to not like shopping near ladies’ goods. “Position your store’s men’s jewelry case next to the watch counter or the cash register area where they’ll be better attended,” suggests Johnson. For the display itself, use larger elements (ring fingers, bracelet ramps and risers) in more “masculine” fabrics such as gray herringbone or other “suit” fabrics. Regarding the display of the jewelry itself, showcase items that facilitate a man’s infrequent self-purchases. So dispense with price-point displays and group men’s jewelry with like items, such as tie tacks with cufflinks.

Men’s jewelry is pretty much “no fuss no muss,” so use signage that enhances the appeal of the jewelry such as “14K gold” or “hand inlay.” For case trimmings, avoid the sports and sports car clichés. Opt for more timeless elements like antique fly-fishing reels, old toy cars or old sports items.

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