How to get an additional $18,000 to $45,000 free and clear added to
If you take in 4000 jobs a year and tell the customer
“Mrs. Jones, this is how much to size your ring smaller, there is an
additional charge to check and tighten all of your diamonds in your
ring. For the $25 we will make sure if they become loose while we
work on them they’ll be tight when they leave the store and
guarantee them for a year if they become loose or your lose them
we’ll replace. Your ring will be ready next Thursday.”
Didn’t ask, tell her. There are some restrictions, like size of
stones and must have at least 4 prongs, it’s listed in chapter 100
of our price book.
At 4000 jobs a year and if 60% have STONES in them and you OFFER this
to all all of the customers, while 60% that have stones in their
jewelry and if only 2400 say YES (60% of 4000 is 2400 jobs), then
multiply 1680 jobs by $25 for check and tightening and you get a
whopping $42,000 in extra income.
For doing what you do already.
Typically store tells me they spend $3000 a year on lost stones.You
know, paying for stones that really fell out and also paying for
ones that weren’t your fault but you had to make the customer happy
You net $39,000.
To get $39,000 to fall to the bottom line, you’d have to SELL an
additional $650,000 of jewelry, assuming you have a net profit of 6%
on your P&L.
And of course, pay the sales staff commission on repairs, after all
it is a profitable sale, isn’t it?
Director of Shop’s Profits