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Customer financing of jewelry


#1

Need some help here. I typically don’t deal with couples getting
married for the first time. The reason for that is that they cannot
pay cash for the job. I typically deal with older professionals. But
I don’t want to pass on a $10,000 job. I am going to speak with my
banker tomorrow to see what she can suggest. So I need to know about
who specializes in credit for jewelry. I guess I can look in JCK also
to see if there is anything to work from. Thanks!

Rodney
Carroll RC Gems


#2

Rodney

Good morning we use a couple difference ones and have good look with
them. The ones we are using is GE money, Well Fargo, and we just
took on CITI bank. If you have any question please let me know. If
it helps we have a close working relationship with GE and I can have
the finance reps contact you.

Thank you
Aubrey Finn GIA GJ
La Masters Jewelry


#3

Unless they can finance it with the bank or a credit card, or you
know their parents or something, I would advise you not to go there.
If they can’t get credit from a commercial source that can affect
their credit rating, there’s very likely a sound reason (like they’re
already in debt beyond what they can reasonably pay back) and unless
you know what it is and are willing to gamble that the bank just
doesn’t know them like you do, you probably shouldn’t give it to them
either.

I know the temptation, but what if they don’t pay as agreed? Can you
comfortably pay for everything if you don’t get another penny after
the deposit? Their non-payment won’t mess with their credit (because
you can’t do anything to influence their rating) it’ll mess with
yours.

Unless you have some form of leverage to use if they don’t pay you
as agreed, you’ll go to the end of the repayment line behind all the
creditors that CAN hurt them with the first demand letter they get.
And at the bottom of the stack of bills is where your invoices will
stay.

I don’t think its worth the risk unless there’s something else to
the story. Instead of financing it, help them figure out something
they can afford. This is the voice of experience here. Not only do
you lose the money if financing goes bad, you lose the customer and
the repeat business too. Not to mention sleep and a lot of hours of
productive time.

Dave Phelps


#4

Do what plastic surgeons do. Find a credit line company that
specializes infinancing for specific purchases. The plastic surgeons
pass the issue of credit to the third party so they don’t have to
handle any of it but getting paid. Are there any financing companies
that offer credit for customers purchasing jewelry? Forgive me if
this is common knowledge that there are as Iobviously never worked
in a commercial retail business in jewelry.

Rick Powell


#5

Hi Rodney

I don’t want to pass on a $10,000 job.

if I was you the alarm bells would be ringing. Want $10,000 rings
but can’t pay.

Average wedding in Australia is over $20,000. Average credit card
limit is $5,000.

Let them organise the finance. Ask them where the honey moon is? Ask
about the wedding etc. Get some idea of what they are spending.

You are a jeweller not a finance agent!!!

I am sure you could make something beautiful for a price they could
afford.

Wedding rings are an emotional investment not a financial one. Is
this a bridezilla on the loose? Marriage is for love not money. That
is what divorce is for LOL.

How much is your time worth? How long will you spend with the
banker? How much bench time is this? How much money will you loose by
not making jewellery but organising finance?

Be very careful, this does not look good.

Richard


#6

I don’t offer financing, if they can’t buy it with their own
existing credit card or write a check for it I send them somewhere
else.

I have been in this business 37 years and I have financed 6 times
and they all were trouble. When I show them what the piece would cost
from me vs the store with financing they usually find the money and
buy from me.

Bill Wismar


#7

Thank you for your feedback. I had no plans to self finance. I can do
that and it not be an issue for money, but there is always the
problem of getting my money if they chose not to pay. Their ring will
be between $10-15k. It looks like they are going to get financing
from their bank. Rodney Carroll


#8

I know a lot of well established retail jewelers will occasionally,
and somewhat reluctantly, let ‘good’ customers take a piece of
jewelry and thenpay for it when they can. Usually these are fairly
well off people or friends.

I remember one jeweler complaining that one of these good customers
hadn’t made a payment for a very expensive item in over a year. Yet
theyinvited the jeweler over to see their new huge house with the
fancy indoorpool and new but old fashioned elevator. He said he
looked at the elevator and thought,‘Ah, so there is my money.’

Another one had let a family member of an employee take a custom
made diamond ring that she said she loved, with promises to pay.
After many months with no payments the jeweler called and the
customer said that she really didn’t like it and never wears it. She
brought it back in, the ring was beat up from wear, and asked for a
minor alteration. She came back to pick it up and was furious that
the jeweler wanted payment for the ring.

People are weird, I try to keepmy distance. Mark