I cant wait to read Mr. Gellers response to this, it will probably
take him a few days to recompose himself
Yes, I beat my head against the wall a lot. A jeweler buys a chain
for $50, sells it for $100 to $150 every day.
Next year that chain costs $80.00. The jeweler sells it for $160 to
$225 without blinking an eye.
Why? He SEES his cost.
I know the cost for repairs and custom. Paid my jewelers 100%
commission (based upon my own book) for nearly 12-15 years before
selling the store. In 1999, least year I owned the store, jewelers
were paid in my store (rounded up).
$32,000 (real slow guy)
Even ME, making the book, was always scared to raise prices. But it
was either me or the IRS, so we paid the jewelers good wages FIRST
and 4 timed the labor (after matching taxes, we got a 3 time markup
on labor + 3 time markup on parts based upon Stullers book).
Closing ratio BEFORE and AFTER raising prices ALWAYS remained at:
Custom work: 70-80%
I have found suing my book, like the Stuller book, at the counter,
makes the customer believe the price is a “standard” (That’s why I
called it a BLUE BOOK).
I have found that jewelers who are scared and wimpy, having low
prices, sell 90-95% of people they quote.
I have found that jewelers who have some guts and will try raising
their shop prices and speak without a waver in their voice, sell
90-95% of people they quote.
I don’t mean this to sexist ladies. But if a magician cast a spell
on a male jeweler and the jeweler then goes into a bar.
There are beautiful women on the left side and plain women on the
right side and if you KNEW you’d have a 90% chance of going out with
EITHER WOMEN, which one would you go after? (OK, a women goes into
the same bar…)
Experiment for 1 week. If 100% of customers said “YOU’RE NUTS-I’M
NEVER COMING BACK”, would you close up shop?
All that counts is how much money comes in the door, not how many
customers leave their work.
You should be so anal when it comes to selling from the case, where
you’re closing ratio is more likely to be 30-50%. And here you’ve
invested hundreds of thousands of dollars in inventory and only sell
3out of 10 or 5 out of 10.
The shop has less than $5000 in inventory and 90% say yes.
It really is a no brainer.
And don’t tell me your part of the country is different.
A gold rope chain last year, at keystones, was (example) $150. This
year is EASILY $100 MORE!!! (for some folks that’s two tanks of
Going from $28 smaller to $32 small is a measly four bucks.
Going from $12 to solder a chain to $18 is a measly six bucks.