To Charge or Not to Charge?

We have been struggling with this issue for several years now. I
have been very interested in what other people have had to say about
this, and I have at one time or another said virtually everything
everyone else has said on this thread.

We have come up with a solution (I think?). If we can do something
in less than three minutes, while they wait, we generally don’t
charge for it unless it requires something that costs us money (like
watch batteries and ring sizers etc). Examples are adjusting clasps,
rounding up a ring shank, quick check, clean and polish, that kind of
thing. Anything that requires more than two or three minutes or has
some kind of possibility of problems we keep and charge at least $20.
If it stays in our shop, it’s $20 or more. The only exceptions to
this are warrantee type service on things we made or sold.

In Noel’s specific case, extensive modification to an existing ring,
I used to do it for free. I have found, as many on this thread have
noted, that people begin to expect this kind of work for free, and
instead of fostering good will, it can eventually end up as bad will
the next time that customer comes in expecting a freebie only to be
charged. This has a tendency to make someone mad as opposed to happy.
People expect to pay for quality work, and therefore feel that work
they don’t pay for isn’t quality or is of low value. The result is
that you’ll end up doing a lot of free stuff for people that will go
elsewhere for anything they consider to be of value. This is not a
formula for long-term success.

Dave

I have a very well to do friend who went to a jewelry store in
Atlanta. Has spent $5-$8000 there last year. Needed a kinked chain
fixed. They went in the back, 6 minutes came back and said "It
will be $10, if that's OK?"She said she understood, didn't want to
be rude. She told me she'll never go back. 

Since we are assuming and do not know exactly why this woman had a
hissy about being charged, and since you do not know both sides of
the story", assume the person who took in the repair, or the person
doing the repair did not know this woman, did not know what she had
spent… Perhaps they did not have authority to do goodwill freebie?
How good is your example?

Let’s say the person who did it was contract labor.

What business’s do you know that how much you spent has no bearing
on getting any break, service, or accessories free?

What if the chain was purchased somewhere else? What if the person
who did the repair saved the chain from being scrap because they
knew how to fix something most other repair people could not?

Does this person really need to not do business with someone she had
been satisfied with over this? For $10?

If she spent $8000 there, there was a reason she felt they deserved
her business, and for a $10 charge if they lost her loyalty, how good
of a customer is she?

My opinion, with all due respect that she is your friend, they would
have lost her over some other perceived slight.

What really determines how much control we have over what a customer
will get tweaked over?

Expectation is predetermined resentment.

Reminds me of the joke: Woman says to man, if you were my husband I
would shoot you.

Man says, if you were my wife, I would shoot myself.

Richard Hart

Hi Noel,

I just saw your post…John sees these more frequently than I right
now. I tend to agree with those who say, in this case, treat it like
an adjustment( sizing etc.) and do not charge. I feel the customer
must be comfortable with it. You can mention to her that the first
one is part of your warranty but any further re-designs are going to
be charged. The other day I got 2 rose gold bracelets for one of my
regular customers to view & possibly buy one. She went for the more
expensive one with diamonds and was very happy that I could give her
a small savings. Mind you,all I had to do was extensive research and
find a supplier who might already be producing the item that she
wanted, instead of custom-making. She wasn’t quite sure of what
exactly she wanted but she’d know it when she saw it…Thus I was a
broker,not maker. However, she did just recently refer to me a nice
customer that I did a custom job. I also included a free battery
change as a thank you for this referral and now the large
purchase…Could I have charged full $$$$$?? Maybe, maybe not, she
was not quite prepared to spend over $2,000.00. So saving her a few
$$ for both times made this a special treat. I made a good sale &
re-inforced my appreciation to her as a loyal customer with the added
touch of something for free… Public relations is a very important
aspect of my work, as well as making a lovely creation.

Cheers from sunny & loud S.F.

Home to the Blue Angels this weekend… Maggiora Donivan

http://www.donivanandmaggiora.com

I have a very well to do friend who went to a jewelry store in
Atlanta. Has spent $5-$8000 there last year. Needed a kinked chain
fixed. They went in the back, 6 minutes came back and said "It will
be $10, if that's OK?" 

I think I understand why David’s friend was offended. They didn’t
mention the cost for the repair before they did the work, and after
the repair was done it’s a little hard to bicker price.

I think they should have said: “There will be a charge for this”
before fixing it. So she could have decided to fix it or not, or to
say “hey, I’m a good repeat customer… etc…” but she never go that
chance.

When I worked in the retail world we never took in a repair without
telling the customer there would be a charge. INMHO- you don’t want
to surprise your customers with negatives, only positives!

Amery Carriere Designs
Romantic Jewelry with an Edge
www.amerycarriere.com

They went in the back, 6 minutes came back and said "It will be
$10, if that's OK?" She said she understood, didn't want to be
rude. She told me she'll never go back. 

If a customer that spends “$5000 to $8000 a year” will never go back
because she felt she was being overcharged by ten dollars for saving
a gold chain from the scrap drawer, it seems to me that there was
some kind of a communication breakdown or there was something else
going on. Perhaps telling her up front that there would be a $10
charge might have prevented the loss of a good customer. People
generally like surprises from a jewelry store, just not that kind!
Did she by any chance say specifically why she would never go back?
Was it really a $10 charge for a repair she felt should have been
free or was that just the last straw? Or something else entirely,
maybe? Like maybe the $2000 chain was two days old?

If it did happen exactly as presented and there wasn’t some other
issue involved, then it would indicate to me poor communication
skills on the part of the jeweler about the value of work done for no
charge in the past. All of the “free” work he/she has done in the
past just cost him a good customer (and I guarantee if she’s been
buying the stated amounts, he’s done plenty of “free” stuff). Where’s
the goodwill in that? It seems to prove my previous assertion about
goodwill turning into bad; people expecting to get free (valueless)
work once you establish that precedent, and then getting mad if they
don’t get it.

Incidently, the recommended charge for polishing and cleaning the
chain in question would be $15 in Geller’s Blue Book Version 4.0,
assuming that a six minute turn-around would fall within the Express
Charge time frame. “Back to Specs Refinishing, Express Charge”, which
is what the service provided sounds like to me, should have been $23,
according to the Blue Book. I love the Blue Book, but a little common
sense can go a long way sometimes, as was the point in Mr. Geller’s
post, I believe.

I probably would have told her this quick chain repair was at no
charge because I appreciate her long term trust in us and that she is
a valued customer. I then would have told her what the charge would
have been and then asked her if she would like, in lieu of payment,
to make an optional donation to our “Ken Coley Memorial Fund” jar,
benefiting the families of US Marines serving overseas. We do that
quite often for things we don’t really feel comfortable charging for,
but that have assessable value (skill in straightening a kinked chain
has value). Sometimes (rarely) people will put in two dollars for a
platinum ring sizing, other times (far more often) they’ll kick in
$50 for a clean and polish. You never know the perceived value a
customer might feel a specific service might have, but if they think
they should get a freebie, they get it. Has anyone else tried this?
I’ve heard of someone doing this with watch batteries, but don’t know
how it has worked for them. Seems like goodwill all around (except
maybe for the goldsmith working on contract :wink: ).

It is most appropriate to reward your loyal customers, and entice
your intended customers with gifts and freebies. However, I have
learned that if you give something away, make sure the customer
knows – 1). That you gave them something of value (if you can, and
it’s not in bad taste, put a dollar value on it), and 2). Why you
gave it to them for free. That way they will appreciate your gift,
and know that you appreciate them as well. IMHO, that is the
definition of goodwill.

Dave

I look at stuff like this as inexpensive advertising. 

Talk about a thread that’s been pounded to a pulp!! It’s interesting
to hear people’s views, though. I know Jo-Ann posted yesterday, too.
We are our customer’s - retail, especially - “Family Jewelers” though
we don’t say that outright, it’s just our attitude. Sometimes for a
store I won’t invoice some $5 thing because the paper isn’t worth
what was done. Very often I will do a favor - reglue something,
straighten an earring post, even more but not a LOT more. We size all
rings to fit for no charge (“We don’t sell you a ring and then charge
you to make it fit you”). The $5 - sometimes $50 if it’s a gray area
like Noel’s -someone might give me pales in comparison to the
comfort, confidence and trust that it buys. There’s a point where
it’s just a freebie, of course. Don’t sweat the small stuff, as my
pappy said…

Two posts today talk about “telling the customer the charge in the
beginning”

That was indeed the problem. She wasn’t told. She should have been
told.

There was a post to "give money to a soldiers relief fund (or like
that).

When I’d do a nice think for someone and they ask “How much?” I’d
say “Nothing, my pleasure.”

If they asked AGAIN (I think people should say THANK YOU, but
instead…) and say

“Are you sure?” (Whom am I to now ask to be sure? :slight_smile: )

I reply with “Do you bake?”

“YES”

“I love apple pie”.

I swear to you folks, I’d get about 6 apple pies a year and lots of
brownies.

True.

David Geller
JewelerProfit
www.JewelerProfit.com

I have a very well to do friend who went to a jewelry store in
Atlanta. Has spent $5-$8000 there last year. Needed a kinked chain
fixed. They went in the back, 6 minutes came back and said "It
will be $10, if that's OK?" 

I think I understand why David’s friend was offended. They didn’t
mention the cost for the repair before they did the work, and after
the repair was done it’s a little hard to bicker price.

Was the problem because she was not informed of the charge or because
she was charged? She was offended because she chose to be offended
instead of being understanding. I agree cost of repair should have
been mentioned before work was done, but she did bring it in for some
sort of service.

I do small repairs all the time without telling then customer the
price, and I have not only no problems, they have gratitude that I
did it, did it while they waited, and where can ya get anything for
$10 now a days? I still think lady more pissy than reasonable.

Sometimes I ask myself if the customer would act like that or treat
someone like that if they were relating to a good friend, neighbor,
or relative I assume most of us tend to be more gracious and
forgiving
with people we know. I have been in retail for 20 years as an owner
of a jewelry store My opinion is when someone takes offense at
something so small, and no one can argue that it is other than
something small, it is simply that some people do not play well with
others.

Richard Hart

I have a very well to do friend who went to a jewelry store in
Atlanta. Has spent $5-$8000 there last year. Needed a kinked chain
fixed. They went in the back, 6 minutes came back and said "It
will be $10, if that's OK?" She said she understood, didn't want to
be rude. She told me she'll never go back.

IMHO, to ask a multi-thousand dollar customer for ten bucks is an
affront to that customer. It says the store doesn’t really appreciate
her business. Part of the whole experience of patronizing a class act
jeweler is that the client feels a sense of importance. Some might
call it ego-centric status seeking(not me), some might call it having
one’s nose in the air(again not me)…whatever one wants to call it
in the back room, the effect is the same…patronize your customer
and they will patronize you.

But of course it depends on the nature of one’s business and one’s
goals. Obviously if one is a trade repair shop then the nature of the
business is lots of small jobs for which a charge is expected and
needed. If one is really there to sell expensive stuff and the
workshop is a means to that end then one should be mindful of keeping
in good graces with the people who have the money you wish to part
them from.

One of the basic tenets of salesmanship is that people like to buy
from people they like. (learned this hawking vacuums door to door,
what an exhilarating debilitating experience!) They feel they are
helping a friend out by buying from you. If you don’t think this is
so watch successful salespeople. They win the customer before even
trying to sell the product. If offering a bone ingratiates yourself
with a prospect (and a previous customer is a great prospect) why on
earth would you shoot yourself in the foot by appearing disconnected
from the client’s importance to you?

In my experience, which granted is just mine, I can’t say that
giving freebies when called for ever resulted in a customer expecting
things for free all the time. I think the operative term here is
‘when called for’. Do I charge 5 or 10 bucks for annoying little jobs
from people I don’t know? yes indeed. Do I charge my loyal customers
for the same annoying job?

I had a customer who ordered a heart pendant in 14kt white gold
with ruby, blue topaz, and opal birthstones. 

He paid a down payment about 1/3 of the estimated price. He came in
last week with his baby daughter and checked on the progress
mentioning that he needed it by a certain date as he was shipping out
to Iraq. It is his third deployment. I did not know if he had made
any
purchases before. He picked it up today, with a chain to go with it,
no balance was due, but I did request he buy me a beer when he gets
back. He had made purchases before, but that would not have mattered.

Richard Hart