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 ).
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