Just came back from a store visit in North Carolina. I usually have
dinner the night before with the store owner and key personnel. (Get
a chance to raze the waiters). I’m adamant about repair pricing and
this store was picking and choosing prices from my repair price book
He tells me “up here we can’t get those prices.”
But “up here” they are paying “New York” prices. In other words they
are paying $38,000 and $48,500 a year for a jeweler. $40,000 -
$50,000 per year for a jeweler is what my prices are based upon. So
he’s got high labor costs and probably low prices.
I spent a lot of time setting up QuickBooks and showing them the
secrets and ways around Shopkeeper, which they have used for years.
They were amazed when I showed them the price points of which they
sell individual categories, like the sold 4 engagement rings last
year in the $1000-$2000 category but have SEVEN in stock.
On the last day I’m helping the bookkeeper and overhear behind me
the owner and the jeweler. The owner decided maybe its a good time to
take a second look at using “Geller’s Price Book”. They begin looking
at a custom job. Their typed out price list has bead setting at
$12.00 a stone. The jeweler is telling the owner that if he needs to
lay out the stones, drill the holes, set and bright cut that it’s
more work and should be $18.00 per stone. My book shows $20 per stone
is the holes are already drilled and $32 per stone if they are not
drilled and they must layout the stones and drill.
I interrupt them:
“Excuse me, may I ask you a question?”
The jeweler says sure.
“Hypothetically, if we took you off of salary, would you accept as
pay to set the stones one fourth of $18.00 per stone you’re charging
to set the stones?”
His response was “What is one fourth of $18.00?”
Roughly $4.50 each stone.
“Nope, don’t think I’d do it for $4.50 with all of the time
I answered “Well paying you a fourth and adding in matching FICA,
Medicare, vacation and such, it will end up costing the store one
third and isn’t the store looking for a 3 time markup on your labor?”
“They should be” was his answer.
So I asked “Well, if you won’t so it for $4.50 per stone, what will
you bead set the stones for per stone?”
He thought for a long time and said "$8.00 per stone, no less.
So I said “So if you won’t do it for $4.50, but will for $8.00, then
at $18.00 per stone that’s not even keystone once you add in matching
He shook his head; the owner is just listening intently.
“So if you want $8.00 per stone and to get the right price that’s
one fourth of what we should charge, what is four times eight?”
So I asked “What’s the price to bead set non-predrilled stones in my
price book in Chapter 300?”
He looked and said “It’s $32.00 in your book.”
B I N G O !
"That’s exactly how we got the price, whining jewelers!