The JA Report: News, Tips & Trends from Jewelers of America

Anaylze Your Store's Strengths & Weaknesses

In order to ensure your business not only survives, but thrives today and tomorrow, it is important to take a close look at your S.W.O.T.S. (Strengths, Weaknesses, Opportunities and Threats). David Peters, Jewelers of America’s resident education and management expert, says that a thorough evaluation of all four positions should be done at least annually, or when a major shift (such as the current economy) occurs.

Peters offers the following guidelines for analyzing your business's SWOTS:

Don’t Forget Outstanding Online Service

Earlier this week, we offered advice from Larry Chasin, President & CEO of Ideal Diamond Solutions, about  joining the “free” marketing and information revolution. He shared tips on how to turn consumer desire -- and expectations -- for free information into an online marketing tool for your jewelry business.

But offering free marketing and expertise is just one part of the equation. If draw people to your jewelry website without providing outstanding services for outstanding products, the initial attention will fade quickly.

Today, Chasin offers some must-have online service options to go along with your marketing:

Market Your Expertise Online For Free!

There's a lot of talk in marketing circles lately about "free" being the new driving force in business. But since retailers don’t want to give inventory away, does it have anything to do with the jewelry and watch industry? "It does when it comes to marketing that inventory," says Larry Chasin, President & CEO of Ideal Diamond Solutions, an online technology platform provider that focuses on the jewelry industry.

A lot of the discussion stems from the new book Free: The Future of a Radical Price, by Chris Anderson, a social commentator who earned his reputation as an editor of Wired magazine. He focuses on how the digital revolution has made some things free (or almost free) that we used to pay for and how that has affected industries like news, publishing and music.

Chasin says there is a useful takeaway for jewelers: the fact that consumers are now used to getting information for free, and they have come to accept it as the norm. He suggests using that development to your advantage in your marketing, and offers the following ideas to capitalize on content:

Be Part of the “Perfect Engagement” Story

To most Americans, buying an engagement ring is a daunting experience. That’s why retailers that get it right are not only part of the most exciting time in couple’s lives, they develop lifelong customers in return.  Over 630 consumers have entered their “Ultimate Proposal Story” in Jewelry Information Center’s Ultimate Proposal Contest. JA Director of Consumer Communications (and JIC spokeswoman) Amanda Gizzi has found inspiring marketing ideas for jewelry retailers from the story entries. She shares her favorites here.

Use these ideas to connect with your engagement customers and help them create the perfect engagement story:

Host Spring Jewelry Events

The post-holiday spring months don't have to be a slow season for jewelers. Get inspired by the shift in seasons, and help customers celebrate the new fashion season with events that tie into spring trends, spring (jewelry) cleaning and spring-related holidays.

Use these event ideas to help you thrive with spring jewelry sales:

Address Potential Jewelry Allergies

Have you ever had a customer return to your store, complaining that the jewelry you sold them caused an allergic reaction, like a rash? The culprit could be nickel, which in rare (but growing) instances can cause such a reaction.

Since jewelry manufacturers are not required to disclose nickel content in the U.S., it’s likely that white gold in particular may contain the base metal. If you are selling lower-price-point metals (less than 14K), the likelihood of it containing nickel increases.

Jewelers of America’s David Peters offers the following advice to help you address customer complaints or concerns about nickel allergies:

Protect Your Jewelry Vault

Protecting your store from “smash, grab and run” burglaries is just one step in securing your business. According to Jewelers Mutual Insurance Company, more sophisticated burglars will attempt to disable alarm systems and break into safes or vaults.

Some tips from Jewelers Mutual on preventing safe or vault burglaries:

Lower Costs of Service Providers

A penny saved is a penny earned. In fact, it’s easier to save $1,000 a year on your credit card processing costs than it is to find a new customer. However, with so many companies offering payment processing services, changing companies can prove a daunting task.

According to Matthew Focht, President of Tru, a payment processing brokerage firm that negotiates for free on behalf of the businesses it represents, there are a few key steps to follow to improve your chances of securing a better rate when considering switching service providers:

Live Up to Customer Service & Sales Standards

Most businesses have policies and standards to which employees must adhere. But how many of these truly contribute to success, versus becoming forgotten words in an employee manual? Within your own business, are you doing enough to ensure the policies you have in place are followed? If not, you’re probably selling your business -- and your employees -- short.

In a presentation at the JA New York Show, Brad Huisken, of IAS Training, said that it isn’t enough to set standards -- you need to enforce them. In some cases, he said meeting or at least striving to meet standards should be a condition of employment.

He offers the following “non-negotiable” standards you should enforce in your business:

Cut Personnel Costs Creatively

When it comes to cutting costs, personnel is one of the toughest areas to look at. One way to ease the pain is by taking a little bit off across the board, versus hacking off costs in one area or another.

David Peters, Jewelers of America’s resident education and management expert, shares some tips on how to effectively control personnel expenses.

Use this tips to thrive with creatively cutting the personnel costs of your business:

Provide Service to Customers of Closed Jewelry Stores

Jewelers of America recently took a call from a consumer who had diligently held on to the lifetime warranty on her 16-year-old diamond engagement ring. Unfortunately, in these tough times, the jewelry business that issued the warranty had gone bankrupt. With no one available to honor her warranty going forward, this customer -- like many others -- needs to find a new jeweler who she can trust with her jewelry service needs. This story is not uncommon these days. And there are ways that you, a reputable jeweler, can help -- and attract new customers in the process.

David Peters, Jewelers of America’s resident education and management expert, offers the advice to help you help consumers who have jewelry warranties that no longer apply:

Price Merchandise Strategically

When it comes to pricing your merchandise, there are a number of factors to consider before reaching that final number. That’s why the price may seem right to you, but without careful consideration, you could end up being over -- or under.

David Peters, Jewelers of America’s resident education and management expert, offers the following advice to help you properly price jewelry product:

Don't Dismiss Social Media

Perhaps you’ve heard about a new report that says people's trust in each other's online recommendations about companies has dropped 45%. Does that mean you should forget about doing any social media outreach? Definitely not, says Larry Chasin, President & CEO of Ideal Diamond Solutions, the jewelry industry’s online technology platform provider.

Social marketing -- whether through blogs, Twitter, Facebook comments or any combination of them -- remains an important tool in your marketing arsenal. Chasin points out that these platforms are useful in building and sustaining relationships. And relationships, he adds, remain one of the central planks on which the retail jewelry industry is built.

The new report, entitled "The Edelman Trust Barometer" produced by Edelman, a leading global PR firm, shows that the number of people who view their friends as credible sources of information about a company dropped by almost half, from 45% to 25%, since 2008. However, the report also indicated that trust has diminished across almost all sectors, including government, business and banking. This affects how the report should be interpreted, Chasin says, since people are generally less trustful these days.

He offers some perspective on the report, and some points to keep in mind about trust and social media: