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

Check Your Business Temperature

Attitudes, including those of consumers, have definitely improved since the start of 2010. But while things appear to be improving, but there are also indicators (like the jobs and housing markets) that we’re not quite out of the woods yet. That’s why it’s important to check the temperature of your business, especially as you look ahead to the second half of the year and the critical holiday season.

Some things to keep in mind as you look at your business today:

Use the Power of a Press Release

A new survey by the Oriella PR Network, a group of 15 PR agencies worldwide, found that 75% of journalists said an e-mailed press release from a PR pro is useful if the content is “high quality and well targeted.”  “These findings prove that ‘old fashioned’ public relations tactics are still important and can generate important awareness for your company,” says Amanda Gizzi, Director of Consumer Communications for Jewelers of America. 

There are a few simple things to remember when writing and submitting a press release.  Gizzi shares the following tips:

Protect Burglar Alarm Systems

Have you checked to make sure your alarm system is working properly? Jewelers Mutual Insurance Company warns that jewelers with burglar alarms systems using either one-way or two-way radio transmission in the United States may be affected by a recent change in Honeywell’s AlarmNet-M radio network. You should take immediate steps to assure your store has the protection it needs.

Jewelers Mutual recommends the following tips to ensure your store is protected:

Be Sure Your Store Is Insured

Appropriate insurance coverage can mean the difference between successful recovery following a loss at your retail store... or financial ruin. Today, Jewelers Mutual Insurance Company looks at what your store should insure in the first of its Insurance 101 tips, a new series to help you understand what insurance covers and how to make more informed insurance buying decisions.

Jewelers Mutual says most stores should have three basic policies:

Tap Into the Enduring Power of Bridal

An engagement ring can be a gateway for a lifetime of purchases, if a jeweler takes advantage of the opportunity. That’s a fact we shared last week, when we discussed ideas for staying connected with engagement ring customers. Today, we share more key messages from The Knot’s Miriam Alexander, who presented numerous facts and figures during her JCK Show presentation, “Understanding Consumer Behavioral Shifts.”

In addition to noting the importance of bridal as a “gateway,” Alexander shared the following takeaways:

Stay Connected to Bridal Customers

If an engagement ring customer hasn’t become a customer for life (or at least, a customer for all their bridal jewelry), your store may need to reconsider its approach to relationship selling. A recent survey conducted by The Knot Wedding Network found that among the 9,000 recently married couples surveyed, 4 out of 10 said the retailer they bought their engagement ring from didn’t stay in touch. That’s a missed opportunity for those retailers, a fact echoed by a number of presenters during the JCK Show in Las Vegas.

The Knot’s Miriam Alexander, presented that statistic and others in “Understanding Consumer Behavioral Shifts.” She noted the importance of bridal as a “gateway” for jewelers to begin a long-term relationship with customers.

Here are some ideas to help you cross through that gateway, versus letting the door shut on future business:

How To Sell Color Gemstones: Part 3

Consumers understand that the same products can vary greatly in quality, perception and price. For instance, besides being able to drive both, consumers get that there’s a huge gap between a Porsche and a Honda. Doug Hucker, CEO of the American Gem Trade Association (AGTA), says jewelers need to effectively differentiate marquee colored gemstones -- ruby, emerald and sapphire -- from other stones.

In “Color: Price Points, Margin and Profitability,” the talk he gave during the recent JCK Show in Las Vegas, Hucker shared ideas on how to present these top gems:

How To Sell Color Gemstones: Part Two

Are you doing enough to market and sell colored gemstone jewelry in your store? We recently shared tips from Doug Hucker, CEO of the American Gem Trade Association (AGTA), who says there are huge opportunities in selling colored gemstone jewelry and pearls. Today, we share additional ideas from “Color: Price Points, Margin and Profitability,” the talk he gave during the recent JCK Show in Las Vegas.

Hucker offered the following ideas:

How To Sell Colored Gemstones: Part One

Color is hot (and provides good margins), but are you doing enough to capitalize? In “Color: Price Points, Margin and Profitability,” a session held during the JCK Show in Las Vegas, Doug Hucker, CEO of the American Gem Trade Association (AGTA), shared strategies to help jewelers get the most out of their colored gemstone inventory.

Tips shared by Hucker included:

Protect Your Color Business

Even as colored gemstone jewelry continues to grow as a margin maker for jewelry businesses, the challenges around disclosure have become more prominent. “Top Colored Gemstones: The Best Buys, the Controversies and the Future,” a session presented by Gem World International’s Richard Drucker during the recent JCK Show in Las Vegas, highlighted some of the issues facing the business. Drucker says that while disclosure has always been difficult, the issues surrounding it are now “epidemic” in the industry.

He advises jewelry businesses to be proactive when dealing with vendors by taking the following steps:

Successfully Communicate Responsible Business Practices

As consumer expectations rise, the need to tout your responsible business practices has also increased. In the article “Spotlighting Your Social Responsibility,” Rachel Meranus of Entrepreneur.com writes that companies of all sizes can benefit from communicating “hidden assets.” These include things such as how employees are treated, programs for environmental sustainability, efforts to source responsibly and charitable associations.

Meranus shares the following tips to highlight your social responsibility:

Take Advantage of Tax Credits

Back in March, the nearly $18 billion Hiring Incentives to Restore Employment (HIRE) Act was signed into law. At the time, Jewelers of America notified members of two key provisions in the bill related to qualified new employees:

• A payroll tax exemption that offers an employer exemption from Social Security payroll taxes for every worker hired after Feb. 3, 2010 and before Jan. 1, 2011, who had previously been unemployed for at least 60 days.
• An additional $1,000 income tax credit for every new employee retained for 52 weeks to be taken on the employer's income tax return.

In the Businessweek.com article, “Don't Overlook the Jobs Bill's Tax Incentives,” Karen E. Klein writes that few companies have taken advantage of the incentives. In the article,  Brandon Edwards, president of The Tax Credit Company -- a Los Angeles-based consulting firm, estimates that 90% of small companies are unaware of the incentives.

Among Edwards’ key points:

“Strike a Pose” With Fashion-Forward Marketing

At the recent JCK Show in Las Vegas, Jewelers of America’s in-house fashion and jewelry trends expert Helena Krodel picked up great ideas from “Selling Through Fashion,” an enlightening and entertaining panel discussion. Krodel was thrilled to learn a few tricks and hear creative advice aimed at retailers who are looking to market and merchandise year-round. Retailers got tips on how to position themselves as fashion experts in the minds of consumers through trend-driven in-store merchandising, special events, online media and social marketing.

The panel was comprised of four industry experts: Elizabeth Anne Bonanno, EAB Consulting; Randi Molofsky, Portero.com and author of A Girl’s Guide to Buying Diamonds; Frank Proctor, Luxury Brand Group; and Michael Schechter, Honora. The discussion was led by moderator Victoria Gomelsky, who is a frequent contributor to the New York Times and other publications.

Krodel shares some of the best advice from the panelists: