On average, your jewelry repair business contributes 15% or more to your return on sales, while 60% of your pedestrian traffic is eliminated. Most jewelry stores don’t make as much of their jewelry repair business as they could. So we turned to David Brown, CEO of the Edge Retail Academy (ERA), to review the data. As an industry-leading consulting service, they collect and analyze impressive amounts of data from cooperating jewelers. Get links here for more information/.
Here are five areas to consider when building a booming jewelry repair business:
The Edge Retail Academy data
The graph above reflects the ERA facts gathered over the past three years. During this time, the average repair price increased by $ 0.08 / month or $ 1 / year. These gains are minimal. Ask yourself: Have the costs for labor, equipment and consumables remained similarly static? You know the answer to this question. At the very least, you should use this information to re-evaluate your prices.
Get the right price
If you already own David Geller’s Blue Book and have adjusted your prices accordingly, you are good. If not, this is an excellent place to start. Many jewelers fear that increasing prices will deter customers and effectively send them to a competitor. Geller delves into this idea and explains that it is not true. You can ask for more and win more repair customers than ever before. It is a win-win situation for you.
To be successful, you need to look carefully at how you sell your repair services. One of the most basic problems is effective communication between you and your sales force and their interaction with customers. How well have you trained your sales staff to assess and perform repairs? Do you know you need to do a proper assessment? Do you know when to use your expertise for an assessment? Do you know and explain the upsell options clearly?
What exactly happens?
In eight out of ten cases, the price is not a problem once a customer has understood everything that goes into the repair. You also build trust by letting the customer know about a repair. With this in mind, more and more retailers are choosing to place their benches so that customers can watch the jeweler at work. This activity draws customers into the store and lets them see for themselves how bank jewelers work.
Word of mouth – it’s powerful!
When a customer brings you a repair, explain the steps and years of experience required to do the repair. This ensures the value they will receive. With this knowledge, these satisfied customers will become your best promoters. Chances are that they will share the experience with several friends and acquaintances, and some of them will bring you their jewelry repairs. A trustworthy jewelry repair shop can help improve the rate of completion of your product sales by trusting your repair shop.