National Jeweler Network

Market Developments

JA offering discount on promotional insurance

November 21, 2013

New York--Jewelers of America (JA) is offering its members an insurance promotion that will, in turn, allow them to offer sales promotions that tie refunds to certain events, such as the amount of snowfall or which team wins the big game.

Through a partnership with Weather Insurance Agency, JA members will receive 10 percent discount on the company’s weather and promotion insurance.

The insurance can be used in a variety of ways; for example, a retailer may offer full refunds on all purchases made in December if it snows more than 6 inches on New Year’s Day.

Retailers also can run non-weather promotions, such as offering full refunds if the local professional football team wins the championship.

“With the holidays rapidly approaching, it is imperative that JA members build unique and effective marketing promotions that drive traffic into their stores and increase sales. Weather Insurance Agency will provide our members with the peace of mind knowing their promotions will be not only successful but properly insured,” said JA President and CEO Dave Bonaparte.

A number of jewelers have rolled out weather- and sports-themed promotions in the past.

Jeff Dennis Jewelers in Gardendale, Ala. guaranteed a full refund to customers who made a purchase at the store between Aug. 1 and 26 if it rained more than one inch this past Labor Day, and he had to pay up.

Earlier this year, the owners of Baltimore-area jeweler Saxon’s Diamond Center offered anyone who made a purchase at the store between Jan. 26 and Feb. 2 a refund of up to $5,000 if the NFL’s Baltimore Ravens not only beat but shut out the San Francisco 49ers in the Super Bowl. Baltimore won the game but Saxon’s didn’t have to pay, as it wasn’t a shutout.

In addition, North Carolina jeweler Perry’s had to pay out more than $400,000 to customers after a snowfall prediction promotion ended in more than a flurry.