The announcement coincided with its full-year results, with growth driven by its jewelry brands.
Column: If You Want Better Results, Make Better Offers
There is an art to crafting offers clients and prospects won’t refuse just as there is an art to crafting stunning jewelry, Jim Ackerman writes.
If you’re advertising isn’t working, it’s a good bet you’re not making a compelling offer.
Look, I know you don’t think you should have to make any offer at all. People should just come in because they need your product and you’re the best jeweler in town.
Trouble is, you don’t buy that way and neither do your customers.
People need to be enticed, cajoled, persuaded. And if you’re not making offers that do that, well, they’re not going to buy.
A lot of jewelers don’t want to face this reality. I’ve had them tell me they don’t want to make offers, they don’t want to offer discounts, they don’t want to be “salesy.” And they’re not … until their going-out-of-business sale, where they discount the heck out of everything, clear down to the fixtures.
“But Jim, I shouldn’t have to give away the store and all my profits with it to get a sale!”
Correct. But you’re making the mistake of thinking the words “discount” and “offer” are synonymous. They are not.
“But Jim, I don’t want to be seen as a pushy salesperson.”
Right. That’s why you have offers. They do the pushing for you. They’re your excuse to ask people to buy.
To make better offers, begin by determining the reason for the offer. (It doesn’t have to be a sale.)
Here are eight reasons for offers:
Lead generation (you should be doing a lot more of this);
Lead conversion;
Initial trial;
Straight purchase;
Repeat purchase;
Up-sell/add-on;
Client reactivation; and
Referral request.
There are others but the point is, you begin to craft your offers with a specific end in mind.
Don’t Discount … Add Value
Generally speaking, as a consumer, which would you rather do, pay $80 for a $100 value, or pay $100 for a $140 value?
All else being equal, the answer is obvious; pay $100 for the $140 value.
Why is this so hard for jewelry retailers to figure out? If you’re willing to give somebody a 20 percent discount, you are taking $20 out of your pocket for every $100 in value rendered in your product. Why on earth won’t you take the same $20 and pay--at wholesale price--for an additional $40 worth of value for the client, but collect the full $100 in doing so.
It costs you the same $20 either way but the perceived value to the client is enormously different and twice as compelling.
If this isn’t the normal
Right Time, Right Place
There are, of course, times to discount.
Major inventory reductions are one example. Anniversary events are another, perhaps. But while you could argue the value of discounts even in these circumstances, there is one time and place where discounting is a no-brainer--add-on selling.
The resistance I get to this never ceases to astound me!
Think about it: You’ve already paid for the advertising, rent, utilities, fixtures, personnel, computers, systems, cleaning, signage, training and everything else it takes to run your business when you got them in the door in the first place.
If you get them to spend an extra $100 at this point, the only additional expenses are cost of goods and spiff or commission. The rest is pure profit. It’s just silly not to entice them to get a little something extra, with a discount that makes such an addition a no-brainer. And it’s literally free money for you.
Of course, you ask, why don’t I just offer them the extra stuff without a discount? And you can! And if you’re a really good salesperson, and your sales staff also really good, you may be fairly successful. But by making your add-on offers extra appealing, you could see up to a 30 percent “yes” rate, and perhaps even more. This is difficult to achieve without the compelling offer.
There is an art to crafting offers your clients and prospects won’t refuse, just as there is to crafting a stunning and irresistible ring.
Candidly, if profit is your goal, you’re better off learning the craft of offers, and let others make your jewelry.
Jim Ackerman has spoken to jewelry retailers at JA New York, JCK, The Smart Jewelry Show and others. He has teamed with Shane Decker for the Ultimate Jewelry Sales & Marketing Boot Camp, to be held this September. National Jeweler readers can get more information about the event and download a free report here.
The Latest
Looking ahead, the retailer said it sees “enormous potential” in Roberto Coin’s ability to boost its branded jewelry business.
Jewelry trade show veterans share strategies for engaging buyers, managing your time effectively, and packing the right shoes.
Despite the rising prices, consumers continue to seek out the precious metal.
This little guy’s name is Ricky and he just sold for more than $200,000 at Sotheby’s Geneva jewelry auction.
Though its website has been down for a week, Christie’s proceeded with its jewelry and watch auctions on May 13-14, bringing in nearly $80 million.
Despite the absence of “The Allnatt,” Sotheby’s Geneva jewelry auction totaled $34 million, with 90 percent of lots sold.
Tradeshow risks are real. Get tips to protect yourself before, during and after and gain safety and security awareness for your business.
Lilian Raji gives advice to designers on how to make the most of great publicity opportunities.
The mining company wants to divest its 70 percent holding in the Mothae Diamond Mine in an effort to streamline its portfolio.
Why do so many jewelers keep lines that are not selling? Peter Smith thinks the answer lies in these two behavioral principles.
The “Argyle Phoenix” sold for more than $4 million at the auction house’s second jewels sale.
The annual list recognizes young professionals making an impact in jewelry retail.
While overall sales were sluggish, the retailer said its non-bridal fine jewelry was a popular choice for Valentine’s Day.
The mining giant also wants to offload its platinum business as part of an overhaul designed to “unlock significant value.”
Christie's is selling one of the diamonds, moving forward with its Geneva jewelry auction despite the cyberattack that took down its website.
The ad aims to position platinum jewelry as ideal for everyday wear.
Retailers can customize and print the appraisal brochures from their store.
The move follows a price-drop test run in Q4 and comes with the addition of a “quality assurance card” from GIA for some loose diamonds.
The site has been down since Thursday evening, just ahead of its spring auctions.
The late former U.S. Secretary’s collection went for quadruple the sale’s pre-sale estimate.
Kimberly Adams Russell is taking over the role from her father, David Adams, marking the third generation to hold the title.
As a token of womanhood, this necklace depicts when Venus was born from the sea.
The deal gives the retailer control over the distribution of Roberto Coin jewelry in the U.S., Canada, Caribbean, and Central America.
Show your mother some love with a piece of fine jewelry.
The company’s Easton location will remain open.
Brian D. Fleming of Carla Corporation was elected to serve a one-year term in the role.