Jewelry repair is an underlying revenue stream that pays the bills when things get slow. Did you know repair averages anywhere from 10% to 15% in monthly revenue?
Research shows the main difference between a $1 million shop and a $2 million shop is not the number of jewelry repairs performed. It is the pricing of those repairs. You may be leaving big money on the table by undercharging or overlooking great sales opportunities.
Here are five ways to maximize revenue through jewelry repair:
1. Promote on All Platforms
As an expert in the jewelry industry and a trusted member of your community, take every opportunity to promote your business. Television, radio, and print ads are all great opportunities to tout your repair services. But don’t limit yourself to traditional media. Use Facebook, Instagram, and Twitter to spread the word to customers who spend lots of time on those platforms.
2. Offer Limited-Time Promotions
Your promotion should be something you can do quickly and inexpensively, like a complimentary battery change. Offer to replace watch batteries for just the cost of the battery. Or offer half price on a chain solder.
The idea is to reward your loyal customers while attracting new ones to your store without losing much time or expense. And, of course, a 15-minute turnaround time gives your customers 15 minutes to browse while they wait!
3. Don’t Discount Everything!
If you’re like many jewelers, you’re not charging everything you could be for repairs. How do you know what you should charge?
The industry standard is Geller’s Blue Book, which provides solid guidelines. Do some research to see how the recommended pricing in Geller’s Blue Book compares to your current rates. Then, adjust your pricing accordingly. Don’t be scared to raise your jewelry repair rates. After all, your time and workmanship are invaluable.
4. Build Trusting Relationships
You’ve seen the customer who hesitantly hands over her engagement ring to have a prong re-tipped. When you tell her it will take 30 minutes, she offers to stick around while you do the work. And who can blame her for being so nervous? She’s entrusting you with what might be her most cherished possession.
Create a sense of trust with a standard, rigorous take-in process using a detailed repair form. You can never be too thorough:
- Measure the stones
- Describe their color in detail
- Notate any damage to the piece and the condition of the stones
- Weigh the item
- Take pictures from all angles
By taking pictures of her ring and stapling it to the repair envelope, she’ll feel confident that she’s getting back exactly what she left. Plus, if details are not documented on intake, any jewelry repair discrepancies may come back to haunt you.
5. Upsell, Upsell, Upsell
Use the take-in process to tell your customers about the other services you offer. Tell them you can remount an inherited heirloom piece or engrave the locket she got for her birthday. Or offer an appraisal for their engagement ring so that they can get it insured.
You can also charge more for premium services, like rush jobs. Customers who need their jewelry soon are generally willing to pay a higher price. And don’t forget to use your counter space for trendy, reasonably priced items near the take-in counter to make impulse purchases more likely.
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Editor’s Note: This post was originally published on January 22, 2018.