Real Deal - INSTOREMAG.COM https://instoremag.com/tips-and-how-to/real-deal/ News and advice for American jewelry store owners Thu, 14 Dec 2023 05:34:22 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.2 Retailers Offer Their Solutions to ‘The Case of the CRM Calamity’ https://instoremag.com/retailers-offer-their-solutions-to-the-case-of-the-crm-calamity/ https://instoremag.com/retailers-offer-their-solutions-to-the-case-of-the-crm-calamity/#respond Thu, 14 Dec 2023 05:33:58 +0000 https://instoremag.com/?p=102822 A small input error causes a huge problem with an engagement ring client.

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SMITH’S JEWELERS WAS a chain of nine family-owned jewelry stores that had been around for generations and had established itself as the prime destination when you were ready to pop the question. They had earned their reputation by offering a wide array of bridal options and an unmatched standard of customer care with a distinct family touch.

ABOUT REAL DEAL

Real Deal is a fictional scenario designed to read like real-life business events. The businesses and people mentioned in this story should not be confused with actual jewelry businesses and people.

ABOUT THE AUTHOR

Megan Crabtree is the founder and CEO of Crabtree Consulting. Before founding Crabtree Consulting, Megan had a successful professional career in the jewelry industry, which culminated with high-level positions at several of the top firms in the retail and manufacturing sectors. Reach her at mcrabtree@crabtreeadvisory.com or visit us at www.crabtreeadvisory.com where you can set up a live chat or a 30-minute free consultation.

 

For decades, Smith’s had been known in the local community for giving back at local charity events. Through these philanthropic efforts as well as a prominent presence on local radio stations, they built a strong following of younger bridal customers. Their name was synonymous with having the largest selection of engagement rings throughout their markets, but they also curated a selection of fashionable jewelry, catering to diverse tastes and occasions.

While they built their business on in-person relationships, they also understood the importance of embracing new technology that would help them keep in touch with clients. As their stores passed through generations, they made a promise to uphold the ideology that retail stores should adapt to changing times in order to maintain their success. Eventually, they discovered a new software that could integrate with their existing POS system and help them nurture the relationships they had fostered over the years. The stores could stay in touch all year round, building relationships beyond buying and selling. The automated setup helped collect client information and turned into a way to effortlessly keep customers feeling close. Clients received warm wishes on their birthdays and anniversaries and were provided gentle reminders of the store’s presence during important moments.

It was at a cancer awareness event that a young couple named Scott and Kayla initially met the Smith family. Kayla felt an instant bond with the Smiths once she learned they had a shared experience, having both lost loved ones to cancer. She admired the family’s generosity in donating jewelry to the charity. This event wasn’t an isolated incident; it represented the store’s broader commitment to supporting their community.

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After five years together, Scott and Kayla discussed the idea of marriage and taking the next big step together. Remembering the bond Kayla had formed with the Smith family, they chose Smith’s Jewelers as the store where they would search for the perfect engagement ring.

Upon entering the store, they immediately felt the love when they were welcomed by multiple family members, greeted by name, and offered refreshments. This personalized treatment extended to each guest who entered, whether making a purchase or not. The atmosphere was one of affection and comfort. Beyond the showcases of beautiful diamonds reflecting the store’s commitment to workmanship and quality, they sensed a familial atmosphere. What they discovered was that Smith’s Jewelers wasn’t just a jewelry store; it was a haven of stories, connections, and meaningful contributions to the community.

It was the day every girl anticipates: a chance to try on diamond engagement rings. Kayla’s eyes lit up with excitement as she slipped on different options. Their sales associate, Shelby, suggested that Kayla create a wishlist of her favorite pieces, which included three stunning engagement rings and a diamond pendant. Unbeknownst to Kayla, Scott discreetly made note of the ring that had stolen her heart – the ring that would soon symbolize his unwavering commitment. As they left the store, Scott made a promise to himself to return and make that cherished ring his own and began crafting a surprise proposal.

After the couple left, Shelby diligently entered Kayla’s wishlist into the Smith’s CRM system. However, a minor oversight in the system’s configuration would later have unintended consequences. Kayla’s contact information was listed as the primary contact for the wishlist, with Scott as the secondary. The system was programmed to send out automated text messages to primary contacts upon the completion of a purchase.

As a result, when Scott returned and covertly purchased Kayla’s favorite ring from the wishlist a few days later, the automation system sent a text message to Kayla asking for her feedback on her shopping experience. The system that had been intended to enhance the customer experience, uncover valuable feedback and streamline operations had disastrously spoiled what Scott had hoped would be the surprise of a lifetime for Kayla.

Kayla was devastated to break the news to Scott: She knew he had bought the ring, and the element of surprise was now lost. Fueled by frustration, Scott took action. He called the store and expressed his anger at the untimely text message that had undermined the surprise he had worked so diligently to create. He informed the store’s manager that if they couldn’t fix this, he would return the ring and would not be returning to do business in the future.

The Big Questions

  • How would you overcome this situation and preserve your relationship with the customer?
  • What insights does this story offer into the challenges of incorporating technology into deeply personal experiences, especially when trying to preserve the element of surprise?
  • How would you train your team or alter your CRM platform to ensure that nothing of this nature happens in your own business?

 

Stuart T.
Reisterstown, MD

The problem is, how do you put the genie back in the bottle? The young lady already knows about the ring purchase, so how do you make it right? This is a chance for the store to come out smelling like a rose. Come up with a great idea for Scott to give the diamond ring to Kayla. One idea would be for the store to organize some type of event for Scott to give her the ring. A flash mob could do a musical proposal with Scott at the center of it, along with photographers and Scott’s and Katie’s family. This is all done with Scott’s permission. Admitting to creating the problem as well as trying to correct it could be a big win for everybody.

Jacqueline S.
Russell, KY

Unfortunately, we are humans using CRM and mistakes happen. You cannot fix this mistake or truly do anything to make it right. The customer is rightfully upset, but how do you rectify this? You simply can offer an apology. You can’t turn back time. How about offering something exceptional as a way to fix this. Maybe, give them $5,000 towards their honeymoon or offer to provide them with free wedding bands. There are many things you can do, but it will never turn back time nor technology.

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J. Mason C.
Chapel Hill, NC

Perfect example of the critical nature of online security. My business has not relied on artificial intelligence any more than absolutely necessary. Although a small oversight can cause problems, it is far more likely to occur in digital technology. No one deserves the aftermath, but it could’ve been avoided. I would never allow digital technology to automatically contact my customers. Such activity clearly reveals how vulnerable business is in the world of digital communication.

I would forgive the salesperson immediately and have them compose a humble apology to the customers. The customer would be completely justified in posting a scalding review. The salesperson would not have called the wrong person.

Brad L.
Duncan, BC

Don’t use CRMs; use people! We don’t, haven’t and never will use computers, social media or the like to express what we have taken years to understand. Online sales are, even with the use of chat, video, etc., impersonal. If you believe in rapport, you must make the effort to engage. AI can’t tell the story like someone with many years of experience can.

Shery F.
Scottsdale, AZ

Always verify where the e-mail should go after each sale. An account should have been set up under Scott’s name.

Amanda L.
Canada

This is so unfortunate. We have changed our system not to automatically send communication for this very reason. Sometimes customers want the purchase under the recipient’s account for ease of warranty or adjustments. Tech is great, but there are still limitations. We have since moved to a manual system for texting or emailing thank-yous. All you can do is apologize and ask the client what could make it better.

Ronnie G.
Thomasville, GA

Has happened here. Tough. All you can do is apologize sincerely. Honest mistake. No way to “fix it,” only to call the fiancée and apologize as well.

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Peter T.
Show Low, AZ

The very first thing that needs to be done is to reset the computer to NEVER contact a customer without specific input from an employee. And of course, that employee should be made aware of the importance of only sending appropriate messages.

It is difficult (more like impossible) to un-tell the girl that he bought her a ring. I would apologize to the customer, explain the situation, and ask him what I could do to make this right in his eyes. If his request is reasonable, I’d do it. If his request is unreasonable, I would suggest a solution that I could live with. If he does not accept that, I would accept a return on the ring and focus on helping future customers — you can’t win them all.

Ralph H.
Connersville, IN

How about this: Get ahold of several of their friends and her. Come up with an amazing deal for a ring from her to him. Get all together for a surprise party for both future spouses, at an expensive local restaurant (you may be giving away the groom’s ring). Use store name, with sheepish grin on boss’s face, all on a big banner with the message, “OOPS.” They present each other with the “known, unknown rings” and all ride off happily into the sunset. It’ll cost you, but think of the free publicity (well, not free). Give each other the annual “foot in mouth” award. When all else fails, “watch this.” Just ask Viv … if you could. (In Memorium: Viv Himelick.)

What’s the Brain Squad?

If you’re the owner or top manager of a U.S. jewelry store, you’re invited to join the INSTORE Brain Squad. By taking one five-minute quiz a month, you can get a free t-shirt, be featured prominently in this magazine, and make your voice heard on key issues affecting the jewelry industry. Good deal, right? Sign up here.

The post Retailers Offer Their Solutions to ‘The Case of the CRM Calamity’ appeared first on INSTOREMAG.COM.

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One Client’s Pursuit of Perfection Tests a Store’s Accountability and Customer Trust https://instoremag.com/one-clients-pursuit-of-perfection-tests-a-stores-accountability-and-customer-trust/ https://instoremag.com/one-clients-pursuit-of-perfection-tests-a-stores-accountability-and-customer-trust/#respond Mon, 27 Nov 2023 03:20:59 +0000 https://instoremag.com/?p=100821 Should the salesperson have let this client walk rather than setting the diamond?

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IN THE CHARMING town of Crystalville, there resided an individual whose determination was matched only by his meticulous nature. Ethan, a forward-thinking millennial engineer, had embarked on a journey that both puzzled and impressed the jewelers in the community. With each entrance into a jewelry store, he brought not only his laptop but a carefully constructed spreadsheet, meticulously cataloging every diamond he encountered. His mission? To unearth the ultimate diamond that would enrapture his girlfriend’s heart.

ABOUT REAL DEAL

Real Deal is a fictional scenario designed to read like real-life business events. The businesses and people mentioned in this story should not be confused with actual jewelry businesses and people.

ABOUT THE AUTHOR

Megan Crabtree is the founder and CEO of Crabtree Consulting. Before founding Crabtree Consulting, Megan had a successful professional career in the jewelry industry, which culminated with high-level positions at several of the top firms in the retail and manufacturing sectors. Reach her at mcrabtree@crabtreeadvisory.com or visit us at www.crabtreeadvisory.com where you can set up a live chat or a 30-minute free consultation.

 

Ethan’s analytical approach left no stone — or diamond — unturned. Although he had scoured every corner of the internet engaging in online chats with e-commerce representatives, his quest for the perfect diamond extended beyond online shopping. He traversed city lines and spent hours visiting multiple brick-and-mortar stores, leaving no jeweler unconsulted.

After doing his research, Ethan decided on working with his local jewelry store, Gleaming Gems Emporium. He visited the store no less than five times and each time engaged with Lily, a courteous sales representative, in extensive dialogues centered around the intricacies of diamond quality. His pride shone through as he presented his thoughtfully constructed Excel sheet, featuring a dazzling array of diamonds shortlisted for consideration. Among these, one particular stone beckoned: a 1-carat G color, SI1 clarity diamond, listed on a reputable e-commerce platform at a surprisingly modest price of $2,980. To the experienced eyes of Lily, the price tag raised questions. Diamonds with similar attributes on their shelves were priced at nearly three times that amount.

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Lily patiently explained the differences in grading standards, the value of family-owned businesses, and their attractive trade-in policies. Over the course of Ethan’s visits, she established a rapport and managed to convince him of the Gleaming Gems Emporium’s credibility and expertise while subtly shifting the balance between values and cost.

During what seemed to be his final visit, Ethan’s gaze alighted upon an eye-catching ring that harmonized perfectly with his criteria. Lily breathed a sigh of relief as he agreed to place a deposit on both the ring setting and the diamond, giving himself 10 days to make a final decision.

When Ethan returned to finalize the purchase, he divulged that he had encountered a “more favorable offer” elsewhere and presented a diamond he had obtained through a personal connection. As Lily and Ethan examined the diamond together, Lily’s expert eyes zoned in on a few inclusions, one of which was hanging out rather uncomfortably at the 9 o’clock spot. It looked like a fracture at first glance, which set off some alarm bells. Lily took the time to highlight this concern, mentioning the potential risk of the diamond giving way during the setting process. Despite the risk, Ethan consented to have Gleaming Gems Emporium’s jeweler incorporate the newly acquired diamond into the setting he purchased from their collection.

During the setting process, catastrophe struck. The diamond fractured further at the exact site of the natural inclusion. The jeweler’s heart sank, realizing that Gleaming Gems Emporium’s reputation now hinged on this unfortunate mishap.

The intricacies of the store’s internal procedures suddenly took center stage, revealing a subtle chink in the armor. The diligent Lily, who had been a guiding light throughout Ethan’s journey, now found herself entangled in an unexpected twist. While orchestrating the repair, a seemingly small but pivotal step had been overlooked: obtaining Ethan’s signature on a waiver that recognized the inherent risks that come with setting a diamond bearing a natural inclusion. The absence of his signature manifested in an unfortunate and expensive accident that now demanded a delicate resolution with the customer.

The Big Questions

  • Do you believe Gleaming Gems Emporium should bear the full burden of the accident, or does Ethan share some responsibility for his decision?
  • Do you think Lily should have agreed to arrange to have a diamond set that was not from their store?
  • How could the use of standard operating procedures help prevent such incidents from happening?

 

Gabriel A.
Los Angeles, CA

I don’t have a store, but we are manufacturers and mount customers’ stones all the time. I do not believe it is fair for the store to be responsible for the damage on the stone. However, if there is a lawsuit, then the store will be liable for the full replacement value because the waiver was not signed. To me, it’s very simple: Whoever owns the stone must assume the risk and every store needs to make sure those waivers are signed. Otherwise, it’s not worth taking such a high risk. This was $3,000 dollars, what if it had been $50,000?

Tom W.
Honolulu, HI

Apologize. Listen to Ethan and do exactly what he asks. Best advertising money ever spent!

Jeremy A.
Los Angeles, CA

The store is 100% liable for the broken diamond. While the sales associate pointed out the potential risk of setting a diamond with a fracture, she never stated that if the diamond is damaged in any way that it is not the store’s responsibility. Having standard operating procedures in place helps sales associates make decisions without having to refer back to management. They know the answer and can avoid problems before they arise. Owners know these types of customers, and you should have certain procedures in place to deal with them. Little repairs, small custom orders, etc. You cannot have a customer like this eat up your time, it’s not fair to you! I know everyone wants to be courteous and kind — we all fear a bad Yelp review or bad word of mouth — but you must protect your time and reputation as a fine jewelry store. Be kind but decline to service his request. Learning to say no is hard but necessary.

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Garry Z.
Chicago, IL

This is a problem that should never occur in any jewelry store that regularly handles repairs. Every time we receive a piece of jewelry, we write down what is left with us, any comments such as concerns and limitation of liability, and we always have the client sign off on what is written, including any comment that we may add limiting responsibility for the work. We also require that the client state a value for all merchandise left with us, and it’s stated on our form. This limits any liability for insurance purposes as well.

In this case, Ethan will deny that he was told of the possibility of damage and will hold the store completely liable for this damage, not sharing in any of the costs. Verbal acknowledgement is worthless, it must be in writing. After his meticulous, exhausting search, the headache will continue as he attempts to locate another acceptable diamond. Hopefully this store maintains proper insurance coverage for situations just like this, which would offer some relief for the hit.

Eric L.
Allentown, PA

While I feel sorry for Lily’s store, they screwed up and owe Ethan a diamond. Backing up, we would have walked away from this after his third visit. You need to take the engineer to the emotional. A great question I learned years ago for this scenario is to ask the engineer if he can write a formula for love. Did he do this kind of research to find his lifemate? I asked ChatGPT to write the formula for love, and even it couldn’t do it.

P.S. The story mentioned he found a “reputable internet site,” REALLY?

David B.
Calgary, AB

Lily made an error, and the store has to pay for the diamond. Or replace it. The problem is not only that Lily failed to tell Ethan that they would only set the diamond at the customer’s risk, but she took a client that is a problem from the start. Some clients are not worth the profit. How many times has INSTORE featured an article that says, “Divorce the customer”? This was a perfect example. Should have passed on this one. But now the store has to pay for the break.

Buddy B.
Wynnewood, PA

First off, it seems the associate spent a lot of time with this client until he finally agreed to put a deposit down, and then 10 days later he comes in with a diamond he bought at another store and wants you to set it. You examine the diamond and find a potential fracture. In my store, I would have explained the risk to the diamond in setting it. I would have sold him my mounting and let him have the store who sold him the diamond set it. If you decide to set it, you assume the risk unless you told the client you were not responsible if the stone was damaged during your store setting it. If you did not advise him and sign the disclaimer, then I would say you have to make this good.

Peter T.
Show Low, AZ

The question of responsibility lies with how emphatic Lily was when she discussed the large inclusion. If she only casually mentioned it, I’d think the store should replace the diamond. If she was emphatic, then the customer is fully responsible. It’s probably somewhere in between.

The diamond endured cutting so it very likely broke because the jeweler got a bit clumsy (yeah, I can say —I’m a jeweler, and in my half century on the bench, I’ve gotten a bit clumsy a few times). If this issue happened at my store, I would probably offer a new diamond (same quality) for half of retail. A final thought would be that if Lily had pointed out that this was an I3 diamond (a much lower grade than the SI1 Ethan had been viewing), she might have saved the sale and not had to deal with the broken stone.

Marc M.
Midland, TX

Ethan is a real diva and not worth the time Lily wasted on him. I’ve met with similar people and politely sent them on their way. These are the kinds of impossible customers that you can never make happy, and they will never be satisfied. They will waste your time and drive you nuts! And for what? A 1-ct., G color, SI1 clarity diamond? Ha! Now that’s ridiculous. Dude is acting like this is a 5-ct., D color, flawless, type II diamond. Unfortunately, I think the store is stuck with the full replacement at this point. I think the moral of the story is don’t set diamonds for people who are clearly a pain in the A$$.

Skylar C.
Marysville, WA

I believe the responsibility lies both on Gleaming Gems and Ethan. Lily told Ethan verbally that the stone may give way during the setting process. Despite that, he proceeded. Gleaming Gems is partially responsible because the waiver was not signed. Also, the bench jeweler could have been more careful when setting the stone, perhaps making sure the inclusion was not underneath a prong, as the pressure from the prong could have fractured the stone.

I don’t think it’s a problem that Lily agreed to set the stone. She was up front about the risks and gave Ethan all the information he needed to make an informed decision.

When taking in any job, especially a stone setting job of a large diamond, there should be detailed notes on the envelope stating that there’s an inclusion. The bench jeweler will use the envelope as a guide for deciding the best plan of action for the work that needs to be done. Additionally, enforce the original procedure of signing a waiver.

Miluska O.
Miami, FL

We encountered a similar situation where we had to exchange the diamond for another equal (which was a loss of money for the company). As a result, we implemented a policy of only accepting diamonds that are part of our inventory.

Bruce B.
Cleveland, OH

The store should have advised this customer that this unfortunate problem could happen, and therefore, refused to assume any responsibility. Or better yet, pass on the setting of this diamond. The profit in the mounting was not worth the risk. The customer should have been told that this diamond they chose had the possibility that even in the future the stone might develop the same end. I would hope the high road was for the professional jeweler to shine by offering sound advice to not buy that stone in the first place.

Roger P.
San Francisco, CA

First, she should have told him they were going to set the diamond at the customer’s risk, and if he didn’t agree, have the other jeweler set it. Why should she take a chance like that? And when you have a customer that is a pain, and the amount of time he spends to find the diamond and the setting, for such a small sale it is not worth it. When you take a job that you think is risky and is not your items, make sure that your client knows that you won’t be liable.

Bruce A.
Sherwood Park, AB

Unfortunately, failure to obtain the customer’s signature seals the store’s obligation and responsibility. Though this is not part of the question, I believe the worst is yet in store with this customer. With the level of research he already revealed in his quest for the perfect diamond to represent his LOVE, replacing this will be a nightmare!

Patty K.
Florence, AL

One will never profit from this type of client. We would have sent him on his way at the first glance of the Excel spreadsheet. Lily’s time alone was not worth what little profit was to be made even before the accident! Additionally, somehow potential clients that fit this model always end up in disaster. It’s not worth subjecting you and your employees to the frustration, and it certainly isn’t worth risking your company’s reputation! We all make mistakes, and Lily was likely frustrated, which caused her oversight! Retail can be a tough game; we are trying to listen carefully to our gut reaction! And this guy makes me queasy!

Dianne H.
Eldon, MO

They should have refused to set the diamond in their mounting. Also, having a plan set in place (we have one NOW) to have the customer sign off on any damage to their stone during setting or thereafter. You know it’s going to crumble sooner or later! A suggestion to the customer is to have the diamond set by the person who sold it to him!

Mark S.
Plantation, FL

Having gone through this exact same scenario, it really hurts. We chipped a 1-carat princess cut that had an inclusion in the point of the stone. It was GIA I1, and we replaced it with a GIA SI2 for the client. If we had had a signed disclosure, I would not have replaced it, but our sales associate forgot to inform the client about the risks since she was so excited to finally make the sale. If the same scenario presents itself, and the sales associate forgets to have a signed release signed, we call up the client and inform them of the risks, and we email them a release to sign and email back. If that is not done, we walk away from the sale of the mounting. It’s rare that it happens, but it does, and I don’t care to have it happen again to us.

Trisha C.
Osterville, MA

Spreadsheets?? Oh hell no!!! A little education does not make an expert! Hell, some with a lot of gemological education are not experts!! Ethan needs to stop looking at his laptop and look at diamonds up close and personal, which is the best way to buy diamonds! The fact that he bought another diamond elsewhere but wanted them to set it was ballsy since he had picked out a diamond with Lily but got a “better deal.” I would have sold him the mounting and told him to have the diamond set where he got the diamond, especially after Lily explained where the inclusion was and explained what may occur when setting the stone. I feel bad for the jeweler and store. Now they have to replace the stone, and Ethan probably thinks it was done on purpose (most do) so that the store would have sell him their stone. Ethan wasn’t looking for a perfect stone, just a good deal — or he would have shopped in person.

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Joseph V.
Austin, TX

Gleaming Gems Emporium should bear the “full” burden of the accident. After all, the client was warned. Therefore, the client should bear some, if not all responsibility. We have all experienced similar requests to set a gemstone not belonging to the merchant. It can be difficult to say “no” to a client, as we truly want to help the client.

For us, the decision to set an outside stone is decided on a case-by-case basis. If we feel the stone is not right, then we respectfully decline to set the stone. Our policy is the same for setting any stones that are not ours. Should we decide to set an outside stone, then our standard operating procedure (SOP) is to have the client(s) SIGN A WAIVER releasing us and our stone setters from any and all liability.

At the end of the day, the use of SOP is there to protect the merchant and the client. Therefore, Lily should have followed proper procedure to avoid such a dilemma.

Joel M.
New York, NY

When we set a diamond not purchased from us, a waiver is always obtained and signed that if something happens, we are not responsible. Seeing the imperfection at 9 o’clock should have had that waiver or not take the stone in at all.

Ralph H.
Connersville, IN

At about the third visit, they should have given him a “collectors” copy of an old Alfred E. Neumann cartoon book and suggested that the people who sold him the stone should take responsibility for setting the darned thing. Sorry, but he wasn’t really buying a gift; he wanted to convince himself that he’d beaten the “evil retailer.” This is right up there with “can you size my micropavé million diamond ring” with almost no gold left holding the miniature gravel in place. Computers permit our trade to do things that should not be done. OK, do be nice, even to these guys, just be sure you have your disclaimers in place and up to date. Oh, maybe show them an old A. Jaffe and Son diamond ring — you know, the one your grandkids’ grandkids can inherit (I mean the ORIGINAL A. Jaffe and Son!). It was nice when the rep came around; Viv gave him the entire order verbally, including their style numbers (yeah, she was that good!).

Stuart T.
Reisterstown, MD

There is no action to take other than replacing the diamond. When she saw the inclusion and its location, that was the time to tell the customer about the risk and what would happen if something happened during the setting of the diamond. The train left the station on this one.

What’s the Brain Squad?

If you’re the owner or top manager of a U.S. jewelry store, you’re invited to join the INSTORE Brain Squad. By taking one five-minute quiz a month, you can get a free t-shirt, be featured prominently in this magazine, and make your voice heard on key issues affecting the jewelry industry. Good deal, right? Sign up here.

The post One Client’s Pursuit of Perfection Tests a Store’s Accountability and Customer Trust appeared first on INSTOREMAG.COM.

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Florida-Based Jewelry Retailer Cares for Community through Fifth C Foundation https://instoremag.com/florida-based-jewelry-retailer-cares-for-community-through-fifth-c-foundation/ https://instoremag.com/florida-based-jewelry-retailer-cares-for-community-through-fifth-c-foundation/#respond Mon, 27 Nov 2023 02:46:47 +0000 https://instoremag.com/?p=102151 International Diamond Center prioritizes philanthropy, making a commitment to positively impact their community year-round.

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EACH YEAR, OUR December Real Deal tells a story that brings to mind the amazing privilege afforded us by our industry to make a difference in our communities, and that reminds us why we do what we do. This year, we are honored to tell the story of International Diamond Center, a diamond retailer that stands as a beacon of excellence and integrity. They are on a mission to build a legacy of giving back to the communities they serve.

In the realm of diamonds, International Diamond Center (IDC) doesn’t just curate the world’s most renowned brands in jewelry; they craft a legacy of giving back. With over four decades of experience as a wholesaler, the spirit of philanthropy courses through the DNA of IDC’s founder and owner, Keith Leclerc. This passion for giving has taken tangible form through The Fifth C Foundation, a beacon of hope and compassion for communities in need.

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An Idea Sparked by Passion and Perseverance

To understand the authenticity behind IDC’s charitable ventures, you must first understand Keith’s journey. At the age of 21, the Massachusetts native ventured off to the sunny shores of Clearwater, Florida, driven by an entrepreneurial spirit. After stints with BMW and Audi, Keith found his true calling in diamonds and gold.

With a meager investment, he embarked on a path that would ultimately lead to the creation of IDC. “Knowing absolutely nothing about jewelry, I invested $600 into eight gold chains,” he recounts. The gamble paid off, fueling Keith’s insatiable curiosity and determination.

From Mines to Main Street: A Journey of Excellence

Keith Leclerc

Keith Leclerc

Keith’s odyssey in the diamond industry took him from the mines of South America to the bustling streets of major cities. He transformed from a novice to a revered diamond buyer, earning respect and trust from peers in the industry.

His adventures extended beyond the borders of the U.S., with pivotal trips to São Paulo, Brazil, in 1987. These journeys solidified his position as a player in the global diamond trade. With cutting facilities in Brazil and Israel, Keith established a seamless supply chain, providing polished diamonds to industry giants like Charles Wolf and Harry Winston.

In 1990, Keith realized his dream by opening the first International Diamond Center in Clearwater. His extensive experience in every facet of the industry, from mining to retail, positioned IDC as a thriving entity even during economic downturns.

Today, IDC is made up of twelve locations spanning from Clearwater, Florida to Savannah, Georgia, with ambitious plans for further expansion.

The Fifth C Foundation: Caring and Community

While the world knows the traditional “Four Cs” of diamonds, at IDC, there’s a fifth: Caring and Community. This is the ethos that underpins The Fifth C Foundation, reflecting the Leclerc family’s deep devotion to making a meaningful difference in the lives of those they serve.

This commitment goes beyond seasonal gestures. It’s a year-round endeavor, a continuous labor of love that infuses every facet of IDC’s operations.

For Keith Leclerc and his family, success is not merely measured in diamonds, but in the impact they have on communities. The Fifth C Foundation embodies their dedication to philanthropy. This foundation is a living testament to the Leclerc family’s values and their allegiance to causes close to their hearts.

Supporting military families, giving kids a chance, and fighting to end human trafficking are the three pillars of The Fifth C Foundation. This genuine passion for helping others resonates in every facet of IDC’s operations.

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A Family United in Service

Keith’s motto, “To whom much is given, much is expected,” is the driving force behind IDC’s community-centric approach. His belief in giving back to the community, especially in nurturing the future of children, supporting America’s veterans, and stopping human trafficking is a beacon of inspiration. The Leclerc family is not one to merely write checks and move on. Instead, they roll up their sleeves and dive into the causes they hold dear.

Peggy, Keith’s wife, is a stalwart presence at New Life Solutions, a pregnancy crisis center. Her dedication to supporting women facing critical decisions is a testament to her compassionate spirit.

Keith himself stands firmly behind Operation Healing Forces, an organization that holds a special place in his heart. This nonprofit is dedicated to aiding America’s Special Operation Forces, whose sacrifices often go unseen.

Their daughter, Ashley, lends her time and energy to the Boys & Girls Club, offering guidance and mentorship to young minds yearning for direction.

Brian Stamey, a dedicated member of the IDC team, wears multiple hats. He serves on boards such as Academy Prep Centers for Education, a nonprofit organization that offers need-based scholarships to students. These scholarships provide underprivileged children with free schooling for up to 11 hours a day, 11 months of the year. His fervent belief in this cause is palpable, and his efforts are instrumental in driving change.

Managers As Community Champions

The passion for community service ripples through every level of IDC’s organization. Managers, inspired by The Fifth C Foundation’s mission, dedicate their time to serving on boards that resonate with their own sense of purpose.

The alignment of purpose is key. For IDC, it’s about more than just giving; it’s about making a lasting impact on the issues that tug at their hearts. Once IDC forges a partnership with a nonprofit organization, it becomes a lasting bond that endures over the years. Among the distinguished list of nonprofits they have steadfastly supported are notable institutions like Boys & Girls Clubs, UF Health Shands Hospital, Johns Hopkins All Children’s Hospital, FARA Energy Ball, Save the Kids Foundation, Children’s Dream Fund, Dali Museum, Academy Prep Centers for Education, Clearwater Marine Aquarium, Ronald McDonald House Charities, Operation Healing Forces, New Life Solutions, March of Dimes, and the Make a Wish Foundation.

A Legacy of Love and Light

For Keith Leclerc, the mission extends beyond his own lifetime. His vision is to pass down not only the family business but also the legacy of giving and caring to his grandchildren. He yearns to leave an indelible mark on the community that has embraced and supported him for 40 years.

Amongst his loyal staff, Keith is regarded not only as a respected businessman but as a humble man with unyielding tenacity, unwavering faith, and a heart that knows no bounds. These values have become the cornerstone of his family and have solidified him as a beloved pillar in the community he holds so dear.

In the heart of every diamond, in every philanthropic endeavor, there is a glimmer of hope, a spark of compassion that transcends the material. Through The Fifth C Foundation, IDC isn’t just in the business of selling diamonds; they’re in the business of illuminating lives with love and light.

IDC begins every day with a prayer (top image), and every charity event is a family affair, grandkids included (bottom image).

IDC begins every day with a prayer (top image), and every charity event is a family affair, grandkids included (bottom image).

Keith is now preparing the next generation to take the reins of the company, ensuring that the spirit of generosity and excellence lives on. His family members are deeply involved in learning and embracing the industry and business that Keith holds dear. The atmosphere within IDC is like a tight-knit family, where every staff member, from the seasoned gemologist to the newest apprentice, is embraced as kin. This familial bond extends to every customer who walks through their doors. It’s this nurturing environment that inspires not just the Leclercs, but every member of the IDC family, to participate wholeheartedly in their charitable endeavors.

The Leclerc family credits their strong religious faith for the success of their charitable efforts. Their belief in the intrinsic value of every individual, as well as their commitment to service, is woven into the fabric of IDC. This faith is not just a belief system; it’s a guiding force that drives their mission to make a difference.

The legacy of IDC lives on in the lives they touch and the communities they uplift. Every gemstone they select, every piece they craft, and every cause they support is infused with a deep sense of purpose and care. In an industry where glitz and glamor often take center stage, IDC stands apart. They remind us that true brilliance isn’t just about the sparkle of a diamond; it’s about the light we bring to the world through acts of kindness. As Keith extends his legacy to his grandchildren, he leaves behind a blueprint for a life well-lived — one defined by love, generosity, and an unwavering dedication to community.

International Diamond Center’s story is one of triumph in the realm of diamonds and in the transformative power of giving. Through the Fifth C Foundation, Keith and his family are leaving an indelible mark on the lives of veterans, children, and communities in need. Their diamonds will forever stand as symbols of hope, illuminating a path of compassion for generations to come.

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Can You Solve ‘The Case of the Sinking Diamond’? https://instoremag.com/can-you-solve-the-case-of-the-sinking-diamond/ https://instoremag.com/can-you-solve-the-case-of-the-sinking-diamond/#respond Fri, 13 Oct 2023 04:00:38 +0000 https://instoremag.com/?p=99638 The buyers of a lab-grown diamond ring, needing a replacement, are dismayed to discover the plummeting value of their original purchase.

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IN THE HEART of the Midwest, McKinley’s Jewelry, an iconic multi-million-dollar store, stood proudly, renowned for its impressive collection of high-end brands. For generations, this family-owned establishment had been synonymous with honesty, integrity, and creating extraordinary experiences for its clientele.

ABOUT REAL DEAL

Real Deal is a fictional scenario designed to read like real-life business events. The businesses and people mentioned in this story should not be confused with actual jewelry businesses and people.

ABOUT THE AUTHOR

Megan Crabtree is the founder and CEO of Crabtree Consulting. Before founding Crabtree Consulting, Megan had a successful professional career in the jewelry industry, which culminated with high-level positions at several of the top firms in the retail and manufacturing sectors. Reach her at mcrabtree@crabtreeadvisory.com or visit us at www.crabtreeadvisory.com where you can set up a live chat or a 30-minute free consultation.

 

The McKinley family took immense pride in their collection of quality diamonds sourced from reputable suppliers. However, with the emergence of lab-grown diamonds, they found themselves at a crossroads, contemplating whether to embrace this new trend. Mindful of their responsibility to cater to customer preferences, they made a decision to offer lab-grown diamonds only to those who specifically requested them. These stones were not displayed on the sales floor but stored in limited quantities in the stockroom, obtained from trusted vendors on a memo basis. The McKinleys took great care to educate their customers about the advantages and disadvantages of lab-grown diamonds.

They candidly shared their uncertainty about how the value of these diamonds would hold up over time and emphasized that they would not offer trade-in policies for lab-grown diamonds due to the ever-evolving nature of the market.

In 2019, Jonathan and Olivia Comstock entered the showroom. Their family had been patrons of McKinley’s for generations, so they already had a deep-rooted sense of loyalty to the store. But today was a special visit: They were there for an engagement ring. They had a budget of $14,000 and had their sights on a lab-grown diamond.

Samuel McKinley, the store owner, took time to explain the drawbacks of purchasing a lab-grown diamond, drawing a parallel to the early days of plasma televisions. He highlighted how plasma televisions were once cutting-edge technology and highly sought after but eventually declined in value as newer technologies emerged. Samuel wanted to be sure that Jonathan and Olivia made an informed decision.

Despite Samuel showcasing a variety of naturally occurring diamonds, the couple remained resolute in their desire for a larger stone. With a lab-grown diamond, their budget could afford a 3.8-carat gem, compared to a naturally occurring diamond of approximately 1.5 carats. They were undeterred by the difference in trade-in policies between naturally occurring and lab-grown diamonds, as they had no intention of parting with the ring in the future. Taking their informed decision into account, Samuel carefully handpicked a 3.8-carat G/SI1 lab-grown diamond that would meet their expectations.

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Four years later, Jonathan and Olivia found themselves reaching out to McKinley’s for assistance. They told Samuel that their beloved diamond ring had been lost at the bottom of a lake and that they urgently needed a suitable replacement.

The couple had already contacted their insurance company, notifying them of the lost diamond. Fortunately, they had “Stated Value” insurance coverage, which meant their insurance company would issue a direct check for the full amount of their initial purchase, $14,000, even before they explored alternative options at the store. Had they opted for “Replacement Value” insurance, which would have covered the cost of a diamond of equal or greater value, the insurance company would only have issued a check to the store for the current value of the ring.

As Samuel began sourcing similar lab-grown diamonds, he made an intriguing discovery: The cost of these diamonds had significantly dropped from 2019 to 2023, effectively halving the price. He found that similar lab-grown diamonds were currently being sold for approximately $6,800. This realization raised a crucial question: Should he retain the previous markup and sell the diamond at $14,000, maximizing profit, or adjust the price to reflect the current market value of $6,800?

Understanding that customers now have the opportunity to research and compare prices, Samuel recognized the importance of aligning the store’s pricing strategy with market realities. Selling the diamond at the previous value of $14,000 would not only appear unfair but could also damage the store’s reputation if the couple found the same product at a significantly lower price elsewhere.

When Jonathan and Olivia returned to the store, Samuel presented them with the newly sourced lab-grown diamond. While Olivia was initially excited to discover that it looked nearly identical to her original diamond, their excitement was quickly diminished when they saw the appraisal revealing a significant drop in value. Despite receiving a $14,000 check from their insurance company, they couldn’t shake the feeling that they had paid a higher premium for something that was now considered overvalued.

The Big Questions

  • How should Samuel address Jonathan and Olivia’s concerns about the value of the lab-grown diamond?
  • What steps should he take to ensure their continued trust and satisfaction with the store? Did Samuel make the right decision by selling the lab-grown diamond at the adjusted market value?

 

Heather W.
Des Plaines, IL

This is all about the presentation. The customers were wise in their insurance choice and received a check for the amount they spent. They had the opportunity to purchase lab-grown diamonds at the early part of a technology-based product and enjoy it. They can now spend less to get the same thing and pocket the difference or get something with the remaining amount. It appears the store was ethical in sharing the realities when the purchase was made and selling the new diamond at a market appropriate price. Another option if they don’t like the volatility of lab pricing would be to make the decision to switch to mined. This conversation isn’t any different than if they had purchased gold and the gold market had gone down.

Jim D.
Kingston, NH

Samuel did what justice may demand, bravo. His customers should be kissing the feet of whomever suggested the insurance they bought, while being thrilled the ring took the plunge. Too many who bought lab diamonds are finding no market for their secondhand lab -reated diamonds. At least they can pocket the difference; so many have to eat the difference. Ask me again why I don’t sell lab-grown stones …

Andrew G.
Chula Vista, CA

I would have given them the option to upgrade in size or at least color and clarity grade. This would be viewed as a win-win for both parties instead of focusing on the decrease in value. The win for the store would be them selling a stone with a greater cost than just replacing the original. The married couple would get a better stone with an increased value, which the new appraisal/receipt would reflect.

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Tigran M.
Acton, MA

Samuel should approach Jonathan and Olivia with honesty and transparency. He should explain that the decrease in value of the lab-grown diamond is a result of market fluctuations and changes in the industry. Samuel should emphasize that their initial purchase was made with their informed decision and preferences in mind, and that the price drop is not a reflection of the quality of their original choice. Assure them that the value of the diamond they chose back in 2019 was accurate at the time. Samuel’s decision to adjust the price of the lab-grown diamond to reflect the current market value is the right choice. Selling the diamond at the inflated previous value of $14,000 could have risked customer dissatisfaction and damaged the store’s reputation. By aligning the price with the market reality, Samuel is demonstrating transparency, fairness, and a commitment to customer satisfaction. Samuel should explain his decision to Jonathan and Olivia clearly and to emphasize that this decision was made to ensure their best interests.

Garry Z.
Chicago, IL

Fortunately, Samuel did attempt to explain the market trends when Jonathan and Olivia made the initial purchase. At this point in time, he needs to explain further what has transpired in the lab-grown diamond market. As with any product that becomes overproduced, mass-merchandised and floods the market, the price will make dramatic decreases. The more machines that come online, the greater the supply of lab diamonds, and in fact this is directly reflected in the precipitous price drop that we’ve all witnessed over the past few years. He should explain that lab diamonds have the same characteristics as a natural diamond, but prices are continuing to drop and they should be aware of this and just enjoy what they have. No one can visually see the differences, and fortunately for Jonathan and Olivia, they have a check in hand from the insurance company for the original price they paid. Now they have extra money in the bank to enjoy as they see fit.

Samantha M.
New Oxford, PA

I would reiterate to the customers that the market for lab-grown diamonds has changed significantly from when they purchased years ago, as predicted. I would be sensitive to their feelings and agree that this is unfortunate, but at the end of the day, you cannot control the market now or in the past. He did the right thing in being honest about the current value and he should point this out to make sure they know he has their best interests in mind and would never mislead them in order to make a higher margin.

Arun B.
Philipsburg, Saint Maarten

To address their concerns, Samuel should approach Jonathan and Olivia with transparency and empathy. He can explain the market dynamics behind the diamond’s devaluation, apologize for any inconvenience, and candidly admit the difficulty of predicting the future value of lab-grown diamonds. Samuel should emphasize his commitment to their satisfaction and suggest solutions like refunds or store credit to regain trust and satisfaction:

Openly discuss the devaluation factors, demonstrating his dedication to finding a fair solution.

Offering choices such as partial refunds or store credit empowers Jonathan and Olivia to select their preferred resolution.

Samuel should clarify the uncontrollable impact of market changes and reassure them that he’s working to address the issue in a way that respects their interests.

Regarding the decision to sell the lab-grown diamond at the adjusted market value, Samuel made a wise call. Selling it much higher than market value could erode trust and taint the store’s reputation. Aligning the price with market trends showcases ethical practices and prioritizes customer satisfaction over immediate profit, a prudent and equitable choice.

Maarten D.
Boise, ID

The store handled this beautifully all the way down the line. The clients were well informed and well insured. Win, win, win. The wakeup call is that with clients lacking this particular type of insurance coverage, this situation has a huge potential to be calamitous at best and disastrous at worst. Money, value, profits, reputation, and future confidence in diamonds would all be at risk.

Sherrie L.
Sharon, WI

This jeweler has done the ethical, fully honest thing. He can remind them of the conversation he had with them at time of purchase, and the comparison with plasma TVs. He can also talk himself blue in the face, and they might still be not fully happy. Welcome to dealing with the public.

Sandy K.
Olympia, WA

We’ve actually run across this same scenario twice this year. Samuel explained the price drop situation with lab-grown diamonds when he sold them one initially. He should take his normal markup on the replacement lab-grown diamond. He might want to take this opportunity to sell them a natural now that his clients understand the drop in value of labs firsthand. My guess is they’ll take another lab and drop the $7,200 difference in some fake Louis Vuitton.

Lamar M.
McComb, MS

Honesty is always the best policy. Inform them of the raw facts and take your lumps. This price change was neither orchestrated nor predicted by you (unless you had a crystal ball?). Lesson learned. Be upfront with your customers and let them know that there is no guarantee that any of your products will be market change resistant. Tell them that historically, diamonds have held their own, but there are no promises. It’s still too early in the lab-grown diamond evolution to predict where pricing is going to go. Our client base seems to be more price conscious than other considerable factors. Therefore, lab-growns are winning the battle so far.

David B.
Calgary, AB

“I told you so!” That is the sentence ringing in my ears. And to my New York friend in the business telling me, “Are we people’s financial advisors?”, wait this will happen to you … and you …

The store was correct in adjusting pricing even if it had to be explained. Honesty is always a better approach. Samuel did address the situation correctly, and he should feel good about the situation. What will the value of LGD be in the future is not something anyone can predict accurately, but the bottom has not been reached. Maybe if LGDs become useful in semiconductor applications, overproduction and oversupply will soften and prices stabilize.

For now, everyone that sells LGDs should be prepared for a situation like this to walk into your store.

J. Dennis P.
Johnstown, PA

A store’s reputation and good name are worth far more than a windfall profit. Full disclosure is required here. The specifics should be presented and allow the customer to realize the “windfall” from the loss as a result of the type of policy they purchased. For certain, they paid a premium for the type of policy they had, and in this situation, they are winners in the outcome. As the jeweler, I would offer an even more dear lab-grown diamond using up the full $14,000, or take the opportunity to move up to a genuine naturally occurring diamond, which would have ever increasing value. The lab-grown diamonds most likely will continue to drop in price per carat. Look at what a 1-carat CZ cost in 1978 and what they cost now. I’ve yet to see any market for traded-in lab-grown diamonds.

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Leo A.
St. Louis, MO

First, I would be shocked if a customer would be upset that they paid for a “stated value” policy, got the stated value and were able to keep $7,200 to put in their pocket. I am pretty sure that the total premium paid was well less than the $7,200. On the rare case of stated value policy, you are paying for the fixed amount, whether replacement is higher of lower. The insured is taking the risk on only the upside; they are not paying premium for a higher amount only to get less.

Brenda M.
Designs By Nathan

I believe that Samuel made the right decision by presenting the current market truth.

I would have given the couple more options, though:

Exact same ring, only at $6,800, explaining that he bases his prices on current market costs. When gold is more expensive, he has to price higher, etc., but in this case the cost of lab-grown diamonds had significantly declined due to substantially greater supply and so they had the opportunity to save $7,200.

Exact same ring but with a better lab-grown diamond. I’d look at the unbelievable liquid sparkle of an 8X cut diamond with better clarity that matches the $14,000 original price (so opportunity to upgrade).

Exact same ring but with the largest eye-clean, good color natural diamond that puts the price at $14,000. He can explain this will give them the opportunity to change over to a natural stone that will retain a more stable value as the supply is more fixed.

These options put the couple in control, which builds trust.

Gene P.
Tuscaloosa, AL

This is a great story. It makes me think of another problem. We are insured by and encourage our customers to purchase a Jewelers Mutual policy for their engagement ring. Even though the ring would be insured for $14,000, Jewelers Mutual would not pay that. They would want to see an invoice for the replacement diamond, and the jeweler could only add the Jewelers Mutual prescribed markup on it. The couple receiving $14,000 lets them come out whole. Maybe the jeweler should sell them an additional diamond band to go with her engagement ring. Lab-grown diamonds have not hit bottom yet.

What’s the Brain Squad?

If you’re the owner or top manager of a U.S. jewelry store, you’re invited to join the INSTORE Brain Squad. By taking one five-minute quiz a month, you can get a free t-shirt, be featured prominently in this magazine, and make your voice heard on key issues affecting the jewelry industry. Good deal, right? Sign up here.

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How Should This Store Owner Handle an Exchange Request on an Item She Donated to Charity? https://instoremag.com/how-should-this-store-owner-handle-an-exchange-request-on-an-item-she-donated-to-charity/ https://instoremag.com/how-should-this-store-owner-handle-an-exchange-request-on-an-item-she-donated-to-charity/#respond Fri, 08 Sep 2023 01:47:50 +0000 https://instoremag.com/?p=97897 The purchaser’s wife wants something “more her style.”

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LINDA WILLIAMS LOVED her community. In fact, over the years that she had owned Williams Jewelers, her favorite part of being a small business owner had become participating in local charities and giving her time (and store merchandise) to benefit people in the surrounding area.

ABOUT REAL DEAL

Real Deal is a fictional scenario designed to read like real-life business events. The businesses and people mentioned in this story should not be confused with actual jewelry businesses and people.

ABOUT THE AUTHOR

Trace Shelton is the editor-in-chief of INSTORE magazine. He can be reached at trace@smartworkmedia.com

This was also a quality that her team at the store recognized and appreciated about Linda, and they loved to be involved in “giving back” locally. From her salespeople to her bench jewelers, part of the value they felt from their employment at Williams Jewelers was the good feelings they experienced from contributing to so many charitable efforts.

Local charities knew that when they needed to raise money, Williams Jewelers was one of the first businesses to call. In fact, it finally reached a point that Linda felt the need to limit the store’s charitable gifts; they just couldn’t afford to support every charity that came calling. She convened a team meeting and asked her team for ideas about ways that they could focus their giving.

As a mother of three, Linda had always felt a close connection with charities that served kids and teenagers in any capacity. She shared that with her team, and to a person, they all felt that giving back to local children seemed like the perfect way to focus the store’s charitable efforts. Linda began working closely with organizations that had a stated goal of benefiting young people. While she felt bad about turning away other charities, Linda was energized by the feeling of putting more money and effort into a cause that was near and dear to her heart.

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So it was that when Get Well Soon, a local youth hospital charity, approached Williams Jewelers about donating a piece of jewelry for their annual black-tie gala, Linda not only agreed to contribute a piece, but she and her staff wanted to design something in-house especially for the event. After meeting as a team, they decided to create a pearl and diamond necklace at a retail value of $4,500 (which was published in pre-event press).

Unfortunately, Linda was unable to attend the gala herself because of a family commitment, but Get Well Soon was thrilled with the necklace donation, telling Linda that a gentleman had bid more than double the retail value of the piece. Linda shared the news with her team, who were all excited that their contribution had been so well esteemed by the gala attendees.

However, about a week later, a woman named Allison Glass walked into the store and brought the necklace out of her purse. Linda’s heart sank when she saw that it was the necklace that Williams Jewelers had donated to the gala auction. She said that her husband, Gordon, had cast the winning bid and had gifted her the necklace. She explained that while it was a beautiful necklace, it “just wasn’t her style.” She knew that the necklace had a retail value of $4,500 and that her husband had paid more than twice that, so she asked Linda if it would be possible to exchange the piece for something else in the store.

Linda was at a loss. The necklace had been designed specifically for the event and wasn’t the type of piece that could easily be placed in the showcase and sold. There was obviously no vendor to return the necklace to in exchange for another piece. If Linda decided to take the necklace back and allow Allison to choose something else — even if Allison agreed to an exchange for something that was near the $4,500 retail value of the necklace, rather than the $9,000-plus that her husband had paid — the store would be out thousands of dollars in the cost of the second piece, in addition to what it had cost to design and build the custom necklace in the first place.

The Big Questions

  • Should Linda accommodate Allison’s request?
  • If so, what form should that take?
  • Is there any way to donate custom jewelry to a charity without the risk of finding oneself in this predicament?

 

Robin H.
Pennington, NJ

A resounding NO, small businesses are often put on the spot like this. It has happened to me in my store. The jewelry store should have made the donation with fine print. Most small businesses like ours just cannot afford that kind of loss, and she was kind enough to make a grand donation! I have a client that won a Porsche Boxster in a raffle years ago. Car was not changeable or exchangeable!

Peter L.
Ithaca, NY

Take it back instantly. Do not let her think this is an imposition on you. Let her know that if she doesn’t want it, you don’t want her to have it, either. Reason No. 1: A customer has an expensive piece of jewelry from your store that she is unhappy with. That sentiment needs to be dispatched instantly. Get her something she loves and will rave about, instead of denying the return and give her something to complain about. Turn this into a positive experience for her and she will never forget it. Build TRUST! Reason No. 2: Hubby just spent $9K on a necklace. He loves to spend on her. It was a high-profile purchase. Do right by her and him and you’ll have a good customer for life and maybe more residual customers through word-of-mouth. This is a chance to provide awesome customer service. Don’t mess it up. The potential “loss” (you donated it, remember?) is far better spent providing excellent service and winning a big client than any other form of advertising. Win-win.

Richard S.
Seattle, WA

This was a gift, therefore, no monetary value to the store since no profit was received as a result of the sale. The woman should have a conversation with her husband about donating the piece in kind to their favorite charity and be as generous in her actions as the jeweler was in making and donating the piece.

Eric L.
Allentown, PA

No exchange. Her husband was going to donate $10K anyway to the cause. The client can put the necklace up for sale and enhance her husband’s donation.

Bill M.
Old Saybrook, CT

First of all, she should have made it very clear to the charity that she donated to that “this item is a gift from x jewelers to x charity and is not eligible for exchange or return, and it is your responsibility to inform the winner accordingly.” We always include this statement in the paperwork accompanying any charitable donation that we make. Secondly, she designed something specifically for this event that otherwise would be a difficult piece to sell — big mistake! Donations are a great way to move dated merchandise, estate pieces and other items with low cost and high margin. Considering that the recipient does not appear to be an existing customer, the owner needs to evaluate whether she can convert her to become one, what PR damage may result from not accommodating her, and if she can break up or modify the piece to make it more saleable. But she should allow the woman to pick out a piece close to the $4,500 retail value and make the exchange.

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Bruce M.
Milton, MA

We donated a special pair of earrings I made for the hospital’s gala, and the lady who purchased the winning ticket wanted to exchange them for something else. I didn’t realize the hospital had given her tax papers on the value of the earrings, and she was pissed. When I offered to only give her $1,000 for a trade-in, she blew up and has badmouthed me for a decade! Remember, she only paid $25 for a raffle ticket, so she had no investment. Why try to win something you don’t like? In our case, it was the taxes she was so upset about. And yes, we lost a customer, but there was no way I would give her any more money than what I had invested. Since there would be no winner in this fight, I decided to protect my checkbook.

Leo A.
St. Louis, MO

Having raised more than $1.6 million dollars doing what is in this scenario, I have experienced this exact thing. I always allow exchange, as it’s the store’s image and charity’s image at stake. I am clear that anything above the retail value they paid was their donation, which they are still giving to the charity. In many cases, I just tell them they can pick any item with the same cost. This way both our donations are intact.

Don D.
Tampa, FL

I’ve had similar incidents with donated jewelry to charities. Eventually, I started giving gift certificates. To answer the question, my typical response has been, “I’m sorry, but we donated the item to the charity with the expectation that only people interested in owning the item would place a bid. If you want to trade the item in, we will give you $4,500 credit toward any in stock item selling for an equal additional amount (meaning $9,000 or more).” However, if this were a longtime customer of my store, I may have taken a different approach. I believe the husband is entitled to a charitable tax deduction for any amount over the $4,500 value.

Amy C.
Grove, OK

This is probably pretty common — it actually happened to us! The woman who purchased the item decided she wanted something different after all. I stood firm, thanked her for donating money to the charity and told her that was a gifted item to the charity and she would not be able to exchange it. She could donate it back to the charity, however. I think my incredulousness at her request (and her realization of such a ballsy request) must have come through, because she never spoke of it again. She was not a customer of the store — if she had been a good one, I might have traded. Maybe.

Deb L.
Appleton, WI

This is a very tough situation for Linda to have to deal with. First of all, it does take nerve for the customer to come in and want to return it, knowing it was specially created and donated for a special cause. And the fact that her husband thought that she would look amazing in it, that alone should be reason enough for her to want to keep it. I believe that Linda should explain the truth to the customer about how much time and money was put into it to be made for this occasion. Tell her that it would be hard to sell being a one-of-a-kind masterpiece and that the customer should be proud to wear it. When we donate anything to any organization, we tell them that there is a no return or exchange policy with donated items. We also have this information printed on the receipt.

Stew B.
Natick, MA

Hds this happen once. Was not nearly that value nor custom. Since that time, I require that the advance publicity and auction program clearly state the piece is for this auction/raffle, etc. and may not be returned or exchanged. We also do not give rings. The one time turned into a nightmare sizing situation. Experience, the cruelest teacher.

Jim D.
Kingston, NH

What you see is what you get … it would be best to include a business card with the donation that states that the item can be exchanged or if there is a cost for sizing, lengthening, etc. I have had a few people try to return items after buyer’s remorse sets in, but I politely refuse. Try that at Tiffany’s after buying something from Sotheby’s. At one time, I donated gift cards from my shop, but I stopped that after people assumed what they bid (and won) at the auction should be the new value of their gift card!

Susan S.
Tulsa, OK

I have been in this position in the past myself. It is very awkward. My solution later on in the donations I gave was to stipulate that the piece would not be returnable for the same reason, that the piece was made specifically for that auction. But I did give the charity the idea that if someone else was bidding on the piece, they should call them and see if they were still interested in owning it and tell them it was available again at the original cost. The charity would need to return the remaining money to the original winner of the auction, or perhaps not. Fortunately, I never was faced with this predicament again.

Joseph V.
Austin, TX

There may be two possible solutions here. First, let the individual know that the item was uniquely designed and made for the charity event. Therefore, the item is not returnable. However, we can offer the following: 1) Offer to take in the piece on consignment to resell, or 2) offer the individual a store credit of $4,500 (which was the stated value of the item at the gala) towards something in stock. At least this way, the individual has been given a few choices and not just a flat out “no we cannot help you.” In the end, it is really the charity organization that is the client and not the bidder (Allison Glass) from the charity event.

Geralyn S.
Chico, CA

Giving back to the community is something that I am very committed to also. Often, auction items are “won” for less than the retail price. She had said her husband paid $9,000. But, this doesn’t appear to have proof of purchase. Even though he may have paid $9,000, I would explain the importance of the piece being created for the fundraiser and promotion of the event with press in the media with images and details was specifically for the charity to raise funds. The amount was donated to the charity and is a tax deduction for the buyer. The store donated the item to give back and support youth in their community. It’s a win-win for the charity, which was the reason both parties gave their donations. I would remind her the item was a custom piece for their event, therefore it is not eligible for return or exchange, and thank her for supporting the community and the charity.

Greg T.
Murfreesboro, TN

Absolutely, take it back on store credit for $4,500. This was a custom design the store thought was beautiful enough to properly represent the quality of merchandise the store is proud to produce, and it should be something that could be sold out of the showcase. If you custom make something at the customer’s request, it’s all sales final.

Jo G.
Oconomowoc, WI

We have had this happen several times, and the answer is always the same. “No ma’am.” You bought it from the charity, only they can refund your money. It was a donation to the group, and only they can return it. People feel giddy and kind when plied with pretty food and cocktails aplenty, but the reality in the light of day is something else. They want to be big payers in the eyes of the charity, but not in reality. Be kind. Be firm.

Marcus M.
Midland, TX

The obvious and simple answer here is NO. This has actually happened to me before, and my answer is always NO. People that do this are disrespectful and tacky and it makes me sick. They will never be your customer and just want to use you. It’s not your fault the husband bought something she doesn’t like, so how does that fall back on you? Dummies. Is making them happy, losing money and your integrity worth it for someone as unappreciative as this? Absolutely not! You can politely explain to them that it was a custom piece given for free to a charity event and that you’re unable to exchange it. If they can’t accept that, then they need to leave and you need to tell them so.

Tracy W.
Sierra Madre, CA

We’ve had something similar happen on a smaller scale, but with a stock item. The best I would do is to offer to consign the piece. If I can sell it, I will put that amount toward any new purchase. Since this was a one-of-a-kind piece, intentionally created for this event, we simply cannot take it back. Perhaps the woman who received it knows someone who would love it, although pulling it out of her purse is kind of disrespectful. Explain that it was designed for this circumstance and it is not normally the kind of item your store sells. Make doubly sure it is all intact and in new condition before taking it back. Did the charity place that auctioned off the piece have a second or third runner-up for the necklace? If the wife of the auction bidder is willing to take a loss “for charity,” maybe it can be sold this way.

Robin J.
Colorado Springs, CO

I have been down this road! I told the winner that we created the earrings (in my case) specifically for the event and we had no return or exchange privilege. I recommended the recipient re-donate the earrings to the same cause next year. The following year at this same fundraising event, I ran into the above-mentioned winner, and she was proudly wearing the earrings we wouldn’t take back and they had become her favorite pair of earrings!! Funny how things turn out.

Stuart T.
Reisterstown, MD

Under no circumstances should they give in to the request. This piece was designed and manufactured specifically for this event. We once many years ago had something similar happen, except that our customer got a bargain on the piece. In our case, the wife was nasty and rude to us and our help. Like in this case, she tried to make her problem ours. When you give a donation, it is not open to return or exchange, it’s a GIFT.

Lorah A.
Honolulu, HI

The charity piece should have stipulated that it was a special piece custom designed for the charity and regrettably is not available for return or exchange.

Keith J.
Vancouver, BC

Absolutely not. This was a custom piece created for a custom event. End of story.

Peter T.
Show Low, AZ

My knee-jerk response would be somewhere between “no” and “no way in hell!” However, since we have to pretend to be nice to even the most self-centered idiots, a gentler response would be in order. I would thank them for supporting the charity — just like I did when I donated the time, money and materials that it took to make that item especially for the event. If she’s not going to wear the jewelry, she might want to further support the charity by re-donating it back to them, but I would not be able to accept it as a trade-in.

Elizabeth Blair K.
Harbor Springs, MI

When you donate a finished piece, you need a disclaimer! Such as, “This is NOT a gift certificate. this was commissioned and made especially for …” When challenged in this way by an exuberant bidder, I also say that 100% of their generous bid went to the organization and that the organization was the owner of the piece. It has nothing to do with my shop any longer. I think people TRY to push the envelope and actually know better and are just trying to see what they can get away with. Of course, if it is a regular client of yours, I would make an exception and honor the retail value of $4,500. They are writing this off anyway; it isn’t the store’s responsibility. Gift certificates also need to have a very large, clearly stated “use by” expiration date. And finally, try not to make a piece that would not be in your normal inventory.

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Gloria H.
Topeka, KS

“This is a custom-made, non-returnable necklace. The only thing we are able to do is adjust for size, such as adding an extender for a perfect fit!” Then talk up her husband on how generous he was to go above and beyond to help the charity that is near and dear to our hearts.

Bill M.
Granger, IN

As a business owner, there’s not much more frustrating than having your gift horse’s mouth thoroughly examined and rejected. Alas, we live in a political world, and finding a compromise is often the best course. Don’t offer to exchange it … ever. But offer to consign the item at a reduced commission to cover your administrative costs. Prepare a signed agreement that states the ‘net proceeds must be applied as a store credit.’ The auction winner gets a new piece they love and your cash flow is intact as you are simply trading one sale (with a small profit) for another that meets your target margin. Win-win.

Megan C.
Poulsbo, WA

Anytime we donate an item for charity, we always place a disclaimer that the donated item may not be exchanged or returned. If Linda didn’t include language stating her policy, she’s in a sticky position. She needs to be clear with Allison that while she values her as a client, this piece is a custom designed piece that was created for a specific purpose; it cannot be returned or exchanged. However, the situation doesn’t need to be black and white. We try to find ways to say “yes” to clients, even if we want to say “no.” Could the item be placed in the store on consignment? Could Allison pay it forward and donate it to another charity? I’d try to be creative with the client, but I wouldn’t take it back or exchange it outright.

Jeffrey J.
Greenwood, IN

We were faced with a similar situation when a “prize winner” from a charity golf outing tried to exchange a very nice watch we had donated. I pinned him down, and he reluctantly admitted that was a “big ask”! We now with EVERY donation provide a form stating the item is “non-returnable and non-exchangeable”… No problems since! My reply would be to her: Donate it to another charity auction!

What’s the Brain Squad?

If you’re the owner or top manager of a U.S. jewelry store, you’re invited to join the INSTORE Brain Squad. By taking one five-minute quiz a month, you can get a free t-shirt, be featured prominently in this magazine, and make your voice heard on key issues affecting the jewelry industry. Good deal, right? Sign up here.

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The Watch Turned Out to Have Been Stolen; How Can This Jeweler Recoup His Loss? https://instoremag.com/the-watch-turned-out-to-have-been-stolen-how-can-this-jeweler-recoup-his-loss/ https://instoremag.com/the-watch-turned-out-to-have-been-stolen-how-can-this-jeweler-recoup-his-loss/#respond Wed, 19 Jul 2023 04:00:10 +0000 https://instoremag.com/?p=96841 The jeweler he bought it from isn’t returning his calls.

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AS BOB LAYTON hung up the phone after leaving yet another voice message for his fellow jewelry retailer, he rubbed his temples in frustration. What once had appeared to be a stroke of good fortune had now turned into a nightmare situation, and he was at a loss as to how to proceed.

ABOUT REAL DEAL

Real Deal is a fictional scenario designed to read like real-life business events. The businesses and people mentioned in this story should not be confused with actual jewelry businesses and people.

ABOUT THE AUTHOR

Trace Shelton is the editor-in-chief of INSTORE magazine. He can be reached at trace@smartworkmedia.com

It had all begun innocently enough. One of Layton Jewelers’ best customers, Ron Lim, had asked him to be on the lookout for a particular style of Rolex: a green “Kermit” model from 2005 in stainless steel. For several months, Bob had been keeping an eye on auction sites and social media, but nothing had turned up. Then he saw it posted on a Facebook trading site: The exact watch that Ron was asking for, listed at $10,300.

Bob private-messaged the retailer who had listed the watch. It turned out to be James Shooter, a jewelry store owner whose business was located on the other side of Bob’s home state of Missouri. James and Bob had first been introduced years ago, but their relationship was purely that of acquaintances. Bob knew that James’s store, Jewelcraft Unlimited, was well known in its St. Louis community for buying previously owned jewelry. As such, Bob had implicit trust that James knew what he was doing when it came to buying and selling “off the street.”

James explained that the watch had been presented to him as part of an estate. The Rolex was in like-new condition and came in the box with all the appropriate paperwork. Per local regulation, James had held onto the lot for 30 days before offering any of the pieces for sale. While the jewelry items had sold rather quickly, the watch turned out to not be of much interest to Jewelcraft Unlimited’s customers. After keeping it in the case for three months without a bite, he had posted the watch on Facebook. For his part, Bob said that he had a client looking for the watch and that he would be willing to pay $9,200 for it. In the end, they settled on a price of $9,600, and James had the watch securely delivered to Bob at Layton Jewelers.

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Meanwhile, Bob had contacted Ron to let him know that he’d found a watch matching his requirements and would sell it to him for $16,350. Ron was over the moon. He paid Bob over the phone and said he would pick it up in a few weeks once he returned from a business trip.

Unfortunately, that’s when things began to go wrong. One week after the watch arrived at Layton Jewelers, two Missouri state police officers paid Bob a visit, asking to see the watch. Bob told them that the watch was sold, but that he was still holding it in his safe for customer pickup. After matching the serial number on the watch to their own paperwork, the officers told Bob that they would have to confiscate the watch, as it had been stolen during a home break-in five months prior. They had recently apprehended the thieves and traced the watch to him via James at Jewelcraft Unlimited.

Distraught, Bob called Ron immediately. Fortunately for him, Ron was very understanding and took the credit back on his American Express card while asking that Bob continue to search for another watch. However, the bigger problem was James, who was unreachable. Bob had tried texting, calling and emailing, all to no avail. With $9,600 on the line, it wasn’t something that Bob felt he could just “let drop,” but at the same time, he wasn’t sure how to proceed from here.

The Big Questions

  • Should Tim honor Darren’s request and hold off on talking to Dan?
  • Does he have an obligation to get involved at all?
  • What should Tim do about Helen and her perception that Paulson’s was trying to rip her off? And while it’s clear that Darren’s decision to “borrow” an old receipt book from Town Craftsman was a serious error in judgment, could policies like Dan’s that allow employees some “entrepreneurial leeway” with non-competing products ever be a good idea?
Philip F.
Carmel, CA

Been there with this exact situation. Each state has their own laws, and they may vary slightly from state to state. However, for the most part, each party is responsible for their own actions to the next in line. In this case, James is responsible for repaying Bob $9,600. James can go back to his “estate” and attempt to get his money back. If that fails, and if James has a good insurance company, he can turn to them for coverage (less his deductible). If Bob is unable to collect from James, he then can also turn to his insurance company for coverage. It appears that the parties involved followed proper protocol and procedures, and insurance reimbursement is likely. The insurance companies can decide whether or not they want to pursue their issues further in court.

Jennifer J.
Woodstock, IL

If I were James, I would give Bob back his money. We all know the risks of buying “off the street,” and James should be protecting his clients. We have had scrap items confiscated in the past, and I chalk it up in the loss column. I made that purchase, so I consider it my risk. I would have reached out to Bob immediately after talking to the police and apologized and offered his money back.

Sandi B.
Ocala, FL

I don’t know about you, but $9,600 is worth a face-to-face visit. Yet another reason not to do business with someone you have never met. Yes, James should be accountable for the money. Especially if he possibly broke laws in acquiring the watch and did not go through Pawn WEB or another legal preowned merchandise site. That seems like a pretty big loss just to take it on the chin!

Richard S.
San Luis Obispo, CA

This is one of the risks of buying off the street. Each state is different. In CA, if the jeweler is a licensed secondhand buyer and all DOJ rules were followed, the store still has a lien on the title of the watch and has the right to collect their original purchase payment plus 3% from the original owner. In either case, the second jeweler should receive a full refund from the first jeweler as the title to the watch was clouded and not delivered.

Cameron K.
Saskatoon, SK

If James had reported the watch to the local police to verify prior to paying the client for the timepiece, everything could have been averted. With prominent serial numbered timepieces, it’s always best to be safe than sorry when buying off the street. James needs to repay Bob; it was James’s lack of due diligence that caused the mistake.

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Stan G.
Charlotte, NC

James owes Bob $9,600 plus any shipping fees. Buying off the street has its risks, but Bob didn’t buy off the street. James at Jewelcraft Unlimited did. Just because he followed the 30-day hold period doesn’t absolve him of the responsibility of reselling an item with a “clean” history. If I was Bob, I wouldn’t waste time calling James any longer. I’d have my attorney fire off a strongly worded letter sent by certified mail and then haul his ass into court if needed. Next case, please …

Peter T.
Show Low, AZ

The criminal should be responsible for James’s loss (not the $9,600, just the amount he paid for the watch). But that’s not likely to happen with our judicial system. As it is, James sold stolen property to Bob. Unless he wants to be arrested for that, he owes Bob $9,600. Bob might need to point that out to James. Anybody who buys off the street should know that eventually they will buy stolen property. The store that makes a deal with a criminal will have to accept the loss of whatever they paid when that happens. That’s part of the cost of doing business. The only protection is to understand business. Which is: pay low enough and sell high enough to offset the expenses and losses that will occur along the way.

Trisha C.
Osterville, MA

My questions are:

  • Did James properly file correct paperwork when he purchased the entire lot?
  • Did the proper original owners file a police report and/or insurance claim? If so, why did it take over six months to recover?

If the original owners filed the proper paperwork, it should have been recovered sooner. Not sure about Missouri laws, but here there is a weekly/monthly report that needs to be filed to local law enforcement to locate such goods. It seems that someone either didn’t file paperwork or the watch was ill-gained. Regardless, the cost of the watch should be refunded by the seller since he was “unaware of provenance.” If he has proper paperwork (seller info), he may be able to recoup and refund his buyer. Depending on state laws, both may have legal recourse for retribution depending on state laws. Either way, make sure you cover your liabilities when buying over the counter.

Marcus M.
Midland, TX

This is why I don’t buy from the public, especially pre-owned Rolexes. You just never know what you’re going to get. James should definitely pay Bob back and then figure out how to recoup his losses. That’s the right thing to do, but many people these days don’t do the right thing. Anyway, James needs to track down who presented it to him as part of an “estate” and go after them. If it’s a dead end, then surely his insurance will cover. If Bob needs to, I’m sure he can go after James because he sold him a stolen piece of property and that’s illegal. I’d get nasty with James if he keeps ignoring Bob’s calls because at the end of the day, he’s out $9,600 and that’s not an easy pill to swallow.

Ty V.
Santa Rosa, CA

So you buy the watch for $9,200 and sell it to your customer for $16,350? What a rip-off, why would you charge your customer such a markup? GREED. As an official Rolex Jeweler, we only make 35% on a new watch. Such greed!!!

Sara N.
Friendswood, TX

Sadly, if James is not responding, that would tell me he figured out it was stolen and has no intention of reimbursing Bob. Bob can try to claim it on insurance, but with the deductible, it might not make sense. Bob is going to have to treat this as a theft.

Jim D.
Kingston, NH

Of course James is responsible for paying Bob back, cost and shipping. That is black letter law; he has to make Bob whole. The problem is for James to deal with as the buyer of stolen goods. It is a risk we all take if we buy off the street. Though James did the right thing in his process, there is not always a way to be 100% certain in some cases. James should go against the thieves, though I doubt they have assets other than possibly bail money to attach. I know some states have a database of stolen goods that can be checked, but not all do and the data can be old.

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Alan L.
Cape May, NJ

Is there honor among thieves? James is responsible to repay for the stolen Rolex. With a police confiscation, there is no doubt as to the Rolex being stolen and then surrendered without remuneration. Even though James presented the Rolex as having been part of an estate, James bought the Rolex from “the street” and liability does rest with him. It may be tough to recover the purchase price from James even with police documentation as to theft because buying from the street is a dirty business. Is risk inherit with used Rolex? Of course it is, that’s why the profit margins are greater because you are trading in broken dreams and sometimes shattered lives.

Some like to pretend they are helping restore people in times of crisis, but there is a lot of quick-hit profit for those who turn a blind eye.

What’s the Brain Squad?

If you’re the owner or top manager of a U.S. jewelry store, you’re invited to join the INSTORE Brain Squad. By taking one five-minute quiz a month, you can get a free t-shirt, be featured prominently in this magazine, and make your voice heard on key issues affecting the jewelry industry. Good deal, right? Sign up here.

The post The Watch Turned Out to Have Been Stolen; How Can This Jeweler Recoup His Loss? appeared first on INSTOREMAG.COM.

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INSTORE Readers Honor “Real Deal” Creator Kate Peterson https://instoremag.com/instore-readers-honor-real-deal-creator-kate-peterson/ https://instoremag.com/instore-readers-honor-real-deal-creator-kate-peterson/#respond Tue, 13 Jun 2023 04:42:58 +0000 https://instoremag.com/?p=95627 In this special edition of The Real Deal, our readers share their memories of Kate and her Real Deal scenarios.

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KATE PETERSON WAS the Real Deal.

You can read that any way you like and it remains true. Kate has written INSTORE’s “The Real Deal” since the very first issue of the magazine in January 2002. Kate was also the “real deal” in management consulting, one of the most prolific, experienced and respected consultants to ever work with jewelry retailers.

Not only that, but she was loved across the industry for her down-to-earth demeanor, quick wit and boundless generosity.

Sadly, we lost Kate when she died from injuries suffered in a fire in her Maryland home in the early morning hours of Easter Sunday. She is survived by her two sons, Nicholas Peterson and Kevin Peterson; her parents, Paul and Connie Bykowski; one sister Beth (and Adam) Henning; two brothers, Tom (and Lisa) Bykowski and Jim (and Annette) Bykowski; nine nieces and nephews, including Marylee, Melany, Morgan, Miya, Dylan, Steven, Robin, Seth and Keith, and many cousins.

Kate was one of INSTORE’s biggest supporters, and we (the INSTORE team) are still trying to wrap our heads around the enormous loss of her insight and her unfailing willingness to help us in any way that she could. I will never forget how, at the first few SMART Jewelry Shows in Chicago, Kate stayed busy the entire time, speaking to audiences or helping us wrangle sources for our stories or trying to get new educational features off the ground (there was one where we basically put Kate at a round table in the middle of the show floor and invited retailers to sit down with her to hash out their problems … I’m kind of surprised more people didn’t take advantage of that, now that I think of it). She was super excited about the upcoming INSTORE Show, and we’ll miss having her there.

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But in late 2001, when then-editor-in-chief (now group editorial director) David Squires was getting ready to launch INSTORE, he didn’t know Kate. Nevertheless, he was able to coax Kate and her then-partner Janice Mack Talcott to write the first installment of the Real Deal.

“The department was an idea of mine in the original outline of the magazine: real-life business scenarios, with my go-to example being trying to teach the salesperson who’s too shy to ask for the sale,” says Squires. “I don’t remember how we found Performance Concepts (Janice Mack and Kate) to populate the department. I’d just do a lot of internet searches and try to find somebody who was saying interesting things online.

“Anyway, I don’t think it was too long before the partnership between Janice and Kate broke up.

I remember thinking at the time that this was a very bad loss for INSTORE, because Janice was the more renowned expert due to her relationship with Hearts on Fire, and I was worried Kate might not have Janice’s name recognition or skill level.

“But Kate, obviously, came through in an absolutely massive way and almost single-handedly turned that department into the magazine highlight that it was. And

I also hope that writing the department, as well as her other work for us, in print and at events, helped build her status within the industry.

“She really was a blessing for our publication … and losing her is a tremendous loss.”

I’ve managed the Real Deal for more than 15 years now, and I will feel Kate’s absence keenly. Back when I was still a senior editor for INSTORE, I was assigned to manage submissions from our columnists — a task I still do to this day. And the Real Deal was the most complicated feature of them all. We had to acquire the copy from Kate, get it off to our artist to illustrate, then email the scenario to our readers and get their responses. That requires a fair amount of lead time … and that’s something Kate wasn’t particularly good at providing.

I can’t count the number of times I’ve emailed Kate and said something like, “Kate, if I don’t get that copy today, the Real Deal is not going to appear in this issue!” But it wasn’t that Kate was lazy or a procrastinator … anyone who knows her knows that couldn’t be further from the truth. She was just 100 percent committed to her clients. And her clients needed her so often that it was difficult to find time to write the Real Deal. But she always found a way to get it done, just in the nick of time, even if she had to write it on a plane at 3 in the morning.

And we’re fortunate that her clients needed her because that’s usually where Kate got her inspiration for the Real Deal. As she wrote in our Real Deal retrospective last January, “The question I ask most often when clients reach out for help with especially prickly situations is, ‘If I promise to cover up the identifying details really well, can I use this for a Real Deal?’”

Whenever Kate was asked how she kept coming up with stories, she liked to say, “We don’t make this stuff up … it actually happens!”

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In March, for the first time ever, Kate sent me four Real Deal scenarios in advance so that we could get ahead on producing the artwork. I was excited at the time, but it means even more now because we’ll all get to enjoy two more installments of the Real Deal from Kate.

This quote from poet Mary Oliver was one of Kate’s favorites: “When it’s over, I want to say: all my life I was a bride married to amazement. I was the bridegroom, taking the world into my arms. When it is over, I don’t want to wonder if I have made of my life something particular, and real. I don’t want to find myself sighing and frightened, or full of argument. I don’t want to end up simply having visited this world.”

I think we can safely say that Kate achieved her goal of making her life something particular and real. As real as the Real Deal.

The Big Question

What have Kate Peterson and her Real Deals meant to you over the years?

 

Marcus M.
Midland, TX

I didn’t know Kate personally, but I’ve always enjoyed her contribution to INSTORE with the Real Deal. For many years now I have read, related to and responded to these stories and situations. I always looked forward to reading the Real Deal emails, responding and then seeing if I made the upcoming issue with my words of “wisdom.” I also really enjoy seeing other insights and seeing how I might view a situation differently. Again, I didn’t know Kate personally, but she and her talents will certainly be missed. Rest easy Kate.

Bonnie F.
Troy, OH

Kate contributed so much to the processes of our store over the years. She started by helping my father over 30 years ago, and she was still working on projects with me in 2023. It is so hard to stay relevant in any industry over the course of a lifetime, but Kate was always at the top of her game! I loved her honesty and the fact that she was so direct. Kate never held back or sugar-coated anything. A lot of times, with business owners. consultants only tell us what they think we want to hear. Not Kate! I always read her Real Deal articles because they were so relatable and it reminded me that we as an industry all experience similar situations together. She used one of our scenarios AT LEAST once! Kate was a force in our industry and the world will not be the same without her. She will be truly missed!

Mark and Monika C.
Rockford, IL

Here at Clodius & Co. Jewelers, Kate will be forever missed and never forgotten. Over some 20 years, she helped us get on track for growth, helped solve and give us tools to handle personnel problems. More than that, more than one “Real Deal” story evolved over real incidents we endured and then shared with Kate. The best memories, ones we will hold close, were after store hours, talking about our industry and some of the people who keep it so interesting. Talking about our families and dogs. Getting cool gems out or showing off things from our collection. I remember looking at one crazy piece of antique gold work and speculating about what it was. Kate took a picture and tweeted it out to her network, and in a matter of minutes, we all knew what it was. Amazing. Love of jewelry, people, animals, travel, good food and good wine. Never lacking for interesting things to talk about. Our lives were enriched by knowing her.

Denise O.
La Grange, IL

My eyes are leaking as I write. Kate Peterson, the loss of your presence will send a ripple effect through our industry. When you are stumped as an owner/manager for an answer for the most bizarre circumstances, you could look to Kate Peterson for answers. Either with a quick email, a column reference or a lunchtime recon mission through decades of old INSTORE magazines. She and our community brain hive provide brilliant insights on professionally handling the audacity, indulgences or politely worded refusals to a particular customer situation. Many times, my business savvy depended on a fresh fueled response I gleaned from the pages of INSTORE’S Real Deal columns from Kate Peterson. I am grateful I have an archive that is even more important now that we have lost an iconic negotiating professor and industry collaborator. Thank you for the legacy you’ve created and the wisdom you shared.

Drue S.
Albany, NY

I always enjoyed reading the “Real Deals” and challenging myself to answer them in an intelligent yet sensitive way. Customers can be so challenging these days, and yet, we cannot afford to lose many! The situations were always interesting with the many answers enlightening! I hope they can continue without Kate and I wish her family and family of friends my sympathy and best wishes.

Babs N.
Bozeman, MT

I met Miss Kate at my very first SMART Jewelry Show in Chicago. As she is known for, she made me feel as if she had been excitedly waiting all day to meet me, and she made me feel like I was the most important person in the room. Considering how her schedule was surely PACKED during the show, it is remarkable to me that she took the time to thank me for coming to speak and assure me that she would be listening in. She seemed to have memorized the info I had sent in for my speaker bio; and I continue to look back on that and marvel, as I have no such ability. Over the years, we made sure to always connect at shows. Considering how long it took me to “find my people” in the industry, I’m ever so grateful she was one of them. Miss Kate, I can’t believe I won’t see you at the next show … but I bet I’ll “feel” you there.

Elizabeth M.
Brockton, MA

There are so many things I admire about Kate. She always made me feel like my call was the most important call of her day, and she didn’t forget anything. The Real Deal is my favorite article in the magazine. I look forward to it every month. Her pride in her son showed in those blue eyes whenever we spoke of our kids. Kate will be missed by me every day.

Allison Leitzel W.
Hershey, PA

While Kate’s Real Deal scenarios often gave me anxiety, she would assure me that this was natural based on my stable DISC analysis (thanks, Kate!). Kate was so many things. She was a leader, a mentor, a role model and a friend. I have the greatest respect and admiration for Kate. She was the trifecta of intelligent, witty and personable. Kate was the type of person who you wanted to be around, and you always felt smarter in her presence. My favorite memories of Kate are simple ones. They are the times when I had the opportunity to sit one on one and have genuine, authentic conversations, often while enjoying a drink. As a mom, I admired the way Kate beamed when talking (and bragging) about her sons. From savvy cryptocurrency advice to news of becoming a grandmother, she was loving, happy and proud. When I close my eyes and picture Kate, I will always see her smile and the way it glowed when she talked about her family and her dogs.

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Mark L.
Fort Myers, FL

Kate and I had just been communicating about a “Real Deal” scenario we experienced and wanted to write about. I loved brainstorming with her, and whenever she asked me to participate in something, I always said “YES!” I will hold onto great memories with and of her.

Elva V.
Dallas, PA

Having encountered several “sticky” situations over the years, I often relied on the intuitive responses to Kate’s scenarios. She knew how to highlight each incident, giving each of us a perspective on how to do the “deal” in those situations. The Real Deal assured us that we were not alone in our efforts to solve our customer issues while creating the smallest ripple on the pond.

Lori V.
Plymouth, IN

We have known Kate for a long time. She has always helped us with whatever we had going on. She used one of our scenarios for one of the INSTORE cases. She was always helpful and very knowledgeable. She will be missed for sure!

Angela P.
Geismar, LA

I met Kate Peterson when I worked for Charleston Alexander Diamond Importers. They hired Kate and Performance Concepts to train us. She was the most knowledgeable and industry-savvy person I have ever met. She had THE answers to every jewelry or client or peer situation. She was a mentor and a friend and remained so for 15 years. Rest in peace Katie P. You are loved and admired. You were the Real Deal.

Josh R.
Montgomery, AL

I listened to Kate at many of the shows she attended. I picked up a handout or printed an email from one of the seminars she had at the SJTA show and printed the list of I think it was 15 closes … and I taped it to the mirror in the work bathroom. I would read them when I washed my hands every day to get better at closing. One day I was washing my hands, and a client and friend had added his own close to the list. He said to “call your frat bros and get them to come in and buy, use our common bond to close the sale.” I mentioned that one time to Kate at another event I saw her at, and she said well he was right! I was so looking forward to hearing her again at this past Alabama Jewelers Association convention and was saddened by the news of what had taken place. Thoughts and prayers to her family and friends.

James S.
Westborough, MA

Kate’s article was the first thing I read in INSTORE Magazine. I have a few of those customers; have been in business for 46 years.

Joel M.
Fuqua-Varina, NC

Kate was the first consultant I hired after Scull & Company. She had just started Performance Concepts. She did a lot to help me grow my business. We worked the SMART Jewelry Show together from the start. After that, we seemed to end up speaking at the same places and even traveled together sometimes. We had a lot of shared beliefs and even shared the same birthday. Her loss will be devastating to our trade and to her many friends. I miss her already.

Alan L.
Cape May, NJ

Some people make an impact that seems larger than life. They seem to navigate the bumps and turns successfully and then they are willing to share their experience.

Sarah Hurwitz R.
Frederick, MD

Kate was instrumental in helping us with a smooth transition during a crucial time in our business. With her keen observation, humor and kindness, she provided the best possible support for us during a rebrand and leadership transition. I counted on Kate tremendously as a mentor and friend. It’s a big hole that has been left in our industry and our lives without Kate.

Patricia H.
Frederick, MD

Long before I knew Kate personally and professionally, I loved reading her Real Deal column. Often it was the first page I turned to when I picked up your magazine.

Recently, Kate had become a mentor and friend to our daughter, Sarah, as she was preparing to take over Presidency of Colonial Jewelers from Jeff and me. Her insight, sense of humor, and kindness meant so much to Sarah, and I was so appreciative of her presence in our lives. We will miss her terribly.

What’s the Brain Squad?

If you’re the owner or top manager of a U.S. jewelry store, you’re invited to join the INSTORE Brain Squad. By taking one five-minute quiz a month, you can get a free t-shirt, be featured prominently in this magazine, and make your voice heard on key issues affecting the jewelry industry. Good deal, right? Sign up here.

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When a Gemologist Reveals That a Client’s “Diamond” Is Moissanite, The Reputations of Two Jewelry Businesses Are Threatened https://instoremag.com/when-a-gemologist-reveals-that-a-clients-diamond-is-moissanite-the-reputations-of-two-jewelry-businesses-are-threatened/ https://instoremag.com/when-a-gemologist-reveals-that-a-clients-diamond-is-moissanite-the-reputations-of-two-jewelry-businesses-are-threatened/#respond Mon, 01 May 2023 23:59:20 +0000 https://instoremag.com/?p=93642 A foolish employee sold the moissanite on his own behind his boss’s back, believing it to be diamond.

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RESIDENTS OF LANDALE thought of their town as a “just right” size: a solid industry and business base with a big enough population to offer a moderate sense of anonymity for those who like that sort of thing, but small enough to avoid most of the big city hassle. The downtown business owners — even direct competitors — all knew each other and even had an unofficial pact to “keep it local,” using each other’s services whenever possible.

ABOUT REAL DEAL

Real Deal is a fictional scenario designed to read like real-life business events. The businesses and people mentioned in this story should not be confused with actual jewelry businesses and people.

ABOUT THE AUTHOR

Kate Peterson was president and CEO of Performance Concepts, a management consultancy for jewelers. Email her at kate@performanceconcepts.net

Paulson Jewelers had been in their prime downtown Landale spot for 108 years and enjoyed an impeccable reputation for quality and integrity that Tim was committed to safeguarding while he worked to keep the business growing with the times.

Near closing one day in early March, Helen Davies came into the Paulson store with an engagement ring she wanted to sell. The ring was a well-worn, 4-prong solitaire setting stamped “14KP” set with a 7.5mm stone. Paulson’s customer service associate, following company procedure, prepared an intake envelope. She collected Helen’s contact information, noted a description and photographed the ring, then tested the stone in Helen’s presence using the store’s handheld diamond tester, which indicated that it was, in fact, a diamond. The associate then took Helen, the ring and all of the information she had collected to one of the store’s consultation rooms where she introduced Helen to Susan Calder, Paulson’s gemologist and buyer.

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After examining the ring carefully using a gemological microscope and the store’s advanced testing device, Susan determined that the stone in Helen’s ring was not a diamond but rather was a diamond-coated synthetic moissanite. She described the makeup of the stone to Helen and explained how it could have fooled the basic diamond tester. When she said that the most Paulson’s could offer for the ring was the melt value of the metal — just over $125 — Helen was furious. She insisted that the stone in her ring was a diamond and that Susan and her fancy equipment were absolutely wrong. She then told Susan that she had bought it from a young man at Town Craftsman Jewelers for $4,500 and produced a hand-written receipt as verification. Susan was puzzled, since she knew Town Craftsman to be a small downtown repair shop that didn’t typically sell any inventory. Hearing Helen’s raised voice, Tim Paulson stepped into the room. Helen demanded that Tim look at her ring and point out Susan’s mistake — but when he put the ring back through the testing device, he confirmed Susan’s findings.

Helen stormed out of the store, but not before announcing her intention to make certain that everyone in town heard about how Paulson’s tried to take advantage of her. Knowing Dan English, the owner of Town Craftsman, neither Tim nor Susan believed that Helen was telling the real story.

Early the next morning, Darren Rendel, a young man Tim recognized as Dan’s assistant at Town Craftsman, came into the store and confronted him, accusing him of lying to a customer, undervaluing her property and trying to buy her ring at well below market value. Darren explained that he personally had sold the ring Tim and Susan saw the day before to Helen Davies after buying it as part of a lot in 2020 from a connection his older brother had in New York.

Guessing that Darren had likely been ripped off by an unscrupulous seller, Tim asked Susan to show him the process she had used to assess the stone. After watching Susan demonstrate on a sample stone, Darren pulled a ring out of his pocket that appeared to be identical to the one Susan had evaluated the evening before and asked her to examine it while he watched. As expected, that ring too held a diamond-coated moissanite.

Darren was mortified. He said that he and his brother had taken $25,000 they had inherited from their grandmother and spent it on 10 identical rings they bought from a dealer they met through his brother’s boss, the owner of a local construction company. He said that though he really knew little about diamonds, they trusted the man completely and saw the buy as an opportunity to make some extra money. Darren said that since Town Craftsman didn’t sell jewelry, his boss Dan was OK with him selling to friends and family on occasion — so Darren didn’t think it was a problem to offer the rings to customers he met while handling their repairs at the shop. He also mentioned that he had “borrowed” one of the old receipt books that had been in the back room waiting to be thrown out since Dan converted to a POS system 5 years ago.

Darren said he had sold nine of the 10 rings but wasn’t sure he could track down any of the buyers except for Helen, who was a friend of his aunt, and who had called him the evening before to complain about Paulson’s. He begged Tim to not tell Dan until he could reach his brother and figure out what to do.

The Big Questions

  • Should Tim honor Darren’s request and hold off on talking to Dan?
  • Does he have an obligation to get involved at all?
  • What should Tim do about Helen and her perception that Paulson’s was trying to rip her off? And while it’s clear that Darren’s decision to “borrow” an old receipt book from Town Craftsman was a serious error in judgment, could policies like Dan’s that allow employees some “entrepreneurial leeway” with non-competing products ever be a good idea?

 

Eric L.
Jewelers, Allentown, PA

First and foremost, Dan needs to restore Paulson’s reputation. After that, he has a lot of work to do to save his repair business. Then he needs to get educated about diamonds and gemstones, if he continues to sell them.

Mark E.
Indianapolis, IN

As the owner of the store, it is your obligation to explain to the other owner what happened. Whether you go into all of the details that were shared with you is another thing. As an independent business in a small local community, you would be doing yourself a disservice if you are not totally transparent with the other business owner.

Marcus M.
Midland, TX

Tim should give Darren the opportunity to talk to Dan first, but if he doesn’t, then I think Tim should definitely have a conversation with Dan. I’d also make sure Darren calls Helen while he’s in the store and explains to her what happened. It’s not fair that Tim and his business get bad-mouthed by Helen for just doing their job. Darren made a big mistake (or mistakes) and needs to own up to them. Then he needs to learn his lesson from this and stay in his lane. There are a lot of crooks out there. Don’t be the idiot that blindly keeps them in business by putting your chips in a game you know nothing about. And Dan needs to keep a tighter leash on his business and his employees.

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Barry N.
Naples, FL

As friends in the business, the jeweler owes it to his friend to discuss and not withhold info. By keeping the secret, he colludes and becomes suspect himself. They can all work together to try to decrease the damage done by the foolish employee. The employee had no business trying to do business out of ignorance. He may have seriously tarnished the reputation of his employer.

Ralph V.
Edmonton, AB

He absolutely should not honor the request. He should call the owner, Dan, immediately and tell him the whole story as he knows it. It’s Town Craftsman’s reputation that’s on the line now. Darren’s decision to “borrow” some old receipt books puts Town Craftsman right in the crosshairs.

Dan needs to own up to the situation, find a way to locate the other eight rings that were sold and refund the purchase prices of all of them.

When the truth comes out, and it will, Helen will understand that it was Darren and not Paulson’s that was “trying to rip her off.” Allowing entrepreneurial freedom isn’t always the best choice, but particularly with people who are not trained in the things they are selling. Town Craftsman will take a huge hit from this, and Darren might not have a job when all the dust settles.

Patrisha C.
Centerville, MA

Darren needs to be held accountable to both Helen and Tim. First, Helen needs to be reimbursed no questions asked and apologize to Tim for her mudslinging. Secondly, Darren and his brother need to find the nine other buyers and reimburse them if possible. Darren’s boss needs to set store policy that no “outside” sales carry his store logo, period.

Incidents like this give honest jewelry stores a bad image. No one without gemological training should be buying stones, period, including those who have been in business for years. This type of screwup costs customers, reputations and money. Personally, I would fire Darren and charge him with fraud.

Tracy W.
San Gabriel, CA

Paulson’s reputation is being smeared in town. Give him a set time, maybe a week, to resolve this, but only if he contacts Helen and asks her to stop talking until he can get to the bottom of things. Tell him you’ll need to talk to the other jeweler to maintain your name in the community.

What’s the Brain Squad?

If you’re the owner or top manager of a U.S. eyecare business serving the public, you’re invited to join the INVISION Brain Squad. By taking one five-minute quiz a month, you can get a free t-shirt, be featured prominently in this magazine, and make your voice heard on key issues affecting eyecare professionals. Good deal, right? Sign up here.

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A Belligerent Customer Finally Pushes a Store Owner Too Far https://instoremag.com/a-belligerent-customer-finally-pushes-a-store-owner-too-far/ https://instoremag.com/a-belligerent-customer-finally-pushes-a-store-owner-too-far/#respond Mon, 03 Apr 2023 04:16:56 +0000 https://instoremag.com/?p=92824 But her husband apologizes, so how should the store owner react?

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MARIA NAVARRO HAD been a top sales professional at Allure Diamonds and Fine Jewelry for more than 20 years — since well before “alternative metals” for wedding bands became a thing. That was just one of many thoughts that crossed her mind as she contemplated the situation in which she’d found herself over the previous week.

ABOUT REAL DEAL

Real Deal is a fictional scenario designed to read like real-life business events. The businesses and people mentioned in this story should not be confused with actual jewelry businesses and people.

ABOUT THE AUTHOR

Kate Peterson is president and CEO of Performance Concepts, a management consultancy for jewelers. Email her at kate@performanceconcepts.net

Back in mid-January, Leanne Keller came into Allure to order a special wedding band for her husband as a gift for their tenth anniversary.

The ring was an 8mm tungsten carbide band with a 4mm meteorite inlay — a style that Allure’s wedding band supplier was able to make and deliver in plenty of time for the Kellers’ March 5 anniversary.

While writing up the order, Maria explained that unlike precious metal bands, the tungsten and meteorite ring Leanne was ordering could not be resized. She suggested that Leanne bring her husband back to the store so they could measure his finger and ensure a precise fit before placing the order. Leanne reminded Maria that this was going to be a surprise and said that she was certain that her husband wore a size 10. Maria noted on the order that the size was a customer request, not verified in-store.

As Leanne handed Maria her debit card to pay for the $1,450 ring, she asked if it was possible to have a special message engraved inside the ring. Maria knew that the manufacturer offered laser engraving, but in an effort to ensure that there would no misunderstanding, she brought her store manager in to answer the question.

The store manager told Leanne that they could engrave a short message in the ring and explained the laser engraving process. He told her that since she wanted the ring personalized, though, it was very important to order the correct size, since engraved rings were not even exchangeable under the manufacturer’s sizing warranty. He explained that should her husband need a different size at any point, she would be extended “courtesy pricing,” but that she would need to buy a replacement. Leanne impatiently repeated her assertion that her husband wore a size 10, insisting that she would not ruin her surprise by bringing him in. She gave Maria the engraving instructions, paid for the ring and left the store.

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Leanne returned on Feb. 20 to pick up her ring. As was the store’s procedure, Maria went over the order with Leanne in detail and verified that everything was as promised. Leanne was very happy with the ring — inside and out — and even stopped to tell the store manager how much she loved it.

Maria felt a touch of dread when she saw Leanne scowling as she walked back into the store with her husband on March 7. She walked directly up to Maria, put the ring box on the counter and told her that the ring was too small. Maria calmly asked to measure the man’s finger and was not at all surprised to see that he needed a size 11. She explained to the couple that as previously discussed, the ring was not exchangeable, but that she would call the manufacturer to get the courtesy price for a replacement.

Leanne became belligerent, insisting that Maria had lied to her. She said she clearly remembered being told that though the ring could not be sized, it could easily be exchanged for the correct size at no additional charge. When Leanne’s tirade got loud enough for other customers to hear, the manager stepped in, with Allure’s owner at his side. Over constant, loud interruptions, the manager explained the same policy regarding engraving that he and Maria had explained to Leanne when she placed the order. He even pointed out her signature on the original order form, which included a clear statement that “engraved or altered items are not returnable or exchangeable.” During the exchange, Leanne’s husband stood silently off to the side, looking seriously embarrassed.

While Maria was processing the paperwork for the new order, Leanne kept loudly insisting to no one in particular that she would never come back again, that the entire staff was incompetent, and that the store was the biggest rip-off in town.

After they left, Maria went to the store owner in tears and told her about a number of other quite nasty things Leanne had said before she and the manager came over. The owner decided to call Leanne and tell her that the ring would not be reordered, and that a check for her full purchase price would be waiting for pickup at the store. Despite the owner’s calm demeanor, the call didn’t go well.

The next day, Leanne’s husband came into the store to pick up the check. Before he left, he apologized to Maria, to the store manager and to the owner for his wife’s behavior, saying that she was not well and was going through a difficult time. He told the owner that he still wanted the ring and asked her to please consider allowing him to reorder it in the correct size. He even offered to pay for the original ring in addition to the new one. The owner said she would think about it and get back to him in a few days.

The Big Questions

  • Did the store owner do the right thing, or should she have simply told Leanne that she was stuck with the ring she had insisted on ordering?
  • Was it sensible for the store owner to absorb a $725 loss in the process of “firing” an abusive customer?
  • Should she sell a new ring to Leanne’s husband, knowing that she might be risking unknown hell once Leanne finds out?

 

Sherrie L.
Sharon, WI

I would have taken the husband’s offer immediately. He was fully apologetic, HE wanted the ring, he was willing to pay the agreed-upon price. (I would have given him the “courtesy price” on the replacement, even if it cut into profit.) HE is your customer then, not his harridan of a wife.

Lex A.
Denver, CO

Post-COVID, it feels as though many customers’ fuses are non-existent (in our industry as well as many others *cough cough airlines*). While we all know the mantra “the customer is always right,” but more and more it feels as though anyone in the service industry has become a pin cushion for the angst of some out-of-control, ticking time bombs of people.

Ultimately, I don’t think we should be rewarding folks for bad behavior. It WOULD be easy and acceptable to bend over backwards to make this situation right, but just as customers are allowed to take their business elsewhere, we should be allowed to say goodbye to unruly hotheads.

Sure, the word of mouth may do some harm, but more than likely people in Leanne’s orbit don’t take her word as gospel either. The store did everything right in explaining the path she was headed and shouldn’t feel guilty for her disappointment (to put it nicely). Focus on providing excellent customer service for the many people who appreciate it and say goodbye to bad apples.

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Robert D.
Mendham, NJ

The store made a generous offer by getting another ring for cost. We had a similar situation this past Christmas with earrings I did not want to make. When Leanne made it PERSONAL, she should have been asked to leave. Deal with the husband another day.

Naomi V.
Haines City, FL

I totally agree and respect the response from the store owner. I believe owners/managers need to always stick to store policy, if not for consistency, then to show loyalty to employees who enforce policies every day. When an owner or manager shows up during a store complaint and goes against store policy, it makes the employees look incompetent and gives customers the right to demand breaking store policy. I believe the owner keeps loyal employees because of the support they show their staff! Great story!

Bill M.
Old Saybrook, CT

She did the right thing. Goodbye, good riddance!

Stacey H.
Lincolnwood, IL

Obviously something is seriously wrong with Leanne. Let the husband pay for both rings and let him know that you’re grateful for his business and hope his wife gets well soon. He apologized, and if Leanne ever becomes normal again, she’s going to be grateful for their compassion and forgiveness. When someone asks forgiveness sincerely, you have to forgive, especially since no one died. Forgive and accept the payment!

Linda F.
Lexington, KY

I think that the store owner did the right thing by refunding the customer and banning them from future purchases. Protecting your staff from abusive customers when they did nothing wrong is the right thing to do.

Gloria H.
Topeka, KS

I would have exchanged the ring at no cost to the customer, no questions asked. It is so rare this would happen that I would rather pay another $200 for another ring and have it engraved than make an unhappy customer who will badmouth us to others, or even worse, put out a bad review. Good reviews trump all! One bad review could scare many other customers away.

Ursula P.
Naples, FL

Maria, and the store owner did everything right. The customer was clearly out of line — for whatever reason! In some rare cases, it is better to separate a disruptive customer than try to retain her/him. Leanne’s husband was gracious in acknowledging and apologizing for his wife’s conduct. Although he wants to keep and pay for the earlier ring and offers to order and pay for one in the correct size, I would prefer not to be involved in another potentially volatile situation with the couple. I would thank the husband for his understanding and kindness and explain that I cannot accept his offer in order to avoid a future elevated situation that would be difficult for everyone. And ask for his understanding. As retailers, we certainly want to cherish our customers, but we also must have the backs of our loyal team members and not allow blatant customer abuse that borders on insult.

Brenda M.
Kalamazoo, MI

The husband might want to get the ring because it could be the last significant gift he gets from his wife. She could be in the early stages of dementia or Alzheimer’s, or some other kind of mental or medical crisis. I would have compassion on the husband and honor his request for a replacement at an attractive (but profitable) price. He does not expect the store to take a loss, so he is an honorable man. But he does want the gift from his wife — although he’s only had it a day, it already has great sentimental value to him. People with dementia and Alzheimer’s can be extraordinarily mean, no matter how sweet or kind they were before. Until she is better (if she can get better), I would help him get his ring and consider him to be the client instead of her. He has opened the door for us to kindly ask what we should do the next time she comes shopping, and to request that he be with her.

Mary T.
Leavenworth, WA

I would relay to the husband that, with regret, they’re fired! Don’t give her another chance to abuse your employees.

Peter T.
Show Low, AZ

Giving the obnoxious customer her money back is simply encouraging her (and those like her) to abuse businesses. As soon as the customer got belligerent, they should have been asked to leave. The “very difficult time” the witch is going through does not give her the right to treat others badly. If the husband wants to buy a second ring, he would still need to pay for both the first ring and the discounted price for the second. It would be good to mention to him that his wife isn’t allowed in the store unless she can behave herself. If that offends him, so be it. If she was a good customer and behaved like a decent person, that could be taken into account when the time comes to charge for the second ring, but I would charge for the second ring. When we clearly convey a possible problem to the customer, and that issue comes to light, it is not the store’s responsibility to cater to the customer’s stupidity.

Mark E.
Indianapolis, IN

Interestingly enough, I had a very similar situation, only it dealt with a diamond engagement ring. While in Las Vegas, the client claimed her diamond “jumped” out of her 4-prong solitaire and was lost. As I inspected the ring, noting that the prongs had been severely struck by something, I commented she was lucky she didn’t lose a finger or worse. At this point, the client became quite abusive with her language. After telling her that we would replace her diamond with an equal or better diamond at no cost to her, I declared the issue to be resolved. At this juncture, I turned to the overly embarrassed and red-faced husband and began talking about sports, totally ignoring the still complaining wife. Luckily the husband took the cue and hurriedly escorted his wife out of the door. As promised, we replaced the diamond with a bigger, better-quality diamond and at no additional cost to her. Bottom line, no matter what course of action you take, you’ll never see that client again.

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Jo G.
Oconomowoc, WI

So many mistakes, first of all selling crap metal as valuable jewelry. I have hated the stuff since the 90s and refuse to sell it in rings. Chains and bracelets, okay; rings, never. Screamers make a lot of noise, but the worst they can do is a one star. I would have mailed the check, not made them come back in. If the husband wants the ring, order it for him. I give my customers 3 strikes for bad behavior, one each time. That allows for personal struggles that turn ugly in my store, or a fight with a loved one, or bad medical news. You go straight to 3 strikes if you give a one-star review, in which case we never work for you again. She was told six ways to Sunday how things were going to roll out, but I would not have engraved the ring until we knew it fit. A gift cert for the engraving could have been included with the ring, just in case, because people are sometimes stupid.

Bruce A.
Sherwood Park, AB

This owner should write a book under the title, “Perfect Response to an Impossible Situation”! She not only saved the sale by offering a full refund, she received an apology from a new customer. Chalk up two wins in her column, three if you count the support she showed her staff!

Marcus M.
Midland, TX

It’s tough because I understand why the owner did what she did to just get rid of the headache, but if someone was insulting my staff, my store and making a scene like that … I wouldn’t have been that accommodating. She would have been stuck with the ring and I would have fired her as a customer. The situation played out, however, and her husband is trying to make it right. I would let him re-order and pay for both rings so at least you’re not out the money. And no excuse makes up for her scummy behavior. Maybe she’ll feel bad and apologize, or maybe she’ll raise more trouble because her husband tried to make it right and went behind her back. Who knows, but keep an eye on this woman!

What’s the Brain Squad?

If you’re the owner or top manager of a U.S. jewelry store, you’re invited to join the INSTORE Brain Squad. By taking one five-minute quiz a month, you can get a free t-shirt, be featured prominently in this magazine, and make your voice heard on key issues affecting the jewelry industry. Good deal, right? Sign up here.

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A Client’s Daughter May Have Pocketed a Piece of Jewelry Without Paying. What Should the Store Owner Do? https://instoremag.com/a-clients-daughter-may-have-pocketed-a-piece-of-jewelry-without-paying-what-should-the-store-owner-do/ https://instoremag.com/a-clients-daughter-may-have-pocketed-a-piece-of-jewelry-without-paying-what-should-the-store-owner-do/#respond Tue, 07 Mar 2023 06:33:18 +0000 https://instoremag.com/?p=91556 She knows it could also cause problems for the client with his ex-wife.

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MICHELLE LUCAS HAD been a top salesperson at All That Glitters Fine Jewelry since shortly after she and her husband Dean moved to town 12 years ago. She enjoyed living in what she jokingly called their “sort-of small town” suburb of a small Midwest city.

ABOUT REAL DEAL

Real Deal is a fictional scenario designed to read like real-life business events. The businesses and people mentioned in this story should not be confused with actual jewelry businesses and people.

ABOUT THE AUTHOR

Kate Peterson is president and CEO of Performance Concepts, a management consultancy for jewelers. Email her at kate@performanceconcepts.net

Several months ago, Michelle and Dean ran into their neighbor, Paul Henry, while waiting for a table at a local restaurant. During their conversation, Paul mentioned that he was considering a surprise proposal to the woman he had been seeing for the past year and asked Michelle if she could help him select a ring.

Of course, Michelle was delighted, and they set up an appointment for the following Saturday.

Paul had bought the house next door to the Lucases several years ago after battling through a nasty divorce. Michelle had only met Paul’s ex-wife once when she was dropping their daughter Olivia off for a weekend visit. Much to Paul’s chagrin, however, she and Dean had also overheard several of the woman’s loud and nasty “driveway tirades” on other occasions when she wasn’t happy with some element of Paul’s more traditional parenting style.

Michelle was surprised that Saturday afternoon when Paul arrived at the store with Olivia in tow. He explained that his ex had needed to switch weekends at the last minute, and he didn’t want to cancel the appointment, so he had brought Olivia along to help him choose a ring. For the first 20 minutes while Paul looked at different versions of the designer setting his soon-to-be-fiancée had pointed out in the store’s window several weeks before, Olivia sat patiently beside him, engrossed in a game she was playing on her new iPhone. When the setting choice was made and the discussion turned to diamonds, Olivia asked Michelle if she could look around while her dad finished his shopping. With Paul’s nod of approval, Michelle gave the OK, and the child walked off into the busy store.

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The conversation quickly returned to diamonds, and after a half-hour spent looking at several options, Paul settled on a stunning 1.70-carat F VS1 emerald cut, bringing the total cost of his ring to $23,600. Paul retrieved Olivia from the store’s watch boutique while Michelle processed the paperwork and his credit card, then father and daughter left the store.

As the team was closing that afternoon, Jack Patel, Michelle’s newest coworker, asked if he could have a word with her. He told Michelle that while she had been working with Paul, he had seen Olivia take one of the new $65 sterling silver and gemstone bead bracelets off of the display. He thought he had seen her put it into the pocket of her hoodie but couldn’t be sure. He checked the display after Olivia had moved on to another area of the store and confirmed that the bracelet hadn’t been put back in its place. Jack said that he became busy with customers at that point, but while preparing for closing, he was able to confirm that the bracelet hadn’t been sold, and he was unable to find it when he took another look around the store. Because he really couldn’t be sure that Olivia had actually taken the bracelet, and he knew that Paul was a friend, he thought it best to tell Michelle before bringing the situation to the store owner’s attention.

The last thing Michelle wanted was to jeopardize her sale over a $65 bracelet, and she definitely didn’t want to be put in the middle of what was sure to be an awkward situation, but it was closing time on Saturday, and Linda Burke, the store owner, had already left for the day. Michelle and Jack agreed that they would take one more careful look around first thing Monday morning, and if the bracelet wasn’t found, they would talk with Linda.

After another futile search, Michelle and Jack explained the situation to Linda when she arrived Monday morning. Linda pulled up the security video from the area of the store that included the bracelet display. In the video, they could clearly see Olivia taking the bracelet off the display, but her position and the angle of the camera made it impossible to see exactly what she had done with it. Video of Olivia in other parts of the store during her 30-minute walk-around offered no clues. They knew for certain that the bracelet was nowhere in the store, and though all three believed they knew what had happened, they couldn’t prove that Olivia took it.

Linda was torn over what to do. As the parent of a young teen herself, she was certain that she would want to know if it had been her son in a similar situation.

As a business owner, however, while she believed that halting the development of a potential future felon was a good thing, she also recognized that there could be plenty of possible negatives attached to bringing the situation to Paul’s attention — especially knowing that any effort to address the issue with Olivia would have to involve her combative and over-indulgent mother.

The Big Questions

  • Should Linda reach out to Paul, or should she just ignore the whole episode?
  • Is there a way to bring the potential problem to Paul’s attention without directly accusing Olivia of stealing?
  • As the business owner, is it reasonable for Linda to ask Michelle to talk with Paul?
  • Is the loss of a $65 bracelet worth the potential hassle and negative PR that would likely be caused by the girl’s mother?

 

Jo G.
Oconomowoc, WI

If you can’t prove it, leave it alone. It is the cost of doing business. If there was clear theft on the video, absolutely call Paul, but that is not the situation in the story.

Bruce A.
Sherwood Park, AB

Assuming a keystone mark-up, at best this is a thirty-three-dollar write-off. Handle it the same way as any small jewelry items disappearing occasionally from a display with easy public access. That is the reason your accountant set you up with an ICR (Inventory Change Report). I would handle the situation this way whether there was a sale or not.

Jack L.
Lake Forest, CA

Sometimes, you have to bite the bullet and move on. The store owner is not going to convert Olivia’s behavior by floating this incident to her parent(s), especially since the video was inconclusive. Yes, the theft of a $65 item is as bad as the theft of a $650 item, but, weighing everything, forget it and move on to the next $20,000 sale.

Stuart T.
Reisterstown, MD

Ever heard the phrase, “They shoot the bearer of bad news?” If you inform the father who just gave you a huge sale that you think his daughter is a thief, how well do you think that will go over? Eat the $ 65 bracelet, chalk it up to good will and be happy for the sale.

Mary T.
Leavenworth, WA

Unfortunately, nothing can be done. If the camera had shown the theft, I would have approached Paul after the diamond sale had taken place. Now, the girl just needs to be watched each time she comes into the store. In a real situation, I would make sure that the camera focus would be better in that area.

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Leo A.
St. Louis, MO

The Aanswer is in the story itself: “In the video, they could clearly see Olivia taking the bracelet off the display, but her position and the angle of the camera made it impossible to see exactly what she had done with it.” Not going to make an accusation or mention anything without solid proof she took it. Now, if the video can show there was no other option, such as falling on the floor, I would bring it up to the dad as a “just so you know” type thing.

Tracy W.
San Gabriel, CA

Let it go. For a $23,000 sale, your cost on a $65 sterling bracelet isn’t much. If the girl didn’t take it, however unlikely, you have alienated a neighbor and future client. Not to mention the legality: You can’t prove by the video that she took it. If she did, she’ll get caught sooner or later. If she comes into the store again, have an associate shadow her.

Marcus M.
Midland, TX

I know there is a nice sale riding with Paul here, but there is also a duty to call out a potential thief and the opportunity to change the course of a young girl heading for trouble. I think they just need to simply say someone saw Olivia take the bracelet but couldn’t see where she put it down, and now, they can’t find it. Then ask Paul if he’ll ask Olivia where she put the bracelet down, and hopefully, she’ll confess if she has any kind of decency. I know $65 isn’t much for a bracelet, but it’s the principle behind the theft. You play this delicately and gracefully, but I wouldn’t let it slide.

Drue S.
Albany, NY

If it was my client’s daughter, I would chalk this up to a very slight loss for not having a potential nightmare on my hands. It’s never a good idea to get in the middle of family drama. $65?? Well spent to keep serenity and peace in the store and without the ire of a helicopter mom!

Ellen L.
Seattle, WA

I would definitely have a conversation with Olivia’s father first. There may not be actual video of Olivia taking the bracelet, but it wasn’t in the inventory after she left. Hmmmm. This is a good opportunity for some enlightened parenting and a teaching moment. We live now in a society with too much permissiveness, so writing this off just feeds that tendency. And if Olivia were Black or Hispanic … Dad, get her to ‘fess up and then make her apologize to the store and make proper restitution.

Elisa R.
Ocala, FL

A few important things to note: 1) Small town, word travels fast; 2) Divorce, the daughter is the victim; 3) The customer is a neighbor; and 4) The actual loss, triple key? These are all factors in bringing an accusation regarding an individual’s child. A parent will immediately respond defensively and turn the anger to you. In a small town, that can be devastating to your business. I can conclude from Dad’s ring purchase that a $65 bracelet would not have been a big deal. The theft of the bracelet is the daughter is acting out. The owner should clip the security footage and have a private conversation with the father outside of the store setting. Perhaps on his home turf. Make it very clear that you are not accusing the daughter of anything, in fact the video is inconclusive. As a parent and a friend, you are providing the clip for his purview. The video is for his information and is the only copy. Confirm your support as a parent and a friend.

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Stan G.
Charlotte, NC

Because of the dollar amount and inconclusive video, I’d say let it go. The next time the girl comes in the store, have the entire staff stare a hole through her and she’ll know exactly why. Her hands will stay in her pockets! Paul knows what his daughter is capable of, so it won’t be a shock to him to find out she’s got sticky fingers. Her path of lawlessness will become exposed soon enough elsewhere and the local jewelry store won’t have to call out a juvenile for a petty theft. Keep selling diamonds, don’t worry about raising somebody else’s kid.

Megan C.
Poulsbo, WA

While this is a potentially uncomfortable situation, if handled with professionalism, it could be managed well. I’d contact Paul and ask to speak with him in person, possibly away from the store, in a neutral setting. I’d explain what happened in the store but clearly state that they have no proof that his daughter took the bracelet. I’d ask him how he would like to respond to his daughter’s possible action. I’d make it very clear that as the salesperson, I’m willing to absorb the loss of the bracelet. Because Paul has stated that there is a conflict between the two parents, out of respect for him, I am bringing up the possibility that Olivia took the bracelet to him directly so he can decide how to proceed. Be compassionate but not overly emotional. This could be more of a moment for Paul to teach Olivia about consequences instead of punishment, but the store would request Olivia not wander unaccompanied the next time Paul needs to bring her along for any visits.

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