What is the proverbial silver bullet in a successful business? I belong to three different mastermind groups - two that are jewelry specific and one that is not - and this is often a topic of conversation. Truly I wish there were a Silver Bullet, but in this column I’m going to talk about perhaps the closest thing.
What is this Silver Bullet? Why, charging what you are worth of course! Most jewelers I know simply charge way less than they could for most of their jewelry sales as well as their repair work. My friend David Geller will love this!
A few years ago we had another jeweler locate in our town and his complete modus operandi was to try and undercut everyone on price. This included his repair work as well as his items sold. Needless to say after a few years, he went out of business. Why? He couldn’t make enough profit to sustain his operation!
It would seem that this would be easy to understand, but it still seems to elude many. If lawyers, doctors and plumbers charge what they are worth, why can’t jewelers?
Let me ask you a few questions. How many of you are still charging $5 for a watch battery? How many of you still charge $25 for an appraisal? Please stop this behavior right now! Did you know there are jewelers charging ten times this much on a regular basis on both counts? If you’re in the above camp, ask some of your fellow non-competing jewelers what they charge and prepare for a shock!
Herein lies the power of masterminding with other non-competitive jewelers. The sharing of info can be a great asset in helping grow your business. It can also open your eyes as to what those successful jewelers are doing to increase profits.
Until next time my friends, please start charging what you’re worth on all fronts and maybe you’ll find the closest thing to a virtual Silver Bullet!