08252019Sun
Last updateTue, 20 Aug 2019 10pm

Retailer Roundtable: Does repair work provide a significant portion of your profit? How does your store promote it?

RR Erickson“Our repair business is about 18% of our business, and we price repairs at a 2.7 to 3 time mark up. It’s profitable for us, but not quite as profitable as the custom work that we do. Being that we normally don’t discount repairs, our repair promotion consists of including it in our radio, TV and social media ads. We will also run a $25 ‘Spa Day’ special, so customers can bring their ring in for a professional buff and polish. We always pick up a lot of repairs from that. Running the ‘Spa Day’ special on Facebook has gotten us many new customers.”

Randy Erickson, owner
Erickson Jewelers
Iron Mountain, Michigan

 

RR Israeli“Repairs are 16% of my business in revenues. It is a service my customers expect for me to perform. In many cases, it is also a first time we encounter a new client, and we know they are testing us for loyalty, expertise and trust. It takes a lot of experience to know when and how to perform a job, and fortunately we are well seasoned and have all the tools to handle a client. Our repair business has led to many custom jobs for us, because depending on the condition of the piece, we suggest a re-creation for damaged jewelry. This also keeps us from being held responsible for repairs on an older, worn out piece, such as worn out hinges on a tennis bracelet or potential problems with an invisible set ring. We promote our repairs in the repair section of our website. We have signs in our window, use Google keyword searches and take advantage of social media sites. Since I love to act, and make my customers laugh, we have made a few videos with information on various topics related to our repair service. In addition, we offer free cleaning and inspection to everyone, and in the process, we find plenty of prongs that need to be rebuilt, and shanks that need care, too.”

Izzy Israeli, owner
Atlanta Diamond Design
Johns Creek & Cummings, Georgia

 

RR Deshotels“We are extremely busy with repair work and I would say on an average year it makes up about 50% of our business. With a growing amount of places for the consumer to purchase jewelry from, our repair services have more than taken up the slack. We do zero advertising for repair services. If a customer comes to pick up their repair and I don’t get a ‘Wow!’ or their jaw doesn’t hit the ground, I’m not doing my job. If you do a great job they will beat down your door!”

Jason Deshotels, owner
JD Jewelers
Niceville, Florida

 

RR Newton“Repair - and custom work - is a significant portion of our business. We are a small store with a small shop: myself, two other jewelers, and a polisher who also runs our engraving machine. We have two consistent trade accounts, and a couple of on and off again accounts who use us for overflow or for harder jobs, in addition to our retail customers. It varies from month to month, but in general about 40% to 50% of our income is through repairs, and even higher when you factor in other shop related work - custom and our machine engraving. We also have been making a move to make considerably more of our own stock for the showroom through CAD design or hand fabrication. We used to have billboards and print advertising, and we didn’t feel like it was worth it. We are now focused on Facebook, and other online advertising. It is allowing us more flexibility with our spending, and it really allows us to showcase what we can do, a lot better than a more static medium like a billboard. We have started making videos and descriptions of processes, and we are planning a blog schedule to start in the summer. We also get referrals from our existing customers, a lot of word of mouth, which you just can’t buy - but you can incubate. We have a great sales staff, who are very familiar and knowledgeable with repairs, and with Geller’s Book, which makes the process efficient for the shop and for the customer.”

Graham Newton, designer/diamond buyer
From The Vault
Louisville, Kentucky

We want your opinion for our Retailer Roundtable. To answer a question or suggest a topic for a future Retailer Roundtable question, e-mail your name, store name and location to This email address is being protected from spambots. You need JavaScript enabled to view it..

 


0
0
0
s2smodern

Columnists