Friday, February 15, 2013

Don't Wait For Your Money!

Don’t Wait For Repair Money – Get Paid Now!

Have you ever looked at your finished repair box and found it busting at the seams or running over?  Do your employees get tired of calling the same customers over and over again to remind them to pick up the repair they left last year?  Does it frustrate you that your goldsmith or outside tradeshop gets paid now but you have to wait for payment months or even years in some cases?

This is probably a scenario that plays out in many jewelry stores across the land…at least until now!  Yes, I’ve felt the pains of frustration from this very thing.  Probably like you, I take no joy in selling my customer’s repaired jewelry to recoup my costs either (not counting the bad will generated if the customer does ever return to pick it up).

 While looking at my overly full repair box and trying to get paid for repair work done months ago, a simple idea occurred to me.  Why not ask for payment in full up at the time we take it in?
Here’s a few ways that you could go about getting paid in advance at not having to worry about collecting payment from those forgetful jewelry & watch repair customers:

1.       Simply “Ask” if they’d like to go ahead and pay now…many folks will without even giving it a second thought!   You may also say something like, “Would you like to go ahead and get this out of the way today or when you pick it up?”

2.       Offer a discount of your choice if they go ahead and pay for the repair service now!  Yes, many clients still like to a discount no matter what the amount!  If you’re using the Geller blue book prices (you are aren’t you?)…then a small discount should be no problem!

3.       Offer a “Freebie” for early payment!  Perhaps you might say, “Mr. Customer, because you came in today, you qualify for a FREE gift of bottled jewelry cleaner if you pay upfront!” 

Your jewelry store is probably a lot like mine and so I predict you’ll get similar results that I have after trying the above ideas.  Slightly more than 60% of the customers asked for upfront payment did just that without one problem!  The rest of the clients in no way seemed offended when we asked but said they didn’t bring enough money or would need to wait until payday…which was just fine by me!  60% pay upfront was certainly much better than no money upfront and in these times…just like you, I have to watch my cash flow very closely.  Needless to say, this little exercise really helped out and improved our cash flow immensely.  Wouldn’t David Geller be proud?

Until Next Time,

Bill Warren, DDJM (Doctor of Dynamic Jewelry Marketing)

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