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Alloy Costs & Layaways...Did You Get Caught?
March 28, 2007
Over the past year, the market has seen alloys drastically increase in price. Being an independent jeweler you offered your customers huge extensions on layaways…this sometimes meant an extension period of up to 12 months. In a city with a jeweler on every corner, you were forced to set gold prices per gram. Gold hits $640…your customer comes in to pick up his 55gram 9-inch Curb Link bracelet that once cost you $8/gram but now costs you $13.50-$14/gram. You panic…you sold the bracelet for only $12 a gram and now it’s costing you much more to even replace it.
Your customer has been faithfully paying for his Curb Link bracelet monthly, but ran into some tough times so you gladly extended his layaway. You didn’t take the time to think…you just wanted to care for your customer. You wanted to show him you weren’t a national chain and could bend the rules for a faithful customer.
Do you ask for more money? Do you refund the customers money? Were you saved by adding an amendment to your receipts to account for the surge in platinum and gold pricing? Did you take the hit this time but learned your lesson for next time?
Posted by Shanu Singh Guliani on March 28, 2007 | Comments (1)
