Link This |
Email this |
Blog This |
Comments (8)
What Do You Do When Your Bench Jeweler Steals?
January 4, 2007
The Scenario…You and your wife own a retail jewelry store that has been passed down to you by your parents. You have worked hard to maintain the same core values your family instilled before they left. You hire staff, train them well, and pay them well. You’ve also kept a lot of the same staff members and the same system for tracking inventory…you’ve basically just changed hands in ownership and nothing else. You’ve kept the old computer that is used only to track and retag new inventory. You never got in the habit of purchasing technology and you’ve been doing fine with your own handwritten system. This past Christmas you realized that every time your bench jeweler sizes a ring, takes off an o-ring, or a couple small links of a bracelet here and there he doesn’t return the gold and platinum to you. You realize he has been stealing from right under your nose.
The facts:
- You hired the bench jeweler when you took over and he has been working for you for a year and a half.
- Your bench jeweler’s craftsmanship is superb. He does everything from simple solders, to sizing, and handcrafted waxes.
- You are happy with his workmanship, attitude, and overall performance.
- Without even factoring custom orders, your handwritten system indicates your sales are approximately 1.3million annually and you think your jeweler’s work contributes to about $400,000 of the total sales (30%). He is there for when you sell diamonds…to size and set the stone (of course, pendants, earrings, necklaces, and bracelets are sold all the time without any need for a jeweler).
- You think he probably pockets $2000 worth of gold and platinum annually which is approximately ½% of his contribution.
The problem…You know your jeweler is stealing and it was brought up to you by a sales associate.
The solutions… (1) Ignore the fact that your jeweler is stealing from you. I know this sounds crazy but it would probably hurt your pocket more if a sales associate stole. Colleagues of mine who own jewelry stores have told me horror stories regarding staff members stealing a diamond bracelet, gold chains, and even loose stones. Half a percent is nothing and you have many more things to worry about. If you stress over every little piece of gold from a ring sizing or every little o-ring you’re going to go into cardiac arrest. Next time your bench jeweler does a big job in which you know you may be able to reuse the platinum, gold, or links—ask him/her to leave it in the envelope. You can always say, “Please make sure to put the remnants of gold back in the envelope after completing the job. The customer would like it back.” (2) A colleague of mine puts a small box or jar on the jeweler’s bench and tells him he will collect remnants at the end of each week or month. You could also tell him to put every little piece back in the envelope and you can personally take it out.
What Would You Do?
Previous Case:
December 1
Who Helps the First Customer?
- A hard-working sales associate points out the need for a system for who helps the first customer.
- You know there is no one system, which will be entirely fair to every sales associate.
Please add your knowledge of how you would handle the situation or email me (shanu@gulianis.com) with your own situation whether it’s about your staff, boss, another store, or a co-worker.
Posted by Shanu Singh Guliani on January 4, 2007 | Comments (8)