Does Geller’s Blue Book have it all Wrong? Should Repairs be Free or as Little as Nothing?

I have one question in this case. What is quality of these "free" repairs? In my experience discount repairs are almost always trouble, low quality materials and sub-par goldsmithing. A shop that gives away free repairs almost certianly hires their goldsmiths at the lowest possible wage. Part of Geller's methodology is the guarentee your shop provides on each repair that leaves the door.

I think that Mr. Geller does have a good system and a very trustworthy system. But....to some his product is pricey....

I used to give free sizing and rhodium to people who bought my jewelry, and even to some who had not seen me in many years and only wanted their rings sized or rhodiumed. Many commented that this did not seem fair since they were never going to purchase anything more due to one reason or another. I bought David's first book many years ago and started charging for repairs. I think one of the things that got me through some tough times was the money we made on repairs. Recently I bought the new kit and set my staff on it and we have revamped the entire repair department and are making on average about $50 more per repair. Many of our clients LOVE the one year guarantee, and others take the reduced price. The check in proceedure and questions that we ask make us look like total professionals. Sorry, but just taking your ring into the back room to reappear with it in twenty minutes does not strike me as creating the image of caring and professional service. I can not fault their success, but I wish they would do it ethically, a 20 million dollar a year store does not need to lie about wholesale to the public. Disappointing that the attorney general does not enforce the laws about abusive use of the term wholesale. Wink Jones

One thing that no one has mentioned about using Geller's Blue Book is that it not only helps you charge consistently, but it is a marketing tool because it helps you communicate the value of what you do to the repair customer. For example, we always do jewelry cleaning for free, but in Geller's system, you offer 3 levels of cleaning; the basic free cleaning, the checking stones, prongs etc. and the full service, back to original condition cleaning, tightening and refinishing. You also look closely at the piece to see if there is damage that needs further repair. The people who choose the full service are happy to pay for the extra care that they have chosen, and appreciate the care we show in giving them the choice. This is a service to customers, and also allows us to demonstrate a higher level of professionalism in how we look at their jewelry.

P.S. - Since I'd forgotten to include the name of that movie, here it is: "Used Cars" (with Kurt Russell & Jack Warden). Come to think of it, would you happen to know if that store you'd described uses "yellow primer" under their rhodium plating? {:o) !

Hi Shanu, Between the deceptive/unlawful "Wholesale to the Public"-line and the determination to lure and ensnare unsuspecting rubes with their "freebies" and then not let them out the door without a purchase in hand, this place's marketing methods remind me of two comments and a movie... The first comment came from a friend of mine (who custom-builds boutique guitar amplifiers), and the other, by my late father, an upscale orthodontist. My friend's comment, which came up when we were discussing my having a fancy, one-of-a-kind amp built by him, "someday", was "There are three key options involved in any custom-made item: price, speed of delivery and quality of craftsmanship. Choose carefully, because you can only have TWO of them!" The comment Dad had made was back in the mid-70's, during the oil embargo (the last time I remember things being this tight), and was actually in response to an aggressive query from a prospective patient, who wanted to know why Dad's waiting room was so packed, if his prices were so much higher than the other orthodontists in the area. Dad thought for a moment, then looked the guy squarely in the eye and answered, "Well, I guess those other doctors know what their time is worth; my patients have come to understand how much more mine is. I won't knock those other guys, because they certainly do serve a purpose, and for those who are either unable or unwilling to pay for the finest possible quality, it's a good thing that they're around. After you consider what's involved, I'm sure you'll reach the decision that works best for you." With the store you've described, it sounds to me like they're racing to the bottom of the barrel, to try to "win back business" from the Big Box stores. (And if that's the case, one more (better known) quote comes to mind: "Before you climb the ladder to success, it makes sense to find out what that ladder's leaning on"!

Shanu, They destroy their credibility with Wholesale to the public. That's a No-No. Check it out and *write* about it. Geller's book will make the Independent jeweler a reasonable profit. Check that out also and *write* about it. Yes, I own and use the book! Also, you might want to get out more often. :) James Greene

There are only 3 things you can do in the repair department: 1. Make a profit 2. Break even 3. Lose money That's your choice. If you use the repair department as a service to bring in sales, fine. You chose each department to be profitable or not. Years ago (a large mid-western jeweler GAVE AWAY with each purchase a piece of fine crystal. In fact the were the states LARGEST (I think it was Bacarat) crystal dealer and they never sold one piece. Depending upon your dollar value of jewelry purchase they GAVE you a piece of crystal. They never sold it, just gave it away. Many people bought jewelry at this store just to get more free fine crystal. But store that SOLD that same crystal did it to make a profit. So you chose to make money, break even or lose money from repairs. Your choice. I have not heard yet from a jeweler that their business was off because their repair prices were too high. But I have heard of jewelers losing sales because their product prices were too high. David Geller www.JewelerProfit.com

It would be interesting to know if this wholesale-retailer built
his business from the ground up on this notion, or added it once he
was doing big money. The answer would be relevant to anyone trying
to build their own biz. Personally, I think it foolhardy to blindly
copy the perceived competition. Play your own game.

I find that entire report of giving away repairs very
disturbing.....however, if I were doing 20-30 million in sales and
could afford to give away 100,00 in repairs, I would find another
way to spend my advertising dollars. I think this sends a very
mixed message! That is like taking your clothes to the cleaners and
never being charged. My cleaners better get in the business of
selling clothes, not just cleaning them. I am truly proudest of
being able to provide my customers quality on site repairs, and
using the Geller book has helped this department be more consistent
when my staff quotes prices and certainly be more profitable. Being
an ethical, educated and service oriented jewelry store takes a lot
of effort, thats the hard part. Giving away
business?....................well thats just too easy.

Geller Thank you for the comment. I think the Geller Book has a
great idea--if you read the entire blog I said: At this time in my
store I can’t do it. Repairs generate a whole lot of business
and keep the store afloat during times like these. BUT I did want
to tell people and ask their thoughts regarding the flip side.
Sometimes giving away repairs helps create more business. I'd much
rather sell a diamond ring or earrings, or bracelet and give away a
couple of thousands of dollars in repairs if I had the means to do
it. I was appalled I couldn't buy the Geller book without the
extras--but I understand--that's just the way you sell it! PS-I try
to think like my customers and price is very important to them.
Selling yourself and your company is another but there are a
zillion companies doing better because they are innovative and
don't care about a few bucks on repairs but think of the goldsmith
as way to create custom designs and bring customers back because
you take care of them constantly--to them a repair that costs $10
and to them $30 but if we give it free it's like giving them 100
bucks.

I get the impression Shanu is price conscious on everything and
everything is priced too high. When Shanu wanted to buy our price
book, she was appalled that we didn't sell it separately from the
whole kit ($399). When she posted on JCK forum “is the Geller
book worth it?”, 100% of everyone who posted said yes. But no
response from her. The Geller pricing book is designed to make you
a profit. Many people “think” they make a profit but
really don’t in the shop. Just announcing “we’re
profitable” isn’t enough, proof is needed and its the
way your books are setup to see that fact. Many small independents
need repair income. You know, you can buy a 1 ct H, VS for a range
of dollars that is $2000-$40000 between the high and low store the
USA. Isn’t that strange? So why wouldn’t repairs have a
range? Deciding not to charge for repairs, as her article describes
has nothing to do with profitability. It’s a marketing
decision, that’s all. If you’re doing 20 million and
lose (or giveaway) $100,000 in repairs as a marketing decision,
that’s not even a ½% spent on advertising. A 20
million store doesn’t need shop profits. A $500,000 to 2
million dollar store does. There is a customer for every store and
a price for every customer. Don’t price your shop based upon
what another store does. Most independents can’t afford to
give away the shop, it’s what’s keeping them afloat.
There is not one repair pricing system more than there is only one
bridal line to carry nor one price point for bridal that is correct
in every store. There are 17,000+ jewelry stores in America and
over 6,000 have a copy of our price book. Over 90% say the Geller
pricing guide has increased their shop profits 50-100%. Repairs are
not price sensitive, they are trust sensitive. Sincerely David
Geller www.JewelerProfit.com

I will soon be implementing a policy of free repairs (minor ones at
least), whether it is the customers fault or not. My reasoning is
that little things like this add value to your product, and in an
age where Blue Nile is selling a 4 prong setting for $300, adding
these little things definitely helps. Besides which, if the ring is
well made, you shouldn't have many repairs anyway. As for sizing,
we offer the first two free of charge. Usually, if the ring is a
surprise, the size is wrong anyway. As for polishing and plating,
we give the first one free and then charge half price. I would
offer free polishing and plating, but the last thing I want is a
million customers wanting free polishing and plating a day before
Christmas!

Are you people nuts, or is it me? Why on earth would a jeweler take
in a customer's jewelry (assuming liability while it is in his
possession), repair it, and then not charge for it? You would have
to cover the repair costs in your pricing of merchandise from the
case. Assuming you sold any...I guess that's where claiming to be
selling at wholesale prices comes in. In my opinion, not charging
for repairs not only doesn't make business sense; it trains your
customers to think that your work has no value. EEEE...this is just
crazy.

WOW A store Motto, do not let anyone walk without purchasing
something and we sell wholesale to the public. If you ever want to
see High Pressure selling with sale people killing each other for
sales and saying anything for the sake of keeping a job. This is
it. Shades of the 1950's and 60's.

They lost me as soon as I saw "wholesale to the public"

I remember visiting a store (no longer in business0 in Walnut
Creek, CA. A woman brought in her husband's Movado watch for a new
battery. The owner said, That'll be $70 and about an hour (and this
was 10 years ago !!). When the client left I asked if he intended
to test for water resistance - or some other unknown "value added"
service - he smiled and said "it's a Movado - they can afford it".
Here's an example of a service based business that used capricious
pricing to drive customers to the competition. The bench has
polarity - it can attract - it can repulse - how will you orient
your bench? marc ofte - ball watch usa

I think this is a great way to build up a relationship and trust
with customers. They have a very unique approach and its working
just fine for them. When I was in retail, people would be shocked
when you informed them of prices for repairs. The public just
doesnt understand how repair pricing works. They expect some price
but not a lot. When you offer it to them for free, they'll still be
shocked. I think they have a winning advantage till other people
copy them!

Del, What a novel concept, quality, value and service for your
customers.

This is interesting and has merit. Geller and his 'followers' have
a point, but there is a trend (at least among some independents),
to price services (and merchandise) TOO HIGH. In our store, we do
provide repairs at a more reasonable cost to our clients also. The
work is profitable, and has to be,but not "over the top". Remember
the Golden Rule? I wonder how many of our industry colleagues go
down to the corner (electronics, automobile, sporting goods,
furniture--you name it) store, and say to the owner: "I insist that
you charge me triple or more...your cost..."I insist on paying full
sticker for the car....you know they don't! The same jewelers
ranting about their "deserved" markups are the same ones probably
shopping on-line for their computers, cameras, etc. OUCH! What goes
around comes around. We had better watch out. Offer great value and
service, but don't gouge the client. They may go patronize your
competitor if you do....

Shanu, if this store is advertising itself as a 'a diamond importer
selling wholesale to the public' they're committing an FTC
violation. 'Wholesale to the public' is a big no-no--wholesalers
sell to the trade, by definition. But I agree this repair approach
is a great way to keep your customers loyal--assuming you can
afford it. I guarantee they're sucking in a lot of the repair
business from nearby stores, and with that probably a lot of sales
as well.