[Jewelry making - Article 01115] - Re: [Orchid] [Michigan] Repair trade shops?

[David L. Huffman]

========[ Invite a Friend - http://www.ganoksin.com/invite.htm  ]========

Hi David;

    I'd like to respectfully put in my two cents on some of your
    suggestions. I see some things differently on some points. I've been
    running my shop for around 10 years. I have a dozen accounts, some
    large, some tiny, and I earn about what I did when I worked as an
    in-store jeweler. 

>     But when it comes to trade work, it is PRICE sensitive. 

    Actually, David, I haven't found that to be the case. Most of my
    clients are far more concerned with quality, and are happy to pay a
    little more if the work is done right. 

>     After a few years of doing a chain store's work, they gave HIM the
>     list they were going to pay: 

    I avoid the chain stores. Their management style is not that of a
    sustainable business, they are in the race to the bottom. When they
    offer you a price list, tell them to take it to your competition and
    put him out of business. 

>     You can't make living for less than $7. 

    I have a $10 minimum, and that's wholesale. It costs me, in wages
    and overhead, more than $7 just to process a job through our system,
    even if we don't do anything but clean and check it. If they don't
    like it, I give them names of really cheap jewelers so they can go
    back and re-learn the lesson of "you get what you pay for". 

>     You should guarantee your labor. You cannot guarantee stone
>     loss above a 10 point diamond. 

    I don't guarantee all jobs, just most of them. There are some that
    will present too much risk, or the customer won't pay for the better
    repair, or it's a bad piece of jewelry to begin with. As for stone
    setting, I guarantee most, and some I don't. It's a case by case
    thing, but I know I guarantee far more stones against breakage and
    loss than most jewelers, because my selling point is "you get what
    you pay for". People trust me to set the really expensive, risky
    stones, and sometimes I do it at their risk, sometimes at mine, and
    it's not cheap, but they know what I can do so I get the work. But, I
    think if you are going to call yourself a setter, and you can't
    guarantee the work against defective workmanship, you're not ready
    to sell that service. I can't imagine telling someone, "sure, I'll
    set that 1 carat diamond in a new platinum head, but I won't
    guarantee it won't fall out". But I do suggest that they call their
    insurance agent and make sure it's covered against loss. 

>     You'll have to knock on people's doors to sell this "relationship"
>     you want with them. 

    I thought this too at one time. I've never gotten a single account
    by cold calling. Start building a network, especially with other
    in-store jewelers. Of course, they won't give you work unless you are
    better at some things than they are and can help them. It's going to
    take a couple years to get known in the area, then they will start
    approaching you. Meanwhile, yeah, go ahead and drop in on them, but
    don't leave them a price list unless they are going to give you work.
    But do a little research on all possible new accounts. Find out if
    they are looking for a new trade shop because they didn't pay the
    last guy. 

>     YOU SHOULD SET THEM UP FOR BILLING. Getting paid within 30 days
>     is a must. 

    Tried that, I offer net 15, at net 30, the cash flow problem made my
    hair fall out. New accounts should be payment due upon receipt, then
    after a while, if they aren't slow pays, longer terms. If you offer
    them 15, they'll pay you in 20, if you offer them 30 days, you won't
    see any money for 6 weeks. Yes, if you can get them to pay with a
    credit card, great, but it's not likely they are going to pay you
    before they get the work in their hands. 

>     I did an analysis for a 90 store chain on their trade shop prices.
>     Compiled 88 trade shops last year in what they charged, the high,
>     the low and the average and then made a column for what I THOUGHT
>     they should charge. I'll send it to you offline from Orchid. 

    I'd sure like to see that too, and in return, I'll send you anything
    I've got that you'd like to see, price list, policy, etc. And thanks
    for all the information. 

    And to Mary D. I don't want to discourage you, but I wouldn't
    suggest anybody start a trade shop unless they were very, very
    experienced with repairs. It's the most demanding work I've ever
    done. Why don't you go over to the Advance building of the Greenfield
    Plaza in Southfield and ask around. That's where all the trade shops
    are, and there are quite a few of them. 

David L. Huffman
____________________________________________________________________
T h e   O r c h i d   L i s t
Open Electronic Forum for Jewelry Manufacturing Methods and Procedures
____________________________________________________________________
Orchid FAQ:
~ http://www.ganoksin.com/orchid/faq.htm
Orchid Archives:
~ http://www.ganoksin.com/orchid/archive
Orchid Galleries:
~ http://www.ganoksin.com/orchid/gallery.htm
Invite a Friend:
~ http://www.ganoksin.com/invite.htm
____________________________________________________________________
Tips From The Jeweler's Bench - Article Archive
~ http://www.ganoksin.com/borisat/tip_sear.htm
The Jeweler's Selected Bibliography List
~ http://www.ganoksin.com/jewelry-books
Buy Orchid Jewelry:
~ http://www.ganoksin.com/shop
____________________________________________________________________
-Unsubscribe:
-Email: orchid-request AT ganoksin.com Body=unsubscribe subject=blank
____________________________________________________________________