[Jewelry making - Article 00629] - Re: [Orchid] Haggling Strategy

[Daniel Spirer]

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Neil,

    This is a dangerous cycle you are getting yourself into here. I'm not
    sure but I think you are a buy/sell jeweler, not someone who actually
    makes most or all of what they sell (although my comments apply
    either way). I know that it is tempting when you are a buy/sell
    jeweler to discount because there is less of you invested in the
    pieces and there is far more competition for you then there is with
    someone like myself (they can only get my product from me),
    especially when you're looking at those large bills coming due next
    week. However what you have to think about is this. About half of
    most small business customers come from word of mouth. Every time
    you discount to someone they go and tell people about it. Sure, they
    may say, oh the guy has good product and he's nice, but he'll also
    give you a discount if you just ask for it. Bam. You now have ten
    more customers walking in the door, all of whom expect you to
    discount for them. Every time you do it for them, then you have ten
    more for each one. Soon, no one coming in wants (or expects) to pay
    full price. And pretty soon you're like Wal Mart, operating on
    margins that are so razor thin that unless you have Wal Mart volume,
    you might as well just throw in the towel. Unless you want to play
    the exceedingly unethical, and somewhat illegal, game of marking
    things up so that you can discount them all the time (regrettably a
    common practice in the retail industry as a whole). So here's what I
    would do if I were you. Set a price you believe is fair and you can
    make money on. Explain to your customers that the prices you have
    listed are the REAL prices, that they are fair, and that it is your
    final price. Show them the value of your product, not the price. Make
    them believe in you and your expertise. Back up your prices with some
    guarantees. And then stick to your guns. 

Daniel R. Spirer, G.G.
Daniel R. Spirer Jewelers, LLC
1780 Massachusetts Ave.
Cambridge, MA 02140
www.spirerjewelers.com

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