[Jewelry making - Article 00411] - Re: [Orchid] Design Fee

[David Geller]

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Hi Nanz

>     In my 20 odd years of experience 9 out of 10 repairs estimated to
>     be over $750 were refused or a second opinion was sought. Most of
>     my custom design averaged between $3,500 and $10,000. and
>     customers often need time to make those kind of purchases. 

    That was not the original post your gave. This is what you posted: 

>     In my experience the time any jeweler/jewelry maker spends with
>     potential customers can never be completely compensated. Marketing
>     statistic have shown that only one in ten individuals will commit
>     to a purchase over 750 dollars at any given time. Making
>     pre-qualifying a useful tool." 

    You didn't say repairs in your last post and the post was a DESIGN
    fees, custom designing, not a repair. 

    Jewelers of America has no such numbers on closing ratios for
    custom, just people who walk into a jewelry store and look at
    product. 

    As far as where I get my numbers? 

    a. I had a jewelry store from 1974 until 2000. 

    b. The last year I owned it we did 1.8 million, 3/4 of it came from
    shop sales - 1.2 million 

    c. We did over 8,800 job envelopes a year. That's over 8000 shop
    jobs, not counting sales from the case. A mix of repair and a lot of
    custom design. 

    d. From this experience FIRST I know that we had a 6-70% closing
    ratio on custom, without material (using customers material) average
    job was $750. Without material. If we sold all of the material,
    average sale was $1500-$2500. 

    e. I have sold over 5000 American Jewelers a copy of my repair and
    design price book and have spoken to the majority of them about this
    one subject. 

    f. I speak to Jewelers of America state associations (so far 3/4 of
    them), IJO, RJO, AGS and poll those people when I speak, 

    g. Over the last 12 years I do 2-3 workshops a year where jewelers
    pay to come and learn for a day how to price and sell both repairs
    and custom work. 

    h. I have easily polled 3000-5000 jewelry store owners and over 75%
    of them say they close: 90% of all Repairs when they quote a price
    60-80% of all Custom Work when they quote a price. 30% of jewelry
    showcase purchases (this is the largest number-close to what JA
    says). 

    I have a far amount of knowledge in this field. 

    Typical repair average price in the USA is no where near $750 for a
    repair as you stated. Over 70% of jewelers report a repair sale to be
    $20-$50. Some at $125. Repair sales above $200 are just plain rare.

David Geller
JewelerProfit
510 Sutters Point
Sandy Springs, GA. 30328
(404) 255-9565
www.JewelerProfit.com
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