[Jewelry making - Article 00201] - Re: [Orchid] Hagglers at your jewelry booth

[David Phelps]

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    My experience is that there are three reasons people want to dicker.
    For some, it's cultural. It's the way they were brought up, it's how
    it's done where they're from. Other people have Champagne taste and a
    beer pocket book. "I really like that, but my husband will kill me if
    I spend that much." Still others are the hard-core bargain hunters,
    "I NEVER pay retail for anything!" I don't find any of these
    personally insulting. The art of selling is a process of identifying
    and satisfying needs and then overcoming objections. Price is often
    an objection that must be overcome, and for some people haggling is a
    real need that must be fulfilled. Ignore this need at your own peril!
    It is as real, maybe even more real than their need for your jewelry. 


    Here's my strategy. If someone asks for a discount on a new piece
    that I don't want to dicker on, I usually say, "I can't come down on
    that, but I have a couple of similar things over here that I've had
    for a while that I can work with you on." This is great for the
    bargain hunters. I'll deal pretty heavily on something I've had for
    more than a year. I need to move those pieces out - ask David Geller
    why. If they still want the new piece, I tell them to check back in a
    few months, maybe I can make them a deal if I still have it. I also
    quite often offer lower priced alternatives, especially with custom
    work. "If that costs too much, maybe we can do this" is a very
    effective method of discovering and filling the needs of all three
    types of hagglers. 

    When asked for a discount on a repair, I turn it around and ask the
    customer if they would like for the repair to be guaranteed. I then
    ask if they would like it to be done to the highest standard or if
    they want it done without regard to quality. If their answer is no to
    either question (they are being dishonest as they most certainly will
    require it to be guaranteed, and they will want quality work) I tell
    them to take it to the mall. There is someone there that would be
    glad to do it cheaply with no guarantees. If their answer is yes,
    negotiations are over. There is obviously more to it than this, but
    this is my basic concept of selling repair. 

    My strategy for dealing with credit card charges is this; when I'm
    asked to give a discount, I immediately ask the haggler how they
    intend to pay for their purchase. That lets the buyer know that I'm
    willing to play the game and opens the door for a cash sale. The
    rules say you can't charge a customer extra for using a card, but
    they don't say you can't give a discount for not using one. A cash
    purchase costs me less, is easier to deal with, doesn't bounce, can't
    be reversed and is in my bank account up to ten days sooner, so I'll
    give a cash discount on virtually everything. A lot of times, it's
    enough of a compromise to satisfy the needs of the haggler.
    Occasionally, someone will dicker for the cash price and then pull
    out the card. I just hand their card back, put the jewelry back in
    the case and tell them flat out, that's not the deal we made. If they
    walk, they walk. 

    By far, the most common way people want to negotiate is on the sales
    tax. It's best to confront the tax issue very early on in
    negotiations when dealing with a haggler, especially on a big sale. I
    tell them that it must be paid. It's the law. If they want a break on
    the sales tax, they have to take it up with the City Council and the
    State Legislature. Of course, I smile as I say this, and try to make
    light of it, but on this negotiation, I stand firm. Sometimes on a
    cash sale I'll eat the tax, but the customer's invoice shows a price
    discount of 6.75% and has the sales tax of the discounted price on
    it. My business is trust based and my feeling is that by letting the
    customer think I'm not collecting the tax (even though I pay it after
    the fact), I'm giving the appearance of a willingness to be somewhat
    less than honest with the government. If I'm willing to cheat the
    government, maybe I'm willing to cheat a customer. Not the message I
    want to deliver. 

    If you want to sell jewelry, sooner or later you are going to have
    to haggle over price or lose the sale. It's just a part of the game
    and is a real need of some of your customers. But there are ways to
    do it without losing your credibility or selling your favorite or
    most popular pieces for different prices to different people. 

    Haggling can work both ways and in the end must be a win-win deal.
    Be prepared to stand your ground. The old haggler's rule is that the
    one who can walk away from negotiations first wins. Don't be afraid
    to let the haggler win. Especially if you win too. You can keep your
    win a secret if you want to. 

Dave
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