INTHE
LOUPE
The Ultimate Jeweler Resource
Indianapolis Hosts Best Family Reunion Ever! IN A TOWN KNOWN FOR its car-racing heritage, it might be expected
that RJO’s Summer Buying Show attendees would find things to be hectic and rushed—in the fast lane, in other words. The reality is that members and vendors did go the distance in Indianapolis, but seemed more focused on the journey than the destination.
MARY PETERSON RESIGNS AS CEO OF RJO Mary Peterson officially resigned from her 12-year post as Chief Executive Officer, effective August 9. Peterson explained her time with the company has been a great professional accomplishment and an endeavor she has greatly enjoyed. She is departing at a time when the state of the organization is thriving and future leadership is in place. Peterson plans to stay involved in the jewelry industry in other capacities. The Board of Directors has elected 14-year RJO veteran and Chief Operations Officer, Sarah Streb to take over the CEO position.
The journey in this case was the celebration of RJO’s Golden Anniversary, marking 50 years of leadership, service, and support from one of the country’s largest retail buying groups. The show, held at the end of July, featured timetested favorites, such as the annual golf tournament, educational and provocative seminars and keynote speakers, great offerings from the nearly 200 vendors, and lots of buying. RJO President Terry Dickens says the spirit of the show was right in line with decades of success. “I had one of our members come up to me and tell me that RJO seems to be in a lot better shape than when she turned 50! I laughed and had to admit that I felt the same way.” Be sure to mark your calendars for our Winter Buying Show: Buying Frenzy, February 4-6, 2017, in warm and beautiful Tampa, FL.
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In the Know with RJO
Moving Forward MY RJO CO-WORKER, FRIEND, AND MENTOR Mary Peterson resigned from her CEO position last month. Although I knew in the back of my mind this would happen someday, it is still odd not working with her on a daily basis or hearing her distinctive voice while making the rounds in our Newton office. I have many fond memories of Mary’s leadership at RJO, from growing membership to offering member experiences and services as the needs arose. We spent more than 100 hours every year together in a car, traveling on RJO business, and I can tell you we got to know each other’s priorities, expressions, concerns, glances and eye-rolls in a way I never thought possible. Thank you, Mary.
When you met Mary, you immediately put her in your Friend column.
Once members found out that Mary had resigned, I wasn’t the least bit surprised by the outpouring of goodwill for her. It seems that if you met Mary over the years, you immediately put her in your Friend
column. If you had a complaint, compliment or joke, she wanted to hear it. The complaint was then acted on, the compliment passed on or returned, and the joke laughed at (no matter how corny). Mary led RJO during some tough financial times for members, and she was instrumental in creating a stable environment on which the organization will grow and prosper in the future. I wish her the best in her future adventures. I’m confident the transition will go smoothly. While I bring my 14 years of RJO experience to the CEO position, I’m still considered one of the new kids on the block among our talented, skilled and terrific staff. Of course, as a member, you know this is true ... because you know them too. It seems fitting in RJO’s 50th year that I ask you to join me in building upon our past work as we continue to be the source for independent retail jewelers to thrive, share knowledge, and achieve professional success. Sarah Streb RJO CEO
50 Years Together • Summer Buying Show 2016 • Indianapolis • 50 Years Together • Summer Buying Show 2016 • Indianapolis
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New Board Members Elected TEN CANDIDATES—The most in RJO’s history—competed for four openings on the RJO Board of Directors. Those elected to the Board will begin (or continue) their duties in January 2017, and they are:
SERVICES Centralized Billing Patronage Dividend
Erika Godfrey, Hawthorne Jewelry
RJO Website (rjomembers.com)
Bill Becker, Beckers Jewelers (incumbent)
Buying Shows (Winter/Summer)
Nancy Eklund Marchell, Signature Jewelers
RJO Chat Channel
Richard R. McIntosh, McIntosh Jewelry, Inc. (incumbent)
In the Loupe – RJO’s newsletter Free Print and Radio Ad Library (on the RJO website)
We thank all of the candidates who offered their name and were willing to serve the organization.
Educational Seminars at Buying Shows Member-to-Member Incentive
Apply Now For Your RJO Foundation Scholarship!
Program (Recruitment Program)
THANKS TO THE FUNDRAISING EFFORTS of our generous members and vendors, the RJO Foundation is excited to offer additional scholarship opportunities to our membership. Interested applicants may review the scholarship eligibility requirements and complete the application to be considered by the Foundation Board for the award.
Organized Buying Trips to Antwerp and Idar-Oberstein; Israel RJO Directory Travel Vouchers at Shows
“We are truly thrilled to be offering these scholarships again,” says RJO CEO Sarah Streb, “and I encourage our members to take advantage of this financial assistance. Be it GIA courses, a local college business course, or bench training, RJO is here to support continued learning.”
(offered at varying times) Free Hotel Room Incentive at Buying Shows) RJO Informational E-mail Blasts Purchase Vouchers at Buying Shows RJO Membership Certificate Education on the Go Podcasts and Webinars Private Label Credit Card Service JewelConnect
Additional details about the Foundation and the scholarship may be found on the RJO website. The deadline for applications is Friday, October 7. E-mail or fax completed applications to Sarah Streb at: sarah@rjomembers.com or (641) 792 - 9251. The RJO Foundation supports the advancement of the jewelry industry by providing scholarships and grants to individuals or programs. We aim to support the next generation of retail jewelers to encourage the ongoing success of our retail members.
50 Years Together • Summer Buying Show 2016 • Indianapolis • 50 Years Together • Summer Buying Show 2016 • Indianapolis
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JewelConnect Revamps Item Catalog JEWELCONNECT, THE RJO-EXCLUSIVE online marketing system has completely renewed its catalog of more than 50,000 items for the upcoming sales season. “As of August 26, every item on the database is brand new or updated” says Andrew Boundy, JewelConnect's manager. "We're excited to release an all-new catalog, as we have optimized the items to appeal to the requirements we have been tracking, and we also have included new vendors. We have a great selection of rings, earrings, bracelets, pendants, logo wear and more as well. Within a month, we’ll have jewelry boxes and giftware integrated to appeal to even more people," says Boundy. This year marks the sixth of the JewelConnect system. “Our mandate is to grab Internet shoppers
and put them into RJO stores, instead of them buying online,” says Boundy. “We’ve been successful again this year—by showing more than one million pages of RJO jewelry and store information to users here in the United States.” Christmas 2016 will be another test for JewelConnect, as that’s when they get much of their traffic, corresponding to the seasonal demand. “We track things closely at Christmas, and we'll be monitoring so we can learn more about what people want, and where and when.” said Boundy. “We adapt quickly and change the system often to take advantage of new tech, as well as opportunities we see for the RJO membership— and there's more to come in 2017. We love what we do.”
RJO Next Gen Board Seeking Applicants RJO’s NEXT GENERATION BOARD is comprised of six RJO members, appointed by the RJO Board of Directors. Its mission is to aid management in understanding the needs of the next generation of independent retailers, as well as provide insight to the development of the curriculum of the RJO Next Generation Experience.
Currently two seats are up for re-election on the RJO Next Gen Board, and RJO is seeking applications from interested members. The appointed members will assume their official board responsibilities on January 1, 2017 and will be expected to attend their first official meeting at the RJO Winter Buying Show in Tampa.
If interested, please carefully review the Roles & Responsibilities of the Next Gen Board. Applications will be accepted until Friday, September 16.
50 Years Together • Summer Buying Show 2016 • Indianapolis • 50 Years Together • Summer Buying Show 2016 • Indianapolis
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NEW MEMBERS Exclusive: Travel with Kate Peterson Eaton’s Fine Jewelry Jeffrey Eaton St. Albans, VT
referred by Lynn Young, Bryan Jewelry Prattville, AL
Jewel In The Sea John Pearson Nantucket, MA
(bought store from Jewel on the Isle, Gary and Kelli Trainor)
Kim’s Fine Jewelry Kim Lizzi Summerville, SC
referred by Jemini Joshi, IDD USA New York, NY
EVERYONE KNOWS OVERSEAS TRIPS can create a unique shopping experience for your customers and establish you as the diamond and colored stone expert in your area, but what about your staff? What if your entire store was equipped with the knowledge and enthusiasm to not only pre-sell enough diamonds and colored stones to pay for your trip, but increase your store's overall sales? In order to maximize your store's selling ability, the front lines must have the knowledge and training to sell these storied items! In order to make this dream a reality, RJO is proud to announce an RJO exclusive partnership with Kate Peterson. Performance Concepts, will be developing a multi-level sales training program, launching in January 2017, to increase each member's benefit potential from RJO's Overseas Buying Program. This program will be provided at NO COST to every member who attends the RJO Overseas Buying Trip. It has become clear these trips are a fantastic business opportunity and a smart financial strategy for RJO retailers. Join us and ensure your spot in RJO history!
R.C. Wahl Jewelers Heather Wahl, Robert C. Wahl, and Barba D Wahl Des Plaines, IL
referred by Duke Thames Fantasy Diamond/Hampden Corp. Chicago, IL and Wayne Levy, Aladdin Gold Creations, Northbrook, IL
Jewelers referring new members to our group will receive a $1,000 finder’s fee for their referral, payable after a new member has been in good standing for at least six months.
Kate Peterson Performance Concepts
To learn more about RJO’s hosted trips, contact RJO trip coordinator Connie Matsen (cmatsen@rjomembers.com).
2016 Dates First Europe Trip Hosts: Liz Schlauch & Jeff Horlacher Antwerp: October 8-13 Idar-Oberstein: October 13-17
Second Europe Trip Hosts: Connie & Steve Matsen Antwerp: October 15-20 Idar-Oberstein: October 20-24
50 Years Together • Summer Buying Show 2016 • Indianapolis • 50 Years Together • Summer Buying Show 2016 • Indianapolis
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VEER: Representing Success in Any Language VEER IS A PROUD 100 PERCENT “Made in America” diamond and jewelry manufacturing company, located in the Diamond District in New York, but its roots pass through India and … Indiana. Owner Kaushal Shah runs a very tightly knit family business, and he brings many touches of his Indian heritage to his business, starting with the name. “VEER in the English language means to take an unordinary path,” says Kaushal, “and in the Hindi (the national dialect of India) language it means to be brave. My father always instilled a faith in us that the brave will always find victory. When we started our company in 2012, we were going against the tide; our industry was going through uncertain times; however we have the belief that if we provide our stores with the right product and the right marketing, it will allow them to shine. VEER believes in the philosophy of having a story or a meaning with every collection that they represent. “Having a good story allows us to romance our
beautiful business and it cultivates joy” says Kaushal. Keeping that in mind we started our journey to build VEER.” “My father started in his business 38 years ago as a loose diamond manufacturer, importer and exporter,” Kaushal continues. “I have practically grown up in this industry. My father taught me how to loupe a rough diamond at the age of five. When I came to study in this country, I came with a dream that one day we will open an office that will be an extension of our family business in India.” “My journey from studying at Purdue University amidst the cornfields of Indiana to the concrete jungle of New York has been truly a great adventure,” says Kaushal. “In the process I found a wonderful guru, extremely close friends who I call family, and I realized that the sky is the limit. Being through these times and seeing what is out there tells me one thing: we still have a lot of ground to cover and an exciting
journey lies ahead of us. Our strength is our independence, and one way I keep the fun alive is by continuing to grow with my stores, by listening to them and enhancing them by creating custom solutions. It’s a sweet emotion when you have a friend who is willing to walk a few miles with you and make your journey a part of theirs.” Building relationships has always been central to Kaushal and the company he runs. “Our programs for classic categories—such as diamond studs, wedding and anniversary bands—are front-runners in the jewelry industry,” says Kaushal. “Before we partner with any store, we believe in doing a competitive analysis. We usually study the geographical area that they are in, their competition, their product offerings, etc. Once we believe we can bring value to them, we go in with suggestions about which lines from our product portfolio would allow them to fill a gap. Sometimes we find that our desired stores are
50 Years Together • Summer Buying Show 2016 • Indianapolis • 50 Years Together • Summer Buying Show 2016 • Indianapolis
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well-set and are already providing the best. At that point we just pass on our research and request them to allow us to keep the door open if anything were to change.” This jeweler-focused approach seems to have been noticed by RJO members. After having only joined RJO a year earlier, Kaushal— representing VEER—was recognized as Sales Representative of the Year during the Indianapolis Buying Show this past July (see photo on page 13). In addition to the classic categories, VEER also offers bridal programs that are suited for both small boutique operations as well as large independent stores, due to its wide array of price points. “Its unique designs make it a story to tell and adds romance.,” says Kaushal. VEER offers several storytelling brands, including Fairytales Bridal, Soul of the Sea and just recently, the StarStruck Diamond Cut. “The brand new StarStruck Diamond is
a unique cut that we have patented,” says Kaushal. “The uniqueness not only lies in its brilliance and shape, but it also projects a striking star when viewed through a special viewer. We actually call it a Kaleidobox.”
2019. He says, “Watch this space— it will be a lot of fun!”
Kaushal has a few interesting projects in the pipeline that are ready to be launched in 2018 and
“The RJO Foundation believes in empowering our jewelers through education,” says Kaushal. “This is a value that resonates with VEER, and we wanted to be a part of this amazing initiative in our industry. The power to create and customize is something that the big box stores do not have. This will give our independents an edge to compete in this rapidly changing industry and set themselves apart in their area. VEER is donating a portion of all sales of its StarStruck Diamond to support this cause. Our goal is to raise enough so we can support a full paid RJO Foundation scholarship to the New Approach School of Jewelry in Nashville, TN.”
Kaushal’s future plans aren’t just about his VEER business; he’s taken a keen interest in getting involved with the RJO Foundation, as well.
VEER is located at 31 West 47th Street, Suite 702, New York, NY. Phone: 855-836-5483 Website: www.tdmveer.com
50 Years Together • Summer Buying Show 2016 • Indianapolis • 50 Years Together • Summer Buying Show 2016 • Indianapolis
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From RJO’s Facebook Page
SPONSORS RJO thanks the vendors below for their generous sponsorships of the RJO 50 Years Together Buying Show, our Buying Trips, and our Experiences.
THE RJO PAGE ON FACEBOOK hosts a variety of interesting discussions each week. Here’s an edited exchange from last month:
A & D Corporation Allison-Kaufman ARKK Jewelry Aura Jewels BELLARRI Berco Charles Frey & Company Cherie-Dori Citi Bank Color Merchants Concept Marketing Darling Imports Dharm International Diamond Expressions Dora International Earstuds USA ELLE Time & Jewelry Federated Insurance Fischler Diamonds Frank Reubel Designs Gage & Gage, Inc. Gems One H.L. Mfg. Hans-Dieter Haag Imperial Pearl Interings Jewelers Mutual Insurance Jewelex New York, Inc.
Can anyone share their experiences with/results from custom holiday catalogs? We do very little print marketing anymore, but we're toying with the idea. Thanks!
Levy Creations Lustour, Inc. Majestic Art Jewelry Corp. Mercury Ring / Interjewel Metal Marketplace Michou Midas Chain Ofer Mizrahi Diamonds, Inc. Ostbye Pancis Paramount Gems Parlé – Idaho Opal & Gem Quality Gold RDI Schurhammer Mfg. Co. Shah Luxury Simply Diamonds Star Gems Star Solitaire Sterling Reputation Stuller The EDGE by Abbott & Shapiro Thinkspace Wilkerson & Associates YCH
We have done our own custom catalog the last four years. It has been extremely successful. We mail 45,000. The best part is that we only pay 16 cents each, to mail via the post office EDDM (every door direct mail); you can blanket entire towns or pick routes. How difficult is it to get photos and everything organized from your vendors? I’m not going to lie. It’s like pulling teeth trying to get hi-res images. It blows me away that a company sells thousand-dollar pieces, and they don’t have an image on hand—or one even close —that is printworthy. We actually changed up who we bought merchandise from based on their capabilities of giving us good quality images. How can you sell something if you can't advertise it? Couldn't agree more. We've dropped vendors because they couldn't supply images. It's crazy! Wow! Thanks for taking the time to respond. So you found it was worth the approximate $18.5K investment? Yes! I don't do any other advertising … just print like this.
50 Years Together • Summer Buying Show 2016 • Indianapolis • 50 Years Together • Summer Buying Show 2016 • Indianapolis
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A Succession Consideration: Buy-Sell Agreements The RJO Succession Experience covers topics like this, that help members prepare for their store’s future. Our next Succession Experience will be held May 20-22 in Oak Brook, IL. For more information contact Hannah Green at hannah@rjomembers.com. A BUY/SELL AGREEMENT helps a business owner “lock in” a value for their business. The Agreement does this by using a “valuation formula.” The formula you use could mean the difference between receiving liquidation value or fair market value. Does your valuation formula lock in fair market value? Common Valuation Formulas for Buy/Sell Agreements Option 1 – Book Value The book value method (also known as net worth or owner’s equity) is simply the total assets minus the total liabilities as shown on your financial statement. This method is sometimes referred to as the “liquidation” method. This method usually understates the true fair market value of your
business, as it does not account for goodwill, profitability, or recapture of accelerated depreciation. Example: ABC Inc. Fair Market Value = $1.4 million Book Value = $450,000 Loss in Value = $950,000 Option 2 – Agreed Value Method With this method, owners periodically meet and set the value of the business in writing. This new value is then amended in the Buy/Sell Agreement. If your business utilizes this type, how long has it been since you documented a new value? If you’ve not adjusted the value to reflect today’s current value, you can lose.
market value, it factors in several things, such as the current value of assets, liabilities, goodwill, and profitability. This method ensures all interested parties receive the full value they deserve. Example: ABC Inc. Appraised Fair Market Value = $1.4 million Loss in Value = $0
Example: ABC Inc. Fair Marketing Value = $1.4 million Last Documented Value (2003) = $800,000 Loss in Value = $600,000
Make sure your valuation method locks in the fair market value of your business. Take advantage of Federated Insurance’s Agreement EvaluatorSM to receive an informal review on the strengths and weaknesses of your valuation formula, along with the other terms of your Buy/Sell Agreement.
Option 3 – Appraised Fair Market Value Method This method has a stated process to formally or informally appraise the business. To arrive at fair
Federated Insurance is a (Superior) A+ rated mutual insurance company specializing in business insurance and risk management services for select industries for over 111 years. Phone: 507-444-6660. Website: www.federatedinsurance.com
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Signature Jewelers: We are Your Hometown Jeweler NANCY EKLUND MARCHELL says she hopes to be a motivational speaker someday, and her track record suggests she’d be great at it. Twenty years ago, Eklund Marchell was a single mom, raising kids and working for an agricultural finance company in North Dakota. Today, she’s in her 15th year of owning her own jewelry store, and she was just elected to RJO’s Board of Directors. “I moved to Grand Forks, ND, in 1997, and I worked for an agricultural finance company,” says Eklund Marchell. “Knowing things would be tight as I started raising my kids as a single mom, I took a part-time job for an independent jeweler in town, and I found my niche. When he did not renew his lease, I started my own store—Signature Jewelers— in 2002. Competing against his final sale in my first months of business was interesting to say the least! Since that time, I have survived five independent jewelers going out of business, making me the longest serving independent jeweler in the area!” Serving the area is her specialty. She says her typical customer ranges from the grandma who might need a watch battery replaced, to the farmer
looking for an anniversary gift, to the college-aged fellow shopping for a custom made engagement ring. “I have become known for custom jewelry, mostly focusing on diamonds, and I would like to start creating more custom pieces with colored stones,” says Eklund Marchell. “I’m also excited to be adding bracelets from [RJO vendor] GK Jewelry. I have found that a lot of women love jewelry they can purchase for themselves or their friends, with a minimal investment, and the ability to add to their collection.” Since joining RJO in 2009, Eklund Marchell has combined her finance background and motivational skills with RJO services and support. “When I think of RJO,” she says, “I think of the jewelry shows. Attending a Buying Show has always been a great way for me to network with other jewelers from across the country, learn from the seminars, spend time with my existing vendor and jeweler friends, and come back motivated and recharged. New friendships are made, and I am reminded why I love what I do!” “Additionally, I think every jeweler should experience an overseas
buying trip,” she continues. “A trip to Antwerp, Idar-Oberstein, or Israel will not only set your store apart in your community, you also will create great friendships through these travel experiences with your fellow jewelers and RJO staff. I have researched other buying group trips, and, without a doubt, the RJO experience is the best I have found.” Eklund Marchell ran in the recent RJO Board of Directors election because she believes in the organization’s mission and independent spirit. “I have learned so much about the industry and have sharpened my business skills over the last 14 years,” says Eklund Marchell. “As my life has transitioned and my family has grown, I want to be able to give back to the independent jewelry community. We all know the industry is changing, but we can still remain strong and viable if we work together. RJO is a great group of jewelers, and I am proud to be part of this organization as a member and also a new director on the board.” Signature Jewelers is located at 4491 S Washington Street, Suite A, Grand Forks, ND. Phone: 701-757-4848. Website: www.signaturejewelersgf.com
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Great Salespeople are Your Most Valuable Asset! BEFORE OPENING my advertising agency, I spent 25 years managing salespeople. I loved working with, and helping develop, salespeople. Nowadays, being on the other side of the desk brings a whole different perspective. We currently work with 25 different accounts, and I can tell you that the number one concern last year was finding and keeping good people. It will be a consistent problem for many businesses moving forward. That makes development of salespeople a critical area of focus. So how does that happen? It is not as daunting as it might seem but, like anything important to your business, it will take organization, time and dedication. In a perfect world it also will be fun! Let’s start with the assumption that you have good people working for you. That takes a lot of the heavy lifting out of the equation. What are your areas of focus, and what do your people need to know about those areas? Start with the five most important ones (you can add more later). Go through the
sales process from the door opening to the door closing.
store, and ask what you might be able to help them with.
Salespeople need to be educated and empowered by you to step up and take care of the customers. The more they know about the product and business, the more comfortable and confident they will be, and they will present themselves as experts. People want to do business with experts.
Ask them if they have time to see a new product you have just received. Show it off and be proud. How many pieces of jewelry have been sold to people who might have stopped in for new watch battery?
The more your salespeople know, the better off you are. Teach them. Tell them your secrets and your philosophy. Show them the difference between two like pieces. What makes one better than the other? Walk them around the store, and tell them why certain things are where they are. Under what light do the products look the best? Product knowledge and confidence will only get you so far. You need to develop people skills and an approach. Where are customers greeted when they come in? Yelling hello from behind a counter won’t cut it anymore. Step up, shake their hands and (hopefully) greet them by name. Welcome them to the
Never be pushy. Never. Be. Pushy. Allow people to shop without you at their side. Be attentive, but not annoying. Always appreciate and celebrate great sales. Jewelry is a fun, people-focused business. Create that environment, and your customers and salespeople will benefit. So will your bottom line! Michael C. Woody is President and Chief Idea Officer of Capital Ideas, an advertising and marketing firm. He has been in the advertising and marketing industry for more than 30 years. Phone: 515-556-5373. E-mail: MichaelC@ideas2burn.com Website: www.ideas2burn.com
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WINNERS: Cash, Prizes, Golf, Awards CASH GIVE-AWAY: JEWELERS
VENDOR PRIZE GIVE-AWAYS
$500 Grand Prize Peggy Fox, J.R. Fox Jewelers*
.62 ct Natural, Intense Yellow Color Diamond Donated by Nice Diamonds Johnny & Mary Snow, The Jewel Shoppe
$200 Harold Ingram, Haywood’s Jewelers Will Feller, Goldsmith Co. Albert Yocom, Yocom Jewelry* Cathy Couch, Couch & Co.
Trip to Orlando (2-Bedroom Condo, Airfare for 2) Donated by Diamond Emotions Chris Grams, Melgram’s Jewelry
$100 Dean Benter, Van Denover Jewelry Larry Weiand, Walkers n’ Daughters Jewelers *Donated $100 to the RJO Foundation
CASH GIVE-AWAY: VENDORS $50 Bart Leddel, Leddel Designs Joe Sebastian, Price Point Marketing* National Box & Display Jiggs Jorgenson, Box Brokers* *Donated $50 to the RJO Foundation
3-Day Caribbean Cruise (2) Donated by Pancis Gems Karla Doolittle, Mark Jewellers Nancy Marchell, Signature Jewelers Mt. Rushmore Getaway Donated by TR Jewelry Concepts Nathan Chappius, Chappius Jewelers Wayfare Rayban Sunglasses Donated by Jewelry Innovations Eddie Bacon, Bacon Jewelers $500 Antwerp Travel Voucher Donated by Bentelli Kock’s Jewelry, Hutchinson, MN
RJO GOLF TOURNAMENT 1st PLACE - Jerry Miller, Wink’s Fine Jewelry - Tim Marr, Ostbye - Rob Kruzick, Ostbye - Jim Boling, Crider Jewelers 2nd PLACE - Rick Gouthro, Diamond Emotions - Justin Gouthro, Diamond Emotions - Jeff Wynkoop, Quality Gold - Brian McMahon, Quality Gold
3rd PLACE (TIE) - Eric Weber, Oro - Eddie Waters, Kelley Waters - Jessica Pioletti, Kelly Waters/HL Mfg. - Darren Maertens, Frank Reubel 3rd PLACE (TIE) Renee Singer, Start-to-Finish Steve Singer, Start-to-Finish Bob Meadows, Meadows’ Jewelers Lamar Murrell, Selman’s Jewelers
Closest to the Pin #6 Rick Gouthro, Diamond Emotions Closest to the Pin #11 Nathan Strickland, Carol & Co. Fine Jewelry Longest Drive (Women) Kate Long, Herteen & Stocker Jewelers Longest Drive (Men) John Skaret, Goldman Longest Putt Frank Riek, SVD Bridal Collections
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BOARD OF DIRECTORS AWARD Sean Hoffert, Paramount Convention Services
LIFETIME ACHIEVEMENT AWARD Steve Schurhammer, Schurhammer Mfg. Inc.
RJO 25 YEAR STAFF AWARD Mary Harger
VENDOR OF THE YEAR Finished Goods: Ostbye
VENDOR OF THE YEAR Finished Goods: Allison Kaufman
VENDOR OF THE YEAR Loose Goods: RDI Diamonds
SALES REPRESENTATIVE OF THE YEAR Kaushal Shah, VEER
SALES REPRESENTATIVE OF THE YEAR Aubré Ford, RDI Diamonds
VENDOR OF THE YEAR Service/Specialty Products: EDGE by Abbott & Shapiro
VENDOR OF THE YEAR Clock/Watch: Citizen Watch Co.
DIAMOND IMPORTER OF THE YEAR (Sponsored by Schurhammer Mfg. Inc.) Kate Marks, Marks of Design
RJO GOLF TOURNAMENT WINNERS From left: Rob Kruzick (Ostbye), Jerry Miller (Wink’s Fine Jewelry), Jim Boling (Crider Jewelers), and Tim Marr (Ostbye)
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Cover Story
The Art & Magic of
Great Salespeople I
t is difficult to overstate the importance of sales in the retail world. You work hard at selecting the right product, setting the right price, marketing it to get customers in the door, but then it’s up to sales to close the deal. “Sales is perhaps one of the best and most important professions,” says Michael Woody, President of Capital Ideas and regular columnist for In “The Loupe.” “Without them, the national and local economies would grind to a halt in a matter of minutes.” But not all sales are created equal. For luxury retail, quality large sales—and not volume of small sales—are typically the overriding goal. To produce these sales, jewelers need great salespeople. So what common traits do these salespeople share, how do we identify a great salesperson, and how does one hire and keep a great salesperson? Science fiction author and futurist Arthur C. Clarke once observed, “Any sufficiently advanced technology is indistinguishable from magic.” The same holds true for a great salesperson. The interaction with the customer seems effortless, the interest genuine, and the fluidness appears natural. But is sales skill a natural gift? Peter Smith thinks so. Smith is a past RJO presenter and the
author of Hiring Squirrels: 12 Essential Interview Questions To Uncover Great Retail Sales Talent. He also is a columnist for “National Jeweler.” Smith has more than 30 years of experience building sales teams at the retail and wholesale levels, and he has spent much of his career working with independent retailers to offer counsel and advice on matters of sales, branding, marketing, personnel, training, and compensation. According to Smith, great salespeople are wired to be great. “You cannot train sales wiring,” he writes. “You cannot build a compensation plan that creates sales wiring. You cannot dictate, cajole, or insist upon sales wiring. If the candidate that you are hiring, or for that matter, your current salespeople, do not possess the essential wiring for sales, they should not be employed in a sales capacity, because they will never become very effective salespeople, no matter how much effort you put into making it so.” When asked, a number of RJO members sent in what they considered to be the traits of great salespeople they’ve known, and most of the responses were consistent with three traits that Smith has identified: Drive, Empathy, and Resilience. Drive can be seen in those salespeople who show a burning desire to succeed. They typically are always on, and they use this energy to sell and persuade. Salespeople with drive are confidently assertive. One RJO member tells the story of a salesperson who, when told by a customer that
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they didn’t have any money, responded with, “How much money don’t you have?” Empathy can be seen in those salespeople who are the favorites of customers, they are excellent listeners, and they are very good at picking up on customers’ body language and facial expressions. Empathetic salespeople encourage their customers to tell them “their story.” Apparently not all empathy has to be sincere, though. One RJO member tells the story of a great salesperson who used the acronym AIP to help him focus on closing the sale. “A” stood for “acknowledge” (the reason the customer can’t or won’t make a purchase), “I” stood for “ignore” (said reason), and “P” stood for “proceed” (with the sale). Resilience is a necessary trait for great salespeople, says Smith, “particularly when one considers that about 60 percent of customer interactions result in no sale.” Great salespeople show resilience by embracing rejection as a learning moment and not as a personal reaction. Smith tells a story that one of his clients shared with him, and it highlights a salesperson wired with these three traits: “A gentleman walked into our store one afternoon and began to hover over our Rolex case. One of our consultants worked with him and after a few minutes, he decided to buy the rather expensive watch for himself. As delighted as he was, he nervously suggested that he was just a little
Grace I had a beautiful, young college girl that worked for me part-time. She always smiled and never had anything bad to say about anyone. I also have an older gentleman customer who is crustily-creative (at best) with his language and one we have asked repeatedly to leave the store due to his colorful language skills. My sales associate was in the process of selling him yet another gold chain to add to his selfproclaimed “Mr. T” collection already hanging around his neck. Throughout the entire presentation, he was making comments to her about how beautiful she was, which she politely accepted, yet she changed the subject and finally closed the sale. As he was walking out, he very crudely stated that he wanted to kiss her ... on the cheek, since he did spend money on the new chain that she sold him. Her response: “Oh, Roger. I think you should save those kisses for your girlfriend.” She calmly—and quite politely—smiled, thanked him for his business, and showed him the door. I applauded, because I had been standing in the corner the entire time thinking that it would be me having to show him—or more likely shove him out— the door before the sales presentation could even begin. In the end, she won the sale, and he left with a confused little smile on his face. She got a free lunch on me for the effort! She was tactful, classy, and made the sale ... perfection.
Peter Smith
Erika Godfrey Hawthorne Jewelry Kearney, NE
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worried about what his wife’s response would be when he arrived home with his new Rolex. As we began to process the sale and pull the paperwork together, another one of our sales consultants, who had overheard the conversation, walked over to him with a $35,000 Canary diamond ring and humorously suggested, ‘You
Patience The wife of a customer wants a ruby to set in a platinum ring she already has for her anniversary present. The husband wants to get a custom painting instead. He does not want to pay for both, so he says “no” to the ruby. Our associate explains to him—in a nice way—that although he really wants the painting, his wife does not. The wife comes in so excited about the ruby that she is going to get, that she wants to see it again. But the ruby was already sent back to the supplier, since the husband passed on it. We get it back in again, and the wife brings him back in to see it again. He passes again. This happens three more times, and I am fed up with bothering my good supplier and paying shipping. Our associate is sure this is the present that will make the wife happy and the husband a hero. She does not give up. We eventually get in four different rubies because the original one sold to someone else. So, almost a full year later, she sells a $20,000 ruby to the wife. I gave her a high-five for not giving up. She really wants to make her clients happy. Teri Hayman David Hayman Jewellers Yorba Linda, CA
know, this watch-thing would go over a lot smoother if you were to bring a little something home for her.’ The customer laughed the laugh of someone who had just been given a Get Out Of Jail Free Card, and, much to our amazement, he replied, ‘You’re right.’ And he bought the ring, too. He actually thanked us for the idea. He bounced out of our store, delighted with his new watch and the thought of presenting the beautiful ring to his wife. All of that, because one of our sales consultants had a good sense of humor and the confidence to use it with him.” Whether one buys into the idea that great salespeople are wired that way or not, how do you go about finding a great salesperson? For some, the luxury retail world just ... attracts them. “I’m very lucky to have people seek us out,” says Erika Godfrey, of Hawthorne Jewelry in Kearney, NE. “We work in a fabulous industry, and we get to play with pretty little baubles. We pick and choose our salespeople based on availability, but also on whom we think our customers would love to visit with! We tell stories and help create memories; our staff needs to be able to do just that, while creating a relationship that lasts longer than one specific sale.” Not everyone is as lucky as Godfrey. Writes Smith, “There are great potential sales candidates in every single city and town, and the irony is that those candidates are sometimes sitting across the desk from us being interviewed, and we don’t even recognize them.” RJO jewelers who provided input for this article conceded that finding a great salesperson is highly personal and sometimes a shot in the dark. It’s not always the experienced candidate, or the nicest candidate, or the best-dressed candidate who gets selected. To help better find the right candidate, Smith, in his aforementioned book Hiring Squirrels, offers readers several insightful chapters that revolve around a dozen questions that will help interviewers come closer to finding their own great salesperson. “We need to take a hard look at the criteria that we use to construct our sales teams,” he writes.
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Based on responses, many RJO jewelers have had success hiring great salespeople, but are less sure about how to keep them happy and retain their services in the long run. Capital Idea’s Woody says that experiencing a lousy salesperson is no fun, and seeing a great salesperson lose their sharpness is disheartening. “Not a day goes by that I don’t see blatant examples of poor sales efforts,” he says. “For the most part I blame this on micro-managing managers who seem to be only concerned about knowing every move of their salespeople. No one likes to be micromanaged, especially good salespeople. Sales manager is a bad title. Salesperson developer? Salesperson educator? Both would be a better description of the job. If we aren’t going to train our people, we should not hire them.” Woody doesn’t suggest a hands-off approach, though. “Watch your salespeople carefully,” he says. “But reward success and counsel them over lost opportunities. Praise in public, but criticize in private. We learn from our failures more than we do our successes.”
Further Reading These links are to material that is a few years old, but much of the content still rings true. 100 Things a Jewelry Salesperson Should Never Do Sure, it’s from three summers ago, but there still are gems in here. My favorite: Do not oneup a customer’s story. Experts Offer Top 10 Diamond Selling Tips Each expert has their own top tip, and there’s not a duplicate in the bunch. The Greatest Jewelry Salesman in the World A first-person “Chicken Soup” account of one salesperson’s brief time working for an ethicschallenged jewelry store.
Manage Behaviors to Drive Sales When you implement behavioral-based training, it enables you to manage, coach, and counsel your associates fairly. Some tips for managing great salespeople’s behaviors include: - Clearly define in writing employee job descriptions. - Clearly define your associate review process. - Implement a sales training program that addresses the steps to the sale. - Review your employees’ use of the behaviors you expect daily. - Coach and counsel as performance dictates. - Inspect what you expect. Secret shop your employees at least quarterly. - Catch your employees using winning behaviors, and reward them for their efforts, regardless of whether a sale was made. Reach your goals by ... managing behaviors! - Nick Failla Collected Concepts
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MILESTONES Harold Hanke, retired owner of Hanke Jewelry in Atlantic, IA, passed away on May 19. He was 96. Harold joined RJO in 1966, as one of our original members. Harold served as an RJO Board member for many years before he retired and sold his store in the late ‘90s.
Our thoughts go out to the Hanke family.
CALENDAR SEPTEMBER 2016
OCTOBER 2016
5 Labor Day; RJO office closed
10 Columbus Day; no mail service
9 All payments must be received in RJO office
11 All payments must be received in RJO office
11 Patriot Day / Grandparents Day
17 National Boss's Day
23 All invoices must be received in RJO office
21 All invoices must be received in RJO office
FREE CLASSIFIEDS Business For Sale: The owner of a nearly 40-year-old Midwest jewelry store and full-service floral shop that includes wine, gourmet foods, and specialty gift retailer is retiring and selling the business. The retailer primarily sells diamond jewelry, engagement rings, weddings bands, unmounted diamonds, colored diamond jewelry, basic diamond jewelry, colored stone jewelry, men’s jewelry and watches, along with other items. Brands offered are: Mark Schneider, Fredrick Duclos, Elma Gil, Rego, Stuller, Citizen, Obaku and many others. Total sales are normally near $750,000 annually. Seller financing is available; local banks and economic development group anxious to work with a buyer to keep a key main street business open, with 4-6 part-time jobs. For further information, please contact Brett Frevert at 402-884-0066.
SAVE THE DATES! February 4-6, 2017
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