Two Jewelers walk into a bar. One jeweler says to the other.......
 

"Hey, how's things? How's your shop doing and would you share with me what you charge for some of your repairs?"

 

So my fellow jewelers I asked my customer list a few months ago some questions about your store, average repair & custom sales, what you charge for things, etc.

 

So here's the questions the jeweler in a bar might ask you about your store and your shop. Jewelers of America has a "Cost of Doing Business" survey whichgives information about financial numbers in your retail store but they've never asked these questions about the shop. 

 

Below are the questions, answers and a side commentary by me. One thing to consider is I emailed out these questions to my 3400+ email list of jewelers and received about 450 responses. Also many on my customer list are "shop oriented" but you don't have to be to use the Geller Repair & Design Pricing Guide. 
Multi million dollar stores use it as well. There are over 5500 stores in America using our pricing guide plus many in other countries.

 

Question #1

How was business last year?

UP	DOWN	SAME
50%	23%	27%

 

Commentary: I hear from many jewelers business is up. For those that business is down I could write a book on this but it can come from your area "really" being depressed"; poor location; lack of advertising; lots of old & outdated merchandise; poor staff training.

 

 

Question #2

What percent of total business in your store comes from the shop?

 

Less than 25%	26-50%	50-75%	76-100%
31%	34%	17%	18%

 

Commentary: The average is 55% of sales comes from the shop if you add
26-50% & 50-75% together. Not surprising as I help many shop oriented stores. 

 

Question # 3

Do you have a bench jeweler in your store?

 

Yes	No	No because we don't handle repairs at all
88%	12%	none/zero

 

Commentary: The 12% that don't have a jeweler in the store send their work out to a trade shop.

 

Question #4

How do you pay your jeweler?

 

Hourly	Salary	Using the Geller Commission System	Other piece work commission system	No Jeweler in the store
38%	33%	6%	14%	9%

 

Commentary: 71% of stores pay by hourly or salary. Being only 6% use my commission system that is used in the book I would assume the 14% who already have a commission/piece work system use the one the store or jeweler already had. This is what I tell store owners that want to use any piece work system.

 

To have a commission/piece work system for a jeweler you must:

1. Have more than enough work for them to do in one day.
2. For the most part be uninterrupted 80% of the day.
3. Pay them by the method and pay even if you discount or don't charge the customer.

Question #5

On the average what is the yearly amount you pay a bench jeweler?

 

Less Than $25,000	$25,000 to $35,000	$35,000 to $48,000	$50,000 to $65,000	$68,000 to $85,000
8.5%	16.5%	38%	28%	8%

 

Commentary: Looking at the numbers 54% pay a jeweler $25,000 to $48,000 a year. Looking at it another way 66% pay $36,000 to $65,000 a year. One jeweler paid over $85,000 and one respondent paid the jeweler $125,000. On the whole for a skilled craftsman pay is low, not terribly but low. This is why we as an industry are having a hard time finding bench jewelers. Make more money doing something else. 

 

Question # 6

How much do you charge to retip a single prong?

 

We use the Geller Book pricing  ($30 for the first tip)	Charges less than $30	Charge MORE than $30
56%	16%	28%

 

Commentary: Most jewelers have found success opening a book pointing and telling the customer "that's all it is". If you're charging less than $30 just add up the 56% who use our book along with 28% who charge more than $30 and 84% of stores charge $30 or MORE for the first tip! If you're not there, get on board!

 

Question # 7

What is your average repair sale in dollars?

 

Less than $40	$41 to $69	$70 to $100	$100 to $391
13%	33%	30%	24%

 

Commentary:

 The "average" repair sale is $203.00. 

But "average" can be deceiving because of the store who said "$391".

46% of stores said average sale was UP TO $69.

63% of stores reported an average repair sale of $41 to $100

 

Question # 8

What is your average dollar custom design sale?

 

$250 to $500	$550 to $750	$800 to $975	$1000 to $1500	$1600 to $2000	$2100 to $2900	$3000 to $7000
6%	6%	9%	36%	21%	12%	10%

 

Commentary: I talk to jewelers every day who are afraid to charge more. They think customers won't pay but they do! Less than 21% of jewelers have an average custom sale of $975 or less. Look at the $1000 to $15000=35% of jewelers get that every time they sit with a custom customer.

 

But look at boxes 4,5 & 6. A full 69% of jewelers get $1000 to $2999 on every custom sale. WOW. You should be getting into custom if you haven't already. 

I averaged it out and the "average" custom design sale is $1648.00.

 

How much inventory does it take to make a $1648 custom sale? Virtually nothing. Most jewelers stock less than $5000 in metals and findings in the shop; ordering next day. But how much inventory do you keep on hand to make an average $500 showcase sale? 1/2 million? Million or more? You should be worried more about the showcase and aged inventory than if a few custom customers walk. In fact look at the next question.

 

Question # 9

What is the closing ratio on repairs?

10 people walk in and ask "how much to fix my jewelry?" After quoting a price how many out of 10 say "Go ahead and fix it"?

 

All 10	9	8	7	6
17%	53%	22%	6%	2%

 

Commentary

I have always said "Repairs are not price sensitive, they are trust sensitive". When presented with ANY repair price 70% of the time 9 or 10 people will say yes to your price. Guess what? Almost doesn't matter what you charge, 90% of the time they will say yes.

Notice only 2% said 6 out of 10 would buy? Low number. No one reported to me anything less than 6 out of 10.

 

 

Question # 10

Closing ratio on custom design.

10 people walk in and say "how much is it to custom make this for me?"

When presented with the price this is the percentage of customers who say

 "OK, go ahead and make it."

 

All 10	9 out of 10	8 out of 10	7 out of 10	6 out of 10	5 out of 10	4 out of 10	3 or less out of 10	We don't do custom
5%	14%	25%	18%	17%	9%	4%	5%	3%

 

Commentary: 

Custom is a bit more price sensitive. But looking at the numbers 44% of the time you'll sell 8, 9 or 10 out of ten people who walk into the store for a custom design.

 

Biggest numbers? If you present to 10 people 62% of the time you'll sell 7 to 10 of them. Compare that to how many people you sell out of 10 from the showcase.

 

 

Some specific prices:

 

Question # 11

How much do you charge to make a typical narrow engagement ring smaller? 1 carat center stone, 2mm shank, 14kt yellow gold. Go down 1 size.

$29 or less	$30 to $38	Geller Price $39	$40 to $45	$46 to $55	Over $56
9%	17.5%	44%	14%	10%	5.5%

 

Commentary: I guess you could say "If David says charge it, we will". The percentage of people who charge $39 or more is 73.5%. If you're charging less, raise your prices.

 

Question # 12

When sizing this ring, if it were white gold would you charge the customer to rhodium plate it?

 

Yes	No
79%	21%

 

Question #13

So if you do charge to rhodium plate a white gold ring after sizing how much do your charge for the rhodium plating?

 

Less than $10	$14 to $20	$24 to $31	Geller Price $35	$39 to $68	$70-$110
8%	22%	18%	25%	23%	4%

Commentary: 25% follow my lead of $35. This is in addition to the sizing price. On the higher end 48% charge between $35 and $68. Congrats to the 4% who charge close to $100.

 

Question # 14

If a ring needs a new 14kt white gold Tiffany style head replaced in a ring, how much would you charge to

1. Furnish the head
2. Solder/install it in place
3. Set the 1 carat round diamond

 

Less than $99	$100 to $150	$155 to $199	$200 to $250	$260 to $299	$300 to $550
5%	26.5%	16.5%	17%	29%	6%

 

Commentary: 29% charge $260 to $299. The Geller book has it at $299.46% of store charge $200 to $299 for the head, installed & set. 

5% charged less than $99 and I had one jeweler tell me $20. Yes twenty bucks!

 

Question # 15

How much do you charge to retip the first or only tip on a ring? This is not a prong where the metal is missing but just must be built up?

The Geller book is $30 for the first tip.

 

Geller Book $30-1st tip	Less than $30	More than $30
56%	16%	28%

Commentary:

 

First thing is only 16% of jewelers charged less than $30 while 84% charge our price or higher. Are you getting the picture about pricing?

 

 

Question # 16

A customer has an engagement ring and can't find a matching wedding band. She asks you to custom make a matching shadow wedding band in gold to contour to her ring, no stones.

What is your labor only (no gold nor stores) to:

• Design it up
• Carve or cad the wax
• Cast it
• File it up, polish & finish it

$195 or less	$200-$240	$250	$275-$300	$325-$395	$400-$435	$450 Geller	$475-$695	$750-$900	$1000-$1500
6%	10.5%	9%	8%	13%	5%	14%	22%	5%	7.5%

 

Commentary: As you can see price is scattered. It's because jewelers "believe" the customer won't pay more or that's all they can get for their time. But charging from $400 to almost $700 - 41% of jewelers get that much money.  On the far right=$1000 and up and I'm betting those jewelers included metal/gold. These are 100% labor only to make the matching shadow band. Gold would be in addition.  The Geller price to carve/cast/finish is $450, then we'd charge extra for metal.

 

Question # 17

What would the labor price be to make the same shadow wedding band but planning ahead to bead set or channel set stone in it. This does NOT include the setting charge or the stones. Just how much to:

·         Design it up

·         Carve or cad the wax

·         Cast it

·         File it up, polish & finish it

 

$100-$275	$300-$375	$380-$400	$425-$500	$540-$600	$625-$950	$1000-$2500
15%	17%	8.5%	19%	15%	20%	5.5%

 

Commentary: Like us jewelers charge more to plan ahead for the setting that will come later.

 

Question # 18

Do you hand carve your waxes from scratch or use a computerized Cad/Cam program to design the item?

 

Carve by Hand	Use Cad/Cam
39%	61%

 

Commentary: I was surprised. at how many use Cad/cam. It takes a while to learn but once mastered you can make virtually anything.

 

Question #19

Once the matching band is made what would you charge to bead set (pavè) set each small stone? (labor, not the diamond)

 

$3 to $8	$10-$12	$13-$16	$17-$24	$25 Geller	$30-$39	$40-$75
5%	12%	16%	21%	26%	15%	5%

 

Question #20

Do you own a Laser welding machine?

Yes	No	No but planning to get one
53%	44%	3%

 

Commentary: A laser machine is a necessity. 75% of all repairs go faster with a laser machine, 25% of work goes slower and we charge 50% more for those jobs. If you hired a part time jeweler to help you out and paid them $15 an hour and they worked 6 hours a week that's exactly what you'd spend each month to lease the machine. About $375.00 a month. The laser machine will be more productive than the part timer.

 

 

Question #21

When you do a repair what percent of the time do you use your laser welder rather than using a torch?

 

Less than 25% of the time	25-50% of the time	50-75% of the time	75-100% of the time	Don't have a laser welder	We use an arc welder instead
20%	21.5%	12.5%	13.5%	28.5%	4$

Commentary:

Firstly of everyone who answered 28.5% don't own a laser welder and 4% use an arc welder (a poor man's laser welder-almost as good. Almost).

 

Question #22

When you DO use a laser welder do you charge extra for using it?

No	Yes	Yes, we follow the Geller Book
27%	47%	26%

 

 

Commentary: Because 25% of repairs go slower than with a torch and a jeweler is just selling time we charge 50% more for using a laser in our price book. Welding jump rings with a laser goes faster but we don't charge extra using the laser, we just take the extra profit from more productivity and run with it. On the other hand sizing a ring/installing a shank goes slower so the labor is 50% 

more. 

 

See why a laser machine pays for itself the first week of every month?

 

Question #25

What do you charge for a regular watch battery with a snap off back?

 

Geller Book Prices	Less than $5	$5.00	$5.00-$9.99	$10.00	$10-$15	Over $15.00	We don't install batteries
4%	zero	3%	20%	34%	25%	8%	6%

 

Commentary: The Geller prices in our book have at least 3 choices. Maybe its too confusing or people won't charge the Geller prices. We offer a 1 year guarantee battery for $10; a 3 year guarantee battery for $15 and a lifetime guarantee battery for $30. Only 4% offer these choices.

 

Everyone else is offering just ONE choice and really missing out on extra money and its not that price sensitive. But notice 34% charge $10. Want to know why? Because the US government prints a ten dollar bill. If Uncle Sam printed a 413 bill, watch batteries would be $13.

 

Long ago we charged $5 for a watch battery and copied a major repair chain and offered a two tiered batter price:

·         $8 for a 1 year guarantee battery

·         $15 for a 5 year guarantee battery

 

When we started that on January first our average watch battery sale jumped from $5 to $12. Why? because when offered the choice over 60% of our customers chose the 5 year battery at $15. 

 

How to keep track? Simple, we used a felt tip pen and in the back of the watch back wrote today's date and a "1" for a 1 year battery and a "5" for a 5 year battery.

 

 

Question #26

What do you charge to re-install millgrain on a ring?

 

$9 to $15	$20-$25	$30-$36	$40-$45	$50-$65	$70-$80	$85-$100	$100-$200
2%	12%	22%	15%	20%	9%	7%	13%

 

Lastly:

I asked jewelers to volunteer any additional things they'd like to see in the Geller price book. One big one was using the Geller book on a tablet. I've been working on that all of this year and hope to have it completed by year end. It won't be a downloadable app. Instead it will work on any device (iPad/Android tablet/Windows tablet/doorstop computer) that can get to the internet. So your store's computer gets onto the internet and your tablets use wi-fi to get online. When ready you'd log into my new site for the Geller book and view the prices. It will have pictures of the findings and Stuller's regular sku numbers, add up the charges (changeable if you like) and print a receipt/envelope.

 

It will also be available as it has been to Edge and Shopkeeper users. 

 

I will keep everyone informed.

 

A BIG THANK YOU to all who took the time to answer the survey. I hope everyone gets a lot out of this and it should get you to raise your prices.

 

Sincerely

 

 

 

 

David Geller

Director of Shop Profits