April 2017 Issue

I N

T H E

LOUPE

The Ultimate Jeweler Resource

April 2017 Issue 73

IN THE KNOW WITH RJO: OCTOBER ON MY MIND

SEE PAGE 2

EMPLOYEE BENEFIT PROGRAM FOR MEMBERS

SEE PAGE 5

MARKETING MATTERS: TELLING YOUR CUSTOMER ‘NO’

SEE PAGE 9

COVER STORY: THE SENSUAL SIDE OF SELLING

SEE PAGE 10

View-and-New in Denver

RJO IS MIXING TRIED-AND-TRUE WITH VIEW-AND-NEW at this Summer’s Buying Show in Denver. The former comes via the highly anticipated RJOexclusive membership benefits, such as up to three consecutive nights’ stay at the host hotel—the Hyatt Regency Denver At Colorado Convention Center— as well as Show buying discounts, via RJO Purchase Vouchers.

The view comes from the surroundings, as Denver is nestled at the base of the Rocky Mountains, with purple mountains majesty all around. Despite the shadows cast by the mountains, Denver actually is one of the sunniest cities in the country, with 300 annual days with some sunshine each year.

The new can be found in a number of fun initiatives debuting in Denver, including:

• RJO Kick-Off Reception. On Friday, RJO will hold its first reception for all attendees. A DJ will spin tunes while we all mix and mingle before the official start of the Show.

• Brain Gain Breakouts. Facilitated by RJO Board members, these small breakout sessions will help you: learn how your peers work through business and industry challenges, find out what’s hot in stores, and take some tips to the Buying Show floor.

• Sunday Get-Together. We are replacing the more formal Sunday Evening Gala with a more relaxed, two-hour gathering. Enjoy spirits, hors d’oeuvres, live classic rock, and the company of your RJO friends and colleagues.

• Inside Track Special Buying Show Edition. Our RJO vendors will be offering extra discounts, Show specials, travel offerings, and give-aways, only available in Denver. A special edition of Inside Track will provide members with a one-stop shop to see all that will be offered.

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In the Know with RJO Your Gold Mine in Europe I’VE GOT OCTOBER ON MY MIND. Not in an obsessive way, but our overseas team has spent a good amount of time working on our RJO-hosted trips to Europe in October. RJO has offered the trips for more than three decades, and I’m surprised at the evolution the trips have taken.

Initially, the idea for offering the trips centered around combining international travel with meeting top RJO vendors in their homelands.

These early trips quickly included education and buying opportunities that were definitely more intimate than Buying Shows and marketing materials.

It wasn’t long before we’d see a store go on the trips a second time. And then a third, and fourth, and even more. In getting to know these adventurous retailers, we learned these trips were becoming a hallmark of their identity; they were becoming known in their communities as jewelers who would travel the world for their customers.

Not only was it smart from a marketing perspective, these stores were seeing a significant return on their trip investment.

Over the past few years, we’ve changed the focus of the trips from the occasional exotic trip to an important branding tool, one that distinguishes them from their competition. This year, we’re

moving even further toward this branding approach. This year’s group will be the first to have access to Kate Peterson’s RJO-exclusive Antwerp and Idar-Oberstein Experience Branding Educational Program. More details about the program can be found on page 4.

I had a few veteran RJO traveler/members review the program, and the response has been very encouraging. One reviewer explained how successful branding the trips have been for her “tiny store,” and she was excited about how much more successful it would likely be for a larger store. Another reaction was the program was a “gold mine” just waiting there for members to take advantage of.

Today I ask you to pull out your calendar and free your schedule for the middle weeks of October.

Then contact Connie Matsen in the RJO office, and let her know you are interested in this Fall’s Branding Program. She’ll answer all of your questions, and you’ll be on your way to starting or complementing a branding effort that will likely pay off in ways you can’t imagine, for years to come.

RJO CEO

RJO BOARD NEWS

Board of Directors On April 12, RJO requested applications for the Board of Directors. Applications will be due on May 17, and membership will receive ballots for this election in late May.

Merchandise Review Committee RJO received seven applications for the one open spot on the MRC. The Committee reviewed the applications and provided recommendations to the RJO Board. From these recommendations, the Board appointed Kendra Harris, Jayson Jewelers Ltd., to the MRC. Thank you to all who applied.

RJO Foundation Board The request for RJO Foundation Board applications was sent at the end of March, with applications due on April 12. The Foundation Board will be reviewing the applications, and appointments will be made by the beginning of May.

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From RJO’s Facebook Page

THE RJO PAGE ON FACEBOOK hosts a variety of interesting discussions each week. Here’s an edited exchange from the end of April.

SERVICES

Centralized Billing

Patronage Dividend

RJO Website (rjomembers.com)

Buying Shows (Fall/Spring) RJO Chat Channel

In the Loupe – RJO’s newsletter

Free Print and Radio Ad Library (on the RJO website) Educational Seminars (at the Buying Shows)

Member-to-Member Incentive Program (Recruitment Program) Organized Buying Trips to Antwerp and Idar-Oberstein, and Israel Travel Vouchers at Shows (offered at varying times)

RJO Informational E-mail Blasts Purchase Vouchers (at the Buying Shows)

Education on the Go Podcasts and Webinars

Service

JewelConnect

Reply Two: If it is for a specific event with a call-to-action (i.e., event date, etc.) I would concentrate on EDDM and social marketing. Billboards are great, though, to keep your name and image in front of new and current clients.

Original Poster Reply: Thank you everyone, for your input. We spend the most money on newspaper ads currently, but see little return. We even did a full front-page ad and had only two people mention it. They are friends, so we didn’t see even one person that came in from the ad. I feel that money would be better spent on Facebook ads. We have been looking into billboard or radio, but they are so pricey, I wonder if it would pay off? We decided on EDDM for Mother's Day and our estate sale, along with newspaper and Facebook.

Reply Four: We do EDDM through the U.S. Postal Service for our Christmas flyer. We get good response from radio, and we try to use the store's Facebook page, too.

Free Hotel Room Incentive (at the Buying Shows)

Private Label Credit Card

Reply One: It’s SO hard to know what is effective! I think my most effective has definitely been billboards. But my Christmas EDDM I did with Allison Kaufman was awesome, too.

Reply Three: The opposite is in place here. The newspaper isn't affordable at all, but the radio is. Therefore, I advertise on the top station in the area. Always looking for the right answers, too. I am unsure if Facebook is even effective.

RJO Directory

RJO Membership Certificate

Post: We do not generally do a lot of expensive advertising; we stick to Facebook ads and newspaper ads. We have tried radio and are looking into Every Door Direct Mail (EDDM) or billboards for an upcoming estate sale and Mother's Day. Where do you feel you get the best response for the money spent?.

Also, the original poster included a poll for “Where do you feel you get the best response for the money spent?” The responses: Direct Mail

20

Radio

4

Facebook Billboard TV

Newspaper

5 4 2 0

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New Approach Strengthens Fall Europe Trips AFTER 30 YEARS OF RJO HOSTING MEMBERS on trips to Europe, the annual excursions to the great jewelry capitals of the world represent a rare opportunity for individual store branding.

The Fall getaways are now known as RJO’s Overseas Branding Trips, and this year, the group will be the first to have access to Kate Peterson's RJO-exclusive Overseas Branding program, personalized for your store. This program will provide vital education to your sales staff to make sure all your customers know to go to you for a direct connection to overseas diamond and coloredgemstone cutters. It includes a Trainer’s Guide and Notes, an extensive PowerPoint presentation, and an associates training notebook.

Liz Schlauch, of Barany Jewelers in Brunswick, OH, has

2017 Dates

served as host on many of these trips over the years,.

“I reviewed the training materials,” says Schlauch, “and I think Kate did a phenomenal job in capturing all the essentials for success with the branding program.”

“I would love to encourage people who have never been to Antwerp or Idar-Oberstein to consider taking the trip this year and taking advantage of the new branding program to set their stores apart,” says RJO CEO Sarah Streb.

In addition to Peterson’s guidance and expertise, travelers will be greeted by the Antwerp World Diamond Centre and distinguished as DNA (Diamonds in Antwerp) Ambassadors. RJO is currently the only North American buying group with this partnership.

To learn more about this great opportunity, contact RJO trip coordinator Connie Matsen at: (cmatsen@rjomembers.com)

First Europe Trip Hosted by Liz Schlauch & Jeff Horlacher Antwerp: October 7-12 Idar-Oberstein: October 12-16

Second Europe Trip Hosted by Connie & Steve Matsen Antwerp: October 14-19

JewelConnect Set to Release Wordpress Plug-in THE ONLINE DEVELOPERS AT JEWELCONNECT, the RJO-exclusive marketing system, are launching a plug-in for retailers using the website-building platform Wordpress, the largest self-hosted blogging tool in the world, used on millions of sites and seen by tens of millions of people every day.

Essentially, this makes the JewelConnect inventory usable on any website with a plug-in system, designed to be installed quickly and easily.

JewelConnect handles the install or the store’s developer can do it.

“We can see that many retailers either have their own existing site or would like a custom site,” says Andrew Boundy, JewelConnect’s lead developer. “Many are opting to have the build done in Wordpress.

Wordpress is a widely-used platform and the ability to simply plug-in JewelConnect’s 40,000-item catalog will be very attractive to those stores not wanting to manage their own online inventory, yet provide a great product-browsing platform.”

JewelConnect already offers several options for displaying the wide selection of RJO vendor items, including the main website, basic retailer profiles, and a PRO template version; this latest addition adds to the offerings for a custom set-up.

“With this plug-in, you can get loads of items for browsing on your site quickly and easily. It’s very intuitive and straightforward,” says Boundy. “Even stores that do offer their own online inventory can benefit from a virtual catalog to widen their range and stop offpage transition to other—possibly bigger—resources, thus keeping the user with them.”

For more information about the new Wordpress plug-in or any of the JewelConnect options, contact JewelConnect at sales@jewelconnect.com. Also be sure to visit with them at the RJO Summer Buying Show in Denver.

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RJO Launches Employee Benefit Program for Members RJO IS PLEASED TO OFFER members both employer-paid and employee-paid benefit options in a new group portfolio.

“We have been working on this for quite a while,” says RJO CEO Sarah Streb. “We continually hear from members that offering competitive and diverse employee benefits is one of the key elements to attracting and retaining great employees. For the independent retail jeweler, offering such a program is often not financially reasonable. RJO has met that challenge and has worked to offer members the opportunity to pool their collective buying power once again, to offer their employees group benefits traditionally offered to larger employers, at rates typically only offered to larger employers.”

In partnership with Lincoln Financial Group® products, Acumen Advisors is offering the following employerpaid and employee-paid options benefit portfolio: Term Life Insurance: $25,000 and $50,000 options available.

Supplemental Life Insurance: Employee chooses amount up to $300,000 for themselves and up to $150,000 for their spouses. Amounts over $30,000 for the employee, and $10,000 for the spouse will be subject to underwriting review.

Long Term Disability: Replacing 60 percent of the employees income, if disabled due to an accident or sickness longer than 180 days.

Short Term Disability: Replacing 60 percent of the employees income, if disabled due to an accident or sickness for durations up to 180 days (Employer-paid and employee-paid options available).

Dental: Strong benefit package with a nationwide PPO plan offering 30 percent in-network discounts on average. The plan is available to the employee and their dependents.

Voluntary Vision Program: Using the nationwide vision network, your employees can choose to enroll for vision coverage for themselves and their dependents.

The options available to RJO members also will offer individual group pricing, as well as flexibility in choosing specific benefits.

Groupings defined within RJO membership, such as age, income, ZIP code, etc. will be offered individual pricing tailored to that grouping. Within each grouping, members can choose which benefits they would like to offer their employees.

You may find additional information about these offerings in these PowerPoint slides presented during a recent webinar, or you may view this single-sheet flyer.

PLAN NOW FOR OUR SUMMER BUYING SHOW!

Buying Frenzy August 2017 Denver, CO

Future Show Locations

If you want to compare pricing, or would like to look into offering these benefits, please contact RJO's advisor, Brian Doyle (bdoyle@acumenadvisors.com), at Acumen Advisors to answer any and all questions regarding this new program.

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January 2018 Savannah, GA

July 2018 Minneapolis, MN February 2019 Nashville, TN

July 2019 Schaumburg, IL

Vendor Profile

Podium: Matching Reviews With Your Good Reputation

PODIUM IS A UNIQUE VENDOR for RJO, as it helps jewelers get customers to the review sites that matter most, and “lets customers tell your story for you.” The company, headquartered in Lehi, UT, was less inspired by jewelry than ... car tires.

“Podium was founded in 2014 when Eric Rea got a call from his father,” says Podium’s Nick Miller. “His tire shop’s online reviews were not reflective of the verbal feedback he received from customers. Rea’s father was looking for a way to improve those reviews, but he didn’t know how to go about it. After some initial research, Rea found existing solutions were largely antiquated, email-based tools.”

“Around the same time,” Miller continues, “Dennis Steele was working for a public relations firm focused on helping businesses improve their online reputation.

Steele, familiar with the process, knew many businesses and agencies were building online reputation strategies that were time-consuming and largely ineffective. Determined to build a better solution, Rea and Steele teamed up to develop a tool to help small businesses build their online reputation through online reviews.”

Today, Podium has approximately 150 employees.

“The vast majority of the RJO members we talk to,” says Miller, “are running a great business.

There is a real love for what they do, and that is reflected in the positive customer experience provided. Unfortunately, that positive customer experience is not always fairly represented online.

When it comes to reviews, the negative customers are often the loudest online. Podium makes it easier to amplify the voice of all of your customers by making it easy for your employees to invite customers and for your customers to leave reviews. Those reviews will help your business be found by impacting your local search engine results. This allows retailers to be chosen by outshining their competitors.”

Miller says the way people search for—and find—businesses is changing. They are typically looking for businesses online, and if your store isn’t showing up at or near the top of these online searches, then you run the risk of losing out on their business. Google has stated online reviews play a role where a business ranks for online search, so businesses that don’t have a strong review presence could rank lower than businesses that do.

“Once potential customers find you online, says Miller, “stores will want to make sure they have a pristine reputation with a high overall star rating, with reviews coming in on a regular basis. Online reviews and online reputation significantly influence purchase decisions and determine whether consumers engage with your business or not.

In fact, a recent study conducted by Podium found 93 percent of consumers said online reviews have an impact on their purchase decisions, and the minimum star rating of a business they would consider, on average, is 3.3.”

As for return on investment, Miller says Podium customers have seen a six percent increase in revenue after implementing Podium, and

they see 11 new customers per month who cite online reviews as the reason they came into the business.

“What small businesses like most about Podium’s solution,” says Miller, “is how easy it is to use. It’s easy to set up and train employees, and once it’s up and running, they see an immediate impact on their online reputation.”

“The ancillary benefits of Podium go beyond just your online reputation,” continues Miller. “We are given feedback everyday about new ways Podium has benefited our client’s business. Frontline employees often tell us they have customers come in off the street and ask for them personally because they read online about how great they are. A jeweler recently was able to hire high level management positions whose candidates read their online reviews to make sure they were a great business. Reviews are also an incredible way to supplement your traditional advertising. Our client success team can help our RJO clients know how to best utilize their online reputation to grow their business.”

So how is RJO’s reputation with Podium? According to Miller, “We being apart of RJO—from the premier events to the opportunity to learn from the collective community. There is a sense of unity among the retailers and vendors that is rare not only in this industry, but in business as a whole.”

Podium Corporation, Inc. is located at 3301 North Thanksgiving Way #500, Lehi, UT. Phone: (801) 503-8402 Website: www.podium.com

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Day-to-Day

What Can a Risk Management Culture Save You? HAVE YOU EVER MET a business owner who didn’t want to save money? Yet, the way some companies try to cut costs can have the opposite effect. With the economy leaving little room for error, trimming unnecessary expenses is the logical first step toward keeping more profit.

Unfortunately, risk management is sometimes looked upon as one of those unnecessary expenses.

It could be some businesses don’t fully recognize the benefits a risk management culture can have.

Instead, owners may be discouraged by the amount of time and money needed to reach that point.

Successful businesses, on the other hand, know that to avoid possible financial pitfalls, they need to reduce their exposure. They realize risk management, despite the time and financial investment it can require, can have overall economic benefits while creating a safer working environment.

Involvement is key No company, no business owner is immune to the possibility of losses.

Indeed, the act of running a business exposes owners to everyday risks, such as fire, vehicle accidents, or even fraud. Identifying risks ahead of time and then dedicating resources and effort to avoid them, through aggressive risk management, can help keep a business ahead of the game.

Why bother?

It may feel counterintuitive to believe a risk management culture—the sum total of all the efforts, attitudes, and investments related to workplace safety and loss prevention—can actually improve your bottom line. But, investing in risk management can definitely have advantages:

• First, by managing risk, your company could experience fewer insurance claims. That may equate to lower insurance premium.

• Second, fewer claims means you also help reduce the “after effects.” Insurance is meant to cover the direct costs associated with a claim, such as property damage, medical bills, and legal expenses. What is often not anticipated, however, are the unexpected, “hidden” costs from a loss. For example, insurance may not cover the cost of hiring and training a replacement employee, lost productivity, negative publicity, higher premiums related to the loss ... and the list goes on. These are typically out-of-pocket expenses and can quickly add up.

It could take a lot of extra sales to recoup those losses.

• Last, worker compensation claims often result in a higher work comp modification. Not only can this have an immediate effect on your premiums, the consequences could be felt for a long time.

Business owners who take risk management seriously understand its positive effect on their operations, both from employee well-being and financial standpoints. They see immediate value in being proactive. As one company risk manager put it, “There are many business owners who believe risk management is too expensive. I would challenge them to put a pencil to it. I think they will be surprised that safety pays.”

Attending a Federated Insurance Risk Management AcademySM seminar can be an effective way to start or grow your risk management program. Upcoming full- and halfday sessions are posted at federatedinsurance.com, or contact your local Federated representative for more information.

Article provided by Federated Insurance, an RJO vendor. It is intended to provide general information and recommendations regarding risk prevention only and should not be considered legal advice. Following these guidelines does not guarantee reduced losses or elimination of any risks.

This information may be subject to regulations and restrictions in your state.

Qualified counsel should be sought regarding questions specific to your circumstances and applicable state or federal laws. © 2017 Federated Mutual Insurance Company. All rights reserved.

MILESTONES

RJO received a call from the brother of Jerry Wang, president of YCH in San Francisco, telling us Jerry had passed away earlier this month. Jerry had been a vendor member of RJO since 1996.

Our thoughts go out to the Wang family.

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Jeweler Profile

Leitzel’s Jewelry: Exceeding Expectations Since 1949 IN SOUTHEASTERN PENNSYLVANIA, just a little bit north of the Benjamin Franklin Highway, sits Myerstown. In this town of slightly more than 3,000 you’ll find Leitzel’s Jewelry, a familyowned jeweler for nearly 70 years.

The store rotates using the “Exceeding Expectations …” tagline (above) and exceed, it does. Passing down ownership and management within the same family in a small town often has limits, but the Leitzel family is abuzz about its latest venture: opening a second store in neighboring Hershey, known to many as “The Sweetest Place on Earth.”

“Using a team of second- and thirdgeneration Leitzel’s, we have the structure to divide and conquer a second location,” says Trevor Williams, CFO of Leitzel’s Jewelry.

“After years of looking and consideration, the perfect building (an old bank with a large vault) became available for purchase.

Nearing the end of renovations, the second location will be open June 1 to the public. We are thankful for the support of our industry peers and our loyal clients. In an age where we mostly read of family jewelers going out of business, we are excited about the opportunity to expand.”

The Leitzel’s Jewelry family tree has many branches. Started in 1949 by Charles and Arlene Leitzel, brother Marvin Leitzel soon joined the business. Charles Leitzel left the business years later to pursue a passion for the ministry. Marvin’s son, Ceylon Leitzel, took up the family business and was professionally trained at Bowman’s Technical School in Lancaster, PA. His schooling included diplomas in jewelry repair and watch and clock making. Allison Leitzel-Williams shared her father’s

passion for jewelry and continued her education at GIA in Carlsbad, where she received her Graduate Gemologist degree. Currently, the second and third generation of the Leitzel family own and operate the stores: Ceylon Leitzel, his daughter Allison Leitzel Williams (third generation) and Allison’s husband Trevor Williams. Currently, there are eight employees, but projected to be 15, with the addition of the Hershey location about 20 miles to the west.

Williams says the customer experience has changed little over the years for the full-service jeweler. “We want them to feel like they are ‘home,’” says Williams. “We constantly strive to differentiate ourselves by hand selecting a unique product mix, offering value, and maintaining constant quality. We set ourselves apart by offering personal and experienced service. Sometimes, it’s easy to forget to have fun in a jewelry store, so we always try to balance the fun shopping experience with any education and informational needs.”

way to attract new customers. This is also an outlet that responds well to our family heritage. Some of our most successful posts include historical family photos.”

“We have found RJO to be extraordinarily useful for us,” Williams continues. “We utilize the Facebook group to find different vendors or to seek answers for things we might not know. Our accounting department has found the centralized billing to be useful and to have cut down on time and number of checks processed. If possible, we try to find a vendor from within RJO, because we find the dividend to be advantageous for us and, overall the established terms are good. We attended the Tampa Buying Show and found the event was very well done. The mix of vendors, buyers, and staff was great. The show allowed us to meet many new people we had heard of previously, as well as establish several new relationships.

The RJO Tampa Show also had a feeling of camaraderie and support, unlike any other show we attend.”

The constant quality for its customers Leitzel's Jewelry is located at 607 East is nearly matched by its constant Lincoln Avenue, Myerstown, PA. contact with them. “We use our social Phone: 717-866-4274 media presence to keep in touch with Website: www.LeitzelsJewelry.com our customers almost daily, without overwhelming them,” says Williams. “We want to introduce new fashion, inform the customer about charities we support, remind them for jewelry service, and of course, sales when appropriate. We try to keep a consistent message across all platforms. We find social media, when used the right From Left: Trevor Williams, Allison Leitzel-Williams, way, can be an affordable and Ceylon Leitzel

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Marketing Matters

The Value in (Sometimes) Telling Your Customer ‘No’

As business people, we do everything we can to make sure our customers are taken care of. We also do everything we can to succeed. Sometimes those two things work against each other.

The fact of the matter is that even the best business owner will fail many times. Sometimes these failures will cost the business dearly, but most often these failures are nothing more than strong (and sometimes expensive) learning opportunities.

Maybe failure is a bit harsh, let’s call them “mistakes”.

If I look back at these “mistakes” in my career (and there are many), most of them can be directly tied to one thing: helping customers. More accurately trying to help a customer do, or get, something that is outside of our area of expertise. No one likes to tell a customer “No,” but if you are being asked to do something that is far outside of your area of expertise, you might want to think twice before instinctively saying “Yes.”

We have a very high-visibility new customer in Des Moines; the kind of customer a lot of ad agencies have desired for many years. We’ve been directly “courting” them for a couple of years, “indirectly” for more than 20!

Needless to say we were thrilled to get this client and excited to get working for them. They had many needs and we had many ideas, too.

We decided, for the most part, to waive our scripting and production fees to help get the client up and going. To date we have written and helped produce nearly 40 TV and radio commercials! We’ve eaten at least $10,000 worth of business, and that doesn’t count the time away from other paying customers.

As I mentioned earlier, we all hate to say “No” to customers or to charge them for necessary services, but in hindsight, they would appreciate your honesty, as they are business people too. We have many times told clients what they are asking for is not our specialty, but we would gladly direct them to another company we know can

help them. They realize they aren’t experts at everything in their business, and they too often have to send people elsewhere.

At the end of the day, do what you do, and do it well. If a request feels out of your comfort zone, it most likely is. There is no shame in passing on a project you might not be able to do to the level of your, and the customer’s, satisfaction.

Don’t feel as if you let them down; you simply made sure they were well taken care of, to the level you would like them to be. They will appreciate your honesty and the fact they were well taken care of, thanks to you.

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

New, Improved Succession Experience May 20-22

A REVAMPED CURRICULUM and a variety of new presenters will mark RJO’s annual Succession Experience, set for May 20-22, in Chicago, IL. The three-day Experience is for owners planning to leave the industry within ten years, as well as their potential successor.

This session’s speakers include the following professionals: Jack and Craig MacBean from Ostbye;

Kate Peterson of Performance Concepts; Barbara Nuss, owner of Profit Soup; Marc Loden, with Federated Insurance; and Chuck Frey, with Charles Frey & Associates. Along with these presentations, facilitated roundtable discussions will ensure members have time to network and share ideas.

Based on previous participants’ experiences, RJO highly

recommends both the owner(s) and successor(s) attend together to ensure everyone is on the same page and to create a successful dialogue that continues after the experience.

There are still a few open seats for the weekend. To learn more about the Succession Experience, go to the RJO website, or contact Hannah Green at: hannah@rjomembers.com, or call (800) 247-1774.

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Cover Story

The

Sensual Side of Selling

RJO MEMBERS HAVE MANY OPPORTUNITIES to interact with other jewelers about their work and their lives. The most memorable chats are often descriptive, such as a jeweler walking through the elaborate artistry involved in wrapping gifts for customers, or an owner describing the opening of her established store each morning, noteworthy because of the wonderful smell of the wood and age.

These memorable stories all invoke one or more of the senses, so it seems reasonable to assume senses are—or can be—a significant aspect of selling.

Let’s take a look at the involvement of the senses in both the retail world and the world of the customer.

Sight Catching the Customer’s Eye

Appealing to your customer’s visual senses to boost sales is a top priority for most jewelers. Beginning with well-presented display cases and windows, a store can distinguish itself by its eye-catching arrangements and themes.

Cheryl Kullberg of Kullberg Jewelers in Elkhorn, WI, knows a thing or two about window displays, as she was the winner of RJO’s Window Display Contest at the Buying Show in Tampa this past February.

“I believe that a display is a powerful sales tool,” says Kullberg. “It is the art of presenting jewelry in a way that attracts customers. Window displays should make people curious enough to want to come into your store. It needs to portray the feeling you want to project about who you are.”

Kullberg’s entry was a winter scene, incorporating a blanket of cloth snow and a crystal stag; it is shown on the next page.

“Choosing the right prop is important,” she says. “Be creative. A display without a theme is like a story without a plot. Try using a prop a customer can relate to. The size of the prop is important. You don’t want something that is too large or distracting so that someone doesn’t even see the jewelry.”

“You want them to stop and linger long enough to notice the jewelry you want them to see,” she continues. “Right now I have bright yellow umbrellas with crystal raindrops to catch the light and the attention of a passer-by. If I catch a person’s eye with that, they may slow down long enough to see the beautiful diamond ring that is displayed under the raindrops.”

Kullberg says a well-designed display needs to have enough merchandise, so it is not lost in the space of your store’s window, but not so much that a

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customer is overwhelmed with product and doesn’t actually “see” any one thing.

“Don’t be afraid to leave space between groups of merchandise,” Kullberg advises. “I think if a display is too full of merchandise, a customer’s eye will travel through a showcase or window display, never stopping. You want them to stop and look at each group before moving on to the next. Also, adding an interesting twist to your display is helpful. Sometimes a uniform color or movement is enough. I have small desk fans I will hide in the corner of some of my displays, to create some movement. Movement can sometimes make the difference in catching someone’s eye.”

“I am a stickler for neat clean displays,” she says.

“When we handle the pieces every day, we have a tendency to get complacent about this. But the overall image of your store is affected with crooked pieces and messy tags. I know props and trays are expensive, but when they are ratty or too dirty to clean, you have to toss them out. Putting an expensive earring on a dirty earring tree devalues the piece you are showing.

Smell Scents, Sense, and Cents

Alan Hirsch, neurological director of the Smell & Taste Treatment and Research Foundation in Chicago, IL, believes the sense of smell has a greater impact on purchasing than all other senses combined. Simply put, if a store smells goods, it’s perceived as good.

Hirsch and researchers like him, believe the most powerful link between the human sense of smell and consumer behavior can now be harnessed to create an environment where consumers spend more.

According to a 2013 research by the Global Institute for Research and Education, “Ambient scent has the strongest impact in enhancing consumer behavior in terms of cognitive, emotion, evaluation, willingness to return to the store, and purchasing intention, compared to any other atmospheric variables.”

RJO vendor Air Esscentials specializes in leveraging the power of smell, having delivered its diffusion technology to retail, hospitality, entertainment, and service industries all over the world for more than ten years. Its laboratory has developed custom blends and signature scents for some of the world’s leading service industry brands.

RJO member Erika Godfrey of Hawthorne Jewelry in Kearney, NE, is a customer of Air Esscentials.

“Air Esscentials has allowed me to fill my store with an unseen sensation that gives customers something special to remember us by,” says Godfrey. “The various scents available provide us with a unique opportunity, as we welcome our customers into our space. We can change scents based on our personal preferences or on the changing seasons. The fun thing about this is that scent is unique to everyone ... and our customers love walking in and taking a deep breath. It’s affordable and easy to use, too.”

“For years, jewelers have understood that the environment we shop in can make a big difference in purchasing and perception,” says Air Essentials’ Andrew Sloan. “Of our five senses, scent is the greatest trigger of memory. We remember times, places, and events in much greater detail when scent is involved. By adding scent to your store, you are creating a positive memorable experience for your customer, where they will want to stay longer and come back more often.”

“They offered a range of scents, from fruity or floral to earthy, woodsy options,” says Godfrey. “The

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

seasonal scents are fantastic, too. Spicy or sweet, or evergreen or spruce. We were able to choose based on our own preferences, and the selection process was really quite simple. I made it more difficult than needed because I loved playing with the samples, but it’s just a matter of choosing your favorite scent. The machine comes pre-programmed according to your store hours and how much scent you want to fill your store. Set-up was simple, and upon plugging it in, gratification is immediate! I love hearing my customers tell us how great out store smells!”

An appropriate follow-up with Godfrey would have been the question: “Does a nice-smelling store help you sell jewelry?” The answer seems obvious, though, because certainly a foul-smelling store would NOT help at all.

Sound For You or Your Customers?

Paying attention to sound in your store can be beneficial for both you and your customers. Creating a welcoming, soothing “vibe” in your store can set a mood that can really make your customers relax and take some time with you and your inventory. Most studies on music in a retail setting have been about the speed of the music versus the pace of the sales, such as in coffee shops, checkout lanes, and in bars and restaurants.

In the jewelry world, it appears many of the music decisions are based on what the employees on-site want to hear. A recent Facebook poll on the RJO page gave members the opportunity to sound off on whether they play music in their stores, and if so, what type of music they cue up. The RJO winner was today’s pop hits, followed by country.

Here’s a selection from the many responses to the poll:

- Depends on the day. We play most everything on the list in the poll!

- Christian music

- A nice “romantic” mix of Michael Buble, Norah Jones, Sinatra, and some smooth jazz. People always comment on our great music.

- Love me a little Ella Fitzgerald!

- We turn on Pandora’s “Brunch Cafe Radio” - Mix of jazz and acoustic

- We vary every day. Sometimes it’s oldies, Motown, Spanish music, EDM, jazz … pretty much anything. It all depends on who opens the store that day.

- We have the chiming clocks and the rhythm clocks going off all the time; that’s our music

- Older hits, jazz, blues, accessible classical … basically a smorgasbord of what appeals to me!

- I hate saying I am playing New Age, but it tends to be New Age instrumental with a little world beat, sometimes flipping over to adult contemporary. My rules include: No smooth jazz. Avoid swear words. One of every five Christmas songs is allowed to be a 50year-old standard.

- I play popular country, as that is the most popular in my neck of the woods.

Another poster got his staff involved: “I had a contest for my staff to make the best store playlist they could muster. The playlist had to be a minimum of five hours long, and then we played them. The person whose playlist got replayed the most frequently won free lunch for a week. It worked out great. I got five useable playlists, and the Spotify service added to them, so now each is a full day’s list.”

Touch Cool to touch, delightful to hold …

While the impact of smell and sight on selling has been studied for quite a while, research has only recently begun to focus on the sense of touch.

Retailers often think consumers are influenced by touch mainly because they have to do it. To look at packaging, size, color, and hopefully pull out a wallet.

Yet touch can also create symbolic connections between people and products, and between buyers and sellers. Physically holding products can create a sense of psychological ownership, driving must-have

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

purchase decisions. This idea may be the motivation behind moving inventory from display cases into customers’ hands, a trend seen increasingly in the past decade with successful hands-on tech retailers, such as Apple and Best Buy. Additionally, one-to-one touching, as with a handshake or light pat on the shoulder, can lead people to feel safer, and thus spend more. Different tactile sensations can even lead customers to interpret and interact with their surroundings in unique ways.

Understanding the precise manner in which the sense of touch shapes these mindsets also can help managers hit the right note when designing retail spaces.

While the effectiveness of light touches and pats is good to know, jewelers seem to be a bit “touchy” themselves when it comes to customers handling their inventory. Here’s what irks some of them.

Ashton Couch of Couch’s Jewelers in Bossier City, LA, says, “When they ask to see and try on a watch, then go buy it off Amazon, only to come back to me to ask to take the links out.”

Kristie Pooley of Broadway and Fourth Jewelers in Eagle, CO, observes, “My store is in Colorado, not terribly far from a state park. I’ve had women come in that were camping and really in need of a shower. They tried on rings, and I literally had to clean the rings afterwards. Just gross … .”

Nancy Marchell of Signature Jewelers in Grand Forks, ND, is put out when her customers “carelessly treat expensive items like they are shopping at Claire’s.”

Joe Schiavone of Z’s Fine Jewelry in Peoria, AZ, offers, “It’s just my obsessive compulsive disorder, but when a customer tries to put a ring back in a display, instead of handing it back to you. I can’t stand tags showing.”

Despite these shortcomings, the bottom line for your bottom line should be: If you are selling personal products, let people touch before buying.

An Acquired Taste …

The jewelry business is a natural for many of our five senses: sight, smell, sound, touch, and taste.

It would be a rare business to be able to effectively utilize all of those senses to market their products. Seeing and touching would be naturals for the jewelry business. Hearing and smell could easily be added to your store, to effectively put a customer at ease or in a certain mood. Admittedly, taste is a tough one though. No one wants to imagine anyone gnawing on a bracelet or nibbling on a fine timepiece.

So do you abandon taste and focus only on your other key senses? Maybe, maybe not! I would never ask you to drag a Weber grill in the store to fire up a few brats on a Saturday afternoon, but … I still think you have an opportunity here.

Maybe taste is not what helps you lock down that big engagement ring sale, but what if “taste” brought them in to your store in the first place? People are motivated by different things, and food is certainly high on that list. (I’m not the only one who thinks that, right?)

No one wants to imagine anyone gnawing on a bracelet or nibbling on a fine timepiece.

What if you began a new tradition this year to offer a special “thank you” for a good sale? That could be a first-time customer or someone who has shopped with you for years. Each would be surprised when they not only received their purchase, but a small beautiful box with a special tasteful and tasty gift inside.

That special gift could be one (or a pair) of chocolate dipped strawberries, a bag of great coffee, one of those high-end custom cupcakes, or, in the case of a large sale, maybe a dinner for two at a fine locally owned restaurant. This special gift also could change with the season, if you choose. The key is that it does not have to be extravagant; it is simply an extraspecial thank you for their business. It is an example of going the extra mile after the sale.

That doesn’t happen much anymore, but don’t think for a minute they won’t tell everyone they know about their gift.

If you really wanted to take it up a notch you could have special cards printed with some twist on their “good taste” and your offering them “a little taste of thanks.” Something cute, clever, and memorable.

There are easier senses to appeal to in the jewelry business, but taste could be the most powerful, if done well. What’s the harm in trying?

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

- Mike Woody

CALENDAR MAY 2017

10 All payments must be received in RJO Office

14 Mother’s Day

23 All invoices must be received in RJO Office

29 Memorial Day observed - RJO Office closed

31 Memorial Day

NEW MEMBERS Carlson Brothers Jewelry Fred L. Hornshuh IV Tacoma, WA

Genna Jewelry Peter & Kateri Genna Viera, FL

Referred by: Christina Cantlin, Stuller, Lafayette, LA

Anne-Marie’s Fine Jewelry Anne-Marie Beris Canton, OH

Referred by: Steve Nash, Box Brokers, Brea, CA

Anthony Jewelers Nicholas Fratto Palmyra, NJ

Referred by Al Harring, Wilkerson & Assoc., Stuttgart, AR

Gold Mine Fine Jewelry & Gifts, Inc. Bill Warren Hudson, NC

Referred by: Mike Handley, Gems One, New York, NY

Harper Jewelry Co. Sandra H. Kinker South Hill, VA

Referred by Steve Summerlin, Simply Diamonds, New York, NY

Arney Guess Goldsmith Scott Smith Hixson, TX

Referred by Don Brasfield, Brasfield Jewelers, Ripley, TN

The Diamond Studio Bryan Hinton Gahanna, OH

Referred by: Brian Wheeler, Mees Jewelry, Chillicothe, OH

JUNE 2017

9 All payments must be received in RJO Office

14 Flag Day

18 Father’s Day

21 Summer begins

23 All invoices must be received in RJO Office

Lee Ann’s Fine Jewelry Rachel & Ricky Hardester Conway, AR Morris Jewelers Michael Hennes and Neil Hennes Gastonia, NC

Newton’s Fine Jewelers Davis Newton Starnes Flowood, MS Paul Bensel Jewelers Paul Bensel Yuma, AZ

Referred by Tom Vetlesen, Gems One, New York, NY

Harvey Oaks Jeweler Gerald Gonya and James Parkhurst Fremont, OH

Pittman Jewelers Leroy Pittman Clermont, FL

Referred by Todd & Paula Mutzig, Meig’s Jewelry, Tahlequah, OK

Rosenfeld Jewelry LTD William Rosenfeld Tucker, GA

J. David Jewelry Joel & Kendra Wiland Broken Arrow, OK

Referred by: Allen Stricklin, Allison Kaufman, Van Nuys, CA

Referred by: Sunny Aiya, Lustour (dba Jewelry LED, dba Aiya Designs), Alpharetta, GA

Royal Fine Jewelers Lynn Schulwolf Louisville, KY

Referred by: Sandy WiemanMorrow, Shah Group (dba Shah Luxury), New York, NY

Sami Fine Jewelry Stephenie Bjorkman Fountain Hills, AZ

Referred by Tom Vetlesen, Gems One, New York, NY

Ware’s Jewelers Robert A. Ware Bradenton, FL

Referred by: Christina Cantlin, Stuller, Lafayette, LA

Wendel’s Diamond Jewelers Jon Palestrant and Stuart Palestrant Lancaster, OH

Referred by Jack Seibert, Jack Seibert Goldsmith & Jeweler Co., Columbus, OH

Willow Glen Diamond Co. Terri Brooks San Jose, CA

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.

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.