Rob Gross, head of business development for Master Design Jewels, says one tactic it is using is to offer product on memo. While some in the industry have been critical of this kind of program, Gross says it can be effective, given the retailer then “has skin in the game.” In the case of one of the lines Master Design Jewels distributes, a $2000 product buy-in provides the retailer a $1000 credit against additional purchases after they’ve bought $1000 worth of jewellery.
“There are intrinsic problems with memo when the retailer gets product for nothing, since they won’t push those items,” Gross explains. “But you’re naturally going to push the product where you have an investment in it.”
J. David Ritter, president and chief executive officer (CEO) of Canadian Jewellers Association (CJA), says the sentiment among the retailers he’s talked to across the country varies. Major independents seem to be weathering the storm, while smaller independents are surviving on repair and lower price points.
“There’s still nervousness in the marketplace in terms of what’s going on,” Ritter says. “The first couple of months of the year were okay, but then it slowed right down. In Toronto, people thought the Pan Am games would be great for sales and they weren’t. Retailers in B.C. say they’re having a great year, but Alberta isn’t doing so well because of the oil crisis.”
Ritter says the tough jewellery landscape highlights the importance of education and training among sales associates, who, in the majority of cases, are going head to head with consumers who have done hours of research before stepping foot in a store. Seminars and other training methods have their cost, but when compared to the lost opportunity of not making a sale or the accumulated effect of that over a period, the benefits are clear, he says.
“Getting a sale an employee wouldn’t have gotten previous to training is worth the investment, as the associate is more comfortable in terms of selling and engaging the consumer,” Ritter explains. “You have to have confidence on both sides of the counter.”
