RAPAPORT... The 4Cs are not the only things that make a piece of diamond jewelry a sales winner. In an ongoing series, RDR explores the “3Ws” — what’s selling, what’s not and why — by going straight to the people who really know — jewelry retailers. Each month, we ask a sampling of retailers to comment on the important issues that are facing the industry today. Here is what they had to say when asked: Do you offer appraisals to customers on site and how actively do you promote the service?
JASON DRUXMAN,
VICE PRESIDENT/GENERAL MANAGER
AVENUE JEWELERS
APPLETON, WISCONSIN
“Items that were sold through our store receive an appraisal from our store. We use an independent laboratory, Global Gemological Laboratories, out of Bellevue, Washington, for items that have not been purchased in our store. For the things that we take care of on staff, we trust our vendors for the grades and I am a diamond graduate from the Gemological Institute of America (GIA). The appraisals are mostly retail replacement and Fair Market Value.
“Providing an appraisal is part of our 35-year culture, part of who we are as a business. And with the current market, we are encouraging people to have appraisals updated. Insurance companies are even insisting upon it in some situations. The price of metals has risen so much, the insurance company, in order to insure the item, is going to want more premium and then I need to do a new appraisal raising the retail value of the item.”
MARK COLEMAN, CO-OWNER AND PRESIDENT
NELSON COLEMAN JEWELERS
TOWSON, MARYLAND
“We have two levels of appraisals. We have an independent jewelry appraiser who comes in twice a week and works within our store. He does not sell jewelry, nor can I tell him what to appraise something for. That’s a wonderful service that as an American Gem Society (AGS) store we offer.
“We also give sales validation appraisals on the jewelry we sell. For instance, if we sell a Hearts on Fire Fulfillment pendant, it’s going to be based on the nationwide retail price. A third of what we do is antique and estate jewelry and those appraisals are going to be based on our experience. In a sense, when it comes to certain types of things, we are the ones who are going to be setting the price, because we’re creating demand, just as Tiffany sets the price for their Lucida diamond because they’re creating the demand.
“We do advertise this service. We have appraisals backed up for a couple of months right now. Is it a reaction to higher metal prices? I don’t think it’s totally that. In a store like ours, we have customers who own many pieces and who need to have them updated.”
BILL COLLINS, PRESIDENT
COLLINS FAMILY JEWELERS
SAN DIEGO, CALIFORNIA “We do all the appraisal work ourselves. As an AGS store, we do a lot of insurance work, replacement work; we do a lot of work for insurance companies as well as for people who come in. Our appraiser taught the appraisal course at GIA for 12 years.
“We do advertise the service and people do come in and ask for it. It’s a lot of word-of-mouth, too. Our appraisals are very in-depth and detail-oriented, but a lot of that is through the AGS format, which is pretty involved. It’s not just a one- or two-page document when you get the appraisal. People see what it is. Plus, insurance companies know that what they get from us is exactly what they need to make sure they’re covered in all respects.
“Recently, we’ve talked about letting people know that they should update. On our on-hold phone message, when customers call in, one of the things they’ll hear is that it might be time to update their appraisals. In terms of prior appraisals, that’s something we’re working on, to contact customers to remind them it might be time to update.”
BRUCE W. WATTERS,
CHIEF EXECUTIVE OFFICER
BRUCE WATTERS JEWELERS
ST. PETERSBURG, FLORIDA“I have a graduate and certified AGS gemologist on staff, and we’re a gem-trained lab. We do appraisals under the new AGS guidelines, which makes them very complete and very good and very expensive.
“We don’t advertise — I have more than I can handle. People come to us and ask for the service. We’ve done appraisals for 40 years that I know of — insurance appraisals and estate appraisals and replacement appraisals. The new AGS guidelines protect the jeweler because you list all the equipment you use, all the techniques, all your sources and, instead of using the retail replacement out of your stock, it’s the market price.
“We have such a good reputation that people are not afraid to leave their stuff with us, which makes it a little easier to do, but we also can do an appraisal while they wait, although it takes quite a bit of time.”
SCOTT BOLOZKY, PRESIDENT
CLARKSON JEWELERS
ELLISVILLE, MISSOURI
“We do appraisals on site. We have three graduate gemologists in the store. We are not a member of any appraisal organization. We do retail replacement appraisals. Customers can drop off the jewelry or we do it by appointment; it’s a little bit more expensive if we do it while they wait.
“Offering appraisals is in our Yellow Pages ad, I believe, but mostly customers come in and ask for the service.”
JEFF JAFFE, PRESIDENT
HAROLD JAFFE JEWELERS
TOLEDO, OHIO“We do appraisals on site. We have three certified gemologist appraisers on staff and a couple of Registered Jewelers and a couple of certified gemologists, so we have a whole bunch of people who are qualified. Customers leave the pieces to be appraised.
“We do insurance replacement documents; we work for the probate courts, we do estate appraisals. We pretty much follow the AGS guidelines and we provide written reports. It’s a service that we promote within the store. We do not advertise it. But recently, we have been spreading the word because of the increases in value.”
Article from the Rapaport Magazine - June 2008. To subscribe click here.