RAPAPORT...
It is not unusual for a client to come into a store wanting to sell
a piece of jewelry, and while many of the pieces of estate jewelry that
come over the counter may not be sterling examples of period pieces,
the value to the person offering them for sale can far outweigh pricing
issues. The jewelry represents “a moment in their lives, a moment in
their family, a moment in their history,” points out Kimberley
Thompson, estate buyer, J.B. Hudson Jewelers, Minneapolis, Minnesota.
“The goal is to gently deal with that without insulting them, to make
an offer consistent with what you think the piece is worth but with
sensitivity so they don’t leave upset.” There is an emotional factor
that enters into the mix, acknowledges Janet Levy, principal, J. &
S.S. DeYoung, Inc., New York City. “I just urge people to be respectful
of the relationship behind the piece. It might be something that their
mother wore every day.”
“When someone comes into my store,” says
Jim Rosenheim, chief executive officer (CEO), Tiny Jewel
Box,Washington, D.C., “whether they are buying or selling, I treat them
exactly the same way. I treat them with total respect. I understand
that they’re uncomfortable, just like people who come in can be
uncomfortable buying jewelry. You sit down and quietly have a
conversation with them and try to put them at ease and make them
comfortable. Be willing to answer any questions whatsoever that they
might ask you about the piece and what it is.”
“You’re really
just trying to find out what their objective is, what it is the
customer wants,” says Eric Bitz, vice president, David & Company, a
retailer/Swan & Company, a wholesaler in Chestnut Hill,
Massachusetts. “Some people might need cash right away. And if it’s
something we feel we can use in our stock and we feel confident in it,
we would make an offer right away. Or another customer may have
inherited several pieces in an estate and not be in a rush to liquidate
them. For situations such as this, we might consider offering the
customer a trade option or perhaps a consignment option, which would
allow them to get more value out of their item. Ultimately the process
is very personalized to each customer and what they’re selling, how
marketable it is, how much they are expecting for their items and how
quickly they are expecting it. ”
Educating Customers“If
I’m offering a lower price,” says Thompson, “I’ll tell them exactly why
that is. Usually, it’s because I have existing pieces in my inventory
or the piece is a little more out there and I’d have to sit on it for a
longer period of time, or it’s something that’s very bread-and-butter
and probably the low end of my spectrum. I do tell them that I take a
look at what the maket is doing, I take a look at what things are
selling for at auction, what I could buy it for and then I make my
offer based on that.”
What you don’t what to do, points out
Stuart Singer, Stephen Singer, Inc., estate jewelry dealer in New York
City, “is offer a price that you think may offend your customer. Engage
your client in some dialogue, asking them how long they have had the
piece, why they want to sell it and if they have any idea as to the
value of the piece. Then present your offer price with confidence —
don’t ever be embarrassed by any offer as long as it is a fair one.”
Another factor to keep in mind, Rosenheim says, is if you were to
purchase this piece from a dealer and it doesn’t sell in a year or two,
you would be able to trade it back for something else in his inventory.
But you can’t do that with a consumer. “So I’ll pay less than wholesale
value because I don’t have the same ability to get rid of it if I don’t
sell it.”
“One of the things that is a battle for our industry
is overdone appraisals,” points out Levy. “Say there’s a little bow pin
with a carat and a half of diamonds in it. If it were being sold, it
would be sold for $800, but if it was going to be retailed, it would go
for $2,000 to $2,500, and it should be insured at that level. But then
the person comes in with this little bow pin and it’s been insured for
$4,500 and they get offered $800 — it’s too much of a shock.”
You
have to put whatever they’re showing you into the context of what the
piece is and explain it to them, says Rosenheim. “Tell them it’s 1920s
vintage, or it’s platinum, or it was made in France. Show them the
hallmark. Explain that it needs some work, the stone is not real or the
stone is very nice quality.” He also explains to them that the price is
based on the wholesale value and not the retail value,“and that there’s
a significant difference between wholesale and retail. And that
difference is paying for the 40 people who work for me and for my
advertising and my insurance and overhead costs.”
According to
Benjamin Macklowe, of the Macklowe Gallery, New York City, “In buying
from the public, just like buying from a dealer, there’s always give
and take and a discussion. It’s harder with the public because often
these are family heirlooms and so they are ascribed a greater value
because of sentimentality than they may have based on their actual
commercial value. And also, very often members of the public have
bought things at retail price from somebody else, so you have to bring
them down to the reality that in the estate market, they’re not going
to get anywhere near what they paid for it unless they were
exceptionally fortunate and bought something that was undervalued and
now it’s much more popular.”
OpportunitiesIf
you handle the transaction well, points out Rosenheim, and treat people
with the same courtesy buying from them as selling to them, they will
have a good experience, which will encourage them to recommend you to
their friends.
In fact, says Singer, “If you’re not buying from
a customer, you’re letting a sale walk out the door, just as if you
were going to sell a diamond to that customer. If you don’t buy it from
that customer, he’s going to walk down the street and sell it to
someone else who’s going to make the money. Just like letting a sale
walk out the door, it’s letting a buy walk out the door; you’re losing
out. On the other hand, just keep in mind that if your offer is too
high, you’re the one that still needs to sell it!”
Article from the Rapaport Magazine - August 2009. To subscribe click here.