February 23, 2013 @ 7:06 AM

 Here are the top 10 mistakes people make when pricing repairs:


1. Thinking of repairs as being price-sensitive

similar to the way jewelry products are.

Customers come to you because they trust

you. Want proof? Answer this simple test: Out

of 10 people who look in the case, how many

buy? (Average is two or three out of 10). Out of

10 people who ask if you can repair something,

how many leave it? (Average is nine out of 10).

There you go! It’s not price-sensitive.


2.Making the price up in mid-air and speaking

it orally. “That will run you about $45.” Bad

news, the customer might say, “Gosh, that

sounds like a lot, can’t you do better?” Okay, if

you hold your ground, fine. But what if you

lower the price? Know what that means? The

jeweler has to either work faster or clock out

while doing the job because you’d lowered the

price. The shop can’t make money this way.

Your second problem is it’s come out of your

mouth. Basic psychology: People are apprehensive

about what they hear, and believe what

they see.


Have all prices written down so you

can refer to the particular repair they request.

Our 300-page price book got us to the level

where when we pointed and said, “$85.00”,

they just said, “Okay.”


3. Not having bi-monthly sales meetings

where you train the staff a little at a time on

how repairs are actually priced. Lessons over

time go a long way towards having a terrific

staff. We spent nine months training our

staff. Start today.


4. Asking your jeweler, “How much should

we charge?” Ever notice how a jeweler calls

home and says, “Honey, I’ll be about 45 minutes

minutes late ...” and he shows up two hours later?

Jewelers can’t judge time well. So how can we

expect them to be able to price well?


The solution is simple — ask the jeweler how long he

thinks it will take, double that amount and

multiply that new number by at least $65 per

hour. Our shop figured its time at

$100 per hour, but we used a longer

timeframe for the time multiplier.


Also, most bench jewelers can’t

imagine getting $100 for what “just

took them an hour”.



5. Calling the customer back later

with an estimate. Whether it’s a

repair or a custom job, there’s no

real reason why you can’t price it

now. Besides, the customer will lose

their enthusiasm ... so strike while

the iron is hot. And stop wasting

your time and theirs. Quote now.


6. Prejudging that a customer

won’t pay for a repair because you

think that they will think the price

is way more than the item is worth.

It is not your place to decide a customer

won’t spend the money. Don’t go

and charge $45 for fixing a cheap ring just

because it’s cheap, if it will take the 1.5 hours

you would normally charge $150 for. If you

charge $150 to fix an $800 ring, but only $45

to fix a $200 ring, then logically you should

charge $400 for the same 1.5 hours on a

$4,000 ring. You may like the idea of charging

more on higher items to make up for lowerpriced

repairs. But charge consistently, you’ll

come out better.


7. Not offering what the item really needs

because you think, you’ve “charged enough”

already. I know one store in California where

they simply won’t answer the simple question,

“How much to size my ring down?” They

instead take the ring to the microscope and

write down what it needs. About 90 percent of

their customers follow the objective advice.

Their average repair is $95.


8. Not paying commissions on repairs. This is

one of the silliest of all! It takes one person to

sell a $2,000 showcase item in 15 to 30 minutes.

It takes four people to sell a $25 repair in

the same amount of time! It takes a salesperson

to sell it, someone to log it in and order a

part, a jeweler to fix it and a salesperson to

deliver it. Four people for $25! I wouldn’t like

repairs either if I wasn’t compensated

for selling them. Besides, if the jeweler

cost you $3 and you received $10 to do

the job, isn’t that profitable?


9. Not telling the customer about

your warranty. Believe it or not, you

have warranted your workmanship,

even though you didn’t speak the

words. Tell the customer you warranty

your work; it will help you get those

higher prices more easily.


10. Not offering your customers rush

service. Customers want the convenience

of while-you-wait or fast service.

In our price book is an “Express

Service” column. It’s 50 percent higher

and we’ll do any repair while you

wait or within 24 hours. About 40

percent of the customers take us up

on it! And this particular service generates

the least complaints!


You can make more gross profit dollars as a

percentage from the shop than you can from

the case. Customers will pay for convenience

and quality and trust.


David Geller



P.S. Is your Geller Repair Pricing Guide Up To Date?


If you have a spiral bound Geller book (not the 3 ring binder),

Version 1.0; 2.0; 3.0; 3.2; 4.0

then you need to upgrade. Go here to upgrade your Geller Book: