Winning Against the Web

So how has the Internet changed how we sell diamonds? First, the Internet has shortened the amount of time we spend educating customers on the 4C's.

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Winning Against the Web #1
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So how has the Internet changed how we sell diamonds? First, the Internet has shortened the amount of time we spend educating customers on the 4C's. By the time potential clients enter our doors, they are already familiar with "Diamonds 101." So spend the time it saves you on selling yourself.
Certificates have taken "trust" out of the jeweler's hands. We no longer are needed to grade the diamond, merely to aid and guide them in their decision. With legitimate certs on round stones of similar proportions, buyers feel like they are car shopping. Simply stated, they need to want to buy a diamond from you over your competition.
How do you win a sale when faced with the web? Be familiar with your competition and exploit their weaknesses. Know what Blue Nile has and what they sell it for. At least 75 percent of your consumers will already have gone on-line. You must address this fact. I am amazed when I am the third jeweler a client has visited and yet they are still considering the Internet. Two jewelers before me have not done their job. Ask your client what they thought about their Internet experience. Act interested in their opinion (you actually should be) while you extract information. They will tell you if an e-tailer is really an option they would consider.
GETTING THAT COMMITMENT
If a customer is considering buying on-line, I employ a few tactics and exploit a few weaknesses of on-line retailers. First, point out that Internet pricing is confusing. If they shopped Blue Nile, I take them to the site. I pick a stone search comparable to the stone they have described and ask them why is one 2 carat G/VS1 ideal cut priced at $24,500 and another $31,500? They can't answer. They don't know. They always tell me about the cheaper one. It must be a better deal. No one ever comes in about the one at $31,500. I tell them that if the same site is charging so much less for one stone something must be up with it. If you saw a car site with two Mercedes, the same model, same mileage, color, etc., and the prices were $24,500 and $31,500, what would you think? I remind them that they are neither a car mechanic nor a gemologist. I let them draw their own conclusions. They now wonder what is wrong with the cheaper one.
Blue Nile is now on your side, telling them that not all diamonds are the same and they can't tell the difference. I also now only have to compete with the most expensive stone. Again, an analogy: If a dog breeder has a litter of pups and they are charging less for one than the other, what does it tell you? The expert is saying one is inferior, not a better value. What if these were doctors, lawyers, or even mail-order brides, would you choose the cheapest? That always gets a chuckle, but my point comes across.
Tell them a story that makes a point. This is something you ought to do with caution. You don't want the client to feel like they're "being sold." I tell them about a client who came in with a Breitling that had to be fixed twice in two months by the site's chop shop. It still was not right. And no Breitling warranty since he didn't buy it from an authorized source. Or the client who bought the Movado with markers that kept falling off.
My favorite story is the couple who met on the Internet (so they surely are not scared of buying there). I bring up eharmony.com and match.com. I ask: "So when you met on the site did you click on the 'marry her' icon?" which again shows that researching on the Internet is great but buying is ridiculous! They smile, laugh, and agree. We all want to see it, try it, drive it, and date it first! Clients don't want to buy from the Internet; they want to buy from us. That's why they're in your store.
Be competitive with pricing. Despite the fact that I'm getting my point across with interesting conversation and entertaining stories, not "selling," all this means nothing if I am not in the ballpark financially. We need to be competitive. I relay my experience of a client telling me of a gemologist who helps consumers locate a diamond on-line and gives them an appraisal for a fee of $900. My client was really considering this, since many of his friends had used him.
So we made a list: Diamond (Blue Nile highest comparable): $6,500. Gemologist help, appraisal (above): $900. Retail jeweler benefits: trade in privilege, personal service, stone tightening, sizing, appraisal updates, cleaning, etc. And the jeweler's prestige (Ask them how much it's worth to them.): $500. Total: $7,900.
If the diamond cost was $5,300 (in the middle of the Blue Nile pack), you made $2,600, almost 50 percent. That is probably the best it gets these days. Make this list for your client. They have arrived at this fair price—not you! Make the Internet your friend. Let the client know it's OK, in fact, it's good as a source for research, but not for buying.
author: Bret A. Morris, G.G.
A.R. Morris Jewelers, Wilmington, Delaware




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