Promotion of Jewelry

Platinum
Jewelers, who follow best practices steps dealing with platinum, separating it within showcases and suggesting it as a first option for bridal, are far more likely than other retailers to make a platinum sale. This was revealed by a new Platinum Guild International (PGI) study. The PGI “Platinum Best Practices” survey, which involved 850 stores in 2007, demonstrated that retailers who scored above average on PGI’s best practices have a 92 percent chance of selling platinum and are 99 percent certain to have a platinum customer return to their store.

The challenge is that platinum tends to be buried in category sections, according to Huw Daniel, president of the Platinum Guild International USA.
Separating platinum also allows retailers to show customers platinum items first, before shifting down if the customer signals that the pieces are too pricey, Daniel says. Retailers who begin by allowing customers to try on platinum are more likely to sell a higher-priced piece.
Top platinum-selling retailers also use engagement ring sales as a first step in selling two wedding bands down the road.

The study results also show that stores scoring highest in customer service had the strongest platinum sales.
The top reason that customers do not buy platinum is that they were not shown it, according to PGI.
Retailers should make sure staff members have an understanding about the properties of platinum and do not underestimate the purchasing power of any client, Daniel says. The secret shoppers study found that 10 percent of retailers did not indicate to shoppers that they knew the merchandise well or could distinguish platinum from other white metals.
Judd Rottenberg, a principal at Long’s Jewelers in Burlington, Mass., says because his sales associates were trained by PGI representatives in selling platinum now as the are understanding its properties they feel more comfortable selling it.
“Unlike a lot of other marketing out there, platinum has facts that actually hold water,” Rottenberg says. “Platinum is the most durable metal. You can’t dispute that. That makes it the best metal to hold a diamond in an engagement ring.”
Rottenberg says he has not considered cutting back his platinum inventory in light of the increased prices.
“If someone is buying a diamond ring for $10,000, what’s the big deal about an extra $500 for the setting?” he explains.
Rottenberg says he has not cut his margins, and he views the price increase as a sales opportunity.
“I tell them to buy it now before it goes up again,” he says. “If you’re going to be cheap, get a cheap diamond. And if you’re going to do that, why don’t you skip the honeymoon? Gas prices are going up, but people keep buying that because they need it. When it comes to an engagement ring, they need platinum too.”