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How To Sell More Diamonds National Pawnbrokers Association Presents Curtis W. Sutherland Overview History Goals Constant Change – Evolution How to Build the Business Framework – 4 P’s of the Marketing Mix Closing the Sale Curtis’ Top 10 Tips History 1977 – Bought first diamond

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How to sell more diamonds l.jpg

How To Sell More Diamonds

National Pawnbrokers Association Presents

Curtis W. Sutherland


Overview l.jpg
Overview

  • History

  • Goals

  • Constant Change – Evolution

  • How to Build the Business

    • Framework – 4 P’s of the Marketing Mix

  • Closing the Sale

  • Curtis’ Top 10 Tips


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History

  • 1977 – Bought first diamond

  • 1981 – Started pawn store

    • Making $1,000 a month

      • Had $200 in the bank

    • Buying & selling on the side

    • Went to gun show

      • $125 – bought 1.25 ctw melee

        • Didn’t know any better – sold it for $500 next day

      • Took $500…


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Goals

  • 10 Years ago I was selling 100 Rolex a year

  • Set a goal to sell 150 – sold 160

  • Set a new goal to sell 365 a year

    • Missed that goal, only sold 363 that year ;-)

  • Next year, sold 400..a LOT of work

  • New goal was 300

    • Now sell 300-400/year like clockwork


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Constant Change - Evolution

  • Evolution of personal diamond sales

    • 20 years ago – small melee rings

    • 5 years ago – sold quality 1/2 ct solitaires

    • 2 years ago – sold any 1 ct diamond

    • This year – any 1.5 – 2 ct diamond

      • Only sell ½ ct as 1 ctw studs

      • Only sell melee when we manufacture, etc.


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How To Build The Business

  • Pragmatic discussion

  • Will discuss a “framework” that helps us to categorize our approach


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Framework – 4 P’s

  • Product

    • Selection

    • Understanding market demands

  • Price

    • Objectives

    • Strategies

    • Levels

  • Placement

    • Sales (direct and indirect)

  • Promotions

    • PR, Ads, Direct Response, Events, Online


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Product

  • What product (diamond) will you sell in a college town?

  • What about New York City, 5th Ave?

  • You must know the market demographics in your area

  • You can expand your market—as you reach out nationally (via the Web)

    • First, learn the business locally


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Product

  • Where do you get your inventory?

    • Pawn Loan Defaults

    • Off the Street Purchases

    • Diamond wholesaler vendors who support the NPA

      • Various suppliers

      • Our company (now…with the volume)

        • Specialize in “clarity enhanced”

      • Those that have developed a reliable supply chain

    • Memo (side business)

      • Memorandum, consignment (broker other people’s inventory)


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Product

  • What kind of diamonds?

    • Natural

      • Generic “graded” by 4 C’s

      • Branded “Ideal Cut” (meets basic specs)

      • Makes “unique” cut / something different (positioning)

    • Treated

      • Color treated – brown, yellow, green, blue, orange, pink

      • “Clarity enhanced” – graded at the new enhanced level

        • Examples:

    • Key is to find a unique niche that separates you from the masses (jewelers or other pawn stores) where you can be REALLY good. Compete on product, at a unique price…


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Price

  • Pricing objectives (22 options)

    • Target market share (period)

  • Pricing strategies (cost or market-based)

    • Market-based (what market dictates)

      • Multiple strategies (premium (jewelry stores), bundle, cross-benefit, etc.)

      • Go with penetration pricing

        • Secondary wholesaler (too much competition in retail)

        • Volume will build market share

  • Pricing Levels (actual price per diamond)

    • Retail has a BIG margin and BIG overhead

    • Secondary wholesale, quick turns, low risk (not caught holding the bag), market fluctuates—we flow with it (Dell model)

      • Pink diamonds flood the market, we’ve already liquidated—jewelers are caught with overpriced inventory

      • The shampoo model (rinse and repeat)


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Placement - Sales

  • Direct

    • Store sales

  • Indirect (Sell through others)

    • Family & Friends

    • Group meetings

      • Church, clubs, neighborhood

      • Speaking events (educational, show & tell)

    • House parties

      • Tupperware & Mary Kay model

        • Educational approach

          • What to look for, how to source, becoming an expert source

    • Help others to become diamond brokers

      • Examples ($40k, $25k)


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Promotions

  • Everything is designed to generate traffic and leads

    • PR

    • Advertising

    • Direct Response

    • Events

    • Online Marketing


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Promotions

  • PR

    • Donate to the children’s hospital

      • Had an auction – Tickle Me Elmo

      • Radio required to announce public service announcement quota

      • TV station did live announcement

      • Come into the store to write your bid

        • Produced new sales (donations, Elmo)

      • Funds donated to Children’s Hospital

      • Got $25k of PR value (direct sales, advertising)


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Promotions

  • Advertising

    • TV Ads for 1 year

      • Modest return – break even ROI

    • Radio

      • Live remotes (bring van to location w/DJ’s)

        • Works well with special events and sales

    • Newspaper

      • Classified ads for specific items

        • Great results (sell almost 100% of what we place)

      • Display ads

        • So, so results (hard to track)

    • Magazine

      • Town & Country (island ad)

        • Entire new clientele, high-end for “clarity enhanced”

        • Ad used co-op from Diamond wholesaler (that we used)

        • ROI was excellent – ad only listed one reseller/town (us)

        • Cost us nothing, and produced $12k to $25k single sales

    • Online

      • Craig’s List (free) – sales sections (like classified ads—the item sells (period)). One at a time.

      • E-bay (whole other seminar)


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Promotions

  • Direct Response

    • Direct mail

      • Sent letter of introduction to 63 jewelry stores in Austin

      • Over the next year, received over $70k in sales

    • Direct e-mail

      • Now do similar, but use e-mail (saves printing and postage)

      • Know who is interested in a specific item

        • Rolex (exact type)

        • Specific diamond size, clarity, etc. (sent out to 50 contacts)

        • Won’t be offended if they get a specific, targeted e-mail (very personal, not spam)

    • Tried door-to-door flyers

      • “nuff said”


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Promotions

  • Events

    • Mentioned some already (PR)

    • Tried by invitation only sales

      • Worked well, but irregular results

        • First time, sold about $40k that night

        • Second time, sold about $14k that night

        • Third time, sold about $5k that night

    • Put items in live auctions

      • Local and online

      • Put items in at cost, split the profit

        • Don’t want to pay large % on expensive items

    • Business groups

      • Leads group – 1 per type was allowed to present/quarter

        • Still deal with some of the same people met 15 years ago!

        • Revenue equates to apx. $1,500 per hour spent


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Promotions

  • Online Marketing

    • Ebay & Craig’s list (already touched on)

    • Website

      • Search Engine Optimization

      • Let’s start with

        • A computer

        • E-mail

        • A website

        • Then – optimize it

    • E-mail marketing (covered under direct response)

  • All promotions are designed to generate traffic (leads), however…


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Closing The Sale

  • If you have 100 leads and a 0% close ratio…how much will you make?

  • If you have 1,000 leads and a 0% close ratio…how much will you make?

  • If does no good to generate a TON of leads, if you can’t CLOSE the business

  • You either “close” or you will be “closed”


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Closing The Sale

  • The best close, is an enthusiastic presentation (or discussion)

  • The discussion must identify their needs (a bracelet or a ring)

  • To find their needs, you MUST listen

  • Story of Samson..


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Closing The Sale

  • Quoting scripture

    • Samson slew a thousand Philistines with the jawbone of an ass…

    • Every day, a thousand sales are killed with the same weapon

  • SHUT UP… and listen. They will tell you their “hot buttons”


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Closing The Sale

  • Buying Signals

    • A good way to tell if you are listening effectively and personalizing your discussion to fill needs, problems and desires is through “Buying Signals.”

  • Examples of Buying Signals:

    • “How much does this cost?”

    • “Do you think my wife will like this?”

    • “How does it compare to the jewelry store?”

    • “Do you have a payment plan?”


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Closing The Sale

  • Hot Buttons

    • “Hot Buttons” are also buying signals. Always listen for your prospect’s “Hot Buttons.”

    • All needs, problems and desires that are brought up by the prospect are “Hot Buttons.”

    • Examples

      • “Buying here would save me a lot of money”

      • “I could get twice the diamond I planned on”

      • “This is the nicest diamond I’ve seen”

      • “I would be a fool to pass this up”

      • “This should help me…”


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Closing The Sale

  • Hot Buttons

    • Whenever your prospect gives you a “Hot Button,” STOP what you are saying and build upon his “Hot Button” with exciting, positive comments.”

      • Prospect: “This would save me a lot of money”

      • You: “It would, wouldn’t it? The average customer saves over 300% by buying their diamond here. That’s pretty good, isn’t it?”


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Closing The Sale

  • The big How To…

    • ABC of closing (always be closing)

      • Step one

        • Ask for the sale

      • Step two

        • Ask for the sale

      • Step three

        • Guess…


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Closing The Sale

  • Assumptive Close Question

    • Assume the order

      • How would you like to pay for that?

  • Physical Action Close

    • Pen rolls out of your hand into theirs

    • Move over to the cash register

  • Alternative Close Question

    • Would you like to use credit or cash?

  • Subordinate Close Question

    • How are you going to present this to her/him?

  • Key: Have a close question and ASK IT

    • Good idea, isn’t it?


  • Curtis top 10 tips l.jpg
    Curtis’ Top 10 Tips

    • Set goals

    • Start locally

    • Understand “Your” market

    • Find a unique product (clarity enhanced)

    • Consider indirect sales to leverage others

    • Promote with PR and ads

    • Consider direct mail & e-mails

    • Create an online presence (to go national)

    • Don’t be like Samson (jawbone…)

    • Ask for the sale!


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    Conclusion

    • Will everything I mentioned work for you?

    • No…but some of it will.

    • You can grow beyond your current boundaries, meet your goals and achieve your dreams…if you follow this roadmap

    • What’s holding you back?


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