Publicize Your Policies

Offering service policies and merchandise guarantees provides peace of mind that builds consumer trust. For many customers, a diamond represents a “blind purchase.” By offering a return policy and a guarantee on craftsmanship and quality, you can limit their anxiety. The following policies and guarantees help establish a strong reputation:

• Legitimate Sourcing
• Jewelry Craftsmanship
• Custom-Design Work
• Diamond Grading
• Returns for Credit/Exchanges
• Returns for Refund
• Change-of-Mind Guarantees
• After-Care Service

To receive the full benefits of such policies and guarantees, you must promote them as you would any key area of your business:

• Train salespeople to convey your policies prior to a sale.
• Spread word of your policies via in-store signage, as well as through advertising, direct mail, public relations and promotions.
• Print policies – especially your return policy – on sales receipts and list them prominently on your website.

Your Return Policy Can Make A Difference

Consumers want assurance they can return or exchange merchandise without feeling pressure or intimidation. If a policy does not incorporate flexibility, you may risk losing a sale or, even worse, a loyal customer.

There is much to consider when developing a return policy. According to the Jewelers Vigilance Committee's Retailer's Legal Handbook, jewelers have the option of giving a credit or refund to any client as they choose. The terms, conditions and limitations for granting a credit, refund or exchange are up to you. However, the smartest (and safest) strategy is to establish a formal return policy– and to communicate it to EVERY customer prior to the sale.

There are many pitfalls for retailers who lack a formal return policy:

• Potential legal problems with consumers
• Damage to their reputations and customer relationships
• Loss of business to competitors that do offer formal return policies

Competing with Electronic Retailers on Returns

With the steady increase in online jewelry sales, a strong return policy has never been more important to brick-and-mortar companies.

Industry experts note that Internet and TV retailers have turned return policies into a competitive market advantage. Most electronic retailers offer at least a 30-day “no questions asked” full refund policy, cementing customer loyalty and ensuring repeat business in the process.

It is imperative that you offer a return policy that at least matches those available on TV or the Internet, or risk losing business to these sectors.

Checklist for Implementing an Effective Return Policy

In addition to those steps outlined above, the following can help you establish a formal return policy:

• Research the return policies of retailers in your market, as well as on TV and the Internet, to ensure your policy is competitive.
• Make sure your policy covers all the terms, conditions and limitations of returns, credits, refunds and exchanges you offer.
• Consult with an expert to ensure that your policy covers all potential legal, business and financial considerations.

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If a return policy is not flexible, you risk losing a sale or, even worse, a loyal customer