10222017Sun
Last updateWed, 18 Oct 2017 12am
Sandy Jones jewelry career comes full circle

Sandy Jones jewelry career comes full circle

They say never burn a bridge you may need to cross...

Reason to Hope: Jewelry industry steps up to help natural disaster victims

Reason to Hope: Jewelry industry steps up to help natural disaster victims

It’s so easy to get sucked into choosing a side. T...

Remembering Janel Russell, creator of Mother and Child Jewelry

Remembering Janel Russell, creator of Mother and Child Jewelry

Motherhood defined much of Janel Russell’s life, b...

Other News

The psychology of the allure of gold

The psychology of the allure of gold

When you think of the color gold, images of grandeur and extravagance are likely to come to mind.

For millennia, the metal has adorned crowns and hilts of swords. It has been used to enhance paintings and ornaments to increase their value.

In some cult...

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Industry Events

Initiatives in Art & Culture announces 19th Annual Fashion + Design Conference: “White: Palette, Prism, Possibility”

Initiatives in Art & Culture announces 19th Annual Fashion + Design Conference: “White: Palette, Prism, Possibility”

Conference to be held November 10 & 11, 2017 at CUNY Graduate Center, New York City

Initiatives in Art & Culture (IAC), an organization committed to educating diverse audiences in the fine, decorative, and visual arts, has announced their 19th...

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On The Move

Paul Machiels, owner of Charms Plus, to retire 37-year industry veteran seeking to sell wholesale business

Paul Machiels, owner of Charms Plus, to retire 37-year industry veteran seeking to sell wholesale business

Paul Machiels, who has spent the last 37 years selling jewelry, chains, and charms to retail stores, has announced his retirement. His announcement coincides with his intention to sell JKM Enterprises, parent company of Charms Plus, to interested buy...

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What's New

Merit Diamond introduces MFIT®

Merit Diamond introduces MFIT®

Innovative men’s wedding bands designed with maximum comfort in mind

Merit® Diamond, manufacturers of the popular, luxurious diamond fashion line Sirena®, has developed and tested their supremely comfortable men’s MFIT® wedding band line over the past...

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Featured Articles

Alamea Hawaii’s appeal washes deep into America with elegance & beauty of the sea

Alamea Hawaii’s appeal washes deep into America with elegance & beauty of the sea

One doesn’t have to live in paradise to appreciate and crave a piece of it. With this in mind, Alamea Hawaii brings the beauty of Hawaii and beyond to inner America with elegant and fashionable designs for jewelers and retailers, inspired by the most...

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Latest News

The psychology of the allure of gold

4 DAYS AGO
The psychology of the allure of gold

When you think of the color gold, images of grandeur and extravagance are likely to come to mind.

For millennia, the metal has adorned crowns and hilts of swords. It has been used to enhance paintings and ornaments to increase their value.

In some cultures, gold is a predominant feature of festivals a...

Readmore

Scientists believe cosmic collision reveals origins of gold

4 DAYS AGO
Scientists believe cosmic collision reveals origins of gold

WASHINGTON (AP) — It was a faint signal, but it told of one of the most violent acts in the universe, and it would soon reveal secrets of the cosmos, including how gold was created.

Astronomers around the world reacted to the signal quickly, focusing telescopes located on every continent and even in ...

Readmore

Initiatives in Art & Culture announces 19th Annual Fashion + Design Conference: “White: Palette, Prism, Possibility”

4 DAYS AGO
Initiatives in Art & Culture announces 19th Annual Fashion + Design Conference: “White: Palette, Prism, Possibility”

Conference to be held November 10 & 11, 2017 at CUNY Graduate Center, New York City

Initiatives in Art & Culture (IAC), an organization committed to educating diverse audiences in the fine, decorative, and visual arts, has announced their 19th Annual Fashion + Design Conference will be held N...

Readmore

Andie Weinman sparkles in the City of Gold

11 DAYS AGO
Andie Weinman sparkles in the City of Gold

Preferred Jewelers International CEO shares info on PJI and successful American retail strategies in Dubai

The City of Gold was the international backdrop for the Gemological Science International (GSI) presentation on ‘The Successful American Retail Strategies’ during DMCC Dubai on September 12, 201...

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Paul Machiels, owner of Charms Plus, to retire 37-year industry veteran seeking to sell wholesale business

20 DAYS AGO
Paul Machiels, owner of Charms Plus, to retire 37-year industry veteran seeking to sell wholesale business

Paul Machiels, who has spent the last 37 years selling jewelry, chains, and charms to retail stores, has announced his retirement. His announcement coincides with his intention to sell JKM Enterprises, parent company of Charms Plus, to interested buyers. His book of business continues to be lucrativ...

Readmore

Patrick Retzer joins the Color Merchants/Brevani family as V.P. of Sales

25 DAYS AGO
Patrick Retzer joins the Color Merchants/Brevani family as V.P. of Sales

(NEW YORK) - Brevani, the branded division of Color Merchants Inc. has announced they’ll be bringing on industry veteran Patrick Retzer to head up their sales division and oversee the brands direction.

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Merit Diamond introduces MFIT®

4 DAYS AGO
Merit Diamond introduces MFIT®

Innovative men’s wedding bands designed with maximum comfort in mind

Merit® Diamond, manufacturers of the popular, luxurious diamond fashion line Sirena®, has developed and tested their supremely comfortable men’s MFIT® wedding band line over the past 5 years. The patented brand provides men with “no...

Readmore

GN Diamond offering free Gemprint on all diamonds

11 DAYS AGO
GN Diamond offering free Gemprint on all diamonds

GN Diamond listens to the common pain points experienced by jewelers on a daily basis. Internet shopping is one of the biggest obstacles expressed by the brick and mortar store. By offering added value and annual savings through Gemprint, jewelers are now armed with a point of distinction against th...

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Furry friends on the job: Loki - Kingsbury Designs & Repairs, Clinton, Mississippi

4 DAYS AGO
Furry friends on the job: Loki - Kingsbury Designs & Repairs, Clinton, Mississippi

 

This is Loki. Loki works for David at Kingsbury Designs & Repairs in Clinton, Mississippi. David says Loki was named after the evil brother of Thor, but his customers love him anyway.

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Furry friends on the job: Larry at Douglas Jeweler in Hartford, Wisconsin

11 DAYS AGO
Furry friends on the job: Larry at Douglas Jeweler in Hartford, Wisconsin

Say hello to Larry, the mini golden doodle. Larry loves going to work with his “dad” and “grandpa” at Douglas Jeweler in Hartford, Wisconsin. Larry likes wearing his finest clothes to work and always greets everyone with a tail wag and kisses!

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The Marketing Minute: Trend Spotting

4 DAYS AGO

Marketing specialist George Prout produces a weekly marketing advice video for retail jewelers, The Monday Morning Marketing Minute. He’s generously agreed to let us share them with our eWeekly readers.

 

Click here  to see more of George Prout’s The Marketing Minute

 

 

 

 

 

 

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The Marketing Minute: Pricing Strategy

11 DAYS AGO

Marketing specialist George Prout produces a weekly marketing advice video for retail jewelers, The Monday Morning Marketing Minute. He’s generously agreed to let us share them with our eWeekly readers.

 

Click here  to see more of George Prout’s The Marketing Minute

 

 

 

 

 

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The Best Policy: Insurance pitfalls

What is the “real” cost of a loss?   What are some things that might cause a loss to be declined by insurance?

One day while jeweler Pearl E. Gates was showing three diamond rings to a customer, the customer suddenly grabbed all three items from the showcase top and raced out the door.  Even the magnetic lock on the door was no deterrent because the thief was savvy enough to know how to hit the emergency release button.  The wholesale value of the jewelry that was stolen was $25,000, and Pearl had a $2,500 deductible on her Jewelers Block* policy.

[“Jewelers Block” is the insurance standard for the jewelry industry.]

Fortunately Pearl’s insurance policy covered the loss and Pearl’s only tangible cost was her deductible.

Math question:  How much in sales - at retail, will have to be made by Gates Jewelry to recoup the loss of the $2,500 deductible?  [Assume “keystone” pricing (100% mark-up), and that the store operates on a 5% profit.]

I’ll stop writing for a few minutes while you work out the answer.

.  .  .  .

That’s long enough.

Using a little high school Algebra, the formula looks something like this:  5% of something = $2,500; or .05 X = $2,500.  That leads to X = $2,500 / .05 ($2,500 divided by .05).   Then double your answer to take it from wholesale to retail.

Pearl will need to sell $100,000 in jewelry just to make up the deductible!

For another situation, let’s keep the loss at $25,000 but change the event.  Pearl was going to take a package to the Post Office that contained $25,000 in diamonds - while she was out of the store for a hair appointment.  During the appointment, Pearl left her purse containing the diamonds in the salon office for what she thought was safekeeping.

The purse was stolen.

Pearl’s insurance company provides coverage for merchandise in her custody off premises, but leaving it in another office was deemed not to be in Pearl’s custody.  Uninsured loss:  $25,000.

Using the same formula as before and presuming keystone, it will require $1,000,000 in sales to make up a $25,000 uninsured loss!

A loss that costs a jeweler his or her deductible is one thing, but an uninsured loss can cripple a business for a long time.

So while loss prevention is important, declination prevention is critical.

So the purpose of this month’s column is to take a look at some of the things that a jeweler or sales associate might do that could cause a loss to fall under the “unpayable” column.

This will in no way be a complete treatment of every kind of loss that might be excluded in a Jewelers Block policy, and there are differences in companies and policies, but we will take a brief look at some common losses that could be classified as coverage exclusions in four categories:  Transporting, Shipping, Premises Daytime (when open to business), and Premises Nighttime (when closed to business).

Transporting Merchandise

Unattended Vehicle - theft from an unattended vehicle is clearly and unequivocally excluded from coverage in most policies.  It may be stated in the policy that an attended vehicle will have “you or your employee” in or on the vehicle (“near” does not equal “in or on”).  Construe “in or on” to mean at the very least, “touching.”  Example:  a person stopped to buy gas while transporting merchandise, and when he walked over to the kiosk to pay, thieves who had been following him blocked his view with their van and stole the merchandise – in less than 10 seconds!  Unattended Vehicle – the jeweler was not “in or on” the vehicle.  Even if the salesman had been one inch away, he would have only been near the vehicle, not in or on it – there is no margin for error.

Keeping merchandise “in custody” when transporting - You must keep the merchandise in your physical custody at all times for coverage to apply.  Custody may not be specifically described in the policy, so common usage and case law are what apply.  Nevertheless, when transporting jewelry merchandise it is always important to keep the property with you – and not leave it someplace out of your direct control, as described in the hair salon scenario.

Shipping Hazards

Shipping merchandise – Double-box packages – do not send jewelry in an envelope.  Be aware that mail handling equipment can damage envelopes (think, “diamond dust.”)  Also note that Priority Mail is usually not insured (Registered Mail and Express Mail may be).  When you take a package for shipping, be certain that you wait for the package to be scanned in and that you are given a receipt.  Do not leave it to be scanned later or trust the driver to scan it later in the truck.  Without shipping documentation, you will likely have no coverage.

Receiving shipped merchandise - Count the packages and look carefully for signs of tampering, including re-taping.  Only after you have inspected each package should you sign for it or them - that is the purpose of the signature. If you receive fewer packages than you sign for or later discover signs of tampering, and then that a package does not contain the merchandise, the sender will claim that the merchandise was sent and that you received it - as evidenced by your signature.  The risk of such a loss not being covered by insurance is very high.

Opening shipped packages – For personal protection of the individuals as well as to prevent accidental discard of merchandise, it is recommended that received packages be opened in the presence of two associates and that a re-examination of packing materials be a part of the process.  Opening packages under video surveillance is another recommendation.  [If there is a problem with the contents of a package, would you like to be in the shoes of the employee who opened it with no one else around?]

Daytime

Allowing a customer in before hours - The opening procedure should be that all merchandise is properly secured in showcases before the doors are unlocked and customers are allowed in.  If a person is allowed into the store early and as a result the store is robbed, coverage of the robbery may be in jeopardy.  Example:  recognizing a customer who had been in several times in the last few days and who was considering a major purchase, the manager allowed the person inside while the store was being set up.  As soon as the door was opened, several accomplices rushed in and a robbery ensued.  Merchandise was still in boxes and easy to take, so the loss was substantial.  Coverage may be declined under these circumstances.

Allowing a customer in or to remain after hours - The closing procedure should be that the door is locked after all customers have left, and then the process is begun of removing merchandise from showcases for transport to the vault or safes.  If allowing a customer to remain inside during the closing procedure leads to a robbery, coverage might be declined.

Leaving a showcase unlocked - Most insurance carriers promote keeping showcases locked except when showing merchandise.  If a theft occurs from a showcase that is not locked, there may be no coverage for the loss (note that a showcase with a key left in its opening is likely to be considered to be unlocked).

Remember that thieves practice techniques of confusion to coax a salesperson into leaving a showcase unlocked, which can sometimes be verified by video surveillance.

I recommend that each associate carry his/her own set of showcase keys and that they be kept in a pocket or on the wrist at all times - and that associates assist one another in being sure that no showcase is ever left unlocked except when removing or replacing merchandise.

Nighttime

The alarm system - You must lock the safe(s) or vault and set the alarm system before you leave; not doing so would likely void coverage for burglary.  Also, the alarm must be in working order.  If there is a problem with setting the alarm system, notify the alarm company immediately and arrange for repairs.  If repairs cannot be made before closing, call your agent or insurance company for instructions - before you go home.  [A good reason to have an insurer you can speak to 24/7.]

Notify the police, explain the situation, and request additional patrols.  Leave the lights on in the store all night.

You may be advised to hire an armed guard or have a store employee stay with the store.  Note that the person staying with the store should not  risk his or her life to protect the merchandise!  The mere fact that the store is not left completely unprotected is generally sufficient to prevent a burglary if one was to have been attempted.

Responding to an alarm call from home - Request the caller’s name, and then using your own phone information call the alarm company back to verify the call (that the call was not a hoax or pretense).  Ask to be met at the premises by a guard or police.  Remain in your locked vehicle until assistance arrives.  Then with assistance examine the premises inside and out, looking for signs also that someone might be on the roof or in an adjacent premises waiting for you and the guards to leave in order to resume their attack on the premises.

At home, video surveillance (Internet) is an additional aid to security in the event of alarm calls; however I do not recommend that you rely 100% on electronic surveillance.  Systems can be compromised or fooled - as can people.  Nevertheless, technology is not considered to be a replacement for personal examination of the premises.  If a burglary occurs, it will be important that you took reasonable and prudent steps to respond to the alarm.

Virtually every loss is unique, and as previously stated, there are differences in insurance policies and in insurance companies – so choose your carrier carefully.  These comments pertaining to coverage are intended to be of a general nature and are for information only - and should not be used to presume whether a specific instance of loss will or will not be covered by insurance.

Use these comments as guidelines, and discuss any loss situation with your Jewelers Block insurance advisor.

Bob Carroll is a Certified Insurance Counselor and owner of Robert G. Carroll and Associates – an independent agency that has been serving the jewelry industry for nearly 30 years.  Bob represents Jewelers Mutual and other carriers in Arkansas, Oklahoma, Mississippi, and Tennessee.  He can be reached directly at This email address is being protected from spambots. You need JavaScript enabled to view it..


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