DPS: To Sell Customers Up, Sell Down

CHICAGO - Want to ìsell upî your customers? You may want to start by ìselling them down.î

The concept is ìkind of a head-snap,î admitted Diane Warga-Arias, educational director of the Diamond Promotion Service, who presented it in a seminar on ìSelling Better Quality Diamondsî at the recent American Gem Society Conclave here.

It works like this: Warga-Arias suggested showing customers the rarestóor highest qualityódiamond first. Then let them pick the stone and price level they are most comfortable with.

ìHow many salespeople struggle to show that expensive diamond?î she asked. ìBut if [customers] have just seen a $10,000 stone, a $5,000 stone will not make them so uncomfortable.î

Warga-Arias further said that jewelers should explain the four Cís in terms of rarity.ìRarity has been a missing word in the industry,î she said. ìItís a way of explaining price that everyone understands.î

She said that customers should be told that ìall diamonds are rare, but some are rarer than others.î

She said that sales associates should never make any assumptions about a customerís budget.

ìLet the customer decide what they can afford,î she said. ìDiamonds are forever, and they last a long time on someoneís hand.î

Warga-Arias noted that J. Walter Thompson, De Beersí U.S. marketing firm, has seen increased interest in the high-end market.

She displayed recent survey results that showed a substantial majority of women now agree with the following statements: ìHigher-quality diamonds are more desirable,î ìSpending more to get a near-perfect diamond is well worth it,î and ìA diamondís quality is more important than size.î

She added that, according to Thompson research, customers who learn about both the four Cís and the two monthsí salary guideline for engagement rings are likely to buy a higher-priced ring.