E-BENCH Volume 1 Issue 1

* * * E-Bench * * *

A New Way to Learn in a New Millennium

January 2000
Volume 1 Issue 1

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To reduce eyestrain,
print the E-Bench Newsletter before you read it!
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ABOUT THIS NEWSLETTER

E-Bench is a FREE monthly newsletter for Retail Jewelry Store Owners, Shop Managers, and Bench Jewelers. We encourage you to forward this newsletter to anyone that you think may benefit from it, provided that you forward all of it without modification and not just portions of it. This document may NOT be distributed for profit. E-Bench is a copyrighted newsletter and all rights are reserved!

E-Bench is an informational and marketing publication of the
B W Simon Company (formerly Institute for Bench Jewelers).

To subscribe send an E-Mail to mstrjwlr@spartanburg.net with E-Bench on the Subject Line.
If you do not wish to continue receiving this newsletter, send an E-Mail to: mstrjwlr@spartanburg.net with UNSUBSCRIBE on the Subject Line.

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CONTENTS:

LEADERS EDGE
A feature article on shop management issues.
This Issue - Setting Repair Prices

QUOTES WORTH RE-QUOTING
Motivational insights from some of the best.

FEATURED PRODUCT
Make your Shop more Profitable with Products from
B W Simon.

TRADE SECRETS
Tips and Tricks to make your work on the bench a little easier and more productive.

SIMON SEZ
See and hear Bradney W. Simon in person,
Check when he is speaking in your area.

ON THE BENCH
Learn a new technique or brush up on basic skills with this feature article.
This Issue - Gone Platinum

READERS RESPOND
See what other readers have to say in this "e-mail to the editors"

EMPLOYMENT NEWS
Looking for a new jeweler or a new job?
Check out this column each month.

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* * * LEADERS EDGE * * *

Setting Repair Prices

Can you imagine going to an optometrist because you need eyeglasses, and have the optometrist, without examining you, write out a prescription? You ask him how he can write a prescription without examining your eyes, and he states that this is his prescription and since it works fine for him, he is giving you the same prescription. When you turn to leave he becomes upset and says, "This prescription works perfectly well for me. It is a great prescription. I don't understand why you will not try it for yourself."

Now you may say that is ridiculous, no optometrist would do that because everybody's eyes are different and you need a different prescription.

Well, it is just as ridiculous to try to charge the same price for your repair work as some other store. However, the most common method used to set prices in the repair shop is to get out the phone book and call all the jewelry stores in town. Then based on what they charge we set our prices. This does not work effectively.

Charging the same price as another store is not effective because of two reasons. First, they may not know how to set prices any better than you do. They probably set their prices by calling all the stores in town to see what they charged. Their prices may very well be based on what YOU charge. To continue the futility is absurd.

Second, your costs are different from other stores. Your quality, turn-around time, costs of living, customers, skills, are all different from another store. It does not matter how well those prices work for that other store, or how much time they put into developing their prices. Their prices are based on their cost, their quality of work, their customer base, etc., not yours. Just like you cannot wear someone else's eyeglasses and have them be effective for you, you cannot take someone else's price list, no matter how effective it is for them, and be effective using it in your store. (Maybe you will be more effective than you were with you old prices, but not as effective as you could be.)

To be effective in setting your prices you need to examine three areas.
1. Cost to Produce
2. Position in the Industry
3. What the Market Will Bear

1. Cost to Produce
Each store must analyze their cost for performing repairs in their store. This includes the Cost of Labor (including taxes and benefits in addition to salaries), Cost of Materials, and Shop Overhead (tools, shop supplies, etc.). Then, add to this cost your normal store mark-up to cover the salespersons time, advertising, rent, insurance, and all other normal retail expenses.

2. Position in the Industry
As important as analyzing your cost is, it is only the first step in setting prices. You must next determine your position in the industry. You need to look at items such as quality, turn-around-time, types of repairs you perform, etc. and how they compare to others within the industry.

For example: A poor ring sizing may cost just as much as an exceptional one, but that does not mean that it should be priced the same. An exceptional job should be priced higher than a marginal one.

Because of this, in addition to determining your cost, you must analyze your position in the industry. Are you the Timex of the repair industry or the Rolex? Or are you somewhere in-between? Knowing your place in the hierarchy of the industry will help you set your prices.

3. What the Market Will Bear
Finally, you must look at what the market will bear. What the market will bear has nothing to do with what other stores charge. Unless you are a trade-shop the other stores are NOT your market - they are your competition.

Your market is your customers, the people you sell to. Knowing the maximum they will pay is knowing what the market will bear. This is the most important consideration in setting your prices. What are YOUR customers willing to pay for the services you offer?

Often our customers are willing to pay more for our repairs than we are charging. Knowing how much you can raise your prices will allow you to maximize your profits in the shop.

Setting Your Price
To set your prices you must first figure your cost on each repair. This Cost Based Price should be seen as a pricing floor. This is the lowest possible price you can charge for an item or service, charging less than this will result in losing money.

Then determine the maximum the market will bear. This is the price ceiling. Customers will not pay more than this price on a consistent basis. Between the two is the "Room" for your pricing. Then, knowing your position in the industry set your price somewhere in this room, between the floor and the ceiling.

Above all - Price Fairly - neither too high nor too low. If you charge too little, you will not make a profit. You might even lose business because clients will think there is something wrong with your work. However, if you charge too much, you will likely be turned down for work (at least repeat work) and customers probably will not tell you why.

Setting your prices in this "room" allows you to set your prices correctly for your store. By doing so, you will maximize the revenues on each repair, and workflow will increase from additional customers bringing repairs to you. This results in a more profitable store for you.

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* * * QUOTES WORTH RE-QUOTING * * *

You can get everything in life you want, if you just help enough other people get what they want.
Zig Ziglar

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The people who get on in this world are the people who look for the circumstances they want, and if they can't find them, make them.
George Bernard Shaw

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It takes less time to do a thing right than it does to explain why you did it wrong.
Henry Wadsworth Longfellow

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Do not do what you would undo if caught.

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People may forget how fast you did a job, but they will long remember how well you did it.

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I may loose my eyesight, but I will never loose my vision.
J. C. Penney - when told he needed eyeglasses.

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You can either complain that rosebushes have thorns - or rejoice that thorn bushes have roses.

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But those who hope in the Lord will renew their strength.
They will soar on wings like eagles;
They will run and not grow weary;
They will walk and not be faint.
The Bible - Isaiah 40: 31

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* * * FEATURED PRODUCT * * *

From Fee to Shining Fee

This is the most complete pricing package for jewelry repairs available today. This package consists of a Training Manual and Computer Software. Learn how to maximize profits in the shop, and the three essential ingredients to consider when setting prices, plus detailed instructions on how to adapt the software to accommodate your store.

This software is a spreadsheet template for Microsoft ExcelÔ that will help you set prices in your shop based on your cost. Completely customizable to fit the needs of your store. Automatically changes prices with changes in Gold, Platinum, or Labor cost. Over two hundred prices arranged in an easy to use two-sheet format. In minutes you can print out a price list based on your store's information along with various "what if" scenarios. This two-sheet format can be printed on the front and back of one sheet of paper making it extremely easy for sales people to use at take-in.

Easy to use. Type in 6 numbers (price of gold, your labor cost, your mark-ups, etc.) and click on PRINT. That is it! The software will calculate price of findings and formulate your prices for repairs. However, if you wish you can further customize the prices to reflect your store's cost and jewelers time. Easy to follow instructions included. Works equally well for Retail Stores and Trade-Shops.

NOTE:
You must have Microsoft Excel or Microsoft Office to use this software. (Excel 6.0 or Office 95 or newer)

From Fee To Shinning Fee ONLY $34.95 (US dollars)
plus S&H - $3.50 US & Canada, $8 International

Send your order and check to:

B W Simon
1066 Hopkins Street
Spartanburg, SC 29307

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* * * TRADE SECRETS * * *

When setting soft stones such as Tanzanite, coat the stone with clear fingernail polish. The fingernail polish is not hard enough to completely protect the stone, but will give some protection from abrasion. More importantly it will serve as an indicator. If you scrape the fingernail polish you are too close, back off! After setting and polishing, soak in acetone.

DO NOT do this with stones such as emerald where the acetone will remove possible oiling.

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To remove diamonds from old mountings, use a cut-off disk mounted in your flex-shaft to cut-off the old beads, channel, or prongs.

CAUTION: Do not use this procedure on colored stones. The cut-off disk can damage them.

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Place snap-on sanding disk backwards (emery side towards your flex-shaft handpiece). This makes them easier to control and you can see your progress as you sand.

Use snap-on sanding disk to clean-up prong tips after re-tipping.

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When setting stones in thin rings that may bend, take a ball of shellac that will fit easily into the finger hole of the ring. Warm the ball of shellac and place it in the finger hole. Then place the ring with the ball, in a ring clamp and tighten the clamp. The warm shellac will spread through the ring supporting the thin top for setting. To remove, warm the shellac and push out. When cool place the ring in alcohol to remove the remaining shellac.

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Purchase a basket type permanent coffee filter and place in your sink. Then, when draining your ultrasonic cleaner place the drain tube in the coffee filter. Any stones or other small articles will be caught in the filter and not go down the drain.

Items with loose stones can also be put in the filter and placed in the ultrasonic cleaner. Then, if any stones fall out they will be caught in the filter rather than dropping to the bottom of the cleaner.

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Grind a knife-edge on the end of an equaling needle file. Then, it will be easier to insert into the seam of a joint to true it up before soldering. This works particularly well on truing up the ends of a shank when sizing.

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* * SIMON SEZ * * *

See and hear Bradney W. Simon in person at the following Events.

Run Your Shop Without It Running You - All-Day Seminars

This brand new all-day seminar will be offered in 22 cities during 2000. This seminar will help retail jewelers increase profits by operating an efficient jewelry repair shop. It contains innovative and practical information that you can use in your store. Topics include: Pricing, Take-In Procedures, Productivity in the Shop, Employee Development, and Much More.

Spartanburg, South Carolina <> February 19
Charleston, South Carolina <> March 4
Charlotte, North Carolina <> March 11
Atlanta, Georgia <> March 18

Plus 18 other cities throughout the year.

For a complete list of Dates and Locations
or for additional information on these seminars contact:
B W Simon
1066 Hopkins St.
Spartanburg, SC 29307
864 - 598 - 5274
mstrjwlr@spartanburg.net

We would like to Thank the following Sponsors
who make these Seminars possible.

Southern Jewelry News
704-827-2171
soujew@aol.com

Impact Specialties, Inc.
770-458-9077
www.isiprint.com

Southeastern Findings & Namano
800-282-8285
namano@bellsouth.net

Gesswein Co, Inc.
800-243-4466
www.gessweinco.com

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Other Speaking Engagements

Minnesota Jewelers Association <> February 26
Contact:
Nancy Fischer
320 - 654 - 6775

Kansas Jewelers Association <> April 1 & 2
Contact:
Sharon Blair
913 - 661 - 0084

Bradney W. Simon is an accomplished platform speaker and provides Keynote Speeches, and Educational Seminars. For information on having him speak for your organization send an
e-mail to mstrjwlr@spartanburg.net

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* * * ON THE BENCH * * *

Gone Platinum

During the past decade, the jewelry industry has gone platinum. Platinum jewelry is no longer found in just the finer stores. It is everywhere, and bench jewelers are faced with the challenges of working with this metal. However, they need not fear or shy away from these new challenges. Working with platinum is not as difficult as is it different. Bench Jewelers need only to implement a few variations in their techniques to master platinum. The following tips can help.

When working with platinum cleanliness is not only next to Godliness -- it is an essential work habit. Because of the high temperatures involved in soldering, other metals can easily contaminate platinum. Platinum can also become contaminated from other metals on your files, saw blades, emery paper, and buff wheels. To properly work on platinum you MUST have a clean work area and have separate tools reserved for platinum use only.

The biggest difference for the bench jeweler working with platinum is soldering. Because of the high temperatures involved welding goggles MUST be worn to protect your eyes. However, because they are so dark it makes seeing and finding items difficult while soldering.

As an alternative, I devised a clip to attach a welding goggle lens plate to my torch body. The clip is made from a heavy paper clip. It holds the lens plate above the torch tip, right where needed when soldering or fusing. Then while working, I can easily see around my bench, and my eyes have adequate protection where needed.

Many jewelers accomplish this by placing a lens plate in a third hand. They can then position it where needed. This works fine, but I prefer my clip, as it moves with my torch and is in the correct position every time I solder.

When soldering, make certain you have a tight seam. Solder tends to drag out of a solder seam from platinum more readily than from gold, while polishing. This makes having a precise fit extremely important.

Fusing a platinum seam is preferable over soldering and should be done when possible. However, there are different alloys used in platinum and these should NEVER be mixed. Only fuse Iridium Platinum with Iridium Platinum. Only fuse Cobalt Platinum with Cobalt Platinum. Only fuse Ruthenium Platinum with Ruthenium Platinum. Never mix them, if you are not sure of the alloy content, use solder. Platinum S+ cannot be fused. You must always use solder when working with it.

Additional tools needed for soldering platinum include: a high temperature soldering board; tungsten carbide or ceramic tip tweezers; and a tungsten solder pick. When not in use, remove the solder pad from your bench to prevent polishing compounds, filings, grindings, and other contaminant from gathering on it.

When soldering platinum to gold always use cadmium free gold solder. For health reasons, this is the only solder you should be using anyway. However, for platinum it is especially important. Cadmium can merge into the grain structure and cause brittleness.

Before joining platinum and gold together ALWAYS finish and polish the platinum piece. Platinum requires a longer polishing time than gold. If they were polished after joining, the gold would wear away before a final polish could be applied to the platinum. As platinum does not oxidize when heated, the polished finish will remain after soldering.

The second greatest area of difference is polishing. Most of the problems surrounding polishing platinum stem from lack of preparation. This results in either a poor finish with marks left on the jewelry from files or sandpaper, or over polishing.

Although platinum takes longer to polish, it can be over polished. If you spend too much time polishing trying to remove scratches or heavy emery marks, problems can develop. The most common of these problems is solder drag out. If a solder line shows up after polishing, and you are certain the solder joint had a tight fit, the problem maybe over polishing. Other problems include loss of details and rounding of corners and edges.

To avoid these problems follow these preparation procedures. First file your work with a #4 file. (Don't use any coarser on platinum) Then follow with a #6 file, filing at a 90° angle to the first filings. Then proceed to emery paper. First use 320 grit, then 400 grit, and finish with 600 grit. Continue with each grit paper using overlapping diagonal strokes until the marks from the previous paper or file are removed. Sanding across the lines will help you determine when the previous marks are removed.

Always clean the jewelry between the different grits to avoid scratches from carry over. In place of the 320 and 400 grits, abrasive wheels used in your flex shaft maybe substituted. A number of abrasive wheels and disk are available, including the very popular rubber based wheels. My favorite is the hard cotton fiber abrasive wheels such as the GMX wheels from Gesswein.

When using the abrasive wheels always finish with 600 grit emery paper. Then clean thoroughly and you are ready to polish.

First polish using platinum tripoli or white cutting compound on a muslin or hard felt wheel. Polish in a diagonal direction, then turn the jewelry and polish in an opposite diagonal direction. This cross polishing will result in an even, smooth finish.

Always polish across solder joints. Polishing with the solder joint will cause solder drag out. To achieve cross polishing and to polish across solder joints, first polish at a 60° angle to the joint. Then turn the jewelry and polish in the opposite 60° angle. This will achieve cross polishing while still polishing across the solder joint.

Clean thoroughly in the ultrasonic, rinse, and dry. Then polish with carrot or green rouge on a loose muslin buff. Use the same cross polishing technique outlined above. The results will be a consistent finish with increased efficiency and quality.

Yes, the jewelry industry has gone platinum. Following these few tips will help you to go platinum too.

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* * * READERS RESPOND * * *

Just read your first addition (Pilot Issue). Good job! Thank You.
Interestingly I have for some 20+ years used Hoover & Strong's 20k Hard White Solder to do just what you & others say one should not do, build up prongs with solder. This may be an unusual solder but many years ago I did a simple test, H&S 20k wears more slowly that their 14k white or yellow gold. Place two equal "prongs" on the end of bar stock & place on a polishing wheel until one is gone. Yes, one has to be very careful this is a high temperature solder! This method is particularly useful on small to very small melee & other small prongs. (I also put Pt prong tops on a lot of white gold heads).
Mark Chapman

I don't know how you are going to keep up this kind of quality, but I hope you find the time and the persistence to do so. I have forwarded a copy to every jeweler I know.
John Caro

Thanks for getting the E-Bench newsletter going. I think it will be an invaluable asset to many of us out here. I'm sending a note to inform other jewelers.
Joe Bacher

Brad, thanks for your newsletter. Wow! Lots of great stuff!
Mike Buley - Jewelry Ads That Work

Editor's Note:
Thank you for your kind words, we especially appreciate those of you who forwarded this newsletter to other jewelers. When we first conceived the idea of an e-mail newsletter we set two subscription goals. First, to have 1,000 subscribers by January, and second, to end the year 2000 with 5,000 subscribers. I am sorry to say we fell short of that first goal; we reached only ½ that amount. However, we are still committed to reaching 5,000 subscribers by the end of the year. Any help from you, our readers, is much appreciated.

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* * * EMPLOYMENT NEWS * * *

Bench Jeweler Employment News is a FREE service for Retail Jewelry Stores and Individual Jewelers. No Employment Agency Request Accepted. For your free listing submit your request in 50 words or less to E-BENCH at mstrjwlr@spartanburg.net and type Employment News as the subject. Your request will be printed in the next issue. To keep this area current, your listing will be printed only once. If the position is not filled, you will need to re-submit your request to be printed in the next issue. This is for shop personnel ONLY. Request for sales or store manager positions will not be accepted. No blind ads available.

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POSITIONS AVAILABLE

Great opportunity for apprentice jeweler on the beautiful Texas coast. Victoria's Gold & Gems has an opening immediately for a jeweler who takes pride in his/her work and is anxious to learn from two master jewelers. Call Dan 1-800-568-6185.

Apprentice Jeweler Needed. Mainly repairs with some custom opportunities. Work with and learn from our JA Certified Master Bench Jeweler. Live in beautiful South Carolina with both the mountains and the beaches near by. Call Louis at Smithworks Fine Jewelers 864 - 573 - 5252

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SEEKING EMPLOYMENT

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Thank You for Reading.

For editorial suggestions, comments, ideas or requests, please send an E-Mail to mstrjwlr@spartanburg.net.

Information provided in this document is provided 'As Is' without warranty of any kind, either expressed or implied. This publication is designed to provide accurate and authoritative information concerning the subject matter covered. It is provided with the understanding that the author or publisher is not engaged in rendering legal, accounting, or other professional services. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.

SUBSCRIPTION INFORMATION:
To subscribe send an E-Mail to mstrjwlr@spartanburg.net with E-Bench on the Subject Line.
If you do not wish to continue receiving this newsletter, send an E-Mail to: mstrjwlr@spartanburg.net with UNSUBSCRIBE on the Subject Line.

We encourage you to forward this newsletter to anyone that you think may benefit from it, provided that you forward all of it without modification and not just portions of it.

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