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HELPING JEWELERS BE SAFE, SECURE, AND SUCCESSFUL

The Clarity Blog

4 Things to Consider Before Taking Possession of a Customer's Jewelry

on Jul 22, 2014 2:05 PM

4 Things to Consider Before Taking Possession of a Customer's JewelryAs a jeweler who takes pride in providing full service to customers, your repair and design services and facilities are a key part of your business. It’s a convenience for your customers to have a one-stop shop for all of their jewelry needs!

Remember, however, that taking possession of customers’ goods increases your risk profile. In addition to ensuring that you have the right insurance coverage for customers’ property, you’ll also want to keep good records to ensure that a loss due to damage, theft, or other covered cause is resolved as efficiently and smoothly as possible.

Before taking possession of a customer's jewelry, consider this:

  • When a customer brings an item for repair, record information on a three-part, carbonless job form or envelope:

    • The form should record the customer’s name, address, and phone number.

    • It should note the date on which the jeweler is taking possession of the item.

    • It should contain a description of the item. Ideally, the jeweler and customer should discuss and document the item’s description when the customer brings the piece in.

      If this is not possible, the jeweler should document only a general description. Use the term “white stone” instead of “diamond,” or “yellow band” instead of “14k yellow gold band.” These precautions can help to cap the potential exposure that the jeweler faces in the event of a loss.

    • It should also include the customer’s estimate of the item’s value. If the customer can’t assign a value, leave the line blank.

    • The form should describe the work to be completed.

    • The jeweler should include an estimated cost for the repair.

    • The form will need the customer’s signature.

  • Give one copy of the form to the customer, leave one copy with the merchandise, and place the third copy with your inventory records, which are stored separately from your merchandise. We also recommend that you keep a separate record in a ledger book or in a computer record.

  • When accepting an item, check it for damage. Missing prongs, chipped or cracked stones, cracks in shanks, missing stones, etc., should be noted on the job form.

  • Finally, when the work is done and the customer is in to pick up the item, make sure the customer presents the claim check you generated for the customer when you took in the item. If you are in doubt about the individual picking up the merchandise, ask for photo identification.

Click here to learn why inventory recording keeping is good for your business.

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