November 22, 2011

Tis the season of questionable marketing practices

With Christmas approaching fast I am seeing and hearing things that are a little disturbing. I have talked before about appraisals being used as sales tools. This is the time of year when many men are considering purchasing a piece of jewellery for a Christmas present. How does the average guy on the street know he is getting good value. Unfortunately he often relies on an appraisal that comes conveniently with the item he is looking at. The best part, the appraised value is at least twice the price of the item. Why would the appraisal be so high? The answer is simple, this appraisal’s only use is to convince the customer they are getting more than they are paying for.  The inflated price is simply a sales tool.  If you buy the item make sure you get a second opinion reflecting a competitive retail value on the same item to make sure you are getting good value. Any reputable jeweller will gladly refund your money if the second opinion is slightly less flattering to the jewellery. Don’t be afraid to ask for the “competitive retail value” after all, insurance companies only pay out on the lowest price they are able to source your insured jewellery for. Therefor anything more than a “competitive retail value” is a wasted insurance premium.