David Adamson Designer Jewelry

By David Adamson

Today it seems that jewelry stores are becoming sellers of service agreements more-so than sellers of quality jewelry.  This really should come as no surprise as we see this more and more in all types of industries.  But being that I have day to day dealings within the jewelry industry, this area is the focus of this commentary. 

When did the jewelry industry go from priding itself in providing high quality fine jewelry and standing behind that quality as a mark of our good name, to sellers of service agreements? 

I have seen this trend develop over the last ten to fifteen years and it has been rapidly adopted by the major jewelry chain stores.  With every purchase we are greeted with a “would you like to purchase the service agreement for this item” at the close of each sale.  But just what do these service agreements provide the consumer and are they a good idea?  Most importantly, why are they being offered?  For generations we bought and sold jewelry without service agreements and we did just fine without them.

Most notably the quality of jewelry seems to decrease as the price of the materials and labor to produce it has increased.  We as “savvy shoppers” are on the ever alert quest for the best deal and the largest markdowns.  In response jewelers are reducing the quality of the jewelry they sell in order to provide a great looking item at a reduced price.  This has resulted in jewelry that has a very short life expectancy and suffers from the effects of “shortcut production” techniques.  Jewelers have also found a new source of revenue in the sale of service agreements to offset the reduced profits from jewelry.  Picture the possible income to a 150 store jewelry chain that sells 10 service agreements per day per store, that is a minimum of $37,500.00 per day to sell what they should provide free of charge.  Quality and service should be expected at no extra charge!

These service agreements are in my opinion a way for jewelers to wash their hands of the responsibility to provide the consumer with quality jewelry.  In a conversation with the manager of a local chain jewelry store, I was told that unless the customer purchases the service agreement and/or the diamond replacement agreement, the customer would be responsible for ANY repairs or service required of the jewelry they just purchased.   I was flabbergasted to hear that they would nor guarantee the product they sold.  Imagine buying a new car only to have the motor fall out a week later and be told that because we didn’t PAY EXTRA for a service agreement we were not covered.  That is in effect what jewelers are telling their customers today.  Call me old fashioned but I truly believe that as jewelers we need to stand behind what we sell and provide a high quality product that will become an heirloom that can remain in the family for generations.

I truly hope this is a passing fad in our industry, but in the meanwhile as consumers we can and should do something about it.  We need to demand that jewelers stand behind the product they sell and refuse to buy any jewelry that requires us to pay extra to guarantee.



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