WWPSD?

[denverappraiser]

A question for the groupthink on behalf of a dealer friend of mine:

A consumer brought in a pair of earrings for repair. The store lost one of the earrings. Not surprisingly, the client is upset. They (the owner) thinks it’s worth a LOT of money and are threatening to sue. I looked at the remaining earring and it’s a 1/2carat I2/O-P/round. The take-in photo and paperwork are inadequate.

So what do they do? What’s fair?

 

[whitewave]

A question for the groupthink on behalf of a dealer friend of mine:

A consumer brought in a pair of earrings for repair. The store lost one of the earrings. Not surprisingly, the client is upset. They (the owner) thinks it’s worth a LOT of money and are threatening to sue. I looked at the remaining earring and it’s a 1/2carat I2/O-P/round. The take-in photo and paperwork are inadequate.

So what do they do? What’s fair?

Make another one to match the remaining one. Seems like if she was made whole, the problem is solved?

 

[Karl_K]

The PR and probably the smarter answer given review sites is grab a pair of 1ct tw earrings off the shelf even if they are much better and offer them as a replacement immediately.
That they had to threaten to sue to get to that point is already a bad sign.
It is not enough money to risk a reputation.

 

[denverappraiser]

It seems likely that she (the customer) doesn't know the grade on the remaining stone and it's entirely possible she's under a serious misunderstanding about it. These things tend to escalate quickly.

 

[Kaycee2018]

I agree that finding a match and comping the repair would be sufficient for me. Unless of course the lost diamond had significant sentimental value (was an heirloom or formerly used in an e-ring or wedding band)...then it could be more complicated.

 

[whitewave]

My question is... how was it lost? Dropped? If it never left the store, then it’s in the store and I would tear that place apart looking for it.

 

[whitewave]

It seems likely that she (the customer) doesn't know the grade on the remaining stone and it's entirely possible she's under a serious misunderstanding about it. These things tend to escalate quickly.

That is why I’m saying make her another one. She won’t understand that grade either and your person can do up how gorgeous it is etc and her eyes will say it’s a match and the problem is solved.

 

[bludiva]

A question for the groupthink on behalf of a dealer friend of mine:

A consumer brought in a pair of earrings for repair. The store lost one of the earrings. Not surprisingly, the client is upset. They (the owner) thinks it’s worth a LOT of money and are threatening to sue. I looked at the remaining earring and it’s a 1/2carat I2/O-P/round. The take-in photo and paperwork are inadequate.

So what do they do? What’s fair?

replace with like kind

edited to add - is there something about them that would make them worth more than the specs would indicate? some kind of historical value? then it's more complicated...

 

[denverappraiser]

My question is... how was it lost? Dropped? If it never left the store, then it’s in the store and I would tear that place apart looking for it.

I have no clue, but I'm confident they've ransacked the store. They do in-house repairs. Not that it matters but, honestly, it's not the sort of thing someone would steal.

 

[sledge]

I'm with @Karl_K on this one.

At this point, your dealer friend made some mistakes. The customer is (understandably) angry about the mishap.

The problem with simply trying to replace the lost stone with one of "like kind" is the owner isn't sure the quality and while it may sufficiently replace the stone, it doesn't alleviate their mental and emotional anguish & distress that your dealer friend created.

He's on the hook regardless. IMO, he has one opportunity to get IN FRONT of the problem and show the customer he cares, and is a rock solid dealer.

First off, he needs to sincerely apologize. Yes, the words matter. Then to show he really cares he offers to upgrade BOTH earrings to something better. The dealer should look through this inventory to see what is economically feasible, while making the customer feel she/he is winning.

He's going to lose a few bucks on the deal. But it's better to salvage his reputation, avoid any potential legal fees (should the owner really sue) but most importantly there is a potential to create a customer for life, and maybe even their family members when they hear about how the jeweler worked to make the situation whole for them.

 

[Karl_K]

There is another problem and that is you can testify that the earring you saw had those characteristics but you can not testify that that was one of the two the client dropped off.
The drop off information being deficient will further bite them in the fanny if it comes to that.

 

[denverappraiser]

My testimony would be useless to any court here. At best I can supply useful counsel on what to do and how to avoid this in the future.

Any judge is going to ask both sides how they came to a measure of the damages. Prior appraisal. Purchase receipts. Insurance documents. Something. There doesn't seem to be any disagreement that they owe, just on how much and how they can make it good. I agree that it's best to nip this early, even if it costs more to do so. The customer doesn't seem to be anxious to cooperate and the store is getting irritated.

 

[partgypsy]

I would ask the owner what they think is fair, and go from there. Obviously if they say they want 5K dollars, they are not being reasonable. but it would be good to know what they feel would make them whole before trying to guess.

 

[sledge]

My testimony would be useless to any court here. At best I can supply useful counsel on what to do and how to avoid this in the future.

Any judge is going to ask both sides how they came to a measure of the damages. Prior appraisal. Purchase receipts. Insurance documents. Something. There doesn't seem to be any disagreement that they owe, just on how much and how they can make it good. I agree that it's best to nip this early, even if it costs more to do so. The customer doesn't seem to be anxious to cooperate and the store is getting irritated.

I agree you are in a weird spot.

If I were your dealer friend I would:

• Remain calm and patient with the customer
• Ensure I am super responsive to their calls, emails, in-person visits, etc
• Try to understand why they are so torqued up over the situation. Yes, a stone was lost and it was important to them. But mistakes do happen and it sounds like the jeweler wants to rectify to the best of their ability.
  • Why is it being met with resistance?
  • Was the piece a family heirloom, or have some other special sentimental value?
  • Are they concerned they had a super valuable stone that was "lost" and the jeweler is somehow trying to pull one over on them?
  • Do they lack sufficient documentation to know true value, and feel they will get an inferior replacement?
  • Are they just afraid the jeweler won't fix the situation at all, and blame them?

Understanding their viewpoint and being sensitive to their circumstance will help the jeweler navigate the situation.

Trying to resolve out of court with something of better quality not only shows good faith & good customer service to the customer, but in the event it goes to court it also shows the judge the same thing. And maybe choosing a better set of stones they can live with eating the cost on is better than what a judge may tell them to do if they never offer such a solution.

 

[Rockdiamond]

Remember rule 1.
The customer is always right.
If, in fact, the customer is wrong, refer to rule #1.
It's way cheaper to provide a replacement the client is happy with as opposed to the alternative.
@sledge makes good points- it's very important to make sure the customer knows the repair guy understands their frustration.

 

[Daisys and Diamonds]

Ive spent my entire life in retail
This is a most unfortunate situation and i do have some sympathy with the jewler's staff and how this could happen
But people go on line and read all sorts of horror stories about inhouse theft
It may very well turn up in the next stock take (inventory?)
But for now it's the putting right that counts

Meanwhile the owner of those earings are going to be telling every single person they know about this and with the internet these days everyone's world is that much bigger

I hope they reach an agreement before this gets to court
Take a hit - take the loss - they need to sort this out pronto, everyone always thinks/hopes their jewlery is worth more than it is, don't push this angle and completly alianinate the customer

Hope like anything this wasn't a family heirloom
Make a matching earring and give the lady a nice string of pearls for their trouble and as a gesture of good will
Write it off as a loss and use it as a learning experience

And if the missing earring turns up in 6 months time give it back to them

 

[distracts]

A question for the groupthink on behalf of a dealer friend of mine:

A consumer brought in a pair of earrings for repair. The store lost one of the earrings. Not surprisingly, the client is upset. They (the owner) thinks it’s worth a LOT of money and are threatening to sue. I looked at the remaining earring and it’s a 1/2carat I2/O-P/round. The take-in photo and paperwork are inadequate.

So what do they do? What’s fair?

Yikes - this is troublesome because undoubtedly what the owner thinks the diamond stats are is very different than what they actually are. Of course, the jeweler could replace with a similar one for a couple hundred dollars plus the setting cost - but there is always the risk the customer will think the originals were F VVS2 or something and will take them to another jeweler or an appraiser with the sob story, will get told they are O/P I2, will think the jeweler stole the pair entirely and gave substandard replacements, and will be even angrier. And, of course, there's no proof either way. We all know that it would be the height of insanity for a jeweler to risk their livelihood over any half-carat diamond, let alone one that is worth like $200, but the average person doesn't seem to know that.

I agree with @Karl_K that though it is the more expensive answer, replacing with a 1 cttw pair of earrings of better stats and of course letting them keep the remaining stud is probably the best course of action. Because the missing earring is worth so little, if it ever turns up, give it back to them.

This is, if nothing else, an example of why good intake procedures are important. The jeweler I used to go to took multiple hi-res pictures, showed you the inclusions under the microscope hooked up to a monitor and made a quick sketch of them, verbally went over size/shape/stats of the stone and wrote them down and then we both signed that we agreed. That all takes extra time and effort but it's important to protect both parties. However your friend resolves this situation, intake procedures should be adjusted for the future.

 

[Polabowla]

You mentioned the earring owner is not anxious to cooperate & the store is getting frustrated?
Why should the owner be anxious to cooperate when their jewelry was lost? I'm genuinely puzzled by that sentiment.
What was done/offered by the store to make things right?
Was the attitude of frustration conveyed to the owner; if so no wonder things are escalating!

 

[denverappraiser]

You mentioned the earring owner is not anxious to cooperate & the store is getting frustrated?
Why should the owner be anxious to cooperate when their jewelry was lost? I'm genuinely puzzled by that sentiment.
What was done/offered by the store to make things right?
Was the attitude of frustration conveyed to the owner; if so no wonder things are escalating!

They need to say what they want and why. That's the cooperation that's required. If they don't like the offer, they need to give a counteroffer. Nothing can proceed without this.

What has been offered, as far as I know, is the customer's choice of:

a) Another earring to match the remaining one.
b) Cash measured at full retail (as defined by me) for the lost earring using the remaining one as a standard.
c) Replace BOTH earrings new so that they're guaranteed to match. An upgrade would undoubtedly happen here. If nothing else, matched I2/O-Ps isn't all that easy a thing to find. I1/M is significantly better by most people's standards and not really that much more money for the store.
d) Probably some sort of bone like a gift certificate or a coupon to sweeten any of the above.

 

[denverappraiser]

To be sure, the moral of this story is that jewelers need to be careful in their take-in and pick-up procedures.

 

[bludiva]

They need to say what they want and why. That's the cooperation that's required. If they don't like the offer, they need to give a counteroffer. Nothing can proceed without this.

What has been offered, as far as I know, is the customer's choice of:

a) Another earring to match the remaining one.
b) Cash measured at full retail (as defined by me) for the lost earring using the remaining one as a standard.
c) Replace BOTH earrings new so that they're guaranteed to match. An upgrade would undoubtedly happen here. If nothing else, matched I2/O-Ps isn't all that easy a thing to find. I1/M is significantly better by most people's standards and not really that much more money for the store.
d) Probably some sort of bone like a gift certificate to sweeten any of the above.

seems like they offered a variety of reasonable options. it's unfortunate the customer is being difficult.

 

[whitewave]

Remember rule 1.
The customer is always right.
If, in fact, the customer is wrong, refer to rule #1.
It's way cheaper to provide a replacement the client is happy with as opposed to the alternative.
@sledge makes good points- it's very important to make sure the customer knows the repair guy understands their frustration.

Yes, I guess the question is: what will make the customer happy and satisfied?

Has the customer stated what she wants?

 

[kenny]

Neil, suggest the client get the remaining earring appraised by another professional accredited appraiser, whom she finds without any input from you.

That would replace the misperception of a high value with reality.

Of course this won't resolve everything, but it will shift the client's expectations towards a resolution that is more fair.

 

[Polabowla]

Those do sound like good options. So what does the customer want then?

 

[Garry H (Cut Nut)]

Has the customer agreed the unlost earring is actually theirs?
Next step - they may say - "that isn't mine - you substituted a crappy diamond"

 

[Bron357]

I worked in dispute resolution for many years.
first thing to do is own the problem and apologise. Explain that you are still trying to locate the earrings but have been unsuccessful to date.
second thing is to ask the client “what can I do to rectify this situation to your satisfaction?
if client is very angry and unreasonable and the cost of this anger to business and legal fees is large offer two alternatives - would you like me to re make the lost earring with a similar stone to the other one. or would you like a brand new pair of earrings?
if client is still making a lot of angry sounds offer a third and final deal, a new pair of similar earrings AND you’ll make the remaining diamond into a lovely pendant.
Put your offers in writing. Ask for their acceptance or declination response in writing.
if the client still insists on pursuing the matter legally nothing will stop them but by being able to document your attempts at restitution you will do well in court!

 

[Siamese Kitty]

I agree with @Garry H (Cut Nut) . I could totally see them saying that the store switched their perfect stone with the lower quality one, especially if they weren't clued into what they have or the stones were dirty and will look different to them, inclusions more obvious, etc. Without documentation, it's a crap shoot. And it is possible one was better than the other. My current pair are like that.

Like @Bron357 suggested, put them in control and ask them what they want. No matter how unreasonable they may end up being, it is upsetting when something you love is lost. You feel helpless. Letting them guide the boat on this would be the way to go, I'd think. And like PP said, keep records of all of the generous offers made if they are refused in lieu of legal action. That said, I'd think as customers we bear some of the burden of risk ourselves when we drop our jewelry off to someone, which is why documentation and insurance is so important. We're all human-anything could happen. How would this have been handled if he had chipped the stone instead?

To the original question, I think I'd probably be happy with the upgraded matching earrings they offered IF the piece was not an heirloom. In the latter instance, I'd probably want a bit more since I'd likely be answering to family members. I'd probably ask for a matching diamond pendant in that instance out of the old diamond with new, upgraded matching earrings. However, I'd be shocked to actually get that.

 

[Polabowla]

I think also more understanding of the customer needs to be shown. Statements that they're being uncooperative & the store is frustrated etc frankly just make the store sound bad & unwilling to make the customer happy.
Offers are not always enough- tone matters too; willingness to apologize, take responsibility etc.
Feeling frustrated inside can subtly come thru when dealing with people, and as the store is in the wrong for losing the stone, no they should not get frustrated- which is not easy when a person is irate

 

[Garry H (Cut Nut)]

A 'town' in Aussie bushfires suffered several home losses. The town was hillbilly heaven, not official or on a map, and built from stolen material.
but of course they want the Govt to rebuild for them.

 

[PreRaphaelite]

If it were my store, I would of course do all the damage repair possible to the relationship, as discussed by better minds above.

Then, offer to have my diamond specialist match the remaining stone exactly, at my cost, and if the customer insists that the original stone be sent to GIA for certification I would agree (a neutral party would be helpful). The new Stuller or equivalent settings are on the house, as it were, and it’s a rush job, priority #1 for my bench, ready in 10 days or less.

Because I don’t have a magic wand to wave, why not throw in a gourmet gift basket or a bouquet of flowers delivered to her home.

I’m so sorry this happened to both these sides of the scenario!