The golden rule of retailing is “The customer is always right.” But family-owned jeweler Sissy’s Log Cabin takes it a step further with a second rule: “If the customer is ever wrong, refer to Rule #1.” Those rules are etched in marble at the entrance to each of the company’s five stores — four in Arkansas and another in Memphis, Tennessee.
“It has cost us a lot of money at times,” admits CEO Bill Jones. But that philosophy remains at the heart of the company started by his mother, Sissy, who is still active in the business and whom he credits as a “phenomenal mentor.” Her emphasis on customer service inspired him to post another sign at the entrance to each store, displaying his personal cellphone number under the heading: “In case of a jewelry emergency.”
Most jewelry emergencies consist of a man forgetting his anniversary, according to Jones. But accommodating customers before and after store hours is something he takes very much in stride.
Customer service has also played a part in sustaining the company during the Covid-19 crisis. Unlike in most of the country, stores in Arkansas remained open, though Memphis shut down. While Sissy’s Log Cabin initially took a hit, business bounced back.
“We anticipated that we would be down 50% to 60% or more,” says Jones, who describes “a lonely March.” However, sales never dropped that low. While both March and April saw declines of about 35%, recovery began in May, and June was “way above” expectations. Overall, he estimates that sales for the four months were down about 10%.
The company also emerged “healthier” as a result of the slowdown, he says. “We reinvented ourselves. We had a large inventory that was paid for but was old and hadn’t been selling for a long time.”
He curtailed buying for several months, which allowed the store to focus on more salable items. “We got creative and pulled our jewelers together and repurposed our jewelry,” he elaborates, citing a “big piece with 20 carats of melee” that they broke down, using the gold for bridal and fashion. “We had never done this before. It was always easier to order another piece.”
While bridal is still strong, Jones identifies a new trend in buying. “We see people rewarding themselves with jewelry,” he explains, noting that there is “a lot of money out there because people aren’t going on vacation or buying clothes.” But he has also observed a shift in mind-set, with customers selecting pieces that will last a long time and “transition from generation to generation.”
A time to promote
Given the Covid-19 restrictions, staging promotional events has required some creativity. While sales of Rolex, which the store carries at three of its locations, have remained robust, the Memphis branch invited its top Rolex customers to a bourbon and cigar event in its parking lot. “Normally, we can’t get these customers to come to a party, and now they were sitting in lawn chairs,” remarks Jones, who wasn’t surprised by the number of sales at the event.
In a fortunate case of timing, Sissy’s Log Cabin had devoted a lot of time before the pandemic to developing its website’s e-commerce functionality, he adds. The company also successfully increased its engagement on social media. Its “Ideally Flawless” Facebook videos, for instance, featured a different designer weekly and drew 5,000 to 10,000 viewers.
Training also plays a critical role in the store’s success. “We work at it,” Jones states. He has a dedicated employee to train staff on a daily basis, and he personally schedules weekly Friday morning Zoom calls to communicate with the staff in all five stores to provide further guidance.
Seizing opportunities
Being family-owned, Sissy’s Log Cabin is well-positioned to take advantage of opportunities and withstand the challenges of the market, Jones asserts. The business can make decisions and respond quickly, especially since it is not burdened with debt.
“Movement — up or down — creates opportunities,” he says, pointing to the current economy. “Stores are closing, and people are selling off their inventory. They’ve stopped advertising. We started our expansion in 2008, which had to be the worst time. But that is when you can get market share. I’m thrilled with this opportunity.”
For him, “the lasting lesson is that you have to appreciate every sale — even the $100 sale. At least you’re moving some merchandise and generating cash flow.”
Relationships make a difference. Jones references a three-page handwritten letter that one customer sent him because she was so pleased with the store’s service in remodeling her mother’s diamond ring.
“We wow our customers,” he says. “We like to have a good time and welcome them into our stores as we would into our homes. If you build a relationship, then they are not that worried about price, and they will come back again to shop in your store. They are your friend. And that is how we conduct our business and live our lives.”
Image: Sissy’s Log Cabin
Article from the Rapaport Magazine - September 2020. To subscribe click here.