Jewelry Appraisals: A Guide for Retail Jewelers

Why appraisals matter

Appraisals are one of the most undervalued services in a jewelry store. They bring in fee revenue, put a trusting customer at your counter, and give you a good reason to call that customer again in a few years. But an appraisal is also a signed opinion that outlives the conversation, so it has to be done right. Here's how.

Which value are you stating?

Most unhappy appraisal conversations come from one misunderstanding: the customer thinks the number is what the piece is worth. It's what it's worth for one specific purpose. Retail replacement value is what it would cost to replace the piece at retail today. It's what insurance appraisals state, and it's the highest figure. Fair market value is what a willing buyer and seller would agree on. It's used for estates, divorces and donations, and it's usually well below replacement value. Marketable cash value is fair market value, less the cost of actually selling the piece. And liquidation value is a forced sale: the lowest number of all. So say it at intake, every time: an insurance appraisal is not an offer, and it's not what you'd get if you sold the piece.

What belongs on the appraisal

A thin appraisal is worse than none. A document that holds up has nine things on it. The purpose and the value type, in plain words, near the top. A full description of the piece, and every stone: shape, size, color, clarity and setting. Lab report numbers when there are any, and a clear note when stones were graded in the mounting. Photographs, which are what identify the piece later. The effective date, your name, credentials and signature, and a limiting conditions statement: what you did, and what you didn't. And if a stone is lab-grown, test it, disclose it, and state it on the document.

Credentials, fees and intake

There's no federal license for appraising jewelry in the United States. What carries weight is a recognized gemological credential, a professional standard, and a document that shows its work. Charge a flat fee per piece, or by the hour for estates. Never a percentage of the value: it's a conflict of interest, and the first thing a lawyer will point at. From the moment a customer hands you a piece, it's your responsibility. Write a take-in receipt, photograph it at intake, give a real due date, and keep the file.

Re-appraisal brings customers back

Metal and stone prices move, so an old appraisal can leave a customer underinsured without knowing it. A re-appraisal reminder is a call that's genuinely in their interest, with no sales pressure, and it brings them back holding jewelry they love.

Mistakes that cost money

And avoid the mistakes that cost money: inflating the value to please the customer, appraising from a receipt, skipping photographs, leaving out the purpose, grading mounted stones without a caveat, and letting appraisals pile up.

Appraisals in WJewel

Here's how appraisals work in WJewel. In the Sales menu, open Appraisal, and make a new appraisal. Enter an invoice number to appraise something the customer bought from you, or pick the customer, and their name and address fill in. Add the item. For your own styles, its value and photo come straight from inventory. Then write the full description: the metal, the measurements, every stone, and a note when they were graded in the mounting. Auto Description can draft it from your own template, and A.I. Description can write it from the item's photo. Photos attach to the appraisal, and print on the document. Save it, and you can preview, print, email or export the appraisal. The finished appraisal carries your logo, and the customer's name and address, and it states the purpose: retail value for insurance, and that you're not offering to buy or replace the piece. Then the full description, the photograph, and the appraised value, and the limiting conditions, the appraiser, and the date. Every appraisal is linked to the customer. Open their profile and click Appraisal, to see every appraisal you've done for them, with photos, and reprint any of them in seconds, even years later. And add a reminder for the re-appraisal date, so the follow-up call actually happens.

Contact us

You'll find the full guide on the WJewel blog. WJewel is fully web-based, and runs on PCs, Macs, tablets and phones. To learn more, visit www.wjewel.com, or call us at (646) 578-8300.