what's up guys this is Jesse at Jewelers advantage and in this video we are going to give you a secret weapon let me ask you what is the difference between the regular Jewelers out there that get caught in a wheel of just surviving month-to Monon and then the other Jewelers that are able to go on and scale and build a fabulous business with collections of products that are speaking to their customer and they have a team and selling lots and lots of jewelry every month and they're not stuck in the business the answer to that is that they have a sales strategy so in today's video we are here to talk about the Excalibur growth strategy used for scaling sales now if we're going to talk about strategy let's talk about the power of three before we talk about anything else this is a law so to speak that was observed by everyone from sunzoo the author of The Art of War who said that an infinite array of Hues could be created from the primary colors right on down to Pythagoras in ancient Greece who said something very similar and whose educational system and system of philosophy often times relied on the power of three and how you could create infinite arrays of of situations or outcomes using the power of three so keep in mind you're going to see this through a lot of the Jewelers Advantage framework and it's very very important to your sales strategy and scaling your business so let's bring it down to earth and get into the nitty-gritty of what the Excalibur growth system and strategy really is so if you were here you probably have sold some custom jewelry before or or you want to learn how to do it so that you can build out a jewelry brand now before we get into that you're going to want to know that 80% of retail jewelry sales require some form of custom labor this is a statistic from polygon in which we know that if somebody is coming in to buy jewelry chances are they're going to have some type of requirement whether it's an engraving right on up to full custom with 3D CAD and 3D printing and the whole nine yards of what a custom project really is now if this is you if you've done this before or if you haven't done this before this is something that can become bottlenecked there's entire jewelry businesses that are just a private Jeweler or a concierge Jeweler what that really means is that you're a solo preneur that has not yet expanded your team yet and you need to find a way to get some time back so that you're not working all day every day on doing custom projects even if you love it there are other things in your life that you love as well and it would be great to get some time back so most people that do Customs get bottlenecked around the five to seven project Mark we've talked to enough people at this point that this is the clear pattern that we see it might be less than five for you where you get bottleneck you may have even found a way to get up to doing 10 projects or 15 project projects per month but at some point you are going to get bottlenecked and it's probably between the 5 to seven Mark for most people now most jewelry businesses that are the private Jeweler or concierge Jeweler see this as their business they got to make their five to seven a month they take whatever they make in terms of margin pay their overhead and then get to keep the rest and that was their business and for all intents that can be a successful model if you're paying your bills and you're happy with your life and you like the job that you've given yourself now in that case if that is what you're doing you do have a job it's just that you own your job so what we need to get very clear on is how can you use your sales strategy in a way that will allow you to go somewhere different create a different outcome so to do that it's going to be all about feedback loops you can see on the screen that we have have a current state and a desired State and this is an alchemical process of sorts you have your current situation your current state which is kind of like the base Metals in alchemy that you're trying to transform and the desired state is in the future and we need to find a way to transmute where you're currently at and create that gold of your desired situation and the way that we're going to do that is through cause and effect it's inputs and outputs it is going to come down to what you do after you get those custom projects and have that margin inh house so the key differentiator here is the inputs are going to be how you reinvest into traffic to get new customers and how you scale your production methods so that way you're not only doing Customs so overall here your goal your sales strategy if you're trying to escape and Elevate out of that place of being bottlenecked and being the only person in the business that can execute on the project and get the jewelry in the customer hands you need to achieve a sales Target of the five to seven Customs per month reinvest profits into organic influencer and paid traffic to boost sales across Customs supplier inventory and made to order items we're going to get into this at a high level and help you understand how all of these parts need to work together in concert in order for you to scale through the feedback loop taking action seeing feedback seeing the cause and effect return results back to you and continue to iterate and iterate and iterate it's a process you have to love this process in order to get to where you want to be so let's get clear on the three production methods you will be using as you scale and as you achieve scale in the business of course you're going to be doing custom projects if 80% of retail jewelry has some form of a custom requirement then this is very much going to be a part of your world for the lifetime of the business you're always going to be doing some type of custom but what that allows you to do is say you have a custom project that comes in that for whatever reason becomes a no in the Sal situation from a salesperson perspective you need to be able to have different options in your playbook that could lead to a favorable outcome outside of just having that one method of doing custom projects so that's going to be your supplier inventory and you're made to order items now you're going to notice here that it's going to feel out of order to some of you because what you've been told out in the world is that the Holy Grail is to go from Custom project to then made to order inventory you don't have to hold any materials or any inventory and you'll hear from the old guard in the industry that you don't want to hold inventory it can be too expensive and you're sitting on stuff that doesn't sell you're taking advice from people that failed if you do that what you want to do is you want to be using your custom projects and have a clear path to having supplier inventory that you don't have to spend your own time and labor on that you can sell that have a demand in the market that have product Market fit and allow you to move units so that way you can sell those items easily and use that Revenue to build into other avenues of production made to order has a very important place in this and it's that as you create custom projects you can also repurpose that intellectual property and sell made to order items that you don't have to hold the inventory but you just have the finished photography or even a very very wellone CAD model on your Ecom store with the specs intact ready to sell that item so bear in mind depending on your situation you may have plenty of cads already and you do custom projects and in that case maybe you already do have some made to order CAD or photograph pieces on your Ecom store that you could sell with a lead time now the reason that you don't don't scale from Custom to made to order and then supplier inventory to meet the demand later on is because there's going to be potentially a 3- week turnover time on any average made to order item imagine what that would mean when you have 30 projects going all of a sudden you have different projects at different stages different price points different customers calling in every day and then you just bottleneck yourself even worse than when you were doing Customs before so we'll get into this later on of how you can break down the percentages and the weights of how you should distribute the labor on the three production methods but for now just bear in mind that you are going to probably be going from Custom projects to then on brand supplier inventory that you can sell and move with minimal labor and then build out the collection over time to made to order items we'll make this more clear as we go now that we're clear on your production methods we need to get clear on how you're going to get customers for these production methods so we also have three lead generation methods maybe you'll hear us say lead gen later on be aware that lead gen means lead generation in the world of marketing our three methods for this are going to be organic traffic paid advertising and influencers you'll notice that the color coding sort of corresponds organic traffic is content that you have to make and post on social media so it's kind of like the customs of lead gen methods in paid advertising in blue this is something where you buy space on something like Facebook or Google ads and you're essentially just buying a digital billboard and hopefully getting the output and it's streamlined so in a many ways that's kind of like the supplier inventory of lead gen and then influencers could be all over the map you could be work working with a micro influencer right on up to a celebrity and it's kind of all aart in the situation and with the person you're working with and why and in that regard influencers are kind of like the made to order of lead generation so there's a very clear way that you want to approach this and we're going to get into this later on just understand that how am I going to get customers it's going to come through organic traffic that you make and we would advise that you don't Outsource all of this because you need to have a finger on the pulse of your brand so your organic traffic is going to come from content that's probably produced inhouse if you're really doing well then we've got our paid advertising where it all just comes down to advertising budget and understanding what products are best to optimize for this process and then with influencers it's a matter of using some other person out on social media and they're following and partnering with them as a means of communicating to your perfect customer and getting the right product showcased with this influencer so that it's relatable to your customer so each of these has its own defined purpose and when working together can be very very powerful for bringing customers into your door from there we have three tiers of pricing as well so in regards to your sales strategy pricing strategy is critical and this plays in with everything from your products to your lead gen and your production as well all of it has to work in concert with your pricing strategy and what you're trying to do with the customer so you're going to notice we've got tier one two and three pricing and that it's dictated by human behavior your goal is to ascend the customer up a value lad naturally over time and this creates sales momentum so we've got tier TI one items at 0 to 1,000 tier 2 items at 1,000 to 7500 and tier three items at 7500 and right on up to $100,000 and up is all tier three and we've put this through its Paces through thousands of calls and when we say that there is a human behavior element to these tiers that is the secret sauce you'll notice that your 0 to $1,000 customers are going to have certain behaviors and they act a certain way they think a certain way and the goal here is to just get people in on a trial purchase most of your tier 2 in tier three customers are going to be repeat customers that potentially came in and spent less than $1,000 in the past you don't hear from them for 6 months 12 months 18 24 months and then surprise surprise they come back and spend $3,000 at tier 2 so that is generally going to be how your customers progress up the value ladder and as they build a relationship with you and build Comfort over time they'll come back and spend that 35,000 that 7500 and up maybe they come back and spend $112,000 $220,000 with you later on you'll also notice these are colorcoded so at tier one it's like silver tier two is like gold tier three is like diamond a lot of people in their CRM give special qualifications to the customers as they spend more money over time so that you can know who to prioritize when they call in so you can consider these tiers as also where those labels would fall for a particular customer that has spent $1,000 with you well now they've spent over a th so they're a gold customer or they've spent over 7,500 with you so now they're a diamond customer there can be parallels there as well with your pricing strategy so all you need to know know for now is that there are clear delineations between pricing and the way customers Act and the way that they are going to buy with you over time now these pricing tiers are actually very important for how you relate to the market in general so the question can become how can we be a jewelry brand that sells at tier one tier two and tier three and that's going to come down to understanding your Market segment and how you've developed your products to potentially take up a broad swath of that market segment so we've got low end which would occupy tier one pricing we've got Middle Market which is tier 2 pricing and highend which is tier three pricing so each one of these cells is kind of like a onethird breaking point between each of the pricing tiers and of course we'll get more into the style segments like fine jewelry bridal Hip Hop craft jewelry cultural and art jewelry and how those are all impacted by the different market segments and how your products should be priced and budgeted for and so on for now just be aware that your market and style segment are going to have a relationship with the production tiers it's going to have a relationship with the lead generation methods it's going to have a relationship with the pricing tiers all of it connects in into Market segment so if you can understand how all of these things connect together it's going to be very very powerful for you and you are going to have a huge advantage over all of the other retail businesses that don't have this defined now if this feels overwhelming that's fair enough AI is going to be critical for this so there's a reason we have an AI co-pilot and the AI understands all of this and has been trained on these Frameworks so as you build your own unique brand you are going to have extra guidance in making sure that this all stays organized and at the end of the day just remember that we want to be thinking of our brand prism and the underlying operations of the business so all of these components to the strategy to your sales strategy are going to be presented by the brand prism that's your brand management side of things that's the real creative concept to the brand and then you can see that we also have very strict guidelines for the operating model of how you deliver this product so all three of the production methods work within this system all three of the traffic methods integrate with this system and the pricing tiers of the products that will be delivered through this system also integrate and then are presented in a creative way with the the brand prism as a wrapper to the system that delivers the product to the customer so those are the underlying business mechanics and kind of the secret sauce and the Frameworks that you're going to be using to build a sales strategy but now you can see it now you can see the components that we are going to work with in order to develop fantastic products create a unique brand and put jewelry in the hands of your customer so that's a lot to take in we're going to be going in depth on all of these Concepts just wanted you to get a broad view of what your sales strategy is going to be and how we are going to build it so we'll get into all of that through all of the rest of the Jewelers Advantage content and we will see you in the next one.