Sounds like a riddle doesn't it? Valuation expert, Adrian Smith, has come up with a fun formula that works perfectly. Try it and see for yourself...
How do you value a piece of jewellery? A jewellery valuation expert like Adrian Smith will say that the real value is nothing to do with how much you paid compared to how much the piece would have cost you elsewhere.
The Attributes:
A purchase represents good value for money (VFM) according to the following points;
1. AW = Amount of wear ie how much of the time do you wear the piece?
2. EDW = Emotions during wear ie what are you feeling when you wear the item?
3. FP = Financial pain ie did the purchaser shed a tear at point of purchase
4. SA = Sentiment attached (do not confuse with emotions during wear)
Now, to use the formula think of a piece of jewellery and score each of the four points above in relation to the item.
Some examples;
AW
Score 1 if you never wear the item or you don’t even know where it is. Score 5 if you wear it all the time and cannot bear to be parted from it.
EDW
Score 1 if the item makes you feel down or sad and 5 if you keep looking at the item because it makes you feel so happy
FP
Score 1 if the purchase was ‘easy’ and 5 if it was difficult to part with the money
SA
Score 1 if there is no sentimental value attachment at all, if you lost it tomorrow you wouldn’t care and 5 if losing it would send you into a sobbing mess.
Now...The Calculation:
Don’t think difficult physics calculation, think more A + B = C easy peasy
Divide you FP score by 3 = A
Now take your FP score and subtract figure A = B
Now simply add your scores for AW, EDW and SA and divide this total by B.
Now take your FP score and subtract figure A = B
Now simply add your scores for AW, EDW and SA and divide this total by B.
What you now have is your value for money or VFM
The Result:
0 to 1 is poor – it’s time you and your item parted company! Why not gove it to someone who would like it OR thnk about part exchanging it for something else. If the stones are significant why not have them made into another item of jewellery using our Counter Sketch design software!
1 to 2 is a fair score but hardly great!
2 to 5 is good
5 to 10 now we’re getting somewhere...
10 to 23 is absolutely fabulous darling! Yes you have made the perfect choice. Have the settings and catches professionally checked every 6 – 12 months and have your jeweller or valuer record the condition either in their own files or ask for a condition report to be supplied. Prolong the life of this piece by acting on any necessary remedial work.
Have a good, detailed valuation report and take lots of pics of it! Why? This increases the likelihood of the item being returned to you in the event of loss or theft and ensures you will receive a full and stress-free settlement. And have this valuation updated every 3 years to bring your sum-assured back in line with current market conditions. Most importantly take out an all-risks insurance policy!!
Conclusion:
Ok – this is a bit of fun but there is a serious message. No matter how low the price, it is only a bargain if you are going to get pleasure and wear from it. Conversely, and this may be hard to get your head round, if the purchase is an extravagance it becomes a bargain if you wear it constantly and makes you smile and gives you a nice warm feeling every time you look at it! The cost will soon be forgotten
Think in terms of ‘cost per wear’ and ‘smiles per hour’
When a customer opens their jewellery box and says, “You know, I just love this piece, I get such a kick out of wearing it… even after 40 years,” that is the best value for money!#
Check out more of Adrian's pearls of wisdom at http://www.adrian-smith.co.uk/blog
