Web Extra - Case Study: How One Small Business Averted a Publicity Disaster

It seemed like just another business day for the family-owned jewelry store . Then the telephone rang. It was a well-known consumer reporter for the local evening television news. This family jeweler, in business since 1952, was told he had sold a necklace to an undercover reporter that was marked as 14-karat gold but, after testing, turned out to be 10-karat. What did he have to say for himself?

Know the facts: The owners were surprised and, upset by the accusation but earnest in wanting to get to the bottom of it. They knew they had never and would never knowingly sell a piece of gold jewelry that was falsely marked, but they also knew they had bought a few pieces of jewelry from a new importer. They moved quickly to put together all the information they could, and asked the reporter for his deadlines and if they could speak later in the day after they had collected the facts.

Alert employees: The store owners told employees of the situation. They asked employees not to discuss the matter with any individuals outside of the store and to direct all media inquiries to the company president.

Tell the truth and state the facts clearly: The truth is often the most effective remedy against bad publicity. In a conversation with the reporter later that day, the owner clearly communicated the results of the fact-finding done to datethat point. He discussed the store’s new relationship with the vendor that sold the necklace to him. He acknowledged tremendous concern regarding the sale of this misrepresented gold necklace, emphasized the store’s many years in business, community connection and affiliations with leading retailer groups. What’s more, the store owner offered to pay to assay (test the content of precious metals) any piece of gold jewelry purchased at his store.

Conclusion: The reporter’s undercover story, which included a total of eight8 stores in this metropolitan area, was aired two weeks after our retailer was contacted. Needless to say, the one he spoke most highly of —– reporting they “did not intentionally mislead their customers,” — was this open and communicative jeweler. He was the only jeweler who was prepared to offer a free assay. After consulting with his retailer associations, he was able to give the reporter even more information about the practice of under-karating, stating that if he was “tricked,” other jewelers might be as well. His sales — and reputation — did not suffer as a result. In fact, this same TV station used this jeweler as an expert for their holiday gift- giving segment.

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