October 2024

In any jewellery store, it is crucial to correctly document repairs and valuations to minimise legal risks and protect your business in case of a dispute regarding the description or value of an item. Ensuring a thorough intake process not only safeguards your store but also helps maintain trust and transparency with your customers.

The first step in the process is a detailed inspection of each item using a 10x loupe. This allows you to carefully examine the condition of the jewellery and identify any repairs needed and the condition of the item. Communicating these details to the customer immediately is key—make sure to document everything clearly on your intake form. Surprising a customer later with additional repairs that were not initially noted can lead to disagreements and mistrust, potentially damaging the customer relationship.

It is equally important to be precise when describing the item being taken in. In today’s environment, where laboratory-grown diamonds, moissanite, and treated gemstones are common, you cannot make assumptions. For example, if a customer brings in a diamond ring, describe it as a “white stone in yellow or white metal” rather than definitively stating it is a diamond or gold. Always test the gemstone before confirming its identity. If a receipt is issued stating it is a diamond and the stone is later found to be a moissanite or laboratory-grown diamond, this could lead to disputes that expose your business to liability. The same applies to metals; while an item may be stamped as gold, these marks are not always accurate, and you should test them in-house to confirm the material.

A consistent and careful approach to describing jewellery applies to all items. For coloured gemstone items, use basic descriptions like “blue and white stones in yellow metal” rather than assuming the stones are sapphire or aquamarine. This limits the potential for misunderstandings and disputes later in the process.

Incorporating technology into the intake process is also advisable. Taking clear photos of the jewellery with a tablet or smartphone creates a visual record of the item’s condition at the time it was brought in. This not only helps protect you but also provides peace of mind for the customer, knowing that the item has been appropriately documented.

Once all details have been recorded, it's important to have the customer sign the take-in document to confirm their agreement with the description, assessment and the written terms and conditions of the take-in. This step further ensures clarity and mutual understanding.

Even for regular customers, it is vital to follow these procedures. You may have records of their previous purchases, but you can’t be certain about any changes that have occurred since you last saw the item. Adhering to these best practices will limit your liability and help avoid potential legal disputes, protecting your business and preserving its reputation.

JAA Board

JAA Directors and staff - JIF Sydney (August 2024)and JIF Melbourne (March 2024)
Images not for reproduction without permission