Independents

Squirrel Spotting: 5 Reasons I Hate Memo

IndependentsFeb 13, 2018

Squirrel Spotting: 5 Reasons I Hate Memo

Fresh off another trade show, Peter Smith shares his thoughts on the widely used, and much debated, practice.

2016-Peter_Smith.jpg
Peter Smith has more than 30 years of experience building wholesale and retail sales teams. He currently is president of Vibhor Gems.

I have long detested memo but have never been exactly sure why. I mean, I don’t just dislike the concept of memo, I even despise the word itself. It is, I confess, a personal idiosyncrasy that’s certainly based more on emotions than anything cognitive.

Nonetheless, the feeling persists and it tends to come to the fore at and post tradeshows. Understandable, I suppose, given the prevalence of memo requests that seem to serve as an all-too- familiar soundtrack at the shows.

I have found myself thinking more and more about the “memo concept” in recent weeks and months.

I’m grateful that I’ve personally never worked for any companies where memo was a significant part of the business model and so I have very little exposure to the worst of it. That said, here are a few of my thoughts on why I don’t like it.

Memo Is Not a Strategic Initiative
I struggle to understand how getting “free” products ever makes sense as a meaningful business model.

For instance, if a retailer articulates his or her product strategy, with the attendant curated stories and brands, is it likely that a select number of vendors will give you their very best products on memo to support that? Assuming not, how could getting second-rate memo products that don’t align with your strategy be good for your business?

Supply and Demand Don’t Align
The very concept of memo seems to be the result of a failed strategy on the vendors’ parts. It suggests that supply far exceeds demand and, if that scenario is true, why is there not more demand for that product? What does it say about the product’s value proposition or, more aptly, its lack of value? Does it become more relevant filling out a jeweler’s case or, as I heard from one retailer recently, sitting in a safe?

There ought to be fundamental questions asked about the product development process of those companies, and the quality and/or viability of their products that are, at best, being flung at the nearest wall in the hopes of finding traction. Memo as a Hail Mary, you might say.

More is Not Better
A not-too-often-discussed side effect of memo is that it very often contributes to one of the biggest challenges in retail (all retail, not just jewelry) today, and that is the preponderance of “stuff” in the stores and showcases.

I have written
and spoken ad nauseam about the paradox of choice, including in a previous column for National Jeweler, and the idea that the more we have, the less the customer sees. Throwing more stuff at the abundance of stuff already in stock hardly seems smart. 

Be Like Tiffany
Connected to the overcrowding, of course, is the retail aesthetic. No showcase was ever better for having too much product.

In a series of “Future of Retail” talks that I gave around the country in the fall, I shared SKU counts for stores as diverse as Apple, Michael Kors, Coach and Tiffany & Co., and I then compared them to the SKU counts of four independent jewelry retailers.

If the latter were boats, they would have sunk, so overloaded were they with inventory. The former group—amongst the top retailers in terms of per-square-foot of sales in the country—understand that their business model is not well-served by overloading with products.

What Do I Want My Salespeople to Focus On?
Why do I want my salespeople to spend their time on memo? Wouldn’t I rather have them selling my asset products? Or are you the retailer without an aged product problem?

It is possible, I suppose, that you might be savvy enough to merchandise your memo in such a way that your salespeople can skillfully navigate asset and memo, and use the latter to fill in only where there are obvious gaps. You might, but I doubt it. Contributing to the aging of your asset inventory by selling memo goods and, potentially, paying more for them might not be the wisest course of action.

Then again, I don’t know. I might be all wrong about this memo thing.

As Kevin Dutton wrote in his book Split-Second Persuasion: The Ancient Art and New Science of Changing Minds: “When the chips are down and the going gets tough, the brain, it would seem, spends much of its time cowering behind the heart.”

It works for me.

Peter Smith is president of Vibhor, a public speaker and author of “Sell Something” and “Hiring Squirrels.” He spent 30 years building sales teams in retail and wholesale and he can be contacted at dublinsmith@yahoo.com, peter@vibhorgems.com, or on LinkedIn, Facebook or Twitter.
Peter Smithis an industry consultant, speaker, and sales trainer, and author of 3 books on sales. Reach him at TheRetailSmiths@gmail.com.

The Latest

Rough montana sapphire
EditorsSep 12, 2025
Out & About: Mining Sapphires in Rock Creek, Montana

Associate Editor Lauren McLemore headed out West for a visit to Potentate Mining’s operation hosted by gemstone wholesaler Parlé Gems.

Arunashi Fordite and Rhodolite Earrings
TrendsSep 12, 2025
Piece of the Week: Arunashi’s Fordite and Rhodolite Earrings

Fordite is a man-made material created from the layers of dried enamel paint that dripped onto the floors of automotive factories.

Susan Jacques and Al Gilbertson
Events & AwardsSep 12, 2025
Al Gilbertson Wins 2025 Robert M. Shipley Award

Gilbertson has worked as a researcher, jeweler, lapidary artist, appraiser, and business owner throughout his decades in the industry.

reDollar-fine-jewelry-department.jpg
Brought to you by
reDollar.com Is Rolling Out the Next Level Jewelry, Diamond & Watch Consignment Program

With their unmatched services and low fees, reDollar.com is challenging some big names in the online consignment world.

Supreme Court stock image
Policies & IssuesSep 11, 2025
Supreme Court to Hear Tariffs Case in November

A decision likely won’t come until January 2026 at the earliest, and the tariffs remain in effect until then.

Weekly QuizSep 12, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Tabayer’s Nordstrom Shop-in-Shop
MajorsSep 11, 2025
Tabayer Opens Nordstrom Shop-In-Shop

Located in the revamped jewelry hall at the retailer’s New York City flagship, this opening is Tabayer’s first shop-in-shop.

De Beers education app on mobile phone
SourcingSep 11, 2025
Need to Sell More Natural Diamonds? De Beers Has an App for That

The new, free app offers accessible educational content, like games and podcasts, for U.S. retailers.

japac-btyb.png
Brought to you by
Rallying Call for the Jewelry Industry on Tariffs and Other Key Issues

Jewelers of America is leading the charge to protect the industry amidst rising economic threats.

Gold jewelry on a scale
MajorsSep 10, 2025
Stuller to Swap Gold Scrap for Full Credit to Account

As the gold price rises, the manufacturer is offering a 100 percent payout through Sept. 30 for gold clean scrap.

Jacob and Co Loewe headphones
SourcingSep 10, 2025
Tech Meets Style in the New Loewe x Jacob & Co. Headphones

Jacob & Co. partnered with the German technology company on two pairs of headphones, one set with diamonds and the other with sapphires.

Tiffany & Co Favrile Beetle Necklace in Frankenstein
TrendsSep 10, 2025
Tiffany & Co. Archival Jewels Bring Life to ‘Frankenstein’

Guillermo del Toro’s 2025 “Frankenstein” will feature 27 jewels and objects from the storied brand, including pieces from its archives.

24 Karat Club banquet
MajorsSep 10, 2025
24 Karat Club of New York’s Banquet to Return to Waldorf Astoria

The Waldorf Astoria New York’s grand reopening this past summer means a homecoming for the industry group’s annual event.

Anglo American’s Quellaveco copper mine in Peru
SourcingSep 09, 2025
Anglo American to Merge With Canadian Copper Miner

Anglo plans to merge with Teck Resources Ltd. to form Anglo Teck. The deal changes nothing about its plans to offload De Beers.

The Mellon Blue diamond
AuctionsSep 09, 2025
‘The Mellon Blue’ to Return to Auction, This Time at Christie’s

The 9.51-carat fancy vivid blue diamond, which set two world auction records at Sotheby’s in 2014, is estimated to fetch up to $30 million.

Dianne Batista Phillips Auctions
AuctionsSep 09, 2025
Phillips Names Dianne Batista Head of Jewels, New York

The industry veteran joins the auction house as it looks to solidify its footprint in the jewelry market.

Anastacia Lauren, Elle Jerge, Logan Nye
MajorsSep 09, 2025
MJSA Education Foundation Announces 2025 Scholarship Winners

The nonprofit awarded four students pursuing a professional career in jewelry making and design with $2,250 each.

Logos for Manufacturing Jewelers & Suppliers of America and Jewelers of America
MajorsSep 08, 2025
MJSA Is Officially Now Under JA’s Umbrella

The two organizations have finalized and signed the affiliation agreement announced in May.

Sothebys JAR and Suzanne Belperron jewels
AuctionsSep 08, 2025
Sotheby’s To Auction ‘Exceptional’ Collection of JAR, Suzanne Belperron Jewels

The single-owner sale will headline Sotheby's inaugural jewelry auction at the Breuer building, its new global headquarters, this December.

A street in Carlsbad California
Events & AwardsSep 08, 2025
27 Can’t-Miss Converge Sessions, Events

From sunrise yoga to tariffs talks, these are some events to check out at the upcoming inaugural event.

National Jeweler columnist Peter Smith
ColumnistsSep 05, 2025
Peter Smith: A Lasting Lesson From Maurice Tempelsman

Smith recalls a bit of wisdom the industry leader, who died last week, shared at a diamond conference years ago.

Jamie Turner Victoria Labradorite Necklace
CollectionsSep 05, 2025
Piece of the Week: Jamie Turner’s ‘Victoria’ Necklace

The “Victoria” necklace features a labradorite hugged by diamond accents in 18-karat yellow gold.

Stock image of the U.S. Supreme Court
Policies & IssuesSep 05, 2025
Trump Takes Tariffs Case to the Supreme Court

Two lower courts have moved to block the import taxes, which will remain in place as the legal battle continues.

Patrick Mahomes Hublot campaign
WatchesSep 05, 2025
Patrick Mahomes Is the New Hublot Brand Ambassador

The Kansas City Chiefs quarterback shares Hublot’s dedication to pursuing greatness, the Swiss watchmaker said.

gia-edu main image.png
Supplier BulletinSep 04, 2025
A Brilliant Future Is Here

Sponsored by GIA

Lucara pink diamond
SourcingSep 04, 2025
Lucara Unveils Unusual 37-Carat Pink Diamond

The Type IIa stone, recovered from Botswana’s Karowe diamond mine last month, features unique coloration.

Shot from Breitling new NFL campaign
WatchesSep 04, 2025
Breitling Takes Its NFL Game to the Next Level

Breitling is now the NFL’s official timepiece partner, a move that puts the brand in front of the millions of Americans who watch football.

NYC Jewelry, Antique, & Object Show Autumn 2025
Events & AwardsSep 04, 2025
The NYC Jewelry, Antique, & Object Show Returns in November

NYCJAOS is set for Nov. 21-23 in New York City’s Chelsea neighborhood.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy