Study Questions for Section 17

17.01

#1  There is no difference in intentional over-grading and dishonesty.

A. True

B. False

17.02

#1  A diamond sent to you on memorandum is…

A. an opportunity to name your own terms.

B. a privilege to sell another dealer’s merchandise on their terms.

C. an invoice with immediate payment terms.

17.03

#1  A major advantage of memorandums is…

A. the opportunity to float the supplier’s money without their knowledge.

B. the opportunity to help sell your own merchandise by downplaying the supplier’s merchandise.

C. the opportunity to sell diamonds without larger capital investments for increased inventory.

17.04

#1  A good credit standing in the diamond industry will generally allow…

A. more memorandum opportunities.

B. more sales due to larger access.

C. a greater number of suppliers.

D. all of the above.

17.05

#1  In establishing credit with diamond suppliers some good techniques would include…

A. negotiating price regardless of circumstances.

B. paying an invoice before it is due.

C. consistently return unsold merchandise .

#1  A high rating with the Jewelers Board of Trade is irrelevant in the diamond trade.  

A. True

B. False

17.07

#1  By having substantial product knowledge of diamonds you will more likely avoid…

A. unintentional misrepresentation.

B. low sales percentages.

C. unhappy customers.

D. all of the above.

17.08

#1  When selling directly to a  private party instead of a dealer, it is even more important to…

A. make them aware of the negative and positive characteristics of the diamond being purchased.

B. make sure the markup is always at least 100%.

C. give them as little information as possible so as not to confuse them.

17.09

#1  By sharing a lot of product knowledge with your customers you will…

A. probably confuse them.

B. probably impress them into dealing with you exclusively.

C. probably make them rethink their purchase.

17.10

#1  For the sake of keeping your private party customers entertained, it is important to display as many distractions as possible in your office.

A. True

B. False

17.12

#1  In competing, the most likely trait in selling a higher priced diamond is the ______ of the seller.

A. product knowledge

B. personality

C. hard sale tactics

17.13

#1  By asking a potential private party buyer a series of questions you will likely…

A.    irritate them until they go elsewhere.
B.    qualify them by getting details and feedback.
C.    be accused of privacy invasion.

17.14

#1  If accused of selling at a higher price than the competitor,  by a private party customer, which would be the best response?

A.    Before comparing prices let’s compare the specs, characteristics and accuracy of the grades.
B.    Before jumping to conclusions, who is the competitor?
C.    My overhead is much higher than theirs, so I have to charge more for my diamonds.

17.15

#1  By showing some sample diamonds you have in stock you may be able to further pin down the customer’s needs and taste.

A.    True
B.    False

17.19

#1  When searching for a diamond for a private party customer, it’s important to focus on price and then on the  details after the  diamond arrives.

A.    True
B.    False

17.20

#1  By asking the diamond supplier several detailed questions about the diamond being sent, you can increase your odds of…

A.    selling it.
B.    irritating the supplier.
C.    bargaining power.

17.21

#1  After locating a diamond for a private party customer,           the first step is…

A.    to order the diamond with an invoice.
B.    to call the customer with details before ordering it.
C.    to call the customer for a deposit in advance.

17.22

#1  When a diamond is shipped on a memorandum, the first step before calling the customer is…

A.    to call the supplier and negotiate the price.
B.    to call the supplier and let them know of the safe arrival of their merchandise.
C.    to examine the diamond carefully to make sure it matches the described order. 

17.30

#1  A major advantage of being a member of the Jewelers Board of Trade in a wholesale business is…

A.    to always know the credit ratings of your suppliers.
B.    to always know the credit ratings of your wholesale-account clients.
C.    to always know the credit rating of your retail customers.