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Last updateThu, 01 Dec 2016 10am

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Retailer Roundtable: What do you expect to be your holiday hot sellers?

Q:  What do you expect to be your holiday hot sellers?

“Two-stone rings haven’t performed real well for us, despite marketing the whiz out of it. Each holiday season we do very well with bridal. This year I’ve invested in Fire Polish to help increase our bridal sales. It’s a fairly new company that takes an existing diamond and cuts tiny facets called Nano Prisms onto the pavilion.  These Nano Prisms dramatically increase the dispersion [fire] and scintillation [sparkle] of any diamond without changing the 4Cs of the stone, including its weight. I’ve submitted six or seven of my own diamonds and the process really made these diamonds pop. Our clients say they can see the Fire Polish difference from across the store without any special viewing devices other diamond brands need to see their attributes. I have high expectations for this product. We also have dancing diamond jewelry, which has hit at first, has penetrated our market well, and still has some potential for us as a diamond product. But for us, estate jewelry is also a big seller during the holidays. We get the staff and customers fired up for estate jewelry with a huge one-day estate jewelry event we host every October. During this event, which attracts 250 to 300 customers each October, we plant the seeds for holiday purchases by showcasing new products, completing wish lists, and promoting layaways.” 


The partnership that produced a golden egg

Egg 3 viewBased on a mutual respect and appreciation for each other’s artistic gifts and talents, Tim Wright and Alex Maryaskin have forged an inseparable bond that got its start in a jewelry store that promoted and fostered artistic expression in jewelry making. These were the founding principles for the two artisans when they opened their own store where incredible jewelry designs are created as well as works of art, including a Fabergé-style gold egg with a retail replacement value of $217,000.

Steve Silver - setting the ‘Gold Standard’ in appraisals

SteveAppraising jewelry – it’s about more than gemology. A certified, trusted appraiser is not only educated in precious gems, but they’ve studied the methodologies, or the ‘measuring, sawing, soldering and finishing’ of jewelry. Methodology helps the appraiser speculate the age, craftsmanship, as well as the geography of the piece. Using every clue a piece of jewelry can provide makes appraisers the investigative experts of the jewelry industry.

Retailer Roundtable: What are the biggest challenges facing today’s independent retail jeweler?

Q: What are the biggest challenges facing today’s independent retail jeweler?

“As an independent retail jeweler we are constantly facing many challenges ranging from competing big box stores, other independent jewelers, a declining consumer interest in purchasing higher end jewelry beyond bridal, as well as internal challenges such as finding young men and women who desire to make a career commitment to our industry. But for me personally, I feel the biggest challenge we face is embracing the technological revolution impacting our industry today. Custom CAD design with 3D printing and manufacturing, barely a consideration for us a few years ago, is becoming a major component of our business model. Transitioning from traditional bench design to using CAD requires us to make hard decisions on what (and whom) we will invest in as we plot our future. With this new technology, we must not become complacent and recognize that the next several years will require us to become more educated on these advancements. As new innovations evolve, we must be very nimble and quick to adapt to changing markets and consumer dynamics. Our success depends solely on our willingness to learn and embrace the changes unfolding around us. There are great opportunities for the taking, but independent jewelers must both embrace the changes and see them as the revolutionary opportunities they are, or fall victim to someone who will.”

RR TomK

Tom Koosed, general manager
Thurber’s Jewelers
Wadsworth, OH

 

“There are two sets of challenges that independent jewelers face today, both behind the counter and in front of it. Behind the scenes, there are challenges in hiring people that truly understand and want to be committed to the gem and jewelry industry and retail. There is a lot of product information and product appreciation people must know and value, but not everyone has that passion or commitment. And, retail can be very demanding time wise. Younger people want more time for themselves. So hiring today is a big challenge for independent jewelers. I’ve been very fortunate to have my niece Stacey with me for 15 years now. She’s very dedicated to the store and the industry and will help determine the future of our store and the direction of the industry with her roles in industry groups. In front of the counter are the Millennials. Typical young bridal customers want to know everything about diamonds when they enter the store. And, they’ve been doing a lot of research online. We have to always be prepared to answer any and all questions, as we’re the authority on what we sell. This has become increasingly challenging with lab-created diamonds becoming more prevalent. Interestingly, this age group also wants to feel a connection with the person helping them. Ethics are very important to Millennials as are one-on-one relationships.”

RR Pope

Carolyn Pope, president
Crews Jewelry
Grandview, MO 

 

“What’s challenging for us, and I think a lot of jewelers, is keeping up with the manner and speed at which things change. From trends to technology, as business owners we have to be current to achieve market differentiation. Part of that is the willingness to take risks, a quality my mother taught: ‘don’t be afraid to try new things.’ Taking risks and trying new ways of doing things makes us different to our customers and innovative within the industry, whether it’s new tools from Stuller or the latest tech. Being part of a Plexus group and buying groups helps us gauge just how current we are. One risk that has paid off for us is the slow process of increasing our bridal jewelry and loose diamonds. We offered both in the past, but for the last three years we’ve been slowly building a better cross section of rings and a stronger range of loose diamonds. Increasing these two products takes time and they’re both a huge financial commitment, but it is paying off. We can be scared to try new things. Sometimes things just aren’t going to work and you are going to have to move on to the next thing. For example, we just tried a 60-month financing offer that wasn’t very successful. But on to the next venture.”

RR Jeff G

Jeff Guntzviller, General Manager
Miner’s North Jewelers
Traverse City, MI

 

“For us the biggest challenge we face is competing with the internet on diamond sales - that and Big Box retailers and national chain stores. Gone are the days when jewelers made a decent profit on diamonds. It seems those days have been gone for about 25 to 30 years now. To counter the thin margins we are pricing diamonds as competitively as we can and making up for it on repairs and custom work. For our store, repairs make up about 70 percent of revenues and custom work about 30 percent. So far it has been working very well for us. This has been a banner year for us: we’re rocking and rolling in 2016! We’ve also made some adjustments to our advertising as well to help cut costs. Now we’re reaching our primary market, outlying communities and neighboring towns through social media. Leading with Facebook we have about 2,800 fans, which is pretty good for a small town jeweler. We’re doing paid ads there. Twitter and Google Ads are most likely tied for second place. With Instagram and Pinterest there’s definitely room for improvement, which is another challenge for us this year and next, but we’re confident we’ll get there with Facebook leading the way. Contests and giveaways for liking our Facebook page has really helped increase our fan base and followers on social media websites. For the summer months we’re tamping down a bit, but in the fall and into the holiday season we’ll get things going again as people really like the giveaways and contests.”

RR Steve

Steve and Rosemary McQuerry, owners
The Jewelry Doctors
Pikeville, KY

 

“Millennials. Millennials. Millennials. Why do you think that at every trade show there’s always a seminar on selling to or marketing to Millennials? This is a group of people that think they know everything after 30 minutes of research on the internet, combined with consulting their friends, who also know nothing. I had one young lady who wanted me to sell a diamond for less than my cost. They think they know everything there is to know about diamonds, think they have completely informed themselves, and are totally unwilling to learn anything from an expert.  The store owner and his staff are viewed as adversaries to be taken down or beaten into submission by the weapons of arrogance and ignorance. Ultimately, the Millennials know they want to buy from you so as to avoid being ripped off from an online merchant. Internet sales aren’t stealing business away from retail stores as many retailers think. Instead, what diamond sales on websites do is provide an unrealistic and  inaccurate value of the actual price of quality diamonds of certain weights, usually 1-carat and up, as well as giving the young shoppers an unrealistic expectation that they might shop almost exclusively on color and clarity alone. They are completely ignorant of the absolute fact that make (cut quality) can reduce the price of a diamond by as much as 40 to 50 percent in some cases. And, are completely ignorant of the fact that the online retailer may not even have the stone in stock. The fact is that 65 percent of Millennial customers are introduced to businesses by smart phones. But in 10 years, internet sales have only doubled to 7 percent of sales. And retail sales are 93 percent of the business. Shockingly, only 1.3 percent of the retail diamond business is done by the internet. The remainder is done through brick-and-mortar stores. And best of all, 85 percent of customers prefer brick-and-mortar stores over the internet! Sadly, the Millennials don’t seem to be able to comprehend the vast advantage they would have over combining their internet knowledge with the complete knowledge of an older, but perhaps genuine, expert. This is the problem all of us face when attempting to provide a service to those who are already convinced they really don’t need your service and that they have far more knowledge than they actually possess.” 

RR Mills

“Diamond Jim” Mills, president
Pineforest Jewelry
Houston, TX

 

24K Club SEUS honors Mark & Rhonda Jacobson with 2016 Jeweler of the Year Award

24K Club JOY(SMYRNA, Ga.) - Mark and Rhonda Jacobson, owners of Smyrna, GA-based Cumberland Diamond Exchange, were presented with the prestigious 24 Karat Club Southeastern United States (SEUS) Jeweler of the Year Award. The couple was honored at the 24K Club’s 42nd annual black-tie banquet at the elegant Atlanta Country Club on August 6. Each year, 24 Karat Club SEUS selects one store from a number of highly qualified nominees. Cumberland Diamond Exchange was chosen for their dedication to and love of the jewelry industry, and commitment to civic duties above and beyond their service as a retail jewelry store.

Retailer Roundtable: “When elected president, which candidate’s policies do you believe will benefit small businesses more?”

Q: “When elected president, which candidate’s policies do you believe will benefit small businesses more?”

“For this presidential election I went back to the basics starting with the definition of politics. It comes from the Greek word poly, meaning many [citizens], and ticks, which means blood-sucking insects. Joking aside, this presidential election season I’ve become increasingly cynical and am currently undecided. If either candidate is elected, I don’t think it will make a huge impact on my market or my business. That said, if Hillary is elected I think we’ll get more of the same that we’ve seen with the current administration. For the last number of years I’d characterize the economic climate here as not robust, the same could be said for sales in our store. I understand why Trump is interesting to business owners as he comes from a business background. I also understand why people would think that’s a big benefit to supporting him. But historically Trump has differed with Republicans on many key issues, which is concerning and leaves many to wonder what his actual economic policies might be. To date, he hasn’t clearly outlined them. For now, I’ll continue to follow the news carefully to make an informed decision, but for now I am undecided.”

Jeweler helps staff with gun safety training

Sales and support staff in jewelry stores across the country routinely go through training basics from product knowledge refreshers to reviewing take-in procedures at the repair counter. Amber Gustafson, owner of Amber’s Designs Fine Jewelry, decided to add a new chapter to her staff’s training curriculum by offering a gun safety course to each staff member working at her Katy, TX-based jewelry store.  

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