Day 1 at The Smart Show

As we approached the Navy Pier on Lake Michigan from downtown Chicago, I was literally bouncing in my seat.  I’m glad we didn’t try to walk all of the way here.  The walk along the pier is probably as far as from the show-hotel to the pier!  I’ve got to say that all of the service staff we’ve encountered make me think that Chicago is an extremely friendly city. 

The Smart Show definitely has a different sort of vibe than JCK.  The seminar day is just that.  No exhibits anywhere to distract.  The sessions I attended were filled with 50 to 100 attendees each.  One in particular got my goat.  A presentation by Andrew Rickard of RDI Diamonds Inc. on the issue of certs just made me ashamed of our industry.  He is a diamond dealer who sells nearly $70Million in diamonds every year.  He recounted the circumstances in 2010 that led to rapid, huge increases in diamond prices.  In the aftermath he claims that consumer forces are to blame for forcing diamond grading standards to nose-dive so heavily.  In his words, “EGL was first to the party” to downgrade their certs in order to satisfy consumer demand.  Steve said that would be like producing 12kt gold jewellery and stamping it 14kt because consumers were too shocked at the price of gold.  Ridiculous!!!

He claims to sell 4 EGL certs for every GIA cert (and he has a large selection of GIA graded diamonds).  This indicates that retailers are voting with their cheque books.  He made a very good case that he is aware of disparities between the grading, and expertly councils retailers who buy from him on the differences.  He even goes so far as to highlight in yellow “shaky certs” and in green “really tight certs”.  What he didn’t answer was “what about the retailers who are using bad certs to win sales from his well-informed honest retailers?”  For that there is no answer.

Something I didn’t know was that GIA has been taken to task in courts of law, and their grading integrity has stood-up.  In his research, EGL has never been sued over misleading certs, so there’s no precedent for allegations of fraud.  His conclusion for diamond buyers such as yourself is to evaluate diamonds based on price.  Claiming that there are no “stellar deals,” he asserts that if you’re looking for a $3,500 cost diamond, you should view them without considering the cert and select the best one.

I’m not sure what to do with these assertions; other than pass them along to you for your consideration.  Make of this what you will.  I did learn some great things about marketing today, and we’re still savoring the sounds of sweet jazz from the club we visited the previous night.

Don’t Forget Design!

I can’t wait to watch every monthly video-blog that Mel Moss puts out.  Seriously.  He’s a crusader, who fights hard for integrity in our industry.  If you haven’t seen his April video, click HERE to watch it.  In this installment, the King of Diamonds talks about a retailer so frustrated at losing sales to misrepresented diamonds that he simply stopped selling diamonds.

Are branded bridal programs the answer?  Mel says that they allow the consumer to compare Brand-X Model #1234 on the internet; where for even a small discount the consumer is showing an increased willingness to sidestep their local jeweller for a virtual one.

Will a more professional and knowledgeable approach help build your store as a credible brand?  Yes.  Uncle Mel and I agree on this issue.  Listening intently to your client’s “story,” holding their hand while you help them try-on a fantastic diamond and directly responding to their questions and concerns is something that scammers and online retailers can’t do.  Unscrupulous jewellers can schmooze too, but sincerity and honesty can’t be bought nor faked.

Now, to the big problemo… consumers are doing nothing different than many retailers.  Retailers want to buy their diamonds for as little as possible by aggressive sourcing, or by buying badly overstated diamonds with false savings.  Branded semi-mount programs are feeding this paradigm by encouraging clients to choose a loose diamond and setting separately.

What if we were really good at selling a fully-set designs on the merits of their uniqueness, beauty and the strong quality of the diamonds selected by the designer?  Oh, what a wonderful world it would be!  Then those who carry the most beautiful designs would achieve the highest sales.  I feel very blessed to be working for manufacturers who are not involved in the race-to-the-price-basement.  Representing the product I do leads to working closely with retailers who not only appreciate style, but work with their clients to consider design and quality before price.  Note I said BEFORE PRICE.  I’m not so naïve to think that price is unimportant, but if we prioritize price-per-size, it will inevitably be so for the consumer.

If you spend your entire life trying to compare diamond qualities and certificates, you’ll eventually do one of three things.  You’ll give-up like the jeweller Mel alluded to, you’ll start compromising your integrity (if you can’t beat ‘em, join ‘em) or you’ll become a galvanized crusader like Mel .  Maybe a fourth option is to prove yourself as a trusted source of unique designs with outstanding knowledge and impeccably honest service.  You’ll earn higher margins and more than your share of business.

Keep your eyes out for “Smart-Show Snippets”.  I’m on my way to Chicago and can’t wait to experience InStore Magazine’s Smart Show.

How Much Sway?

As more and more retailers ask me about the emergence of yellow gold, I’ve made this comment several times.  With an alarming number of clients, we as professional jewellery consultants hold some sway over their decisions.  When they say, “I’m not sure whether to go with yellow gold or white gold,” how do you choose your response?

My first response is to probe further by saying, “tell me more about your jewellery wardrobe.”  This not only gives you more helpful information to help them in their decision making, it establishes you as someone who cares about them rather than just being “salesy.”  When you talk about their jewellery wardrobe, you’re building a “filing system” in their brain that they may never have had before.  They’ll start to view the pieces they do have in terms of collections that coordinate with different occasions and outfits.  Trust me, when they start thinking like that, there will be some empty file folders!

I know I’ve written about the jewellery wardrobe concept before, but I’m feeling like many of you believe that your job is to hook-up the next person who walks in with the best possible solution to their immediate need.  I would like to suggest that your job is to help your clients build an amazing jewellery wardrobe that suits their personality and every season and all of the special occasions in their lives.

Inspiration

Where do you get yours?  This past week I was listening to an audiobook about the hard life of Johnny Cash.  Ahead of an album featuring songs about the “old West,” he got himself lost in the desert, had to kill a jack-rabbit with a bowie knife to eat, and at one point was found face-down on the ground by a park ranger.  He did this for inspiration.

What do we do for inspiration?  I’ve heard tell about jewellers found face-down on the ground by Las Vegas policemen.   As recently discussed with Stacey Gelmici, the jewellery shows seem to be a valuable source of inspiration.  I’m looking forward to the SmartShow in Chicago to learn, observe and share with retailers and wholesalers. 

Baron Carter worked at Independent Jewellers Superstore while he was going to school in Edmonton for inspiration and experience.  When I was in the business for less than six months, I visited Tony Cavelti’s store on a trip to Vancouver.

Magazines, training programs, blogs, jewellery TV:  inspiration is everywhere!  How about this one … ready for it?   Talk to your clients.  Ask them about their feelings about jewellery and about your store. 

Once inspired, you’re a much more interesting jeweller to talk to.  You’ve got more to talk about, and you’re more engaged.  When you’re engaged, it’s easier to engage your clients.

Why do You do it?

In 1987, after entering the fourth year of the three-year B.A. degree at the U of A, I scoured the Edmonton Journal “help wanted” ads.  This was not the most prosperous time in Alberta’s history, but there were a few job openings at grocery stores and retail shops.  When I saw the ad for Forest of Jewels in Heritage Mall, I thought, “I like jewellery, so why not?”  Jewellery was something our family honored as a meaningful gift, and my departed grandfather had been a hobby-lapidary who made belt buckles, bolo ties and brooches from stones he had collected and polished.

I also recall thinking that helping people celebrate special moments in their lives was a good way to earn a living while I finished off the last couple of courses towards my arts degree.  As it turned-out I really enjoyed the experience and thought that the reps had a pretty good life; travelling around in nice new cars and expertly advising retailers on the merits of their products.  They didn’t happen to mention the dull, dangerous, depressing and stressful parts of their jobs, but that’s okay because I love it, warts-and-all!

This year more than most I’ve enjoyed hearing how some of you found your way into the industry; one of the most amusing of which was told to me by Jackie Doll; whose Mom Angela had returned from a trip abroad where a jewellery wholesaler mistook her for a retail jeweller.  She came home and asked Jackie for a portion of her college savings in order to buy a used showcase and fill it with jewellery in the corner of a clothing store.  They now operate four stores in Northwestern Alberta.

We all started somewhere, but have stuck with this industry because we can earn a good living, have fun with great colleagues and take pride in helping people develop their personal fashion and share gifts of love.

Spence gets Hand Slapped

Thanks to David Keeling who forwarded me the link to a story on Spence Diamonds.  I think this is a company that independent jewellers have come to hate because we end-up losing sales to them and then cleaning up messes from negative customer experiences.  This article reveals the numerous BBB complaints against them and how their marketing doesn’t match-up with their reality.

"We are proud of the experience and products we offer our customers. We take the role we play in our customer's 'happily ever after' very seriously," wrote Jones.  Really Sean?  This pride and this role has lead to 41 BBB complaints over the past three years in B.C. alone!!!

Yesterday I heard an ad on the radio by Sean Jones, talking about how Spence’s new policy is to take care of service, repairs and stone-loss forever with no annual inspection.  What do you think?  Do you think a new lifetime warranty and service policy is enough to make-up for the damage they’ve done?  Do you think you’ll lose more business from new diamond shoppers because of their new warranty?  Do you think Sean Jones is a dork?

Read the full article HERE

Enthusiasm

Massive kudos to those of you who are focusing on creating a winning customer experience.  I’ve been in some rare stores (not yours) where customers seem to be a distraction to their busy-work.  I’m glad that my best clients are happy to greet new customers and ecstatic to welcome-back existing clients.  Whether you are naturally outgoing, and very easily connect with people, or you have a system in place to ensure that clients receive a methodically welcoming, inviting, compelling and effective shopping experience, it’s fabulous to see so many stores turning their focus from order-taker to advisor.  From cashier to cache.  From reluctant to rejoiceful.  From insecure to inspiring.

Remember that selling someone a piece of jeweller earns you a sale, but selling someone on you and your store earns you a client.  It’s easy to get lost in solving the puzzle of “what can I show this person that they’ll like.”  Until you know a little bit about them, and tell them features and selling points that line-up with their values or their unique requirements, you can easily be replaced by a robotic jewellery retrieval system.

Once you’re enthusiastically focused on the people who ultimately put food on your table, and their needs, you can sell them things they didn’t know they wanted to buy.  Guys come into jewellery stores thinking that they “need” a piece of jewellery to satisfy a “gift-giving occasion.”  What he needs is to show her how much she means to him.  They may need to say, “sorry I screwed-up.  I sacrificed some of what I was saving for that new quad to give you something to symbolize that you’re more important.”  She needs to celebrate his job promotion by giving him something that will make him feel important and fashionable.

After every sales presentation see if you can answer two questions.

Was I as effective as I could be in solving their reason for coming in today?

Did I draw them closer to me and our store so that they desire to give us their future business?