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The Case for Color
by James Fiebig
It's time for a Renaissance in our industry. No more whining and crying about bad business. No more negative thinking. "Too much competition" no profit "everything looks the same". We have great opportunities but we are all too set in our ways to see them. Those opportunities are as abundant as the many colors of gem material available today.
When I came back to the family jewelry business in 1979, my Dad pointed at the engagement ring case and said "Son, that's 70% of your business". I watched it drop to about 20% of our business over the next ten years. Were we that bad at selling diamonds? No, there truly was too much competition as the malls around us started attracting all the 18-25 year olds. Even the great shoe store in town said he sold all the kids their shoes until they were old enough to drive to the mall. But who can blame them, mall shopping is a social phenomena. I remember Alvin Toffler in "Future Shock" predicting the demise of the shopping mall. We kept waiting and it never happened.
One quick footnote - Thank God for the divorce rate, our large diamond sales for second or third marriages has always been super.
Fortunately, our business did continue to grow because of our great customer service and a personal passion of mine. I developed a friendship with Steve Moriarty, a colored stone dealer around 1983. We shared many other common interests, but we both had a passion for fine color. It was always a quest for that "killer" stone. During this time, many sources were just developing around the world. After my GIA Gem ID course, I decided to join him on his new international quest.
We went to Brazil in 1988 and I brought back Tourmaline, Aquamarine, Emerald, Golden Beryl and I don't know what else. I was so excited about all these new stones that I had to show them to every new customer that came in the store. The local paper and radio heard about my trip and did stories. Then a couple of larger market papers picked up the story. I spoke to my Rotary Club, Church groups, Junior League; even schools invited me to speak. I was amazed at the interest level.
The store had its most profitable year ever. No one else had ever done this before and there was no comparison shopping. I have made many more trips to many places. Now I am engaged in building a gemstone tourism business in Madagascar so other jewelers can experience that same success.
I've heard every reason to not carry loose colored gemstones in inventory:
Display problems, Difficulties with dealers, too difficult to sell un-mounted goods and a general lack of understanding of the various stones. It's just been too easy to think "4-C's" and go with the bland public taste.
There are many advantages to selling loose color.
First: PROFIT.
I really hate to start here, but this is the best kept secret in the business.
You can make serious money with colored stones. You are going to sell a one carat diamond that cost you $4000 for between $5000 and $6000 retail. Not bad money, really bad percentage. What kind of grading system and on line price reference is available to your public for colored gemstones? Certainly nothing as ubiquitous as the GIA system and about 10,000 sites selling diamond reports. So you have a great deal more flexibility in margin with color. There are still lots of bargains in the gemstone world that will radically improve your bottom line. What is that incredible 10 carat Spessartite garnet really worth?
Whatever you say it is worth...
Second: THE COMPETITION
What competition? Who do you know that has 100 of the most incredibly well cut, exciting colored stones of every shape and size? Who else will truly dazzle their customers with these amazing stones and the many fascinating stories that go with them?
No One but You
Third: INCREASE OTHER SALES
Most jewelers who inventory loose color fail because they don't mount a few in advance and don't have enough sense to suggest the right settings as soon as the customer begins to fall in love with the stone. I'm talking about huge increases in your custom work...how ever that functions in your store. We will show you how to use those old semi- mounts that just sit there in the case.
All Sales Increase
Fourth: INCREASE EXCITEMENT
Is every day as exciting as it used to be? Do you need a FUN challenge for a change?
Come on, who isn't thinking of "getting out" most every day? The excitement of chasing the color sale kept me interested for years. Each and every stone is new and different never the same stuff season after season.
You Know You Need It
Although many jewelers go to abroad for diamonds, virtually no one travels anywhere for color. Tucson and even Bangkok don't seem very newsworthy. Don't you want to be the only source for something for a change? The diamond market is a mess.
It began with the Rapapport sheet: We commoditized diamonds. Now we are trying to "Brand" them. Why do we continue this blind allegiance to this hopefully colorless stone that is abundant everywhere? Even DeBeers has opened retail establishments and plans many more. Would you still sell Platinum jewelry if Johnson Mathey was a retail chain competing with you? How much time and money have we spent trying to clean up diamonds' reputation? First, it's a monopoly market, then as a funding source for African atrocities. We've lost the romance and supplanted it with
fodder for "60 Minutes".
The colored gemstone market is actually still in its infancy.
Did someone ever tell you it's good to get in at the ground floor? Most of the gem species we sell today were unknown until the second half of the twentieth century. We still have lots of time before we mess this market up too. We want diamonds that are COLORLESS: Gemstone are COLORFUL. George Carlin could have fun with this. Most diamonds are SMALL: Most colored gemstones are BIG. All jokes aside, think about the advantages of color.
No Cartel, No Bad reputation, Independent miners, cutters, and dealers all trying to make their own way in a free market system. Hmm, sounds kind of American to me.
There are limitless colors, intensities, sizes, and shapes of gemstones available today. There is truly something for everyone. It's time we took or rightful place in the fashion world?
Even that industry has emerged from over a decade of boring BLACK. The fashion industry knew it was time to change or whither and die. The new black is COLORS, all colors. Why don't we sell jewelry that makes you go out and buy a dress to wear with it? We have been in the back seat way too long. Really, Should jewelry be considered an "accessory"? Come on, how many dresses are passed down generation to generation as enduring fashion? Great jewelry is timeless, durable, inspirational, and precious.
Stop being the whipping boy. Develop your colored gemstone business. It's exciting, challenging, and very profitable. You can do it for a fraction of the dollars you spend in diamonds. Let's give them something GOOD to talk about.
Put PROFIT and PASSION in your business
click to learn more about how Jim can energize your business!
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