Diamond Seminars at JCK show

[pricescope]

First day at the show I attended a few seminars devoted to the diamond industry.

Designated speakers spoke about current situation in the industry and what diamond retailers/jewelers should do when diamonds get more and more commoditized and margins shrink.

One discussion was dedicated to the internet in particular (The speaker even positively mentioned Pricescope). Recommendations given to retailers/jewelers were:

1. Don’t sell diamond numbers; sell your love for the stones. If you do not love the diamonds as something that will be cherished and passed through generations, how you suppose your buyers appreciate it? Make it lifetime experience.

2. Be ready to confront internet savvy buyer. If consumers walk into your store with diamonds from the internet, ask them questions to show that they don’t have all information/numbers and once their confidence is broken, offer your own goods.

3. Tell consumers that internet companies have nothing to loose if they screw consumers but you (jeweler) put all your money and reputation into the stock, building, etc. (: how many people will know if an internet company screw someone and how many might know about negative experience with B&M store?)

4. Tell them that unlike internet companies, you (jeweler) will always be here when they need to upgrade or reset the diamonds.

5. However, don’t get rid of internet educated consumers because many internet diamond companies will be out of business soon (!) and these consumers will come back to your after all. (: it reminds me how many Russians nobels after Revolution thought that communists will soon be gone).

6. Do not compete with the internet diamond sites because you cannot (: why?!?) but do build your own websites to show your customers that you are still young.

My feelings: Industry still have very little if any clue what internet is about.

 

[Iceman]

How did you keep from laughing out loud!

People are coming in asking questions about the cut, if you try to romance them that will be the joke of the day

We have had 6 old jewelry stores fold up with those same thoughts, I wish I was there at the show to put in my two cents in

Education is the key to hold the customer not love making

Also I treat everybody like a million bucks here , I get to know each person by name , their dogs name and kids too and what they do, vactions they take, I of course share my adventures with them and make everybody feel like a family.

Our last month sales for example doubled from last year in sales and that was a big number to double.


Why can you not compete with the internet sites ? The problem then lies in who they buy from. There is not a sale made on the internet that 90% of the jewelers that know what they are doing can not get under the price. They just dont want to take less. Thats up to them thats their problem not the internets

Good topic thanks for bringing this up.

 

[fire&ice]

Wow Leonid.

I would absolutely do just the opposite as the "expert speaker" says to do. Are you sure the speaker didn't work for an internet company? His "advice" is suicide for B&M's.

My philosophy is deal w/ a force head on. Don't circumvent it by dissing it. As soon as someone starts "talking bad" about the competition, I shut them out. I don't mind someone talking about the benefits of themselves. And, I see many benefits of a B&M store.

I would like to see the jeweler try to match the price. If he can not, then sell your services & peripheral goods like settings, wedding band, etc. Clearly, that is not the advice of the speaker. But, I think his attitude is not good business practices. A successful business must constantly evolve. It seems like the speaker wants them to sit tight until the internet market implodes, which doesn't seem likely.

I also don't subcribe to the "fact" that the internet company will screw someone over quicker. A nebulous has much more at stake w/ "testimonials" than a physical fancy location. Geez, a guy can't see an incription on an other wise great diamond & "beware" poops up. The written word is more powerful than word of mouth.

Just my 2 cents.

 

[pricescope]

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...Are you sure the speaker didn't work for an internet company?
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Yes, I'm quite positive.

He is well known diamond manufacturer and wholesaler. He is interested to keep and protect his retailers who buy goods from him.

He told a story about Harry Winston.

A customer spoke to a sales clerk at Harry Winston store. The clerk showed some diamonds but the man was unconvinced and headed to the exit.

Harry saw the man leaving and asked him to look at the diamond with him. He talked to the guy and made a sale.

After the sale was done he asked the man why he didn’t buy the stone from the clerk but bought it from him. The man answered that the passion Harry put into the stone made him really appreciate it.

We also should remember that there are different types of diamond buyers. There are pragmatic buyers and there are those who want to impress others with known labels like Tiffany or Hearts on Fire.

Woman probably doesn’t want to learn that the diamond was bought for less in the internet because she wants to impress her friends how much he loves her.

 

[fire&ice]

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The man answered that the passion Harry put into the stone made him really appreciate it.

We also should remember that there are different types of diamond buyers. There are pragmatic buyers and there are those who want to impress others with known labels like Tiffany or Hearts on Fire.

Woman probably doesn’t want to learn that the diamond was bought for less in the internet because she wants to impress her friends how much he loves her.

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Passion & enthusiasm is contagious. It's hard to sell something that you don't have a passion for whether in person or via the internet. Also, it's natural that if you have a passion for an object you also have a thirst for knowledge about the object.

I guess I'm a pragmatist. I see no *perceived* value in buying a name brand for the sake of name brand.

And, I'm a believer that "value" is different than "price". If x = $2,000 & y = $1600, X may or, more importantly, *may not* be the better item.

 

[pricescope]

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And, I'm a believer that "value" is different than "price". If x = $2,000 & y = $1600, X may or, more importantly, *may not* be the better item.
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F&A, I'm glad to hear that.

 

[Iceman]

Do you think it was who he was that made the sale ? If the Pres.Bush was at the counter he would have closed the deal because of who he was and not what he new

Just my 2 cents.

People see I have a passion for this business and that helps, but all the passion in the world will not make somebody over pay by $6,000

 

[Hest88]

Amen, F&I.

To add to that, competing solely on price is a losing proposition; there will always be someone who can undercut you. Competing with *service* is really the only way to sustain a successful business.