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As you were stuffing yourself with mulled wine and mince pies many of you were probably thinking about the coming year and what you could do to achieve your business goals. Or so we like to think. With the economic climate still looking uncertain at best, this makes that process even harder.
What’s worse, is that our inability to set out our priorities for the coming year (other than survive) creates anxiety as we go through the year. So that come the end of the year, we’re so frazzled and drained, that all we can do is eat more mince pies, drink more mulled wine and start all over.
I used to go through this cycle, year after year and as the financial crisis hit in 2008, would regularly find myself starring into the abyss of my computer, alone and helpless. Shortly after 2008 I decided to do something about it, but there was very little available for the jewellery trade as a whole and for the creative designers even more so. That is when I decided to do something about it.
If you have received my recent emails, or my invitation card, you may already know that I have decided to share what I’ve learned in the past few years on how to deal with the extreme economic crisis that we are all currently living through. I am a firm believer in creating a vision and setting goals. So from January, I will be launching my Creative Year Planner. It is a free monthly guide that will take you through the steps that are essential to get motivation and clarity in your business and most importantly, how to take it forward.
If it all sounds like hard work, don’t panic it isn’t. It does take time, direction and a little dedication.
Good news is that there is still time to sign up for the Yearly Planner, just follow the link www.thegembank.com/yearplanner
A vivion aired is a vision shared
Happy New Year!
Richard
January
In between the mulled wine and mince pies many of us are thinking about the coming year and what we can do to achieve our business goals. At least that’s what we tell ourselves we are going to do. With the economic climate still looking uncertain at best, this makes that process even harder.
What’s worse, is that our inability to set out our priorities for the coming year (other than survive) creates anxiety as we go through the year. So that come the end of the year, we’re so frazzled and drained, that all we can do is eat more mince pies, drink more mulled wine and start all over.
I used to go through this cycle, year after year and as the financial crisis hit in 2008, would regularly find myself starring into the abyss of my computer, alone and helpless. Shortly after 2008 I decided to do something about it, but there was very little available for the jewellery trade as a whole and for the creative designers even more so. That is when I decided to do something about it.
If you have received my recent emails, or my invitation card, you may already know that I have decided to share what I’ve learned in the past few years on how to deal with the extreme economic crisis that we are all currently living through. I am a firm believer in creating a vision and setting goals. So from January, I will be launching my Creative Year Planner. It is a free monthly guide that will take you through the steps that are essential to get motivation and clarity in your business and most importantly, how to take it forward.
Vision and Goal setting is a much tried and tested successful method for me. I have found that setting goals gives you a long term vision with short term motivation. It minimises distractions and focus’s the mind, in fact goal setting is one of the strongest keys to a successful business. Clarity and Vision ensure that your efforts are focused on achieving a clearly defined outcome.
It all sounds like hard work, but it really isn’t. It does take time, direction and a little dedication.
Good news is that there is still time to sign up for the Yearly Planner, just follow the link www.thegembank.com/yearplanner
Share your visions and goals!
Happy New Year!
Richard
Thank you for your support
As the year comes to an end, I would like to make a personal thank you to our customers and suppliers alike, who have helped us over the last year. This year has seen my business grow as my team and me strive to service you better. While this may not have always gone as smoothly as we’d like, we are constantly working on improving.
Thank you. May 2012 bring us all a little more peace, prosperity and success!
Welcome to the December issue of the Gem Bank Newsletter.
Trading at the start of November in Europe was a little slow, as we saw with the recent auction results in Geneva. Which is unusual as November is normally the peak trading month of the season. Nevertheless, as in past years I am sure we will experience once again trade increasing within the next few weeks as we see the usual mad dash towards Christmas, thus hopefully ending the year on a high note!
Design News
Jewellery design using white, champagne and black coloured gemstones seems to once again be on the increase, so far this Christmas season we have seen the return to the 80’s style of animal inspired chunky jewellery, from jewel encrusted Cartier Panther brooch to gold and black diamond snake bangles and enamel tiger rings. This colourful animal design trend is expected to continue right through to the spring season.
Industry News
One of the major developments that took the world gem industry by surprise very recently was the ending of an era when the Oppenheimer family sold off its 40% stake ownership of De Beers in a deal to the Anglo American company reportedly for sum of 5.1 billion USD; thus closing the family’s nearly 80 year-ownership over the De Beers. Also in the news is that some investors are purchasing high end diamonds as an investment route. Also in the news is the increase in sale of large high end diamonds being snapped up at auction this November. The most notorious of these was the sale of the sun-drop diamond, the vivid yellow diamond broke records at a Sotheby’s auction in Geneva a few weeks ago when an anonymous telephone bidder paid a record-breaking $10.9 million for a 110.3-carat, including the buyer’s premium the total amount paid for the diamond was $12.4 million. There has also been a new record set for the sale of sapphires, when Christie’s sold a Kashmir sapphire for over $145,000 per carat!
Manufacturing News
In Manufacturing there has been a continued steady increase in the East for diamonds; experts are now predicting that by 2015 the total sum of diamond jewellery sold in China and India will exceed the US. So what does this mean? Well, if predictions are correct then consumption will be higher than the actual ability to manufacture the required amount of polished diamonds, which in turn will increase in the sale of rough diamonds. Therefore prices of rough diamonds are now expected to rise 5% a year until 2020. So it’s definitely time to invest!
Company News
To better aid our customers when shopping on line at www.thegembank.com we have now uploaded the prices for nearly all of our online stock. You will need to register to see them. Feel free to contact us directly in order to discover any discounts available on the stones you’re interested in!
BIG NEWS
I have been putting the finishing touches to my Creative Year Planner. This is a summary of the lessons I have learned since the economic downturn of 2008. Please take a look and get involved!
Welcome to the November issue of the Gem Bank Newsletter.
As usual we have been very busy in the last few months. In September we took part in the Hong Kong Jewellery & Gem Fair. The big shows play such an important role as an early indicator of diamond pricing trends; and as this is currently the world’s leading jewellery event, our participation means that we can assess the trade show and report back directly with you, keeping you abreast of all the latest industry news, jewellery fashion trends and gem pricing.
Design News
We are seeing designers within the luxury jewellery market produce bold but chic pieces for this Autumn/Winter season, using more subdued colours, such as black, chocolate and moss green coloured gems, you’ll also see darker hues of scarlet, royal blue and purple to add just a hint of colour to the pieces. This colour trend has also been predicted by the worlds leading watch manufacturers to be carried through to watches in 2012, with most popular colour for watch dials and bands being black.
Industry News
However, as we are all painfully aware the market is still in unsettled; design is no longer leading sales. Tough markets have forced retailers to drastically lower their prices. These reductions have not always been good news for sales, with the result being an adverse effect on consumer confidence. This feeling was further proven in the Hong Kong show with the buyers there being very price sensitive with little or no speculative purchasing, forcing current prices of white diamonds to fall between 5 and 10 percent lower than in June.
On a more positive note prices of coloured stones has remained firm with fine quality rubies and sapphires holding commanding prices. This has been principally fuelled by a lack of supply for better stones and the increasing demand from asian markets. Furthermore, an increase in the speculative nature of fancy coloured diamonds has ensured that prices of fancy colours has remained constant if not increasing especially at the entry level brown colours.
Manufacturing News
On a more positive note we are currently witnessing more and more manufacturers from across the globe strive to achieve certification from the Responsible Jewellery Council (RJC). They gain certification by committing to and promoting a more ethical, social and environmental approach to producing more responsible jewellery. Their commitment has already proven to help reinforce consumer and stakeholder confidence in jewellery products, ensuring a more stable environment for pricing in the future. In not just manufacture, but for retail as well, which lets face it is good news for all of us within this industry.
Company News
In the future, in order to better meet our client’s needs, we plan on making more regular updates to our website and Facebook pages. We will do this to keep our customers up to date with our company and industry news. To keep up to date our website is www.thegembank.com, and follow me on Facebook, Thegembank. So, from now on, watch this space!
Luxury by definition is very hard to pin down, as luxury means different things to different people. In this industry however, luxury is the highest measure of quality.
So, how are you going to convince your customer that when they buy from you they are not just getting another piece of jewellery? That when they buy from you, what they get is a piece of luxury, that their purchase is a quality piece of jewellery that can last a lifetime.
Whether you are a modern, contemporary or traditional jeweller, the rules for proving that your jewellery is luxury are the same. Ask yourself, do you strive to meet every individual customers needs? Are you prepared to tailor the service to meet their requirements? Is every piece of jewellery you produce important to you?
In every business, customer satisfaction is the key to success. When selling your jewelry, it is important to deliver ‘the luxury experience’ to every customer. Try to make every customer feel special, individual and distinct from everybody else. There are many ways in which you can convey to your customer the quality and luxury of your products, by the piece of jewellery itself, and the experience of choosing and buying it. These factors will give them piece of mind and confidence in your product.
The luxury experience starts with the first point of contact, which is as soon as they walk through your door. Treat every client as an individual; give them a highly interactive and personal service. Whether the customer is choosing a piece from a collection or inquiring about a bespoke piece, show them that you care. By giving them a perceived personal connection it makes each potential buyer feel important to you. By indentifying their requirements and striving to achieve them, this ensures their confidence in the quality and therefore luxury of your jewellery.
Set yourself and your jewellery apart by showing your pride in each piece. Tell the customer what is it that you do that makes your jewellery special. Tell them about the quality of the materials you use, and give them the information on how they are sourced. If they are looking for a bespoke piece to be made, you could let them be part of the process, perhaps letting them choose the gemstones that will be used. This will make the experience of buying from you rewarding and fulfilling for the customer.
Where luxury products struggle is when they are sold on the price tag alone. The customer who buys solely on price is probably doing so just to be showy and to flaunt their wealth. When this occurs, the emotions between seller and customer are different. Instead of the customer feeling special and individual, the connection is not made, and the experience for both parties can be an empty cold one. By not connecting with your customer any chance of repeat business is very much reduced.
Reviewing Your Goals – 6 months on…
Time flies when you are working hard on your own business! It’s hard to believe we are already at the half way mark in 2011. At this point in the year it is a good time to look back and take stock of what goals have been achieved over the last six months. We need to remind ourselves of the goals we set, and we need review them, to see what did and did not go well for us. So, have you achieved the things that you set out to do in 2011? And be honest, did you have a clear idea of what it was that you wanted to achieve in the first place?
What Kinds of Goals are you Setting?
Goal setting is a much tried and tested practice, it minimises distractions and focus’s the mind, in fact goal setting is one of the strongest keys to a successful business. There are many important points to consider when setting up your business goals, the easiest way to do this is by following the S.M.A.R.T method – every goal is to be; Specific, Measurable, Achievable, Realistic and Timely. At first the process can seem daunting, but don’t worry, it doesn’t need to be. The first thing you need to do is give yourself time to go through this process. I would recommend a minimum of half a day. Then ask yourself – for every goal that you want to set, is it specific, can you measure its success, is it realistically achievable, does it have a realistic chance of success, and finally, set yourself a time scale in which to achieve the goals and to review them!
My Own Goals for 2011
For my own business, I had three main goals that I wanted to achieve within the first half of the year. First and foremost my main goal was to make an online sale. Of course in order to reach that point, I would to have done enough to make the whole process work. I had to get my stock in order, my website ready, my payment system set up, just to make 1 sale. I am very proud to say that I achieved that sale in May this year, although it did take me three years of hard slog to get there!
My second goal was to put a sales team together. Again success was achieved, I’m pleased to say that I now have Gaetane and Marcia who both give excellent support to my customers; which is something I could never have achieved without them.
Last, but definitely not least, my third goal was to develop my online support for customers. I did this by working on and regularly updating my website, and by developing the information that I offer to my customer base. In addition to this I have regularly updated my blog to keep you all in the loop of what’s going on.
Now, I’m considering what I want to achieve for the next six months, and which goals I need to set in order to achieve them.
What goals have you achieved in the last six months, have you had success with them, or did you find it a struggle?
Post your comments below.
Handmade unique rings
In today’s tough economic times retailers and jewellery manufacturers are looking for an edge. What is needed is innovation and an injection of something creative into the business. However, tell many retailers to get creative, to freshen things up, and you will watch a look of dread creep over their faces. Often we find ourselves wanting and looking for change, but that change eludes us.
One source of change can come from a section of the industry that is often viewed as ‘alternative’, an area many out of town jewellers struggle to fully understand. The designer maker, I believe, holds a key to great innovation in any local jewellery market.
If retailers have taken on designer jewellers, they have often remained at the fringes of the display. By introducing the work of designer makers into a jewellery retailer, you are able to strike the perfect balance between showing more unusual or adventurous pieces in a more commercial setting, as quite often these pieces may only be seen in ‘gallery’ type shops where the emphasis is not on selling, but more viewing jewellery.
The retailer has much to benefit from this relationship, as not only do they access a source of creativity that they might not have exposure to (let’s face it trawling around international jewellery shows, looking for ‘the usual’, whatever that may be, is hardly inspirational), but they have an opportunity to create a relationship with a supplier that is actually passionate about what they do. This passion can be used to drive sales, which is let’s face it what we’re interested in.
Designers care more about their work, they take more time to make it, often have a story behind it, will often make one offs and their pieces of jewellery will generally be handmade from start to finish. In today’s economic climate, unique, handmade, locally made, inspired by, exclusive are all key selling terms and there is a flourishing source of home grown designers willing to go the extra mile to build their name and satisfy their customers.
The designers have a responsibility here too. Designer pieces are going to be harder to sell, let’s face it. You will have to work hard not only making the piece and giving it some commercial appeal, but you also have to give the retailer the tools to sell it; your story so that they can sell with confidence. If you’ve flown half way around the world to source your own stones that give you the inspiration, say so. If you use shapes that relate to something in nature, the person selling your jewellery needs to know that. If all your materials are ethically sourced – and you can prove it, do so. You’ll need your press pack, and resume (just a background and any awards you might have won) to give yourself credibility.
The designer jeweller needs to give the retailer confidence. Apart from the story, there also needs to be an element of flexibility. I am not one for sending things out on sale or return, but you don’t want the retailer to feel they might get stuck with something. To this end you offer a flexible exchange policy for certain items.
Promoting designer jewellery in a jewellery retail setting has to be to everyone’s advantage. But it takes effort to sell by the retailer and effort to support the retail sale by the designer. These efforts will pay dividends for both as this is what the consumer is looking for today.
Please let me know how you have succeeded and where you have faltered in promoting the sale of design led jewellery.
this man knows more about beer than you do about jewellery
Research shows that students working part-time in off-licences often know more about the beers and wine they are selling than retail staff working in the average jewellers know about the gems and other products they are selling.
It’s more than students just liking a drink!
You’ve got to wonder why this is so. You might suppose that the students working in off-licences already know a lot about the drinks they are selling because it’s well known that students can be very passionate about drinking. Joking aside, students working in off-licences are hardly going to be experienced sommeliers so there must be something else at play here.
They want to give their customers confidence.
The average consumer is still very intimidated when it comes to choosing a bottle of wine. If they cannot speak to someone who is knowledgeable about the different kinds of wine and their qualities at the point of sale, the chances are that they will go looking for better service at a different off-licence the next time they want a good bottle of wine. No doubt, off-licences rely on the repeat business to provide a steady flow of customers, especially in these economically straitened times, so if a customer doesn’t come back because of lack of product knowledge, it could spell the kiss of death for an off-licence.
Realising this, perhaps wine sellers go the extra distance to ensure that their staff is well versed in the tastes and needs of their local market. They understand the questions and concerns of their customers. They find out the ‘story’ behind the wine, the vineyard and the people who make it. Most likely they subscribe to monthly wine magazines to give them insight into trends that might open the door to new entrepreneurial opportunities. In turn, they communicate all of this to their staff so that they can convey this knowledge to the customer.
You might argue that learning about wine is a much easier prospect than learning about gemstones. Tasting wine is a big part of learning what makes a good wine so if bottles of wine are readily available in an off-licence, all you have to do is crack a bottle open and get tasting. But it’s worth bearing in mind that selling wine and selling gems have a lot in common, not least the word ‘clarity’.
Passion, commitment, salesmanship
If you want customers to value you, you need to value your customers. That might sound like an obvious thing to say but it’s surprising how many jewellery retailers ignore this basic tenet of business. How do you build value for customers, with its implicit assumptions of trust and quality of service? Surrounding yourself with the best people is key.
Hiring staff with the right background and experience is a good place to start but even more than that, making sure that your staff is well trained and motivated goes a long way towards helping to ensure that your business keeps making money. How do you motivate staff? By ensuring that your staff is passionate about the products it is selling.
Where do you find passion?
Passion comes from knowledge so there is a direct correlation between motivation and product knowledge, which in turn can impact on commitment to the business. A well-trained employee is therefore more likely to be confident about the sales process. If staff is more confident about the sales process then it is more likely to be effective in bringing extra revenues into the business.
What is a well-trained employee in a jewellery store?
Just like a good employee in an off-license, a well-trained employee in a jewellery store will know the proper way to handle, store and care for the products they are selling. They will know the differences between natural, treated and synthetic gemstones in the same way a well-trained student working in an off-license knows that champagne-style wines made outside the region of Champagne cannot be called champagne. They will have to master the language of gemstones and jewellery, the differences between different types of metals, stones and manufacturing techniques.
Where can you get this training?
In the alcohol business, it is up to the supplier to educate and to some extent motivate retail sales staff to understand and sell their product. There is no reason this can’t be rolled out by jewellery manufacturers and stone dealers who supply you. This should be part of service you receive and expect. We all expect our customers to part with serious money when it comes to making a purchase, the least we can do is give them the knowledge and confidence they need to make a sound purchase.
Ultimately, your staff are only as good as the effort you are willing to put into ensuring they are well-trained. Ignore that at your peril. In this fraught economy, people are reluctant to spend money on jewellery so will hunt for the best possible deals that they can get, or will buy with the retailer they have the most confidence in, even if the price is higher. Make sure that it’s you they turn to for value and confidence when making that purchase.
With Christmas behind us and the future plans being prepared, some of you are probably considering your approach.
Did you find yourself selling from your existing collections or did you find yourself increasingly being asked for customised or bespoke jewellery pieces?
With a slight shift in luxury and consumer’s approach to buying it, is there an expectation by our customers for bespoke pieces?
How do you fill your shelves if all you sell is bespoke jewellery?
As a jewellery retailer or designer jewellery maker, when you consider how you fill your retail space, there are 2 approaches that immediately present themselves. You either establish a collection of jewellery – whether it is designed and made by you or bought in, or you can offer a bespoke service. It is clear, that most jewellers fall somewhere between the two. Offering an established jewellery collection – i.e. ready to buy ‘off the shelf’ jewellery, gives many advantages. The most obvious being to take advantage of the impulse buyer. Not everyone wants to wait for your moment of inspiration to have that one off creation, nor does the man who forgot his wife’s birthday and who needs something NOW!. But every so often and that might be more often than not, you get someone in who wants something DIFFERENT, or wants to be INVOLVED in the jewellery design process, they like that one, but have you got it with some VARIATION or another? So you end up taking on a lot of commissions and doing more bespoke work and your jewellery collection starts to collect dust on the shelf and you begin to wonder ‘why did I bother making that stuff, it never sells’. If you didn’t, how would people know what you did? How would they be able to get you to make something different if you didn’t make anything at all and only offered a bespoke jewellery service?
The Catch 22
So it appears a catch 22 has evolved. What your established jewellery collection does, is set the tone of the shop, your work and your style. The style of collection, the gemstones used, the quality and the manner in which they are displayed, will very much send out a signal of what your jewellery business and you are capable of. What YOU need to do is make sure that everything goes towards highlighting your talents and maximising your profits. Now I could go on about how the secret to profits are in making your jewellery more than just the sum of its parts, but I’ll save that for another occasion.
Do customers have the right to expect bespoke?
One thing I have noticed, and it’s really the big brand name jewellers (as well as the high street chains) that are, for many reasons, only able to sell rigid collections and they do ok. In fact, only if you’re a super important customer, and I’m talking exclusively about the higher end right now, will they even contemplate the idea of creating bespoke jewellery. Set that against the designer maker.
The benefits of bespoke.
Most designer makers I know would be only too please to work hand in hand with their customers to create a customised jewellery piece for them. Think about it, not only do you have a very happy customer, but you have an evangelist who will be so proud of the jewellery they were involved in the making with you, they will spread the word far and wide.
Opportunities knocking
As you build your relationship with your customers, you build further opportunities to sell. It could be that through working with them on a particular piece, you find out that there is a follow up occasion being celebrated, offering another opportunity to build on their new jewellery collection might keep them coming back for more.
It may be this process that sets you apart from other jewellers in your area, who may not be willing, or indeed able to offer a bespoke/customising service. It is exactly this type of service that sets jewellery artisans and designer makers apart from the run-of-the-mill jeweller, or the big corporations that would rather not get involved in any activity of this nature. I understand why they wouldn’t, or in fact can’t.
By customising, tailoring, or creating one off pieces of jewellery for your customers, you have an opportunity to build a relationship that few other businesses have.
Take it and run with it.
Your collection may establish you, your bespoke jewellery service will build a special relationship with your customer.
Recently, the weather in Europe has been quite cold. For many, the cold weather is bad news; however, if you have a small business, the cold just may work to your advantage. If you are able to open your shop, log on to your website or otherwise come in to work, the benefits are yours for the taking.
Increase customer loyalty.
First, if you are able to get out and about in the bad weather, then chances are that many of your customers are also able to get out on the road as well. This means that you have the advantage of increasing customer loyalty by being available when your customers need you the most. In addition, you may also attract new customers who are not able to make it to their usual shops.
Cold weather is a good ice breaker.
You may want to use the time to meet new contacts. It is amazingly easy to bond with your customers and associates when the weather is bad. Conversations and relationships have come to life for many years with the phrase, “How about that weather?” Your customers and business associates will appreciate your effort to maintain business as usual even when the weather is working against you.
Open your doors to new business.
When the weather is cold customers often have more time to spend in your shop, especially if other businesses have not made the same effort to keep their shops open. Take advantage of this and attract more customers by offering a free warm beverage such as coffee, tea, hot chocolate or even mulled wine. If you’re a supplier, your customers and prospects may have more time for you. Understand they may not be in the buying mood, but may at least open the door to you and offer you a warm drink and a chance to get to know you and your product better while you try to learn their needs.
Opportunity knocks.
For retailers, you may find that people come in to stay warm and if other shops are closed, may look harder to buy something you have. If you customers have little time to shop for the gift they’ve come out for, they will be more open to your jewellery because they need to make a purchase and you’ve made them feel at home. Take time to build their profile, spend more time learning about their needs throughout the year and find ways to better prepare them for their next purchase.
Get the little things done.
If you do not have customers coming in on colder days, you can still benefit. You can take advantage of the lull by taking care of some overdue jobs that require your attention. When business is booming, or even just happening, it is difficult to deal with the smaller, yet just as important tasks. Slower business when the weather is bad provides you with an opportunity to get back on top of the little things.
Let your website pick up the slack.
If you have an online store, firstly make sure your products are up to date and looking irresistible. Secondly let your customers know delivery expectations in real time. If it looks like their product will be delayed, send them some sort of gift voucher or presentation online that can be given on the day while the gift/product actually arrives.
The extreme weather has been extremely inconvenient to millions of people in the UK and further afield over the past few weeks. However, many finance experts and investors might argue that cold weather can be beneficial. When all is said and done, many believe that there will be just as many winners as there are losers when the financial effects of the winter weather are weighed. It is up to you to make sure you’re one of the winners, but you have to take action!
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