March 2017 Issue

I N

T H E

LOUPE

The Ultimate Jeweler Resource

March 2017 Issue 72

Buying Frenzy Makes a Big Splash in Tampa

FISHERMEN SAY YOU CAN TELL the size of the fish by the size of its splash.

If that’s true, then the RJO Winter Buying Show in Tampa was a whopper.

Buying Frenzy, held the first week of February, lured hundreds of RJO jewelers up and down the Show aisles, as vendors offered up their latest, their trendiest, and their most popular.

RJO CEO Sarah Streb says, “Tampa was a great host city, and I would love to come back. Members loved the location, the weather, and the deals on the Show floor. I also was pleased to share great dividend news with them, as well as some new ideas we’ll be implementing in the year ahead.”

Be sure to check out photos from the Show and the numerous contest and promotion winners—like Karla Doolittle, from Mark Jewellers in La Crosse, WI (at right)—as well as a listing of our generous Show sponsors.

Save the date today, for the Summer Buying Show “Mile High Style” August 5-7, in Denver, CO.

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

In the Know with RJO by RJO CEO Sarah Streb

Inspirational

IT’S HARD TO BELIEVE it’s been a full month since our wonderful Buying Show in Tampa. The weather was beautiful, the excitement high, and the buying was, in fact, a frenzy. I was pleased to offer a yearend wrap-up, highlighting RJO’s record-setting figures and upcoming initiatives, as well as provide an opportunity for our new vendors to introduce themselves to members.

As you might know, Tampa is a new Show venue for us, and it really is a keeper. Our hotel’s rightnext-door location to the convention center reminds me of Savannah, its warmth was like Phoenix, and its setting on the waterfront brought to mind San Antonio. I’ve heard from many in RJO’s family who thought it was terrific as well.

As always, we had gifted speakers, seasoned and professional RJO staff, generous sponsors, and eager-to-buy jeweler members. I want to thank all of you for making our Winter Show such a success.

Choosing Tampa as a host city hopefully will serve as an inspiration for many of you. RJO set aside the comfort of hosting the Show in a place we already knew, we risked time and energy into trying something new, and we looked at the change as a potential investment for future gain, having a new, popular venue. And it paid off.

The same might hold true for you. Each year, we host two Buying Shows, but too many of our members are reluctant to make the leap and attend. I have been told by some that attending

just isn’t something “we do.” That’s Comfort speaking. Yet we know it’s important to step outside of that zone on occasion, and if this describes you, I want to encourage you to “step outside” this summer in Denver.

Others have told me they can’t afford the time and energy commitment to take a weekend off. That’s Risk speaking. While I don’t know their specific circumstances, I do know we’ve tried to make attending the Show as financially risk-free as possible. From complimentary hotel rooms, to Show savings vouchers, to $250 for traveling expenses for Winter Shows, the payoff of spending time with colleagues, viewing the latest lines, and attending meaningful education sessions, seems worth a risk.

Finally, I’ve actually heard from a few members that attending the Show regularly didn’t seem like a good investment. This is hard for me to understand, and if that’s you, I can give you the names of several hundred of your RJO family members who would be happy to try to convince you otherwise.

I hope you enjoy this issue of In The Loupe, and I hope it whets your appetite for joining us in Denver this summer.

RJO CEO

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

From RJO’s Facebook Page

SERVICES

Centralized Billing

Patronage Dividend

RJO Website (rjomembers.com) Buying Shows (Fall/Spring) RJO Chat Channel

In the Loupe – RJO’s newsletter

Free Print and Radio Ad Library (on the RJO website) Educational Seminars (at the Buying Shows)

Member-to-Member Incentive Program (Recruitment Program) Organized Buying Trips to Antwerp and Idar-Oberstein, and Israel Travel Vouchers at Shows (offered at varying times)

Free Hotel Room Incentive (at the Buying Shows)

RJO Informational E-mail Blasts Purchase Vouchers (at the Buying Shows)

JewelConnect

First Response: I cannot imagine the guts that it takes to do such a thing. I wish I knew what to say to them. My first instinct would be to tell them politely you cannot discuss this on company time; that it’s against policy.

Second Response: When I used to work retail I would try to sell them something. If they came in regularly, I would ask them to go run errands for me. They would stop coming in wasting my time. I have supported some school promotions, but would dictate how I wanted my donation given away during a game AND my store name had to be announced AND I had to be the person giving it away.

Fourth Response: Yes, I would dismiss these people as mentioned above. Maybe suggest they get a booth at the local shows? What are they selling? I get people who make handmade jewelry from time to time. I send them to another store that does consignment.

Fifth Response: We have a “No Soliciting” sign on the front door. No one reads it; they still come in.

Education on the Go Podcasts and Webinars Private Label Credit Card Service

Post: Okay, I’m going nuts. What do I say to “customers” who are hitting me up for home-based sales in my store? They aren’t coming in to buy anything from me, but want to take up my time to sell me their products! These are women—who I know—trying to sell me Mary Kay, LifeVantage, insurance ... you name it. It just drives me insane! They could at least take a look at the jewelry before talking to me about what they are selling IN MY STORE!!! By the way, I use the term “customers” loosely. Not really customers at all. I’m going to lose it ...

Third Response: The one problem is they are aligned with some people who may eventually be your client. So you don’t want to harm your position in your town. However, I must say we have never had home sellers come to try and sell us. We have had them shop us, to see if we have something like they have, though.

RJO Directory

RJO Membership Certificate

THE RJO PAGE ON FACEBOOK hosts a variety of interesting discussions nearly every day. Here is an edited thread from a post earlier this month:

Sixth Response: Use it as a sales opportunity: “You know what would go great with that lipstick? A ruby!”

RJO hosts a private Facebook page that includes RJO-specific private announcements, sign-up links, member questions, etc. It’s the best place to trade merchandise, get ideas, and broaden your RJO experience. If you would like to join the private page, please contact RJO’s Hannah Green (hannah@rjomembers.com)

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RJO Board Election News and Opportunities RJO Board of Directors The RJO Board of Directors is comprised of nine RJO members, elected by the general membership, to aid management in decision making, policy review, development and implementation, strategic planning, and maintaining the overall viability of the organization.

Currently there are two (2) positions open, elected

by RJO membership.

• Roles and Responsibilities may be viewed here.

• Request for applications will be sent on April 12, 2017, which will be due May 17, 2017. Ballots will be emailed to membership May 25, 2017, which will be due June 16, 2017.

RJO Merchandise Review Committee (MRC) The Merchandise Review Committee is comprised of RJO members, appointed by the Board of Directors, to interview, select, and negotiate contracts of new vendors to RJO. Additionally, the MRC consistently reviews the current vendor make-up of RJO. Currently there is one (1) position open.

• Roles and Responsibilities may be viewed here.

• Applications can be found here, and are due by March 15, 2017

RJO Foundation Scholarships Deadline in April

RJO Foundation Board The RJO Foundation supports the advancement of the jewelry industry by providing scholarships and grants to individuals or programs. Trustees are stewards who act on behalf of the Foundation’s constituents, including funders, members, and donors.

The Board has the principal responsibility for fulfillment of the Foundation’s mission and the legal accountability for its operations. As a group, they are in charge of establishing a clear mission, forming the strategic plan to accomplish the mission, overseeing and evaluating the plan’s success, ensuring financial solvency of the organization, interpreting and representing the Foundation, and instituting a fair system of policies and procedures for trustees, as applicable to Foundation operations.

Currently, there are four (4) positions open, appointed by the Board of Directors: two member positions, two vendor positions (vendor position is a new position on the Foundation Board).

• An overview of the RJO Foundation Trustee Board may be viewed here.

• Request for applications will be sent on March 27, 2017, which will be due April 12, 2017.

RJO has provided 26 scholarships, totaling more than $10,000, exclusive to RJO members. Spring 2017 applications will be requested mid-March and will be due on April 7, 2017. A scholarship application may be downloaded here. Completed applications can be emailed to Connie Miller: connie@rjomembers.com.

JewelConnect: Version 3.0 and New Partnership IT HAS BEEN A BUSY YEAR so far for JewelConnect, the RJO-exclusive online marketing system. The company will soon release its all-new “JC3” (version 3.0) of the well-established system, including a new design and functions. The company also is teaming up with RJO vendor Jewelry Ads That Work (JATW).

“It’s time for a refresh and some new functions,” says Andrew Boundy, JewelConnect’s designer.“ Not only have styles and tech changed since we released version 2.0 in 2013, but we have some great new ideas and partnerships as well. It’s time to package it all together and release it for the hundreds of RJO members using the system.”

JewelConnect also has teamed up with Michael Buley, from Jewelry Ads That Work, to incorporate JATW’s

innovative marketing messages directly into the current JewelConnect system.

“Michael’s a bit of a savant when it comes to getting ads noticed,” says Boundy. “Having Michael on board, with integrated banners and awesome messages that pull people in, really boosts the system’s effectiveness.”

JC3 will launch in the summer, and all of the new features, including homepage micro-messaging for events and specials, will come with it. You can learn more about JewelConnect on the website JewelConnect.com (or look for us on the RJO website), and check-out JewelryAdsThatWork.com for more on their unique marketing systems.

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

A Retail Branding Opportunity Like No Other THIS FALL MARKS 30 years of RJO hosting members on trips to Europe, the annual visits to the great jewelry capitals of the world have become much more than buying excursions.

The Fall getaways are now known as RJO’s Overseas Branding Trips, and this year, the group will be the first to have access to Kate Peterson's RJO-exclusive Overseas Branding program, personalized for your store.

This program will go live April 1 and will provide vital education to your sales staff to make sure all your customers know to go to you for a direct connection to overseas diamond and colored gemstone cutters. Peterson's slides from her presentation in Tampa may be viewed here.

In addition to Peterson’s guidance and expertise, travelers will be welcomed by knowledgeable RJO vendors. Anish Desai, president and CEO from Star Gems, is working with Jochen Benzel, from Germany’s Han’s-Dieter Haag.

“A trip to Hans-Dieter Haag in Germany is very important to your business,” says Desai. “Sourcing the best -of-the-best fine-colored gemstones— and then having design ideas put together with beautiful sketches next to the stones you purchase—will allow you to sell beautiful color, with an imagination your customer can visualize.”

2017 Dates

Desai says the sketches will come with pricing at-cost. “We are going to help you elevate and customize your color-stone business,” he says, “in a collaboration that will result in creating beautiful fine jewelry. Any color-stone purchases will come with three hand-drawn sketches that will then be made into an online flip book. All RJO retailers who make their purchase of color from their overseas trip will have access to this design book for beautiful design ideas. Best of all, the more you purchase color, the more design ideas will make it to the flip book. I encourage all members to sign up for the Idar-Oberstein extended trip for the opportunity to purchase one-of-a-kind color to create one-of-a-kind designs!”

Sample sketch designs, based on the stone in the photo above, are shown here:

To learn more about this great opportunity, contact RJO trip coordinator Connie Matsen (cmatsen@rjomembers.com)

First Europe Trip Hosted by Liz Schlauch & Jeff Horlacher Antwerp: October 7-12 Idar-Oberstein: October 12-16

Second Europe Trip Hosted by Connie & Steve Matsen Antwerp: October 14-19

NEW VENDORS Visit the RJO Vendor Directory at www.rjomembers.com for descriptions, discounts, and more.

Alpha LG LLC New York, NY Lab-grown diamonds.

AVA Couture Atlanta, GA 14k & 18k diamond jewelry.

Website

Podium Lehi, UT Collects and manages online reviews from one centralized platform.

Website

Slate & Tell LLC Englewood Cliffs, NJ Modern Collection of charms, bands & cuffs available in all precious metal types.

Website

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VRB Internet Solutions LLC Ontario, Canada Custom websites, functions and Wordpress design & management.

Website

Vendor Profile

File-A-Gem: From Brainstorm to Industry Standard

IF YOU DRIVE A LITTLE past Joplin, MO, in the southeast corner of Kansas, you’ll find yourself at the foothills of the Ozark Mountains, in Baxter Springs, population 4,400. This is the home of File-A-Gem, founded nearly 40 years ago by jewelers Bob Sirratt and John Troy.

“They decided to have a brainstorming session with a few other jewelers, to design new products and ideas to help their fellow jewelers,” says File-AGem’s Renee Roberts. “Bob and John had taken one of the clear badges from a show tag to fabricate a holder for their vision to make loose gems and diamonds more secure when showing them to a customer.”

It was 1978, and within a year, says Roberts, the idea blossomed from a prototype to a complete product to offer their customers, and File-A-Gem was born. Also born was the company name.

“The name of the company came pretty much from our original

product description: A secure way to file lose gems,” says Roberts. “Even more than that, giving jewelers a safe and secure way to display and show loose gems and diamonds without fear of loss or theft.”

In 2000, John retired and Bob became sole owner of File-AGem. In March of 2014, Doris Sirratt took over the business and daily operations.

File-A-Gem has grown its The relationship products through the “With File-Awith the people years to help Gem, accidents and jewelers jewelers in and awkward many areas of moments associated with their business, spent fumbling from appraisal with oldRJO has always portfolios to fashioned been a great display and papers are storage items. eliminated, experience.

File-A-Gem also says Roberts. offers repair “The gem is - Renee Roberts and service secure, and its File-A-Gem packaging and beauty visible systems, as well with the as sales and presentation description and price plainly products. marked. File-A-Gem files have become the industry standard “We’re always working on new because they are convenient to handle; a salesperson can devote ideas and items that would be a benefit to their customers,” says full attention to the customer.”

Roberts, “although we have no new items ready for release at The File, as it is called, holds the this time.” gem secure in a clear sleeve, and

the complete description of the gem or diamond is listed on the files.

Roberts says Bob ran the daily operations of the company with his wife Doris, along with John and his wife Marjorie. The two men shared the duties of traveling to trade shows to introduce their new business, which Roberts says they loved to do.

Roberts says they are pleased to be RJO members, and while it is certainly good business, she enjoys RJO for its family spirit.

“The relationship with the people and jewelers associated with RJO has always been a great experience,” she says, “and the support they provide is the best.”

File-A-Gem is located at 120 West 11th Street, Baxter Springs, KS. Phone: 800-247-4152.

Website: www.file-a-gem.com

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

New, Improved Succession Experience Set for May A REVAMPED CURRICULUM and a variety of new presenters will mark RJO’s annual Succession Experience, set for May 20-22, in Chicago, IL. The three-day Experience is for owners planning to leave the industry within ten years, as well as their potential successor.

presentations, facilitated discussions ensure members have time to network with others and share ideas.

Response from past attendees has been overwhelmingly positive.

First offered in October 2014, the 2017 session will include sessions from Jack and Craig MacBean from Ostbye; Kate Peterson of Performance Concepts; Barbara Nuss, owner of Profit Soup; Marc Loden, with Federated Insurance; Dan Pharr, of Pharr Valuation; and Chuck Frey, with Charles Frey & Associates. Along with these

• Getting specific tasks down on paper that I need to do to make retirement happen. Directions on trusts and LLCs was invaluable!

• Legal advice, hearing from others going through the same experience, putting together a plan and timeline.

Based on previous participants experiences, RJO highly recommends both the owner(s) and successor(s) attend together to ensure everyone is on the same

NEW MEMBERS Bella Jewelers Peter & Michelle Fusaro New Milford, CT Carlson Brothers Jewelry Fred Hornshuh Tacoma, WA

referred by Christina Cantlin, Stuller, Lafayette, LA

Connie’s Jewelry Gallery Richard & Connie FinkBeiner Chandler, AZ

Galicia Fine Jewelers Ron & Lisa Garber Scottsdale, AZ Gold Mine Fine Jewelry & Gifts Bill Warren Hudson, NC

Hayden Jewelers Mark Hayden Liverpool, NY

referred by Anish Desai, Star Gems, Inc. (Atlanta), Norcross, GA

Cozzi Jewelers Paul Cozzi Newtown Square, PA

referred by Scott Pasquale, RDI Diamonds, Rochester, NY

page and to create a successful dialogue that continues after the experience.

Image Jewelry Group Nedra Townley The Villages, FL

referred by David Hevia, Kiefer Jewelers, Lutz, FL

To learn more about the costs, expectations of participants, and the goals of the Succession Experience, go to the RJO website.

Registration deadline is March 15, and to register, complete the registration form and contact Hannah Green at: hannah@rjomembers.com or call (800) 247-1774.

JC Jewelers Lois Monteleone Winterhaven, FL

referred by Steve Hartz, Obaku, Charlotte, NC & Al Herring. Wilkerson, Stuttgart, AR

Jeweler’s Bench John & Sheralyn Holsclaw Elizabethton, TN

referred by Alan Sutton. Alan Sutton Jewelry, Goldsboro, NC

Karadema Jewelers Mohamed Fahmy Jr. Orlando, FL

referred by David Hevia, Kiefer Jewelers, Lutz, FL

Michael Szwed Jewelry Michael Szwed Longmeadow, MA

Pittman Jewelers Leroy & Vivian Pittman Clermont, FL

Robson’s Diamond Jewelers Robert & Paul Hargrave Baytown, TX Rosenfeld Jewelry LTD William Rosenfeld Tucker, GA

Royal Fine Jewelers Lynn Schulwolf Louisville, KY

Valle Jewelers Stephen Valle & Carrie Lawrence Batavia, NY

Jewelers referring new members to our group will receive a $1,000 finder’s fee for their referral, payable after a new member has been in good standing for at least six months.

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Jeweler Profile

Lyle Husar Designs: Led by a Chief Romance Officer

CRAIG HUSAR IS PROUD to have been among the seafaring explorers who recovered the scattered wreckage of the Spanish galleon Nuestra Senora de Atocha in Key West, FL, more than 360 years after a hurricane sent the treasure laden ship plunging to the ocean’s floor. Fulfilling a childhood dream, Craig joined famed treasure hunter Mel Fisher as both diver and Exhibition Director, spending years touring jewelry stores throughout North America, entertaining crowds with a vast $40 million dollar collection of historical artifacts, emeralds, gold doubloons and pieces-of-eight.

Today he owns and serves as President of Lyle Husar Designs, “One of America’s Most Trusted Names in Fine Diamonds and Jewelry.” The Brookfield, WI-based jewelry store was started by his family nearly 50 years ago and now handles many of the world’s most recognized designer brands.

His company recently was named “Wisconsin’s Most Highly Recommended Jeweler” and has won numerous national jewelry design awards.

Lyle Husar Designs began as Husar’s Tic-Tok Shop, a 400square-foot watch shop, founded

by Craig’s entrepreneurial father, Lyle C. Husar and Craig’s mother, Alice Husar, in 1968. He is joined by sister, Christine Anderson, an award-winning designer who also serves as Vice President and Operations Manager; and his “third generation” daughter Becca Husar, who is the Husar Design Studio Manager and a Trusted Jewelry Advisor.

Craig is a former Instructor at the highly respected Gemological Institute of America in Southern California, and he is recognized as a leader in the field of diamonds and gemstones. He is a member of the Insiders Institute, working with elite performers and top international leaders using neuroscience to get the most out of their brains, their time, and their performance.

In 2015 he established the nonprofit Foundation Husar Angels and is a proud wish granter for Make-A-Wish Wisconsin. He currently serves on the board of

directors for the Yacht Blast for Kids and the Sharon Lynne Wilson Center for the Arts, but Craig is possibly best known for his role as Milwaukee’s “Chief Romance Officer.”

Craig lives in Brookfield and enjoys lake living with his wife Danielle and three children: Becca, Aidan, and Nadia.

Lyle Husar Designs is located at 17395 W. Bluemound Road, Brookfield, WI. Phone: 262-789-8585.

Website: www.lylehusardesigns.com

RJO Offering Group Employee Benefit Program RJO, IN COOPERATION WITH ACUMEN ADVISORS and the Lincoln Financial Group, is pleased to offer members an affordable employee benefit program with group rates and guaranteed coverage.Through your RJO membership, you will be able to leverage group pricing and provide employer paid and employee paid beneits to your employees. Benefit offerings include: Term Life Insurance, Supplemental Life Insurance, Long Term Disability, Short Term Disability, Dental, and Voluntary Vision.

More details may be found here.

To learn more, please contact RJO's advisor, Brian Doyle (bdoyle@acumenadvisors.com), at Acumen Advisors. There will be a webinar Tuesday, March 7, at 2 p.m. Central for members to learn more.

No need to register; just click this link to view.

To dial-in or listen via your computer: (312) 702-1380; use PIN: 223763#

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

2017 Buying S

RJO Window Display Contest Won by Kullburg Jewelers, Elkhorn, WI Grape Agate Crystal Donated by Darling Imports Won by Jamestown Jewelry, American Fork, UT

Three-night Mt. Rushmore/Black Hills Getaway Donated by TR Jewelry Concepts Won by Adjewelation Jewelry, Montrose, CO

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Show Prize Winners

Yeti Tumbler Donated by Wilkerson & Associates (Entries were earned by making a $2,000 purchase) Winners:

Terry Dickens, Herteen & Stocker, Iowa City, IA

Henry Feldman, Henry’s Fine Jewelry, Summit, NJ

Beth Utecht, Beth’s Jewelry Shop, New Richmond, WI

Dave Oberlink, Goulding’s Jeweler, Alton, IL

Dave Askew, Dave Askew Jewelers, St. Cloud, FL

Joe Schiavone, Z’s Fine Jewelry, Peoria, AZ

FAMILY. DIVIDEND. SUPPORT. BUYING POWER.

Buying Show Sponsors A & D Corporation Allison-Kaufman Ancora Designs ARKK Jewelry BELLARRI Berco Inc. Bijou Charles Frey & Company Color Merchants Concept Earrings & Jewelry Promotions Darling Imports Dharm International Diamond Expressions

Dizeo Earstuds USA ELLE Time & Jewelry Federated Insurance Fischler Diamonds Frank Reubel Designs Gage & Gage, Inc. Grice Showcase & Display Hans-Dieter Haag HL Mfg. Interings Jewelers Mutual Insurance Jewelex New York, Inc.

Jewelry Innovations Levy Creations Lustour Inc. M&G Jewelers Majestic Art Makur Designs Mercury Ring / Interjewel Metal Marketplace Michou Obaku Ofer Mizrahi Diamonds Ostbye Pancis Gems

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Parlé – Idaho Opal & Gem Quality Gold RDI Schurhammer Mfg. Co. SDC Creations Simply Diamonds Star Gems Star Solitaire Inc. Sterling Reputation Stuller The EDGE by Abbott Jewelry Systems Thinkspace YCH, Inc.

RJO Foundation Super Bowl Square Winners

With this year’s Super Bowl taking place during the Buying Show, RJO used this super opportunity to create an RJO Foundation Fundraiser: Super Bowl Squares.

Offering players a 10 x 10 grid chart, the numbers 1 though 10 were randomly assigned for each of the Bowl teams. At the end of each of the game’s four quarters, whatever the last number of the score for each team was, a payout was given to the person who owned the corresponding square.

First Quarter: $250 Michael Cardella Michael Fine Jewelry & Gifts Covington, LA Russell Schacater Simply Diamonds New York, NY

Halftime: $500 Rick Setterberg Setterberg Jewelers Sun City, AZ Kim Gassen Kelly Jewelry Columbus, NE

Third Quarter: $250 Sung Park Fantasy Diamond Corp.

Chicago, IL

Don Basch Basch's Moment in Time Medina, OH

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Final: $1,000 Julie Bergey Bergey Jewelry Mt. Horeb, WI

Terry Dickens Herteen & Stocker Iowa City, IA

More Than 60 Winners in Purchase Voucher Frenzy

Attendees on the Show Floor on Monday during this Winter’s Buying Show were automatically eligible to win in RJO’s first Purchase Voucher Frenzy. RJO teamed up with participating vendors to offer credit vouchers good only during the last three hours of the Show! Drawings were held at noon Monday. Attendees were able increase their winning odds by purchasing extra tickets at the Show. All proceeds support the RJO Foundation. Below are the names of the participating vendors (in bold), the amount of the credit voucher, and the winner(s): A. Neal ($50) Earl Butler, K.E. Butler & Co., Vidalia, GA Randy Pedersen, Diamond Center, Wayne, NE

A.V. Diamond ($100) Alberts Jewelers, Inc., Kingsland, GA A.G. Becker, Becker Jewelers, Breese, IL Danwerke International, Little Rock, AR Thompson Jewelers, Tullahoma, TN

Ascend Marketing ($1,000) Karla Doolittle, Mark Jewellers, La Crosse, WI Vecere Jewelers, Lambertville, NJ

Bellarri ($150) Danwerke International, Little Rock, AR Randy Pedersen, Diamond Center, Wayne, NE Jaclyn Iden, Marks Jewelers, Lawrence, KS

Charles Garnier ($25) Wendy Santa Maria, Caesar’s Jewelers, Clearwater, FL Wendy Santa Maria, Caesar’s Jewelers, Clearwater, FL Danwerke International, Little Rock, AR Randy Pedersen, Diamond Center, Wayne, NE

Ed Menk, E.L. Menk Jewelers, Brainerd, MN Hawthorne Jewelry, Kearney, NE Jo Dickens, Herteen & Stocker, Iowa City, IA Kate Long, Herteen & Stocker, Iowa City, IA Brandie McCoy, Imperial Jewelers, Hastings, NE Jay Flaming, Jay Flaming Jewelers, Yuma, CO Blaine Smith, The Gem Smith, Bountiful, UT Thomas Hill Jewelers, Hinesville, GA

Obaku ($200) Chipper’s Jewelry, Bonney Lake, WA Nancy Marchell, Signature Jewelers, Grand Forks, MN

Color Merchants ($300) Earl Butler, K.E. Butler & Co., Vidalia, GA

Pancis Gems ($200) Selman’s Jewelers, McComb, MS

Color Merchants ($200) Danwerke International, Little Rock, AR Color Merchants ($500) Deb Borgemoen, Wickersham Jewelry, Rothchild, WI

Concept Marketing ($100) Randy Pedersen, Diamond Center, Wayne, NE Kathy Butler, K.E. Butler & Co., Vidalia, GA Blaine Smith, The Gem Smith, Bountiful, UT Diamond Emotions ($250) Dave Askew Jewelers, St. Cloud, FL Randy Pedersen, Diamond Center, Wayne, NE

ELLE Time & Jewelry ($100) Danwerke International, Little Rock, AR Randy Pedersen, Diamond Center, Wayne, NE Eric’s Diamonds & Fine Jewelry Chippewa Falls, WI Maiden Lane ($200) Randy Pedersen, Diamond Center, Wayne, NE Yocom Jewelry, Marceline, MO Z’s Fine Jewelry, Peoria, AZ Michou ($200) Christensen Jewelers, Marshfield, WI

Nice Diamonds ($100) Randy Pedersen, Diamond Center, Wayne, NE Heather Wahl, RC Wahl Jewelers, Des Plaines, IL

Pancis Gems ($50) David Dumas, Diamond and Gold International, St. Louis Park, MN Julee’s Jewelry, St. Peter, MN

Pancis Gems ($100) Wilshire Jewelry, New Hampton, IA Jerry Miller, Wink’s Jewelry, Brookings, SD RDI ($200) Kate Long, Herteen & Stocker, Iowa City, IA Bob Mullen, Mullen Bros., Swansea, MA RJO ($200) Randy Pedersen, Diamond Center, Wayne, NE Randy Pedersen, Diamond Center, Wayne, NE Amber Heiser, Heiser’s Jewelry, Aberdeen, SD Thinkspace (Up to $400 package) Randy Pedersen, Diamond Center, Wayne, NE Karla Doolittle, Mark Jewellers, La Crosse, WI

Wilkerson ($200) Wendy Santa Maria, Caesar’s Jewelers, Clearwater, FL Goldsmith Co. Jewelers, Provo, UT Jo Dickens, Herteen & Stocker, Iowa City, IA Julee’s Jewelry, St. Peter, MN Earl Butler, K.E. Butler & Co., Vidalia, GA YCH ($200) Selman’s Jewelers, McComb, MS Tony Ansara, Tony’s Jewelers, Sterling Heights, MI Dean Benter, Van Denover Jewelry, Oelwein, IA

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How Do Your Customers Find Your Store?

IN A PERFECT WORLD, every customer that walked in your store had a card in hand that told you if they heard your radio commercial, saw your TV or newspaper ad— and how many times for. It would be nice if this card also could let you know which ad was felt to be most compelling and actually stir them to come in to your store.

Alas, that perfect world does not exist. Some people will tell you it does, but it really doesn’t. A person walking in with a copy of your newspaper ad would lead you to believe it motivated them to come in. In reality, it could have been a radio ad they heard yesterday or your TV commercial in this morning’s news. The newspaper might have just been an easy way to have your address handy. Or maybe the newspaper really was the ad that worked. It is almost impossible to tell.

What you do know is something motivated them to come to your store. Most likely all three sources had something to do with them visiting your store.

Years ago, I had a small golf shop actually have people fill out cards— when they came in for the store’s grand opening—asking how they had heard of the store. The number one answer was our local CBS affiliate. The number two answer was our local newspaper.

The golf shop had not placed any advertising with either! Still, the good news is the grand opening was a huge success.

Advertising can be a very frustrating, though entirely necessary, effort. It is neither easy, nor is it brain surgery.

Effectiveness with advertising comes with a handful of absolutes.

1) Set a realistic budget based on past sales. There is an industry standard, but you will have to determine if that is appropriate for your situation. Once your budget is set, stick to it.

2) Buy fewer places. It would be nice to be everywhere occasionally, but it is better to be in fewer places more often.

Frequency is essential. Twenty commercials a week on the radio on one station is much better than ten commercials a week on two stations. Successful marketers rarely buy more than two or three radio stations, and many times they buy just one. Be careful of wide time periods. A long time period, such as 6 a.m. to 7 p.m., would essentially need 10 commercials to effectively cover it. A shorter period will cost you more, but you only need to buy two or three commercials to cover that period! Do that for three or four days per week.

3) Know your customer. If you are dealing with high-income adults, buy programs on TV that reach that demographic. I’ve seen great success with CBS Sunday Morning to reach this group, but, of course, your market might be different. The TV reps will want to sell you their news product— they have a ton of inventory, and it’s expensive—but it is often not a good place for you. It is hard to get frequency in an expensive program. Ellen can reach women very effectively, but I suggest rarely buying more than three commercials per week.

4) Know your geography. People rarely travel great distances to shop. Unless you are in a unique situation, the smaller your geographic reach, the better off you are. More than half of television reach is wasted, due to the huge geographic area it covers.

5) Know your business. You know your customers. You know your sales peaks and valleys. Plan accordingly. Heavy up in your busy season, and take a month or two off during the slow periods. Place your schedules early to get the best rates. Go every other week during normal business periods, but be on every week during peak times (Valentine’s, Mother’s Day, and Christmas).

Additionally, the message needs to be relevant and must have some call to action or urgency. Find a voice you like and stick with it in TV and radio. Be consistent with the look, sound, and general “feel” of your commercials. This makes it a campaign, not a commercial.

Successful businesses, great and small, use campaigns to deliver results, not commercials.

A final thought: Be patient. It takes time for a message, a campaign, and a schedule to work.

Good luck.

Michael C. Woody is President and Chief Idea Officer of Capital Ideas. He has nearly 30 years of experience in television advertising and loyalty marketing. Phone: 515-556-5373.

E-mail: MichaelC@ideas2burn.com Website: www.ideas2burn.com

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Cover Story

Lab-Grown Diamonds [ Hint: It’s the One on the Left ]

M

The evolution of the diamond has changed dramatically since the turn of the century.

No, not the evolution of natural diamonds, which can take millions of years. Rather, this change is being seen in the lab, with what is known as lab-grown diamonds.

any jewelers can remember the advent of lab-grown diamonds, looking at stones that were yellow or orange, or a combination of both. They weren’t very large, and they certainly weren’t very attractive.

Science has marched on since those days, and today lab-grown diamonds have become white.

Beautifully white.

So beautiful and so white that RJO’s Winter Buying Show in Tampa featured an educational session entitled, “Lab-Grown Diamonds: Generate Sales & Profit.” Presented by Gary Coleman, of RJO vendor Pure Grown Diamonds, the session offered this overview: Lab-grown diamonds are identical to mined diamonds. Even a gemologist with a

microscope cannot tell the difference between a lab-grown diamond and a mined diamond. Learn how lab-grown diamonds can generate incremental sales and profit for you. At a time when business can be quite challenging, lab-grown diamonds can play an important role in your future diamond sales.”

The emphasis at this time might be best placed on that phrase “incremental sales.” Current estimates are that lab-grown diamonds represent only about one percent of the global market today. A chart provided by Pure Grown Diamonds shows a significantly positive supply and demand trend for lab-grown diamonds in the next thirty years, while a more timely estimate from Morgan Stanley notes these diamonds could represent up to 15 percent of the market in the next few years.

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The Jewelers Chris Lewis, of Lewis Jewelers in Clinton, UT, attended the seminar in Tampa, and says, “We found it to be informative. As we’ve watched trends come and go over our forty-plus years in the business, we feel that lab-grown diamonds are likely a good option for a few customers. However, as supplies increase, the value of lab-grown diamonds will most likely drop considerably, making them a poor investment for both the retailer and the consumer. We’re not willing to invest until they have been market tested. At this point in time, Moissanite seems like a much better option.”

industry, the highest wholesale I could get on the diamond was $450 a carat. This is for a 1.63ct diamond.”

Other unknowns, says Schiavone, include the integrity of the diamonds—whether the hardness will hold up over the years, the ability to identify lab-grown diamonds, and the longevity of the company producing the diamonds.

Lewis’ comments reflect those of fellow RJO members. A call went out in February on the RJO Facebook page, seeking quick reactions to lab-grown diamonds. Among the responses:

- Profit.

- Not comfortable with them at this point … too much unknown.

- Green.

- An item with diminishing value. What will sell for

$3,000 today will probably sell for $2,000 next year,

and so on, as the supply keeps growing.

- A stone with no resale value.

- Just like a microwave … it will drastically go down in cost over the years. So in essence … worthless.

- Alternative option.

- Expletive deleted.

- Like he said: Expletive Deleted!

- Pretty. Disappointing. Pretty disappointing.

The questionable long-term value of lab-grown diamonds and other unknowns seem to be a consistent theme among jewelers.

Joe Schiavone, of Z’s Fine Jewelry in Peoria, AZ, says, “My current thoughts on the product are that there are still too many unknowns. I recently received one in for evaluation for resale, and unlike a natural diamond, this product is not keeping any value. My customer purchased this diamond from a large chain for over $5,000. After discussing it with multiple diamond dealers and other stores in the

Graphic courtesy of Pure Grown Diamonds

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Consumers love the quality and savings of the product, while retailers love the success and profitability that comes with offering Pure Grown Diamonds as a choice.”

Metha counters the argument that lab-grown diamonds will not hold their value.

“Pure Grown Diamond prices will not fall for several reasons,” he says. “Diamond growth is capitalintensive, expensive, and very difficult. As diamonds become rarer, grown diamonds will not be able to bridge the shortage gap.”

The Diamond Grower

Suraj Mehta, Director of Pure Grown Diamonds, has heard these concerns, but he believes the industry will come to accept his product for a variety of reasons, not the least of which is financial.

“We have been working with a large number of RJO retailers over the past year or more,” says Metha, “and the response has been overwhelmingly positive. Our retailers love the fact that with Pure Grown Diamonds, they can now offer their customers a bigger, brighter diamond at a 30-35 percent savings when compared to mined diamonds.

This forecast that there will be a natural diamond shortage is supported in the recent opening of a new De Beers diamond mine, Gahcho Kué, in Canada. According to a February article in The Economist, De Beers will extract diamonds from this mine for the next decade or so, and then close it.

And it has no plans for opening another mine.

“The best and easiest diamond deposits are already found,” says Des Kilalea, an analyst quoted in the article.

As the supply of natural diamonds shrinks, and the supply of lab-grown diamonds accelerates, there is a real concern about being able to identify, reference, and market the two types of diamonds.

Coming to Terms with Lab-Grown Diamonds: A Glossary

Lab-Grown Diamonds: A genuine, pure carbon-based diamond that is grown above the Earth in a diamond growing greenhouse, which recreates the diamond’s natural growing process.

Mined Diamond: A diamond that is formed beneath the Earth’s crust and gathered through mining the Earth.

Natural Diamond: A diamond that is formed through a natural growth process.

Pure Grown Diamond: See definition for lab-grown diamond. Also the brand name of the largest grower and distributor of lab-grown diamonds in the US.

Source: Suraj Mehta, Director of Pure Grown Diamonds

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The Vendors Stanley Zale, Vice President, Diamonds & Gemstones at Stuller in Lafayette, LA, notes, ”The proliferation of undisclosed lab-grown melee is a growing threat to the integrity of the industry. At Stuller, while we have been screening all of our diamonds for several years, we are continually adding to our internal capabilities and vendor requirements to ensure the integrity of our diamonds supply chain, especially for melee.”

Serge Fischler, of RJO vendor Fischler Diamonds, Inc. in New York, NY, offers this take, “I don’t have a problem with lab-grown diamonds; it is a new item that will find its place in the jewelry world.”

“What I do have a problem with,” he says, “is the rampant non-disclosure of these man-made diamonds. That is the danger to our industry, not the lab-grown diamond itself. I also find some lab-grown companies’ advertising dangerous, incorrect and unethical. When you mention a product is ‘green’ or ‘eco-friendly,’ there are rules attached to such statements.”

Fischler continues, “Synthesizing carbon using high heat and high pressure in a factory, using fossil fuels … that is nowhere near ‘green’ or ‘ecofriendly.’ Using the words ‘conflict free’ is totally unfair, as it implies that natural diamonds are full of conflict. According the KPCS definition, there are less than 0.1 percent of supply that are conflict diamonds. Natural diamonds provide tremendous opportunities to a huge segment of the population that would otherwise live in poverty. Look at Botswana’s medical system as one example—one of the best in Africa—yet it could not survive without the proceeds it gets from the diamond industry.”

“So let’s be fair and honest towards each other,” says Fischler. “Yes, no problem, the lab-grown diamond will find its place in the jewelry industry, but please, not with deceit, and not through false claims, which in some cases are directed against a totally legitimate part of the industry.”

Editor’s Note: To aid jewelers with the disclosure of lab-grown diamonds, RJO offers a customizable disclosure form that may be downloaded here.

Grown Diamonds & the Next Generation: One Jeweler’s View

I live in Madison, WI, a college town. My 20-something, over-educated, left-leaning client base is sitting there asking the simple question, “Why do I need to buy a diamond?” They never saw the movie Blood Diamond, but they have heard the phrase and know it doesn’t sound good. They have a friend who posts on Facebook every few months, telling them that diamonds are an overpriced scam.

They don’t trust the diamond industry. And they don’t see a diamond as a necessary symbol of marriage. Lab-grown, they seem to say, “Well, I guess that is better than getting an overpriced blood diamond.”

Many of them have decent jobs. They could throw another 10k at their pile of student loan debt, but if they don’t see the value of it, why would they bother? They get confused by looking on Blue Nile and maybe go to that funky secondhand shop, where they see prices much lower than what they see in our Mom-and-Pop stores, reinforcing the belief that there is no real reason to have someone dig a diamond out of the ground for them.

Jewelers—especially the well-dressed ones with stuffy looking stores, driving nice pretentious cars—have to make their money some place, and robbing the Earth to profit from selling carbon to suckers is an easy way to make money. Or so they think.

Some of these kids are in the sciences and work in labs or are computer programmers. They like technology and labs and science. Heck, if man can just make a diamond, then that’s better than digging it out of the ground. If they are super granola/crunchy, they don’t even want a labgrown or Canadian diamond. What kind of signal would that send to their cooler clique? They go for sapphires or tattoos or just bands.

Personally, I know that as the technology spreads, labgrown diamonds are going to shed value big-time. This could eventually mess with the prices of the mined diamond market, but not before the lab-grown market falls completely flat.

Likely this will sow the seeds of further distrust. In talking with other jewelers, I get the impression that they think it is all about price. Clients will tell you it isn’t about price; it is about their values. I think price is a factor, but not in the way that “if they had more money, they would buy it.”

I think many of our clients don’t see a mined diamond as necessary.

- Jason Braden, Jewelers Workshop

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MILESTONES

Lilian ”Bubbles“ Bolozky, retired owner of the company Erica, died on Monday, January 16, 2017. She was 76. Bubbles and her husband Jack were long-time RJO vendors, and they were honored by RJO in 2006 as Lifetime Achievement Winners.

John Bailliere Joseph, of Joseph’s Jewelers in Des Moines, IA, passed away on December 13, 2016. He was 55.

Bryon Macron, a former rep for AV Diamonds in Houston, TX, was found dead on February 21, 2017.

He was 45. Macron had been missing since mid-December, and his body was found just last month in a lake. Friends of Macron have set up a GoFundMe account, seeking funds to help his wife and three young daughters during this time and for the future. The link is here.

Eileen Morrissey, matriarch of Morrissey Fine Jewelry in West Des Moines, IA, died on January 23, 2017, at age 87. Eileen was the wife of Bob Morrissey, a long-time leader of RJO who helped guide and strengthen the group for many years. Eileen, mother of Morrissey’s current owner, Vince, enjoyed traveling to Antwerp with RJO, and both Bob and Eileen had many, many friends within the RJO family.

Cheryl Stark, of CB Stark Jewelers in Vineyard Haven, MA, passed away at age 70 on January 2, 2017.

Our thoughts go out to the families.

CALENDAR MARCH 2017

10 All payments must be received in RJO office

15 Registration deadline for the RJO Succession Experience 17 St. Patrick’s Day 20 Spring begins

APRIL 2017

1 April Fool’s Day

10 All payments must be received in RJO office 16 Easter

21 All invoices must be received in RJO office

23 All invoices must be received in RJO office

26 Administrative Professionals Day

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