Going the extra mile (Part 2)

Posted on March 12, 2012 in Jewellery Store Marketing

Selling customers on private label credit cards

Part 2 of 3

By Marc Sczesnak

As many jewellery retailers may now know, private label credit cards can offer many advantages to merchants, including helping to differentiate themselves from competitors, reinforcing their branding message, and allowing them to serve customers with a specialized finance vehicle designed for high-ticket purchases. However, retailers are unlikely to fully realize these benefits unless they adopt a strategic approach to cultivating new cardholders at the point of sale.

Such an approach starts with continuously informing prospective cardholders that a private label credit card is available to them. While some shoppers automatically inquire whether a jewellery store has its own credit card, others may be unaware such programs even exist. Proactively informing customers they do remains key to increasing the pool of applicants.

The best vehicles for conveying this message vary in accordance with store type and customer demographics. Prominently positioned, yet tastefully rendered signage melding subtle graphics with straight forward messaging like, “Ask us about our store’s credit card” works best in mall-based and other establishments that primarily carry moderately priced jewellery.

Individuals who frequent these stores are usually quite comfortable requesting a store card application or otherwise driving questions about the program once they have noticed a sign proclaiming its availability. Should they not ask, and a sales associate senses or is told the customer is hesitant about purchasing an item given its price tag, a direct suggestion can be made.

In higher-end stores, a far subtler approach usually proves to be a better bet. The majority of upscale customers do not want retailers to assume they ‘need’ credit. Rather, they respond best when a private label credit line is presented to them as an opportunity to use the store’s money, instead of their own, to obtain the merchandise they want.

Other tactics, however subtle, can—and should—also be used to reinforce the message to the public at large. For instance, jewellery retailers might incorporate an image of the card, with or without accompanying verbiage, into their advertising. The objective here is to pique consumers’ interest so that they initiate an application when they next visit the store. Targeted mailings sent to select consumers who do not hold a store’s card can also help entice prospective applicants.

More to come of this story in Part 3.

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Kimberley’s green light on Marange diamonds (Part 2)

Posted on March 9, 2012 in Uncategorized

Amber if not flashing red

Part 2 of 4

By Ian Smillie

The inclusion of human rights standards, penalties for non-compliance, and independent third-party monitoring have all been presented as steps to improving the Kimberley Process. So far, none have been incorporated. Photo courtesy Global Witness

In order to make sense of where we are with the Kimberley Process, we have to go back quite a few years. The KP was designed to end the traffic in conflict diamonds and prevent their return. Hundreds of thousands of Africans died in the horrific diamond wars of the 1990s and early 2000s, notably in the DRC, Angola, and Sierra Leone.

To halt the flow of conflict diamonds, the Kimberley Process had to attack smuggling, and to do so, it developed a certification mechanism that would cover all international transactions. It sounds like a huge undertaking, and it was, but the KP achieved what it set out to do. By January 2003, some 45 countries, including the European Union which covered an additional 28, passed laws that compelled their diamond industries to comply with the Kimberley Process Certification Scheme (KPCS) and its minimum standards.

All rough diamond exports must carry a certificate of authenticity from the government in question, and no rough diamonds may enter a member state except from another member state. The government-backed certificates must be supported by a system of internal controls in each country, giving the certificate meaning. The KPCS calls for an auditable tracking mechanism allowing each exporter to say with certainty the diamonds emanate from a legitimate, conflict-free source. The system is backed by a peer-review mechanism and a comprehensive database showing detailed semi-annual production and quarterly trade information for each member state.

This was a powerful agreement underpinned by the national laws of each member state. It covered an estimated 99 per cent of the world’s rough diamond production, and one of its immediate impacts was an exponential increase in the declared volumes of rough diamonds being produced and traded. But after two or three enthusiastic early years, things started to go wrong.

More to come of this story in Part 3.

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Craftsmanship: Well done or half-baked? (Part 4)

Posted on March 8, 2012 in Jewellery Appraisals

Part 4 of 4

By Mark T. Cartwright


Sometimes we get lucky and the designer tells us the manufacturing technique used. Photo courtesy Mark T. Cartwright

When judging a piece of jewellery’s finish, I base my opinion on the things I hope not to see like hammer, saw, or burr marks, file lines, polishing ripples, unfinished surfaces, flat spots, or distortions. The polisher’s skill can, and often does, set the boundary lines between the ‘very good’ and ‘excellent’ overall craftsmanship grades. As I’ve mentioned, every surface of the jewellery should be finished with the same degree of precision and care, whether visible or not. Sadly, few companies insist on that level of quality, so the valuer’s decision is often whether the result is ‘good’ or ‘fair.’

With finish, as it is with all the other aspects of craftsmanship, any relevant fact relating to quality, durability, or value should be reported in the appraisal in terms everyone who reads it will clearly understand.

A close friend, now deceased, used to explain ‘jewellery reality’ to his customers by drawing a triangle in the air and labelling the imaginary points as ‘good,’ ‘fast,’ and ‘cheap.’ The customer was told to pick two because it was impossible to have all three at the same time. It is a lesson that seems to hold true for anything made by hand, but is particularly pertinent to our current discussion. When examining a piece of jewellery, we could ask ourselves, “Which two were the priority?” The answer can often lead us to the correct market level and thus reduce the risk of overvaluation or undervaluation by helping determine the appropriate ‘comparables.’

Proper indemnity, evidence of authenticity, and long-term utility are some of the factors our expert evaluation of craftsmanship can provide for our clients, if we have a broad perspective.

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Going the extra mile (Part 1)

Posted on March 7, 2012 in Jewellery Store Marketing

Selling customers on private label credit cards

Part 1 of 3

By Marc Sczesnak

A woman walks into her favourite jewellery store at the local mall, where she immediately notices a necklace she would love to purchase for her daughter’s 21st birthday. On inspecting the price tag, she assumes she will need to settle for a far less expensive piece, that is, until she spots a poster promoting the store’s new private label credit card program. She applies for the card and, several minutes later, leaves the shop with the desired purchase in her hands.

Meanwhile, across town at the local high-end jewellery retailer, an affluent customer works with the owner to custom-design a diamond and gemstone ring for his wife. Sensing the man’s hesitancy to ‘tie up’ his own funds to buy the item, the proprietor suggests he consider applying for a private label credit card to utilize the store’s money, rather than his own, to buy what he wants.

While these scenarios are fictitious, they underscore the varied and very specialized approaches jewellery retailers can—and should—take to promote their private label credit card programs to different customer groups. In an article that appeared in the June 2011 issue of Jewellery Business, we looked at how private label cards work, the different types of programs offered to jewellers of all sizes, the various benefits they offer, and how to evaluate providers of card programs. In upcoming blogs, we’ll give you the information you need to help sell your customers on how private label credit cards can work for them.

More to come of this story in Part 2.

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Back to basics (Part 3)

Posted on March 6, 2012 in Jewellery Bench Tips

A step-by-step guide to sizing problematic rings

Part 3 of 5

By Tom Weishaar

I am very careful when it comes to fitting new sections of metal into a ring sizing. What I don’t want is to see any gaps in the sizing seams. I am fortunate there is a window above my bench. When sizing a ring, I hold it up to the window and look for daylight through the seam. If I see a gap, I know it will leave a reservoir of solder and result in a pitted seam. Checking for gaps this way has saved me from re-doing a great many sizings over the years.

Before heating the ring, I coat the metal with a common boric acid/alcohol mixture. I use a finely ground, powdered form of boric acid, as the coarser variety allows crystals to become wedged in seams and can impede the flow of solder.

The purpose of the boric acid is to help clean the metal and prevent metal oxides from developing during heating. It also helps the molten solder to flow evenly into the seam. The boric acid remains only a minute or so before burning away. If I am doing a lengthy solder, I make sure to stop every two minutes and clean the piece in pickle and a sonic cleaner before re-applying the boric acid mixture. When soldering near diamonds, it is important to apply a fresh coat of clean boric acid to prevent frosting or burning the stones.

Commercial flux mixtures are a combination of boric acid and a stronger acid or salt. The addition of ammonium chloride works well for hard gold soldering, while potassium fluoride is better for softer metal fluxes. Both help clean the metal and can reduce the flow temperatures of solder. Flux is usually applied directly to the solder seam. Keep in mind flux fumes can be toxic and should be used in only well-ventilated areas.

Some bench jewellers like to place a piece of solder in the sizing seam, but I prefer not to. I find the metal anneals and the ring loses tension when heat is added, which causes the seam to remain slightly open (by the thickness of the solder), leaving gaps and pitted seams. Instead, I place the solder on the outside of the seam, ball it up, and then pull it through the seam using the heat of a torch.

To achieve the best results, I heat the entire ring with either a reducing or neutral flame. Both are characterized by a pale- to medium-blue cone, with yellow tips toward the end. A reducing flame tends to be on the cool side and may take too long to complete the soldering operation. However, it does consume free oxygen molecules in the area of the metal, which prevents fire scale.

A neutral flame is best overall, since it provides the correct level of heat, while at the same time, imparting no excess oxygen into the hot metal. Using a hot oxidizing flame is not advisable. Characterized by a short dark blue cone with no yellow at its tip, this flame often makes spitting sounds as though it is licking its chops to melt whatever is being soldered. An oxidizing flame sends volumes of oxygen molecules into the melting solder and almost guarantees a pitted solder seam. Since they flow at low temperatures, poor-quality repair solders also lead to pitted solder seams.

Sanding with 220-grit and 1000-grit paper saves time. Photo courtesy Tom Weishaar

After filing down the high spots, I use a rolled sanding mandrel to pre-finish my sizing. The mandrel seen in the photo to the left holds 220-grit sandpaper. I follow this step with a 1000-grit mandrel. By sanding my work to this high level, I can bypass using tripoli or other aggressive polishing compounds and go straight to finish polishing. This saves time in the long run. In addition, excessive polishing can pull solder out of the seams and leave indentations in the ring.

It’s a good idea to measure the shank’s thickness prior to sizing and record it on the repair envelope. During sizing, the ring will be sanded and polished, which inevitably removes some metal. However, the shank’s thickness should not be reduced by more than five per cent. The ring in our example originally measured 2.25 mm, but after sanding and polishing, it measured 2.18 mm, a 3.11 per cent reduction.

If a customer complains his/her ring is thinner, you can confidently state you have before-and-after measurements and the sizing is well within the acceptable allowance. To determine the rate of change, subtract the new thickness from the original thickness. Next, take the difference and divide it by the original thickness.

If we apply this formula to our example, here’s what the equation would look like:

2.25 mm – 2.18 mm = 0.07 mm

Then 0 .07mm ÷ 2.25 = 3.11 per cent

A well-sized ring should be flawless in appearance and to the touch. Photo courtesy Tom Weishaar

I allowed half an hour of labour to size this ring. Normally, I can size four rings per hour and maintain a high level of quality, but wide and thick rings can take a bit longer. Each sizing should be inspected with a loupe, as well as felt between your fingers. Visible or bumpy sizing seams should not be tolerated. The sizing seams on the ring in the photo to the left are on top.

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Rough and ravishing (Part 2)

Posted on March 5, 2012 in Diamonds

Uncut crystals and gemstone slices cozy up to luxury goods

Part 2 of 3

By Diana Jarrett

Chandelier earrings with pavé accents by Diamond in the Rough.

Artistic rough stone jewellery has found a home with urbane retailers who cater to the evolved tastes of their clientele. This niche product line didn’t explode on the scene overnight, but grew as consumers embraced the natural-looking pieces.

Jewellery artisan Jamie Joseph, owner and designer of Jamie Joseph in Seattle, Wash., sells to upscale retailers like The Art Works in Edmonton, Alta., Posh in Kelowna, B.C., and Toronto’s Eko. She says intrepid forerunners set the stage years ago for jewellery collectors to develop a taste for these stone types. “I think rough-cut stones and slices have gotten quite popular over the last five years. It seems like rough diamonds have gone mainstream through companies like Diamond in the Rough and Todd Reed.”

Toronto-based designer Ayala Raiter of Ayala Raiter Jewelry Couture uses sliced, rough, and asymmetrical gemstones in oneoff shapes, which are seminal to her designs. “I’m always looking for special tones and textures, as well as exceptional gems and materials, using amethyst, agate, even labradorite and pyrite,” says Raiter, who is originally from Israel. “I rarely choose polished cut stones used in high-end fine jewellery.”

“I like to create delicate, textured feminine pieces that are soft, yet with a twist of natural roughness,” she says. “[However,] the rough stones can present a creative challenge to making appealing, feminine jewellery. They tend to be chunky and less delicate, and it’s tricky to achieve a good balance.” Their selling strength lies in their back story, she finds. “My customers are intrigued by their story, like knowing the history behind the elements or even seeing variations between polished and rough stones.”

High-end jewellers have been less than eager to feature maverick diamond designs in their lines, owing to higher costs. But the creative forces behind Diamond in the Rough of New York City have delighted collectors with adventurous diamond shapes in their collection for years.

Anjanette Dienne Clisura, the company’s president and creative director, got hooked on rough diamonds at the source. “My business partner, Daniel, and I had a passion for [these stones] for many years. Daniel first discovered rough diamonds in the 1980s while travelling through Africa with his father.

“My first experience with [them] came while working in the industry more than 15 years ago. Rough diamonds have been the focal point and muse for our pieces. Our collection pays homage to their raw, natural beauty.”

Rough diamond jewellery may be created as fanciful works of art, but it is serious business. The distinctive pieces require a tutorial to assist consumers in understanding their value. “We train our retailers to give them the knowledge they need when customers ask technical questions, but it’s fairly simple when it comes down to it,” Clisura explains. “You would be surprised how many customers know how valuable rough diamonds are. It’s actually become clearer to people with the movies and books written that rough is what is expensive—it’s how it’s always been valued.”

More to come of this story in Part 3.

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