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Jeweler the publication of the TEXAS Texas Jewelers Association Spring 2008 HOT STUFF! What Tucson Had to Feature This Year THE GOLD Survival Guide Answers for De Beers’ SETTLEMENT QUESTIONS PRSRT STD U.S. Postage 2008 TJA PAID ANNUAL CONFERENCE Permit #372 Austin, TX September 13-14, 2008 San Antonio INSIDE Spring 2008 EXECUTIVE BOARD President THIS ISSUE Doug Jackson Jewel Mart - D Jackson Co. Paris, TX FEATURES 903-785-7100 email@example.com HOT STUFF! . . . . . . . . . . . . . . . . . . . . . . . . . 6 President Elect Mark Priest By Diana Jarrett—Find out what was HOT in Tucson this spring, which featured Legend Jewelers weeks of frenetic trading at the world’s largest gem bazaar. San Angelo, TX 325-653-0112 firstname.lastname@example.org THE GOLD SURVIVAL GUIDE . . . . . . . . . . . . . . . . 10 By Julie Tereshchuk—As gold sky-rockets, how can savvy jewelers keep their Vice President feet on the ground? Eric Wright Village Goldsmith Jewelers Dallas, TX JEWELERS OF AMERICA HELPS MEMBERS ANSWER CONSUMER 972-934-0449 AND MEDIA QUESTIONS ON DE BEERS SETTLEMENT . . . . 16 email@example.com Secretary/Treasurer THE 4 CS OF COACHING SKILLS . . . . . . . . . . . . . . 17 Robert Harrison By Nancy Friedman—How Concurrence, Content, Commitment and Harrison Jewelers Austin, Texas 78731 Congratulations can change your business. 512-345-9396 firstname.lastname@example.org THE GREAT ESCAPE . . . . . . . . . . . . . . . . . . . . 18 Past President By Thomas E. Houck—Developing an Exit Strategy Peter LeCody Fast-Fix Jewelry Repair Dallas, TX THE 4 THINGS EVERY STAFF MEMBER CAN DO TO INCREASE 214-361-2811 SALES AND PROFITS . . . . . . . . . . . . . . . . . . . . 22 fastﬁx@fastﬁx.com By Bob Janet—Contact with every customer every time must be a great customer experience. TEXAS JEWELERS ASSOCIATION Joe McCullough TJA Executive Director 1306-A West Anderson Lane Austin, TX 78757 512-454-8626 DEPARTMENTS Fax 512-454-3036 President’s Message. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Toll Free: 877-305-3935 email@example.com News Shorts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 www.texasjewelers.org Ad Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21 Publisher Sail House Publishing 3510 Crowncrest Dr., Austin, TX 78759 512-346-0892 309-420-6280 fax firstname.lastname@example.org Cover photo courtesy of Ricardo Basta. Handmade platinum earrings featuring bubblegum pink tourmaline paired with 3 round brilliant cut Paraiba Advertising Representative tourmalines, ﬂoating above green tourmaline briolette drops, with white diamond Joanne Pantaze accents. Retail:$23,000. For more information visit www.ricardobasta.com. (512) 272-9393 (512) 278-1531 fax email@example.com President’s Message Doug Jackson 2008 – A Year of Challenges and Opportunities WHAT A GREAT YEAR WE HAVE AHEAD Some of the big boys are in some keep that positive mental attitude and do of us. I don’t know about you, but this is a very ﬁnancial trouble and it’s likely to get worse your best all the time. exciting year for me and I look forward to all for them this year—look at Freidman’s The Texas Jewelers Association is in that it has to offer. No, it will not necessarily bankruptcy ﬁling as an example. There exactly the same position. What a great be an easy year, but it will be full of both will be challenges for all of us, but the year it is shaping up to be. We have been challenges and opportunities for all of us. stores that really mind their business and presented with a great opportunity to do Look at the price of the metals we use work smart (and hard) will ﬁnd this to some good things for our membership every day! Where is it going? What shall we be a good year. Stay informed, do your and are going forward with what needs to do? Have you re-priced your inventory? I homework, watch your margins and be done to strengthen the association. My know I spoke of this in the fall issue of Texas expenses, and generally do a good job of thanks to an excellent board of directors and Jeweler, and I hope you re-priced then, but managing your business, and I think you the efforts and thought they have given us. guess what? It’s time to do it again. Don’t get will have a good year. Each one is concerned about our direction caught selling your inventory below cost of Election year—good or bad depends on and how best to serve our state industry for replacement plus your normal margin. Yes, each of us and what we do with it. Expect both individuals and on the whole. I know, the prices are getting really high down times and I think that is what you My hat is off to each and every one of compared to what we have always known, will get. Expect good times and guess what, you. Thank you. but don’t get caught short! that is probably what you get. The point is, Now, let’s all go have a great year! 2007 – 2008 Board of Directors Peter Barr Richard Hirsh Renato Ronquillo Corpus Christi, TX Dallas, Texas Houston, TX 361-992-2277 214-739-4848 713-739-7955 firstname.lastname@example.org email@example.com Renato818@yahoo.com Ronnie Miller • Meyerland Jewelers Curt Vinson • Troy Vinson Jewelers Garven Garcia • Roseco Houston, TX Granbury, TX Dallas, TX 713-666-6333 817-573-7881 972-991-9731 ext: 206 firstname.lastname@example.org email@example.com Roseco1@msn.com firstname.lastname@example.org (Attn: Garven Garcia) Ronnie Pagel Round Rock, TX Amber Gustafson • Amber’s Designs Jay Volk • J. Patrick Diamonds, Inc. 512-388-4653 Katy, TX Dallas, Texas email@example.com 281-391-6333 214-739-0089 Amberdgn@aol.com firstname.lastname@example.org Jeannie Roberts Roe Del Rio, TX Joe McCullough David Harleston • Lathrop’s Gem Shop 517-775-0600 TJA Executive Director Bellaire TX 77401 713- 665-0614 Austin, TX email@example.com 877-305-3935 (toll free) firstname.lastname@example.org 4 – Texas Jeweler www.texasjewelers.org JFC was formed in 1999 by the ﬁne jewelry and JFC has also provided support to The Jason Program, watch industry to coordinate fundraising efforts for the Starlight Starbright Children’s Foundation and the the industry and support charities that beneﬁt children Association of Hole-In-The-Wall Camps through the whose lives have been devastated by catastrophic Jeffrey W. Comment Memorial Endowment Fund, as illness or life-threatening abuse and neglect. well as Save the Children after the Asian tsunami and The “industry with a heart,” manufacturers, retail the American Red Cross for Hurricane relief efforts in jewelers, trade associations and those who provide the Gulf region. professional services to the jewelry industry, unite There are many ways to support JFC, including on behalf of children. Since 1999, nearly $28 million In-store collection canisters and fundraising dollars has been donated to JFC’s legacy charities; programs, Hope for the Holidays, memorial and St. Jude Children’s Research Hospital, The Make-A- honor donations, sponsorship of our Facets of Wish Foundation and the Make-A-Wish Foundation Hope event and our Hero for Hope campaign. International, Elizabeth Glaser Pediatric AIDS Contact us for more information. Foundation and the National CASA (Court Appointed Special Advocates) Association. Jewelers for Children 52 Vanderbilt Avenue, 19th Floor | New York, NY 10017 Phone: 212-687-2949 | Fax: 212-687-3226 | email@example.com HOT STUFF! Feature BY DIANA JARRETT, GG GEM LOVERS THE WORLD OVER CIRCLE THEIR calendars for several days or even weeks each February– every year. Mineral collectors, gemstone dealers and buyers converge upon the desert town of Tucson for weeks of frenetic trading at the world’s largest gem bazaar. And with the star treatment given to “single name” celebrities–the 40 some-odd major gem shows are called simply TUCSON for those in the know. Now that the dust has settled and the shows are packed and gone, what will this year’s fair have revealed to us about the hottest trends at Tucson? Veteran attendees and seasoned exhibitors alike jump in with their forecasting skills about the must-have stones and styles to look for in the months ahead. Those with a yen for the ne plus ultra found the luxury show Centurion 2008, preceding the AGTA GemFair™, to be the place for ogling opulent eye candy. Red rose and pink gold are still in high demand. And a sophisticated combination of vintage styles reinterpreted for the modern woman in larger proportions was done up in red gold and other precious metals. A striking example of that concept came from Caressa Jewelry who went a step further by pairing vintage inspired red gold with gems in companion colors, such as pale pink morganite or champagne diamonds for a more feminine look. Topnotch bridal goods manufacturer Martin Flyer brought their distinctive diamond ring collection to Tucson’s Centurion. Select pieces from their brand artfully 2008 AGTA Spectrum Awards 2nd Place - Classical: Robert married pink gold and pink diamonds and platinum with Wander, Robert Wander for Winc Creations, Honolulu, HI. dazzling results. The response to their deﬁnitive brand was 18K yellow gold brooch featuring a lizard of multi-colored evidenced by the action buzzing around their booth the Sapphires (4.86 ctw.), Garnets (6.01 ctw.) and chocolate entire time. Diamonds (.11 ctw.) atop a red Coral branch. 6 – Texas Jeweler www.texasjewelers.org Tucson regulars noticed a greater focus coppery red, and white. This innovative Top Left Multi-gem Clownﬁsh brooch on diamonds this time, both loose and combining of precious metals and is an Ocean Jewel of rubies, and white in mounted goods. So, it was particularly gemstones with an industrial motif is sleek and black diamonds. This bejeweled helpful that respected gemstone author and sophisticated, but not trendy. Expect Clownﬁsh boasts an articulating Renée Newman released her revised to see other designers draw inspiration 'lucky' ﬁn and swims amongst the edition of the Diamond Handbook, A from the evocative way Charriol® rethinks green and pink tourmaline anemones. Practical Guide to Diamond Evaluation in common forms. Photo courtesy of Mario Basta. time for the shows. Her section on colored A recurring theme among exhibitors was diamonds is essential to professionals and the trend to “Mix it Up.” From the toniest Bottom Left Platinum and 14K Pink consumers alike in ﬁelding the myriad of couture collections in the designer salons, to Gold with .85ct natural pink and .35cts. subtle characteristics that contribute to a the boisterous activity on the GJX ﬂoor and white beaded diamonds. Photo courtesy diamond’s value. beyond, manufacturers showed a fondness for of Martin Flyer. Iconoclastic, even to the discerning buyer mixing colored gemstones with wild abandon. whose task was to ﬁnd the unexpected at Previously, one could ﬁnd pleasant combos Right 18kt yellow gold and diamond Centurion, the Charriol® line of high karat of complementary or contrasting gemstone with Tanzanite forevers. Photo courtesy gold, diamonds and PVD cable in black, colors situated on a beautiful piece of jewelry. of Erica Courtney, Inc. Spring 2008 Texas Jeweler – 7 But what were deliriously snapped up this year our jewelry choices? While the concept of Far Left Bottlenose butterﬂy ﬁsh 18K were opulent jewels in a riot of colors–ﬁve, seeking ways to live more harmoniously yellow gold with tsavorite garnets, six or more on the same piece. And not only with nature is constantly adding devotees, rubies, diamonds, yellow sapphires that, but pearls, faceted colored stones, opaque might there be a subliminal effect driving and one cabochon sapphire, and black cabochons were all artfully arranged on one the choices that jewelry collectors make diamonds; worn as brooch with coral dramatic brooch or bunched up on chunky as well? The trend to utilize gemstone bed, or ﬁsh pendant without the coral. colorful bracelets. rough–the uncut crystal straight from the Retail $37,000. Photo courtesy of “Mixing it up” with panache was Ricardo earth, without human intervention in Ricardo Basta. Basta, creator of extravagant jewels with a polishing–is collecting momentum among twist. Basta is ﬁrst and foremost an artist consumers. Bottom Center 2008 AGTA spectrum for whom jewelry is a fanciful outlet to The leading model of “uncut” gemstone Awards Honorable Mention & Best Use showcase his sculpting expertise. So, many in distinguished jewelry was seen at avant- of Color Evening Wear. Jennifer Rabe of his deluxe brooches have a dimensional garde designer Todd Reed’s booth. No Morin 18kt white and yellow gold ring effect that thrills the spectator. Basta’s neophyte to this haunting style, Reed with mauve Agate cabochon accented vibrant gemstone combinations and other has been handcrafting original designs with Amethyst and Diamond. unexpected materials elevate the craft of featuring rough gemstones for over 18 bench jeweler to a pinnacle. His styling is years. His clients are collectors with a keen deﬁnitely for the cognoscenti. sense of the aesthetic and a proclivity for Top Center 18kt yellow gold necklace Award winning Robert Wander, another the world of ﬁne art. featuring 9.5cts natural raw diamond Tucson favorite, is expert at combining Other artisans vigorously embraced cubes and 8.27cts rose cut diamonds many colors into a single luxurious jewel. the organic look as well. Couture jeweler $20,000. All pieces are original hand No doubt this Honolulu resident draws Mia Katrin travels everywhere in search fabricated designs from Todd Reed inspiration from nature in creating these no- of gemstones worthy of her stylish Studio. Photo courtesy of Todd Reed, holds-barred breathtaking pieces. Wanders’ brand. Katrin forecasts, “The world is Inc. innovative use of colored stones, often in going green–both in metals and gems. In their original rough shape has earned him a diamonds, colored diamonds, especially Right 18kt yellow gold and diamond loyal following at Tucson. those in earth tones, and uncut diamonds with Tanzanite briolette earrings. Photo And could the push to go “green” affect ﬁt in with the natural, organic look. Jewelry courtesy of Erica Courtney, Inc. 8 – Texas Jeweler www.texasjewelers.org evident in Tucson because it was harder to ﬁnd really beautiful natural gems, and when you did, prices were very strong. I expect this trend to continue, and to see prices get even stronger.” Shopping lists in hand, most buyers generally knew what they needed to buy. Top Left Color changes: yellowish- But some of the fun lies in not knowing green andesine, diamond and yellow what would turn up. That surprise element gold ring changes to red under is always in force at Tucson, where new different lighting. Photo courtesy of players emerge seasonally, and the old- Sikirdji GemFrance. timers vie to keep their place in the sun. That means there’ll always be something Bottom Left 18K white and yellow gold one hasn’t thought of. The wise buyer tucks necklace featuring purple Tourmaline, a little extra money away for just such a pink Tourmaline, a yellow Tourmaline, discovery. and two green Tourmalines. Tsavorite with a cause–where part of the proceeds are Finding the unusual happened at the booth Garnets, multi-colored Sapphires, and donated to charity, and ‘ethical’ jewelry– of Tucson mainstay, Dr. Laurent Sikirdgi of brown and white diamonds accent this with an awareness of legitimate sources Gem France. One of his unique items was a award winning necklace, part of the and means of production, including ‘green’ gold and diamond accent ring featuring a rare Crystal Candy Collection™. All Photos manufacturing, is in the forefront.” oval brilliant cut andesine gemstone. “It was Courtesy of Robert Wander for Winc Industry spokesperson and author, greenish-yellow, turning red under another Creations, Honolulu. Antoinette Matlins, provides another light–The only one I had.” insider take on the attraction to the Another chance encounter was with Right Lariat style neckwear in 18-22kt “natural theme” permeating Tucson. Erica Courtney’s Drop Dead Gorgeous™ yellow gold with pearls and briolette She said, “Interestingly, there are two line, proving that having great taste in cut sapphires and aquamarine. Photo simultaneous ‘trends’; First, a greater jewelry and having fun with it need not be Courtesy of Mia Katrin. demand for ‘natural’ meaning untreated at odds. The one-source-only tanzanite is gemstones of ﬁne quality, reaching higher routinely interpreted in predictable jewelry or opting for the organic look, designers costs-per-carat. And secondly, an increase forms by manufacturers who stress its ﬁnite brought something for everyone. Are in the types and applications of treatments supply. But Courtney’s latest collection at your clientele adamant about collecting to colored gemstones, resulting in lower Tucson proved how effectively one can natural gemstones? Expect to pay for that cost-per-carat.” Matlins sees a shift on master a capricious style when designing privilege. But, not to worry. Sophisticated, the consumer end as well. “An increasing with this choice gem. permanent, and nearly undetectable number of afﬂuent consumers are Fashionistas and retailers have plenty treatments provide the natural look your becoming aware of these two categories of to choose from in pursuing the hottest customers call for at more appealing prices. colored gemstones; treated and untreated. trends found at Tucson this year. Whether There’s one thing we can count on at Demand for untreated gems has been ones taste runs to the profusely colorful Tucson; we’ll always experience change– increasing, while supply has not. This was combinations exhibited in festive jewelry, and have a fun ride along the way. Spring 2008 Texas Jeweler – 9 The Gold Survival Guide Feature As gold sky-rockets, how can savvy jewelers keep their feet on the ground? BY JULIE TERESHCHUK IN 1944 THE U.S. GOVERNMENT (And that’s not all – those 730 history- $1,000 per ounce – and beyond. Just how seconded a large New Hampshire hotel, making delegates organized a World Bank, much higher can gold go? At the time of which in its heyday had hosted celebrities created the International Monetary Fund, writing – early February – it had just burst from Thomas Edison to Babe Ruth and and chose the American dollar as the the $900 barrier. The following isn’t for the Joan Crawford. Soon a bevy of international standard of international exchange.) faint-hearted. ﬁnanciers descended on the remote estate. Bryon Wien, former managing director By the end of what we know as the Bretton Where’s Gold Going? of Morgan Stanley, was tight-lipped but Woods International Monetary Conference, Sixty-plus years later, Texas jewelers are bleak in his annual 2008 economic trends the price of gold was set at $35 an ounce. left gasping as gold prices hurtle towards forecast. “Gold reaches US $1,000 an 10 – Texas Jeweler www.texasjewelers.org steadily up for a year, smart retailers have been judiciously re-pricing at retail, and adjusting their open-to-buy accordingly, noted Posnock. It’s a question of survival, Credit: Courtesy of Mount Washington Resort said Ronnie Miller, owner of Houston’s Meyerland Jewelers, and a TJA board member. “If you don’t adjust inventory prices, when you have to replace In 1944 the price of gold was set at $35 per ounce during the Bretton Woods Conference held at Mount Washington Hotel, NH. How High Will It Fly? ounce as disillusionment with paper currencies spreads across Asia,” wrote reduction of mine output in recent years, plus the rising cost of extracting gold. GOLD PRICES Wien in early January. The Gold Council also cites investors’ An Historic Timeline Over at the World Gold Council (www. increasing familiarity with gold’s “portfolio gold.org), funded by the world’s leading diversiﬁcation beneﬁts.” And ﬁnally says (Prices per ounce) gold mining companies, it’s more of the the Gold Council, it’s now easier to invest same. “There are strong indications that in gold, particularly through gold exchange July 1944 ............................... $35 recent price levels will be with us for some traded funds (ETFs). All reasons to drive, May 1979 ............................ $250 time,” said Gold Council U.S. Managing and keep, gold prices high. December 1979 ................... $400 Director, John Calnon. Putting the Shine on Gold January 1980 ....................... $850 Why Now? Despite that bleak picture, Susan Thea March 1980 ......................... $400 There are many who recall the previous Posnock, Public Affairs Manager at Jewelers June 1999 ...........................$252 record price, set in 1980. Yet, $850 on of America offered some strategies and January 2007 .......................$631 January 21, 1980 was the peak of a very advice on coping with the reality of high January 2008 .......................$865 volatile market in which gold had risen gold prices. We also checked-in with TJA January 2009 ........................... ?? nearly $300 in just three weeks from the members for their experiences. beginning of the year and subsequently Since the price of gold has been going plunged sharply, giving up all this gain by mid-March. The current market – and the factors behind its rise – is in sharp contrast to 1980, says the Gold Council. The Council cites inﬂationary fears, continued weakness in the dollar and unstable ﬁnancial conditions as short term reasons for the recent gold price rise. In addition, there are longer-term movements supporting the rise in the gold price since 2001, including jewelry demand, particularly in India, China and the Middle East. Then there’s the gradual Spring 2008 Texas Jeweler – 11 VICENZA’S VOGUE merchandise you’ll end up spending your proﬁts buying gold at today’s prices,” said Miller, who’s been in the business since 1979. To partially ease the process, Miller There are signs from Januar y’s Vicenza Fair that manufacturers and sends his manufacturers a list of items, and designers of gold jewelr y are responding to the price increases in positive they provide the current prices. Even so, it ways. Retailers shopping the world-famous Italian gold exposition reported takes work said Jewel Mart’s Doug Jackson. continued product innovations that will help them keep selling gold jewelr y to “It’s hard to keep up with the inventory in a still-interested public. your store, it’s going up so fast,” said the Paris, Texas-based retailer, who is also the OUT: Overly lightweight or trendy items. President of TJA. Jackson, an independent jeweler for 37 years who recalls the 1980 The Ins market boom-bust, has been re-pricing at IN: Unique, high-end looks with lower IN: Iconic and meaningful shapes like $200 per ounce increments. gram weights, but without resorting to cut- hearts, crosses or ﬂowers (wearable for With the price continuing to rise, out designs or hollow pieces. years to come, making that gold purchase jewelers should develop a good “story” look more viable and enduring). to tell customers about why gold jewelry IN: Mixing gold with materials like costs what it does - beyond the price of the hardened ceramic, wood or ebony, colored IN: Capitalizing on technology and commodity, said JA’s Posnock. “Remind stones, resin, mother-of-pearl, etc. giving classic designs an updated look consumers that design, craftsmanship, and versatility with brilliant new ﬁnishes, brand name and labor are all key factors IN: Classic open-link chains, cuffs, bangles, hidden clasps, versatile lengths, sliding in the value of a piece of gold jewelry – so simple hoops and earrings. adjusters, etc. they know they are getting beneﬁts beyond the weight of the gold.” This also helps if Analysis courtesy Susan Thea Posnock, Public Affairs Manager, Jewelers of America (www. you are switching to selling lighter weight jewelers.org). The Vicenza Fair is held every January, May and September (www.vicenzaoro. or mixed materials pieces, added Posnock. org/uk). Those key factors don't change when the 12 – Texas Jeweler www.texasjewelers.org amount of gold in a piece changes. To sell the higher prices of gold jewelry, jewelers should also use emotional terms, describing it as an enduring gift of love for another – or a keepsake for one's self. “Interestingly, when the rise in gold value becomes news, consumers tend to automatically appreciate gold jewelry more,” said Posnock. “Its increase in real value helps strengthen the emotional sentiments and their desire to own it.” Custom design manufacturer Nader Malakan uses CAD/CAM techniques to work within the budget of his retail jeweler customers. “We customize the price, as well as the design,” said Malakan, whose father founded the Fresno, California-based Malakan Diamond Company in 1938. And that’s an added beneﬁt, Malakan said. “When people get their own design, they are willing to pay more.” Jackson and Miller agree that price isn’t necessarily the key factor. “A lot of times people don’t want the quality changed. They’d rather spend a little bit more,” said Miller. And what of changing the amount of gold in a piece? “We don’t do cheap jewelry. We do good jewelry,” said Jewel Mart’s Jackson adamantly. “We’re not department stores and discount houses. We Are Your stay with quality.” Shop Proﬁts Good News So, what’s the prognosis? Well, as Starving? Meyerland owner Ronnie Miller joked, “If I had a crystal ball and could predict where Finally, a complete system gold was going, I wouldn’t be doing this!” for Pricing Repairs & Crystal ball or not, there is one crumb of Custom Design! comfort – especially if you like a historic perspective. As reported in USA Today, when adjusted for inﬂation, gold remains Easy to use at the counter – make more money! far short of its all-time high. An ounce of gold at $875 in 1980 would be worth Kit Blue Book Contains $2,115 to $2,200 today. • 312-page Price • 8 instructional Book Internationally retailers continue to • Over 2,500 prices audio CDs shop for new selections in gold. As Jewelers • 4 time markup on labor • Store Owner of America reports from the prestigious • 3 time markup on • Selling Repairs Vicenza Fair, since consumers aspire Findings book • Tour of the toward elite and aspirational products, • Finding Stock Numbers • Bonus CD Only $299 plus shipping smart retailers are betting that beautiful, Included in book • 3 times larger stylish gold jewelry, with slightly lighter • Counter Mat— Quickie Slide To Order, call 404-255-9565 weights, fresh designs, innovative accent “Reﬁnishing” Calculator or visit www.JewelerProﬁt.com materials and classic motifs will continue to sell well. Geller book download now available for The Edge and Jewelry Shopkeeper! Spring 2008 Texas Jeweler – 13 On Your Calendar MARCH IS THE BEGINNING OF Taxes Dates springtime in Texas. Before you know (or This is two-pronged. In addition to May 29-June 2 even today) there will be brilliant displays preparing your own business taxes (make AGTA GemFair of bluebonnets and Indian blankets across sure to note items lost to theft or damage. Las Vegas our Texas byways. Spring cleaning is They could be tax deductible!), you should traditionally the term for what you do at also be prepared for the customer who has May 30-June 3 your house, opening windows and airing just received their tax refund. 17th Annual JCK Show out those stagnant places. But you should Las Vegas also try to spring clean your business. In Mothers and Fathers addition to cleaning up displays and having With Mothers Day in May and Fathers July 27-30 your windows shine, here are a few things Day in June, it’s never too early to plot your JA Summer Show you should be mindful of and events you marketing for the quarter. While you’re at New York City should be prepared for. it, think about cross promotions for prom goers and graduates in your area. With the Sept 13-14 Birthstones end of the school year coming, there will be TJA Annual Conference Stock up for the coming months! many parents and grandparents looking for San Antonio April Diamond something that will last a lifetime. May Emerald June Pearl Starting at 14,950.00 $ 1957 2007 50 of years EXCELLENCE 14 – Texas Jeweler www.texasjewelers.org ✓ Mark Your Calendar! 2008 TJA ANNUAL CONFERENCE September 13-14, 2008 San Antonio, Texas • HISTORIC MENGER HOTEL – NEXT TO THE ALAMO • RIVERWALK DINNER WITH YOUR TJA PEERS • EDUCATIONAL TOPICS FOR YOU AND YOUR STAFF • PRIZES, FUN AND MORE! Spring 2008 Texas Jeweler – 15 Jewelers of America Helps Feature Members Answer Consumer and Media Questions on De Beers Settlement AS MEMBERS OF THE JEWELRY trade in the weeks ahead. public’s questions,” says JA President grapple with whether or not to ﬁle claims Jewelers of America’s guidance documents and CEO Matthew A. Runci. “Jewelers in the proposed De Beers settlement, retail will fully prepare JA retail members to answer of America and its counsel have had jewelers, the public face of the jewelry questions about the De Beers settlement signiﬁcant involvement in commenting industry, are dealing with an additional with assurance and knowledge. The three on the De Beers settlement process and challenge: How to answer questions from one-page documents cover: background on timing since it began several years ago, and media or consumers who might wish to the case itself, guidance on how to answer we now want to ensure that our members ﬁle claims. To assist its members, Jewelers consumers’ questions, and guidance on are prepared, too.” of America has created three guidance how to answer media questions. Members De Beers settlement notices will continue documents to help them address these can access the documents at Jewelers of throughout the winter and early spring. questions with conﬁdence. America’s website, www.jewelers.org, in the The notice campaign is expected to reach With the release on Wednesday, January 9 Members Only area. 87% of the consumer settlement class, of De Beers settlement notice advertisements “With the release of information about which is deﬁned as adults 18 and over with in newspapers, and press releases to print, the De Beers settlement to consumers a household income above $50,000. radio and television journalists, retailers are and the media, Jewelers of America wants Because the claims process will require likely to begin hearing from these audiences to assist our members in answering the consumers to itemize the amount of their purchases of diamond jewelry, consumers may ask retailers to research the purchase price of any diamond or diamond jewelry they obtained at their stores between January 1, 1994 and March 31, 2006. In addition, consumers may need information on where to go to ﬁle a claim, object to, or opt out of the proposed settlement. Jewelers of America’s guidance documents are designed to provide jewelers with simple answers to these basic questions. For more information about the De Beers Settlement, visit www.diamondsclassaction. com or call 1-800-760-5431. For more information on Jewelers of America, visit www.jewelers.org. 16 – Texas Jeweler www.texasjewelers.org The 4 Cs of COACHING Skills Feature BY NANCY FRIEDMAN WHEN MOST PEOPLE THINK OF Doctor® Four Step Model for effective trainee need to agree. They can then make the word “COACH,” they immediately coaching in a call center or business a commitment to solve the problem. imagine someone on the sidelines screaming environment. Normally we’re working with an intelligent, at their players to do a better job. That We call it the 4 C’s of Coaching. conscientious employee who wants to do a may be true in certain sports situations, The 4 C’s are: good job. With some coaching, the job will but in business, a coach needs to have a 1. Concurrence be done right. completely different approach in order to 2. Content Congratulations or Continuation: help employees improve performance. 3. Commitment Once you and the employee have found Let’s have a look at the role of a 4. Congratulations or Continuation the content that needs to be corrected, and manager/coach and how that integrates you give them the instruction on how to do with employee development. Where does Let’s cover them one by one: it right, and there is commitment it will be traditional training come in? How does Concurrence is critical. Unless you and done, it’s time for CONGRATULATIONS. training relate to coaching? And what are the trainee agree (concur) that there is a Let them know they’ve done a good job. the differences between training, coaching gap, and they commit to the improvement This is critical. It’s most important you and counseling? that’s needed, you won’t be able to coach to don’t leave that part out. Worse case your full capacity for effectiveness. We need scenario, it’s continuation. A little more The process starts with concurrence. Both you and the employee work may be needed with some employees training. That’s the ﬁrst step. need to concur there is an issue. Once that’s to reach the congratulations step. Let’s say you’re training a group. What done, we can go on to the Content. Much coaching takes place to ﬁll a usually happens is most of the group The Content: What’s important is perceived need. You ﬁnd out that there’s understands, learns and beneﬁts from the to identify the content that needs to be a gap in the performance of an employee, information you’ve taught. Unfortunately, improved. What needs to be done? What and then plan a coaching approach that not everyone “gets it.” What do we do about are some of the issues involved? Normally should improve the performance of that that small percentage of employees - often where coaching is needed, it’s either due employee. It’s nice and orderly to be able good, conscientious people - who may need to the fact that the employee doesn’t know to think about what you’re going to do. personalized attention after training? Those how to do the job (they just don’t ’get it’) Formulate your plan and decide when are the ones who need coaching. or doesn’t want to do the job. You need you’re going to do your coaching. Remember that Coaching is strategically to ﬁnd out which it is. The coach and the Coaching, while immediate, should guiding someone into improving performance. employee need to agree on the content, the also be in private; especially when it It’s analyzing feedback to see the areas where issue and the problem. Only then can they becomes an on the spot type of coaching. the training hasn’t taken hold. make a commitment to solve it. Never embarrass the employee. That’s not Is remedial training needed? That’s Commitment: The coach and the coaching, that’s being mean! where the coaching comes in. These are the people who need one-on-one customized help to develop their skills. OK, we’ve talked about training and coaching. Where does counseling come in? Counseling is helping someone explore, and possibly resolve, personal problems. Counseling is utilized if, for whatever reason, the employee isn’t performing. It’s for that special situation when training and coaching haven’t worked, where the employee is not willing, or is unable, to do the job. Especially if there is some distraction that is not job related. We’re going to give you the Telephone Spring 2008 Texas Jeweler – 17 The Great Escape: Feature Developing an Exit Strategy BY THOMAS E. HOUCK THERE’S A COMMON QUESTION ON Some people may want to get every dime would make the buyout process affordable the minds of entrepreneurs when they think they can when they sell; but these are the for Carlos, while simultaneously assuring about retirement: "How can I eventually most important things to me. How do I that his daughter would get a fair value if get out of my business and not lose my pull this off?" anything happened to him. shirt?" The answer is simple: Develop an Chuck had been an entrepreneur for To develop a quality exit strategy, exit strategy a few years before your desired his entire life, and about 20 years before, business owners like Chuck need to follow retirement, and simply execute it. started his current business from scratch. some important steps. They are: Take the case of Chuck, a 65-year-old- Due to his insatiable appetite for nonstop going-on-21 life-of-the-party type of guy. He improvement, his business blossomed into Step One sported a big smile, and joked with everyone. one of the largest in Southeast Florida. Create a ﬁnancial plan. But he was plagued by a gnawing question: Chuck felt a great deal of loyalty to his In Chuck’s case, the plan helped identify “In 10 years, I want to exit my business, take employees, and wanted to develop a plan how much income he would need after care of my employees, have enough money to to sell the business to his General Manager, retirement to fulﬁll his dreams. This number live out my retirement dreams, and guarantee Carlos. Since Carlos was a young guy with determined how much money Chuck would that my daughter inherits everything if a family, he didn’t have many ﬁnancial need in his retirement savings, and from the something happens to me.” assets. Chuck needed to develop a plan that sale of the business on the day that he retires. 18 – Texas Jeweler www.texasjewelers.org Step Two sum in legal fees. The attorney drafted a stock Maximize retirement savings now. purchase agreement for Chuck and Carlos. Over the next several months, Chuck The agreement laid out the performance consulted with his ﬁnancial advisors and incentives, where the stock would be held, developed a comprehensive ﬁnancial plan. A stipulated that the shares would be non-voting, thorough analysis revealed that Chuck needed and required Carlos to buy Chuck out at the to put $5,000 per month into a retirement end of the 10-year period. The attorney also savings plan. Since IRAs and 401(k)s allow created a trust, which laid out the transfer of limited funding, a deﬁned beneﬁt pension plan Chuck’s assets to his daughter, in case he died. was a good choice for the company. These plans This type of buyout strategy is useful when work best with an older owner who has younger the owner wants to sell to an employee or employees–in Chuck’s case, a perfect match. family member. The key element that allows business owner’s goals. This plan allowed Chuck to put $60,000 a year these plans to succeed is TIME. The greater Chuck’s plan was enacted ﬁve years into savings, all of which was tax deductible. the amount of time the business owner plans ago, and all has gone exactly as planned. The tax savings alone helped fund a portion of for the exit of his business, the greater his Chuck’s still the life of the party, and the plan. A true win-win! chance of success. If Chuck simply woke up loves seeing his vision turned into reality. one day and said, “I can’t take it anymore,” Financial peace of mind hasn’t changed Step 3 there’s no way that Carlos could buy him him one bit-when his friends get together, Determine the company’s worth. out. Everyone knows a business owner who’s they all smile, shake their heads and marvel Chuck didn’t want the expense of hiring a had health problems, or unexpectedly passed at the character everyone knows as Chuck. valuation analyst to compute his company’s away, causing the business and all its value worth. To come up with an approximate to go down the tubes. This could have been About the Author: value, Chuck and his ﬁnancial advisors avoided in almost every case by taking the Thomas E. Houck, CPA, CFP®, is a speaker, went through an exercise to determine the time to create an exit plan. author and consultant who’s program, "Your amount of net cash from the business to Another key element in making your exit CFO Advantage™" has helped numerous Chuck in the previous year. A good rule strategy succeed is to work with advisors business owners grow their businesses, reduce of thumb to use is three to ﬁve times that who have extensive experience with this their taxes and lower their stress level. His number equals the value. type of planning. Many quality CPAs and book, "The Top 10 Mistakes Business Owners attorneys don’t fall into this category, yet Make (and how to ﬁx them)" helps business Step 4 they’re smart enough to bring in an outside owners develop strategies to lead a better Establish a transfer strategy for advisor who does. Also, it’s important that life by running a better business. For more the business to the buyer. the advisors work as a team, so that everyone information you can visit Tom’s website at Because Carlos didn’t have much money or is on the same page, working toward the www.heritagebusinesssolutions.com assets, he wasn’t going to be able to simply go to the bank and get a loan to pay for the business. HI-TECH To solve this challenge, annual performance incentives were created for the company. PRECIOUS METALS If the business met those performance & REFINERY incentives, Carlos, as General Manager, would Reﬁnery METALS Diamonds be gifted 5 percent of the stock of the company Platinum Gold Silver Palladium at the end of each year until he reached 49 percent ownership in year 10. At that point, Carlos would be a 49 percent owner with a 10- NO MINIMUM year track record, and a bank would likely be willing to loan him half of the business’ value to complete the buyout of Chuck’s interest. INSTANT SETTLEMENT Step 5 Get it in writing. Now Chuck needed to sit down with an HI-TECH PMR attorney and get all this in writing. Since his 13620 Gamma Road advisors had done most of the legwork already, Dallas, Texas 75244 they were able to speciﬁcally tell the attorney 972-239-0597 www.hitechpmr.com what was needed, which saved a considerable Spring 2008 Texas Jeweler – 19 News Shorts Breitling Honors Top Retailers Gitanjali Gems Announces 2006. He has 30+ years of professional Luxury watchmaker Breitling honored U.S.A. Management Changes experience that includes being the seven jewelers at its 2007 "Retailers of the Gitanjali U.S.A., a division of Gitanjali president and founder of Global Systems Year" luncheon held at New York City's Per Gems, operating Samuels Jewelers, Inc. Inc. (GSI), a high tech company providing Se restaurant on Jan. 12. This marks the and Rogers Ltd, Inc., two American information technology solutions to third year Breitling has honored retailers specialty retailers of ﬁne jewelry announced improve productivity, service, cycle time, for demonstrating deep loyalty and a great in late February the promotion of Randy and quality. vision for the company. McCullough to Chairman and Deepak The 2007 Retailer of the Year for the Gandhi to President and CEO of Gitanjali region that includes Texas was Lewis U.S.A. In addition, David Barr will Jewelers from Webster, Texas. be retiring from his current Chairman 2008 AGTA Spectrum position, but will remain as a special advisor Texas Award Winners Austin Jeweler Garners to the Board. The 2008 AGTA Spectrum Awards Interior Architecture Award McCullough joined Samuels in 1997, were recently unveiled, naming the Anthony Nak’s ﬂagship store in Austin, served as VP of Merchandising, COO tops across the country in the annual Texas has won a 2008 Institute Honor and then became President and CEO in natural colored gemstone and cultured Award for Interior Architecture September 1998. McCullough serves on pearl jewelry design competition. The jury agreed that the “elegant, subtle the board of Diamond Council of America, Winners from Texas in the annual space shows exquisite designer jewelry. The Jewelers for Children and is a member awards included: plan is minimalist in the extreme, with of the Jewelry Hall of Fame also recently white surfaces that vary subtly in texture honored by American Jewish Committee 2ND PLACE: and a single band of display cases running with its Human Relations Award for the BUSINESS/DAY WEAR the circumference of the room.” Jewelry Division. Katy Briscoe The 800-square-foot space was designed Deepak Gandhi joined Samuels in Katy Briscoe, Inc. by M.J. Neal Architects and was completed connection with the acquisition of Samuels Houston, TX in 12 weeks. by Gitanjali Gems, Ltd. in December 18K yellow gold earrings featuring carved Rose Quartz, freshwater Pearls and Diamonds (.30 ctw.). 1ST PLACE: CARVING Dalan Hargrave Dust Devil Mining Spring Branch, TX 217 ct. "Sweet Nectar" Sunstone carving. 2ND PLACE: COMBINATION Larry Woods Jewels from the Woods Blanco, TX 57.12 ct. four directions radiant-cut Aquamarine. 3RD PLACE: COMBINATION Dalan Hargrave Gem Starz Spring Branch TX 85.25 ct. "graphix-cut" Ametrine. 20 – Texas Jeweler www.texasjewelers.org International School of Gemology Have Story www.SchoolofGemology.com Ideas for Texas Jeweler? ISG Gemology Classroom-At-Home DVD Lecture Series Individual Courses Offered: We’re always looking for fresh Pearls ideas on what today’s jewelers Diamonds want to hear from their state Colored Gemstone Grading association, whether it be Colored Gemstone Identiﬁcation Identiﬁcation of Synthetic Gemstones proﬁles on local jewelers or Introduction to Watches trends in the market. This new concept in gemological training gives you the experience of a classroom setting without the ﬁnancial expense and time delays that go along with having to Email us your ideas to travel and be away from home for extended study periods. firstname.lastname@example.org; Total cost including all course material and complete and you just may DVD/CD lectures and reference materials:$795.00 read about it in a future issue of email@example.com Texas Jeweler. 210-877-5816 Member American Gem Trade Association • Texas Jewelers Association • Jewelers Vigilance Committee ������� ����� ���������������������� ��������������������������� �� � � � �� � � �� �� � Ad Index Adamas Diamond Corporation 20 �������������������������������������� ����������������� � ���������������� ��� ����� �� ������ ��������������������� ���� ���� ����� ��� ��� �� �������� �������� ��������������������������������������������� Brellion 16 Cole’s Jewelry Art 11 ����������������� ����� ������ ���������������������������������������������� ������������������ ����� ������ ���������� ���������� ����� ���� ��������� ����� ���� ���������������������������� ��������� ����� ���� � ��� ���������������������� ��������� ����� ���� � ��� ���������������� Covenant Financial Solutions, LLC 12 ��������� ����� ���� � ��� ��������������������������������������� � ��� �������������������������������������� ���������������������� � �������� ����������� ���� ��� ������ ������������������������ ���������������������������������������������� � ������� ���������������������� Crafford-LaserStar Technologies 14 �������������������������������������������������� � ��� ������������������������ �������������� � ��� ���� �������������������������� ����������������� � � ��� ����������������������������������������� �������������� ����������� ����������� ������������������ ������������������������������������������ Federated Insurance Back Cover �������� ������ ���� �������� ���������� ����� �������������������������� ���������������� ��������� ������������ ������ ����� ������ �� ������ �������������� ������������������ ���������������������������������� � ��� ���������������������������������� � ��� ������������������������������������ ���������������������� ������������������������������������ Hi-Tech Precious Metals & Reﬁnery 19 ������ �������� ������ ���� ���� ������� � ��� ������������������������������������� ��������������� ����������������������������� � ��� ������������������������������������ ��������� ����������������������� ������������������ � � �� �� � ��� ���������������������������������������� � � ��������������������� ����������� �������� �� ���� ������������������������������������������ International School of Gemology 21 ������������������ ������� ��� ������ ������������ ������������������ ����������������� �������� ��� ������ ��������������������������� ����������������� �������� ��� ������ ������������������������� ����������������� �������� ��� ������ ��������� ����������������������� ����������������� �������� ��� ������ ������� �������������� ��������� JewelerProﬁt 13 ����������������� ����������������� �������� ��� �� ������� ������������ ���������� ���������� � �������� �� ������ ������� ������ ����� ������ ��������� ��� ���������� ��� ����� ������ �������� � �������� ��� ������� ����� � ��������� �������� ����������������������������������������������� ����������� � �������� ��� ��� ������� ���������� ��������� Jewelers Mutual Insurance Company Inside Front Cover M&P Gem Imports 13 CONTACT Roseco 15 Joanne Pantaze Advertising Representative Tara Energy Inside Back Cover (512) 272-9393 Texas Institute of Jewelry Technology 17 (512) 278-1531 fax firstname.lastname@example.org Spring 2008 Texas Jeweler – 21 4 The 4 Things Every Staff Expert Tips Sales Member Can Do to Increase Sales and Proﬁts BY BOB JANET WE ALL KNOW THE CUSTOMER IS the to increase sales and proﬁts is GET THE When you give the customers a choice of most important person in our business, but CUSTOMER INVOLVED IN THE SALE. products and services, it is no longer - "Will sometimes we forget that the second most When I owned and operated a jewelry store they buy from you or the competition, it is important person in the business is any staff we outsold all of our competition combined what they will buy from you." member that comes in contact with our by simply getting as many different pieces of And the last, fourth, way every employee customers in anyway. Plus the staff member jewelry on the customer as possible. When can increase sales and proﬁts is simply ASK who contacts the customer face-to-face, so women came into our store we strived to get FOR THE SALE. It is estimated that over to speak, is the person who represents the her to try on a necklace, earrings, bracelets 90 percent of sales people never actively ask business in the customers mind. If that (arm and ankle), rings, pins, etc. all at the for the sale. Sure they show the products representation is not a great experience for same time. The old seller's rule- The more and tell about their services, but they never the customer, the business suffers. products the customer views themselves as ask for the sale. They never ask for the sale Yes the contact with every customer owning, the more they will buy. Possession because they are afraid to the customer will every time must be a great customer becomes ownership. say the one terrible word that will cause experience because we must out service the In our tire business we involved the them to feel rejected. The word "NO". competition. Staying even with them is not customer by having them lift the tires we Hockey great Wayne Gretzky once said good enough. wanted to sell them, not just look at them as when asked why he shoots the puck so much, There are 4 things every employee can our competition did. We out sold all of our "I miss 100% of the shots I do not take." do to increase sales and proﬁts for the tire competition. Our furniture business The easiest way to ask for the sale over and business. was successful because we involved the over again is constantly give the customers One - TREAT EVERY CUSTOMER customer in the sale. No one ever walked choices of different products and services that LIKE A MILLIONAIRE. into my mattress department that did not will solve his/her problems, needs and wants. Just think of it this way. If you knew the lie on at least three of our beds. Even while Always remember the # 1 rule of selling: next customer to come through your front selling intangibles like extended warranties "The seller that solves the customer's door was a millionaire, capable and ready and service contracts we involve the problems, needs and wants the easiest for to purchase your most expensive products customer in the sale. Physically by having them will get the sale." Make it easy for and services, at your highest markups, how them do the math (the cost savings they your customers to make a buying decision would you treat them? Most of us would will receive or expenses they will incur) from you. role out the red carpet. Fall all over them and mentally picturing the problems they 1. Treat them all like a millionaire. with great service. Spare no effort to satisfy may encounter if they do not purchase the 2. Get them involved physically and their ever need and want. coverage. mentally in the sale. Well, ﬁrst of all you do not know if that The third thing every employee can do 3. Give them choices. next customer through your door is going to increase sales and proﬁts is always GIVE 4. Ask, Ask, Ask, Ask and keep on asking to be millionaire. Millionaires for the most THE CUSTOMER CHOICES of products for the sale. part do not look, dress, or sound different and services to purchase. People always take than everyone else. And even if they are the easy way out and saying no to a request Bob Janet gives Businesses and Association not a millionaire, people will buy more for them to buy is easier than saying yes. member's content loaded, fun-entertaining, products and services when they get treated After all, most people do not want to give up audience involved seminars and keynotes that like one. their money. And people like to shop around help them increase sales and proﬁts. For more The second thing every employee can do to make sure they are getting the best deal. information visit www.bobjanet.com. 22 – Texas Jeweler www.texasjewelers.org You manage the daily operations of a highly successful business. You are a pillar of the community and a person of honesty and integrity. Identity theft can carry a hefty price tag for a businessowner. Where would you turn if you were a victim of... �������������������� ������������������ ������������������� �������������� ������������� ������������ ����������������� �������������������������������� ��������������������� Federated’s Identity Recovery Coverage provides a telephone �������������������������������������������������������� �������������������������������������������������������������� together. The FEDERATED Insurance Companies ������������������������������������������������������������ �������������������������������������������������� �������������������������������
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