Flowers & Diamonds

[Less]

Flowers & Diamonds

Bob Carter’s discussion about his study looking at comparative industries to apply successful strategies to our own industry a very useful exercise.

I was watching the boob tube the other night - I guess it’s that time of year again - and I am seeing many commercials marketing diamond from $300 and up.

What I find so interesting is that here is an industry that is not unlike ours in terms of who our customer base is and although there may be many chain stores, there are even more apparently successful independents out there as well.

I think Bob should take a look at why the perception of value to the general public is so different between our industries.

I think why the perception appears to be so different is a relatively easy question to answer, but how to take some of those lessons and apply them to our industry maybe much more difficult.

[Ron Eggers]

There is an area jeweler who is advertising a one-week event. He has about 100 certified flawless diamonds - some loose and some in settings - and including one 5.5 caret flawless pear on consignment. Apparently, certified flawless diamonds are exceeding rare, even among diamonds. This jeweler hasn't previously seen ANY in his 20 years of experience.

Not sure what my point was, but apparently people are tripping all over each other just to have a look at them, even though it takes a specialized lab to tell that they are flawless.

Until we start offering frames made from the last known okamunga tree (I made that up) we're probably not going to see that kind of mysticism in our industry.

Maybe the closest thing we have are water-gilded gold frames, where we have to display a pictorial explanation of the gilding process to even hope to get people to pay $70/foot and up for a frame. (I just ordered such a display from L-J.)

[AccentsDesigns]

Okamunga trees aside, I think it's possible to breathe new life into our business by simply being the exception to the rule as far as quality and customer service. I'd love to frame a large piece with a watergilded moulding for some sweet profit, but all in all, it's the constant repeat customers that keep coming back for basic framing that provides the foundation. They are, in my opinion, also the biggest source for future sales gains. Our biggest struggle as I see it is fighting the HUGE chain stores that "train" their framers in one afternoon and then advertise to have ENORMOUSE sales! The customers must be educated and given the white glove treatment. Then, and only then, will we see the pendalum sweep back in our direction.

[B. Newman]

Originally posted by Ron Eggers:

Not sure what my point was,
Ron, I think the point is that there are people who can and will buy these types of things. We just have to learn how to market to these people, and help them to understand that they need custom framing.

I recently received the Thanksgiving catalog from Zingermans (remember the INC article on "the Coolest Small Company in America"?) In their catalog is a pecan (pe-CAH-n) pie for $40.00.

Now, being from the South, and especially a farm in the South, I do know pecan pies, and I ain't never seen one worth $40.00. Not even my Mother-in-law's pecan pies.

But the thing is, if they are listing pecan pies in their catalogs for $40.00, they must be selling them to someone.

These are the people I want to market to. I don't think they're crazy, or that they've got more money than they've got sense (as we would normally say about such folks) but that they have very discerning tastes and the pocketbooks to go along with them.

Betty

[gemsmom]

There might be some way to relate this to framing, but I'm not sure how. If a diamond is flawless, that means no it has no inclusions. But I wouldn't take it to mean it is necessarily of good color or cut or is large. So, a jeweler could say the diamond is flawless, and be absolutely correct. But it could be so far down the color scale, or so poorly cut, the fact it is flawless means little. Except that it keeps the price down, and the person purchasing it can tell everyone they have a flawless (but yellow and dull), diamond.

I guess whether you are buying diamonds or framing, education will people from making a buying mistake.

[Ron Eggers]

The diamonds in question are perfect-D flawless certified. 'D' means colorless.

Here (http://64.177.229.188/diamondguide.html) is an interesting educational/sales site about diamonds. There might be some lessons there about educating potential customers.

[Dermot]

Less

I expect that one of the key things that differentiates diamonds and framing is that you can wear diamonds…..which means that you can flaunt them when you are out and about…….try that with a piece of framing……..the other thing is that there is a very high entry level into the diamond business……unlike framing which is more or less open to all to enter……….another factor is that if you tried to sell cheap diamonds your supply source would dry up very quickly…… believe me on that I have seen it happing years ago……the jeweller hadn’t a chance……….can you see any of the players in the framing supply business being as ruthless as DeBeers as cutting supplies off……

Rgs

Dermot

[Less]

What interests me is branding, marketing, and the perceived sense of value.

We all know FTD and no one questions the value of diamonds. Quality custom framing and art should be valued in the same way. Most new people expect framing to be inexpensive. Why is that?

Quality framing will last a lifetime.

the other thing is that there is a very high entry level into the diamond business……unlike framing which is more or less open to all to enterThis is a problem, but does not mean it is a good excuse for poor business practices.

Maybe this economy will take care of that.

I expect that one of the key things that differentiates diamonds and framing is that you can wear diamonds…..which means that you can flaunt them when you are out and about Look at American television today, we have never been so obsessed with the way our homes look for our neighbors and ourselves.

[ 11-17-2003, 06:41 PM: Message edited by: lessafinger ]

[Rebecca]

I'm just scanning this thread, so maybe I missed something (like the point ;) ) but if I were making the comparison btw framing and diamonds it would be that the frame is the setting for the jewel. A gem doesn't have to be flawless to be valuable - lots of historically important gems are flawed. Also a good setting can make a not so expensive stone (semi precious or flawed) look great.

If I were a marketer, I'd emphasise the preservation of personal (or other) history. e.g. a voice-over with old newsreel footage telling how granny came from the old country, through Ellis Island,(or whatever demographic you're targeting) to make a new life...and all she could bring was one treasure - and then show that treasure framed. With the generations, including great grandchildren, looking at it with reverence and awe. And then maybe a endshot in nice script saying that the materials used by "X-framer" are the same as those used by the Smithsonian (or whatever) to preserve our national treasures...


Rebecca

[Barb Pelton]

Rebecca-
Your analogy is "flawless".

[Jim Miller]

Originally posted by Dermot:
I expect that one of the key things that differentiates diamonds and framing is that you can wear diamonds...which means that you can flaunt them when you are out and about...the other thing is that there is a very high entry level into the diamond business...
Dermot I agree completely with your assessment, Dermot.

Soon after our new store opened here 18 months ago, an established, locally-owned custom jewelry store moved in next door. We share the same customers, but she sees more of their money than I do. We agree that jewelry is a prestigious, outward symbol of success, while framing is usually an investment for personal/family enjoyment -- and more readily put off when money is tight. Seems backwards to me, but tat's how it is.

A further point, according to my jeweler neighbor: Custom jewelers have increasing competition from "BigBox", multi-store chains, just as framers do. Consumers are going more for economical, factory-produced jewelry now, and fewer are buying the more costly custom jewelry. She's now dealing with the opening of such a store just a mile away, with a 4 times her square footage, professional interior design, and a big, regional advertising budget.

What we see in the framing industry is happening throughout the retail industries, to some degree or other -- throughout the USA, at least. And judging from Dermot's comments, maybe it's going on in his neighborhood, as well.

[gemsmom]

"The frame is the setting for the jewel". I like that. Maybe I can use that, or something similar, in my advertising. Thanks, Rebecca.

I doubt that the marketing of quality will not set any framer apart from the crowd. Everybody makes those claims, true or not. Every ad I ever see states "quality picture framing" or "conservation framing", or some variation. "Quality framing at reasonable prices" is another gem I see often. I have had better luck marketing me, my accomplishments, and what I know. When people perceive you as having more knowledge, talent, or skill, than your competition, word gets around.

[BUDDY]

I am by no means as knowledgable as some here about Diamonds and gemology.However I have as some may remember just returned from a cruise.While on it in the jewelry store on board there was a sale of semi precious stones($10 /carat) and a seminar about Gemstones. While the crew member wasn't as prestigious as some, he was from South Africa,where knowledge of such things is fairly common.
The reason for mentioning this was his explanation that NO stone is COMPLETLY FLAWLESS. It is accepted as such when it passes the inspection of the 10x power loop (or what ever it's power is) that good jewlers use to determine such things ,as eplained in Ron's link. He further stated that when these same stones are subjected to intense magnifcation under a high power MICROSCOPE the tinyest imperfection are seen and registered as a Gem Finger print. So as to permenantly be able to identify any stone from imatations.
My point for mentioning this is that ,maybe we are like the diamond industry ,only we don't accenuate the GOOD stuff and unfortuneately we harp on the little things like overcuts,etc.Further more Maybe we could "Jack-up "our mark up to what jewelry is accepted at if we would sell our work under half truths (e.g. Completly Flawless gems vs. Completely Conservation /Preservation quality) but then we don't feel this is honest .
In a nut shell it is all about PERCEPTION. If the customer feels they are getting something that is FLAWLESS and VALUED HIGHER than anything else ,they gladdly pay big bucks for them and flock to do so. Never once useing a Microscope to check nor even ask for guaratees.
By the way this same guy gave tales of very costly stones that were owned for long periods of time only to be examined under a microscope to be discovered to be CZ and not even Diamonds.But the owners where none the wiser till then. So maybe it's all about what the client knows and how accurate their knowledge is that detrmines the true worth of a product.After all ,isn't that where we are heading with things like FACTS and PPFA's CPF/MCPF?
BUDDY

[Terry Scidmore CPF]

Many years ago at a party I was talking with a woman who works delivering gems between dealers. She told me that there are so many diamonds mined each year that if they were put out on the market, there would be a glut and subsequent drop in prices. The diamond companies create the illusion of scarcity to keep diamond prices high. Their advertising promotes emotional reasons for someone to buy jewelry. She sited several ad campaigns from previous years. When the companies had a glut of small diamonds, they promoted "eternity bands" with lots of tiny diamonds around the bands. These rings were marketed as the way to show that you would love her for eternity. When there were lots of one carat diamonds, they promoted one carat jewelry as being more unique and precious - just like the woman you love. She gave a detailed explanation of how promotion and marketing drives the diamond market because the typical consumer knows little about gems, most of what is important about a gem is not visible to the eye, and gems are typically given for sentimental reasons. Sentiment overides reason.

And as others have pointed out, jewelry "talks".
It goes "out" socially a lot. It has a real, monetary value connected with it around the world, even if the price fluctuates.

So if we were to follow the diamond trade, we have to create emotional reasons for framing - you frame something to show love, to treat yourself, to make people envy you, to show your status. Framing, not the art, would have to be perceived as having a market value beyond the immediate owner. Framing might even require a "certificate" that states the qualities and grades of the framing components.