As the Sales Manager for one of the online pearl vendors here, I do see a distinct advantage for our business models in terms of pricing- if the customer has time to shop around for the best price, is willing to take a chance on an unknown and come out on top: with a great deal for a gorgeous product, then we have made a customer for life. The End.

Providing great customer service, fast turn around times in processing orders (getting strands finished, mounting earrings and pendants, etc), being knowledgeable about my product and my industry in particular, are priorities that are NO LESS important online than in a typical B&M enterprise. One of my specialties is creating custom jewelry- how much thought, creativity and reliance on excellent communication skills and empathy do you believe that entails? I find that the vast majority of our customers are greatly comforted by all of these things- and they return to us over and over again. A great business relationship is built on all of these things, and if online vendors are willing to invest time, energy, empathy and creativity into creating long-term relationships, then I see absolutely no reason why we will not become the more efficient retail business model of the future.

However, as a veteran of retail B&M stores, I do think that by customizing your B&M business- by branding yourself, your service, by becoming a fixture in your community and contributing to the life-long memories made by generations of families purchasing keep-sakes, anniversary items, engagement rings and everything in between, you can survive and thrive. Not every customer is price shopping, they are shopping for an experience: they are shopping for a trustworthy, knowledgeable person that will help them feel great about making a memory!

You cannot compare the wide selection of diamonds you have in your store- each with characteristics as unique as a personality, to some disembodied Sri Lankan online cert, no matter the quoted price- not all SI-GH Quality diamonds are the same, that can be said for pearls as well. Being able to hold it in your hand, gaze through the loupe, marvel at this wonder of nature before you, is an amazing advantage for the traditional retail model. A digital picture may speak a thousand words- but what if they’re the wrong ones?? B&M stores are also in the position of being able to let the customer walk out with a fantastic jewelry item that VERY DAY! Talk about efficient! That is one of the biggest hurdles that I have to contend with as an online vendor- the best I'll be able to offer a customer in a rush is- Tomorrow.

It is through creating a niche, and creating relationships that businesses are able to survive. As the world of commerce evolves- free trade, wholesale pricing, reduced overheads, faster communication, faster transactions, comparison shopping, etc, it is more apparent than ever that what lies at the heart of it all is not who has the lowest price, but what it has always been- the ability to build a relationship. The ability to build trust. The ability to connect with people. Business is evolving, but the way that people connect with others will always remain the same.

This is from Pearl Perspectives

Imperial Pearl announces that it will launch its “Partner’s in Pearls” e-Learning initiative at JCK Las Vegas. This industry leading program uses

the latest advances in on-line learning methods and technology to achieve greater results for Imperial’s retail partners.

The initial offering, called “Pearls 101” is designed to bring each participant to a baseline level of performance and pearl knowledge. Subsequent courses will build on this solid foundation to enhance the performance of participants.

The course is self-paced allowing participants to speed up or slow down as they desire. It is accessible to participants 24/7. According to the American Society for Training and Development retention rates for classroom style “tell only” training is 10% after three days. The retention rate for e-learning “show, tell and do” training is above 65% after three days.

http://http://www.pearls.com/news2/pp40/Retailearning.htm

[john675]

Originally Posted by J Marcus

[COLOR="Blue"]...simply the cost of providing the assurance, immediacy, personal attention and all the other things that make up the service you get with a good B&M store. Consider also, that many of us provide all this at prices below those of the chain stores, by the way. If those things don't interest you, then you're welcome to bargain away, my friend, (...and just how much is your time worth?) but please consider what I've said before you malign our pricing as ridiculous!
http://www.flyrodjewelry.com/home.html

I truly had no intention to malign you or other artisans who may work in a B&M store. There is, for me, a difference between offering artistic jewelry creations (either online or in a B&M store) to offering "quality pearls" as strands that I have been discussing. If I want a custom created piece, I would buy it from the artisan creating it. Sometimes, that is from an online store, sometimes from B&M. PearlParadise has created several custom pieces for me, for example. When I have bought "bargain diamonds" I have hired a jeweler to create custom pieces for me. These are B&M stores in the sense that a goldsmith might work in a shop, but I would never dream of buying my raw material diamond from a B&M store (hence my comment about not buying jewelry from a B&M shop when I can get the same diamond for a lot less elsewhere). If all I want is a five-prong engagement style setting, why would I pay the extra markup?

I find that I pay the same, more or less, for custom pieces whether that is online or from a B&M store. Beyond Pearls, I happen to collect a number of folk art pieces. I find I can buy them from the artist or, with a (relatively speaking) reasonable markup that compensates somebody else for tracking it down and making some money off of the purchase. It does not seem to me that the markups on this type of art is anywhere close to what you can see on jewelry (where you can buy the same thing at wildly different prices).

I cannot imagine why somebody would spend $15K or more for a top quality, simply strung, Tahitian strand when you can get one from one of our online vendors for around $4K. Where is the value add for that markup? If it is customer service, I actually find my online retailers offer me excellent customer service. They know who I am (more so than a typical shop employee) and are extremely accommodating. I can ask for specific overtones, for example, without waiting or paying more for them to select the pearls and string them for me.

I run a professional services company in the technology industry. Our industry has battled for 15 years as more and more technology is outsourced to India and now China. We charge more than these competitors. We have modified our business model over the years to over value-added services that you do not get working with vendors in India or China. If I wanted to compete on price, I would be sunk and could not afford to do business in the US. We distinguish ourselves in our industry by offering professional services that far surpass the quality of our competitors overseas. You get what you pay for with our services. Unlike many technical services company, our business grows about 15% a year, and we have a 15% net profit. It is a bit of "if you build it they will come" but you have to build something others are not offering at a cheaper price point.

With a pearl strand that comes from the same source, but is offered at prices that vary by a factor of 5, it is only natural to buy the best value for the money. They are, after all, the same pearls.

Do you go to WalMart to shop for basic supplies (not jewelry, hear - certainly not pearls)? Target? KMart? WinCO? If you are buying a can of beans, do you prefer to buy the same can for 2x the price just because? Our economy says that our consumers are not willing to pay more "just because".

Any vendor has to do more to charge more. Creating a true piece of jewelry as art is doing more. So, please charge more...

John

Peter and Marc @ Imperial,

Appreciate very much hearing what you are doing to educate--and sharing the website with our P-G members. Totally commend you for the positive action and sincerely wish you every success!

Just a quick point here- people keep bringing up Walmart as a source for fine jewelry- Walmart is NOT a source for fine jewelry. You are not comparing apples to apples- Walmart carries diamonds that are more like chalk, and 10K gold. While I admit we may have to compete with some large chains, it is NOT Walmart, nor JC Penney's. The quality that all of the regular online vendors carries here is equivalent to a fine B&M jewelers. Why compete with junk? Just my own 2c

[john675]

Originally Posted by Ashley

Just a quick point here- people keep bringing up Walmart as a source for fine jewelry...

My quote regarding WalMart has nothing to do with jewelry. I'm talking about a can of beans in that part of my post, not pearls...I'm a big fan of beans!

[Pearl Dreams]

Speaking solely as a buyer, when I visit the area's B&M stores and look at their pearls, I find very little variety and mostly medium quality (Akoyas and Tahitians) and lower quality, off-round freshwaters that are mostly white or dyed.

These are not what I am looking to buy. I want high luster and great natural colors-- especially CFWP. When the time comes for me to buy Tahitians (and it will), I will want great luster and overtones.

I have found exactly the pearls I want online at PearlParadise.com, at a great price with excellent service to boot. This doesn't mean I have stopped looking in B&M stores; I look. If the B&M stores started carrying more nice CFW pearls, I might buy from them-- if the price is right.

Although we are discussing pearls, I will add this: I also love colored stones (and find diamonds boring) and have found only a few stores so far in CT that have great colored stones. Most B&M jewelers have allowed their inventory to become the Same Old Thing. If they are struggling with sales, perhaps they should reexamine how well that kind of inventory is working for them.

Lol, John- point taken! I just saw your edit too!

I would like to add one more point to this discussion, and it is something that I spoke about with Pattye. All of us: the online vendors, the independent B&M jewelers, the designers, the goldsmiths, the lowly beaders, the major Pearl Houses that have done so much for the reputation of fine pearls and jewels- all of us have poured our hearts and souls into what we do. I know that I have! I know that Jeremy has worked tirelessly, endlessly and passionately to promote a beautiful, timeless product. Pearldiver’s frustration is palpable- the way we do business is changing, the economy and the world we are living in today is a hard one, but I find that the short-sighted judgments, the finger pointing and mudslinging to be entirely counterproductive to building a strong jewelry community and industry.

Personally, I feel that each of us has something unique- a vision, a style, a talent- to offer our clients that will satisfy them in ways that are suited to them. There are enough customers to go around; each will be engaged in ways of their choosing, and what could be better than that?

As for myself, I have no inner "family connections", I am here, and have been here, because I truly love what I do- which is bring joy, wonder and appreciation of nature’s beauty to others. And I have had to work very, very hard to do it. The arrogance displayed in some of the comments on the CPAA thread is a grave disservice to ANYONE who has pulled themselves up out of obscurity to create something good in this world. I feel that no one should be spoken down to because of where they came from; their hard work and accomplishments should be honored and respected.

To Jeremy: Thank You for all that you have done to create PP, P-G and more than that: creating an opportunity for every enterprising person willing to invest time, passion and enthusiasm in building something of their own. I owe you more than I can say, and it is an honor and privilege to work with you, share ideas with you, and be inspired by you- the flight attendant that made not just good, but amazing.

So There.

[Heidi]

Ashley - thank you for some really great visionary words. Powerful, good stuff!

Aw, shucks ma'am, just telling the truth as I see it I am glad I got the chance!

[Mka4972]

Pattye,

Imperial may be a large company but we take our pearl education to our customers very seriously. I speak on behalf of Peter (who is on his way to Dallas for an AGTA meeting) and Imperial as a company, we are happy that you find our educational actions commendable, we appreciate the good words. T

There are alot of smart pearl people on this forum, I have been relativley quite (lurking) for quite some time. I think it is time to break out of the shell and hope to add as much insight as I can to the threads that are posted here.

Regards to Everyone
Marc

[Sueki]

Re. the "flight attendant" phrase.
I would think it's quite a compliment really.
It shows just how powerful a business brain Jeremy Shepherd has and how hard he must have worked to build his company into one that Pearldiver finds so threatening.

As an aside, I've been tracing my ancestors and find that my great grandfathers were all blacksmiths back to 1720.
Should I be tugging my forelock and telling stories to amuse my betters?
Or shall I be proud of the fact that each successive generation worked long and hard so that their children may be housed and fed and educated.

[smetzler]

Originally Posted by Ashley

It is through creating a niche, and creating relationships that businesses are able to survive. As the world of commerce evolves- free trade, wholesale pricing, reduced overheads, faster communication, faster transactions, comparison shopping, etc, it is more apparent than ever that what lies at the heart of it all is not who has the lowest price, but what it has always been- the ability to build a relationship. The ability to build trust. The ability to connect with people. Business is evolving, but the way that people connect with others will always remain the same.

What a succinct summary of superb salesmanship and customer service! Ironically, the 'niches' are also covered here at Pearl-Guide (Jeremy—how cruel!).

Pearldiver's rants regarding erosion of value and credibility of discount did get my attention, however. What positive or negative effect does internet discounting have on the bottom line at the farm level? Since the pearling industry is not in its most healthy moment, this would appear to be an issue. Is any portion of high retail pricing achieved by monopolistic international trademark owners, national importers, or B&M mall chains passed along to said farmer, or at a minimum are annual purchasing guarantees made facilitating long term investment by said farmers not otherwise possible?

[Caitlin]

Well, I am way behind on this, thanks to my inability to access the internet for several days. I just read the entire CPAA thread LINK and I have pages of comments. Here is the first page:

Quote from PBazar.
The very best Chinese Akoya AAA hanadama may be only A quality Japanese Quality.

If you do some research, you will find that it is a lab in Japan that certifies Hanadama. They are VERY strict and will not pass anything but the best of the AAA akoyas, whatever the origin of the pearl-China or Japan and maybe now Vietnam might be getting that quality.

pearldiver52865 on Tue Aug 05, 2008 1:56 pm
I understand and agree, but these internet based pearl sites are crushing the market by advertising super high quality at insane discounts. How do I respond to my customer's (sic) when they come into my store and ask about what these pearl sites are offering? How can American Pearl compare themselves to Mikimoto with such insane price differences and the consumer think that they are really comparing apples to apples. Now they are asking me for Hanadama....what am I suppose to tell them? I'm thinking of dropping pearls all together and just liquidating my $100K japanese akoya pearl strand inventory


Insane? That is an emotional reaction and immediately allows the adjectives to rule over the facts.
American Pearl? Indeed they do have some practices that do not make them a paragon of online pearl selling. We have at least one thread of customers’ experiences with them and comments on some of their business tactics. If you had stuck to naming this company, we could have found common ground in agreeing that they are not ethical in some practices.

More emotional, foolish talk about liquidating your B&M 100k inventory? How would you do that----online? It sounds phony on the surface

[Caitlin]

Quote from pearldiver52865 on Wed Aug 06, 2008 7:47 am
Mr. Shepherd:

Your aforementioned claim that the brick and mortar stores cannot compete with the online stores is just another example of the preposterous claims you make on your website (pearlparadise.com). If your Hanadama necklace is the same quality as Mikimoto's top quality, how in the world could actually think that offering the product at a 80-90% discount is boosting consumer confidence in the product. You may have a further reach than my stores, but as you said pearls really are a product that needs to be seen and explained. I recently had a client bring me a strand of your AAA 6.5-7mm akoya pearls. Not only were these poorer quality than the lowest quality Imperial pearls in my showcases, I brought the necklace to the JCK Las Vegas show and compared it to Mikimoto and Mastoloni necklaces. Again, it was worse than both of their lowest qualities. Both cited very poor coating, thin nacre, poor shape and bad matching for the grade of AAA. When I got back from the JCK show, I explained to him my findings. I gave him credit for what he paid for the necklace and sold him a "true" high quality “Crown” Japanese akoya pearl necklace. I learned a lot during the show and store owners need to be aware of the fake claims you and the rest of the on-line dealers are making. Also, store owners truly need to be better educated.

You and the rest of the on-line dealers are such fakes and a joke, and I find your predatory pricing tactics to doing more harm than good to the overall jewelry industry in the US. Your claims about discounts are just simple preposterous and your attempted use of the term "hanadama" and use of quality grades that mean
nothing is undermining overall consumer confidence in cultured pearls. Though you think you are trying to create stability and parity in the market by comparing a PSL report to that of a GIA report, the discounts you offer are just too unbelievable to actually boost consumer confidence. If you were offering comparative product at a 10%-20% discount over the brick & mortar stores, that would do more for consumer confidence than using the term "hanadama"
pearldiver52865

Posts: 7
Joined: Tue Aug 05, 2008 9:09 am

Preposterous, such fakes and a joke, predatory pricing tactics, claims about discounts are just simple (sic) preposterous

Tsk, tsk, these emotional terms demonstrate that an emotional force is let loose in this comment. These are personal attacks and do not address the facts.