Color Gemstone Jewelry for Fall Accessorizing New Luxecor Bands Affordable Lightweight Quality. Rich Bridal Styles to Make Dreams Come True

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1 September 2008 Color Gemstone Jewelry for Fall Accessorizing New Luxecor Bands Affordable Lightweight Quality We will close for Labor Day on September 1. Rich Bridal Styles to Make Dreams Come True

2 Say yes with Stuller... Say yes to value... Stuller gives you more ways to say yes to your customer. From new styling and timesaving techniques to value-added services and innovative selling tools, we always strive to supply exactly what you need to meet the demands of a changing industry. Say yes with Stuller s customized solutions, alternative choices, and 24/7 availability on stuller.com. Stuller. The beauty of it all.

3 C O N T E N T S contents S E P T E M B E R I s s u e Stuller & Industry News 6 catalog resources finished jewelry 6 new board member chuck lein 7 luxecor wedding bands lightweight, superior strength 8 what s new los rosales crosses 9 what s hot double diamond dangles features Gemstone Jewelry to Dazzle & Fascinate 10 Red Box Diamonds cushion cuts 11 Black Box Gemstones the story of brown 12 diamond facets the female consumer 14 jewelry partner JBT helps your credit 15 customer testimonial marketing on demand trends & fashion 16 bridal beauty engagements & bands 18 gemstone style color sells 22 stuller studio earrings your way at the bench 3b 5b 6b 7b 7b 8b 9b stuller expert carlos defex master s touch set cushions easily display your colors attract new customers custom designs your creative bench designs stringing along new Beadalon tools preset preform step by step findings flair sterling silver & 14kt yellow On our cover: Ring b X1 Pre-Notched Findings: Bright White Style Check out for a huge clearinghouse of Stuller information and orders. SEPTEMBER the stuller standard

4 Holiday and Jewelry Event Advertising Just Got Easier to Use. Stuller s Customized Print Program now features drag-and-drop product placement technology. As part of our continuing efforts to bring you cost-effective advertising options for your store, our automated print advertising and direct mail system has been updated with many new features, just in time for your holiday advertising. More than 50 new direct mail templates are now available with a variety of themes: Holiday Ads, including a holiday 12-page mini catalog, postcard and invitation with gift card Diamond Ads Platinum Ads Color Fashion Jewelry Ads Moissanite Ads Special event ads including Repair, Restyling, Ladies /Men s Night, Valentine s Day And much more... You can easily select products from our extensive gallery of exceptional product images. Creating your own print advertising with your personal message and logo is quick and easy. The new drag-and-drop product photo placement allows you to place products directly onto your chosen template. Uploading and adding your logo is just as easy. We ll even mail your printed pieces to your customers for you if you want to upload your mailing list, leaving you with more time to sell. You ll also notice that your shopping cart now itemizes your Marketing on Demand invoice automatically. So, what are you waiting for? Log on to stuller.com now to start building your advertising today. Click on the Marketing Services tab at then on Direct Marketing on Demand You can browse through product images and save the ones you want to use in a Personal Favorites gallery until you are ready to build your ad. Templates are easy to find in the gallery, and we ve added a search engine to help you quickly find what you are looking for. * Stuller s print marketing on demand is powered by Ad Patch, a Florida-based technology and marketing company.

5 E D I T O R I A L notes from Matt AS WE ENTER THE FALL SEASON, we all hope for an improving economy and seasonally high sales. To ensure the highest possible returns this season, now is the time to concentrate on fall staffing needs, training and store security. The investment you make now in your staff and your store will pay off greatly during the busiest parts of the selling season. Fall Staffing Beefing up your numbers of quality staff two weeks before the biggest part of your business hits shortcuts your efforts to sell. Early fall is the time to begin interviewing and having people available to come in and sell. Or, perhaps you want to re-hire last year s extra help, so they will require less training to hit the ground running. You ll want to let them know now that you want them on your team again. Staff Training Once you ve selected your holiday staff, plan a sales retrainer for everyone on store procedures and product lines. Remember, the more they know about your product lines, the better they can sell. Store Security With the holiday season comes the need for increased store security. September is a great time to have your security company give your employees a security refresher, then you can do a dry run of your emergency security procedures. Should you ever have to put the real thing into practice, your employees will be prepared. May you enjoy a safe and profitable fall selling season in your community. matthew g. stuller, sr. CHAIRMAN & CEO CEO AND CHAIRMAN Matthew G. Stuller, Sr. president/coo Dr. Chuck Lein EXEC. VP, MERCHANDISING & Marketing Harold Dupuy, G.G. EXEC. director, marketing services Kerry Hand editor in chief Miriam Werquin stullerstandard@stuller.com staff contributing writers Keri Barousse Lori Carter, Mgr. Leslie Dumatrait, D&G Asst. Marketing Manager Ramona Gautreaux, D&G Marketing Director Sarah Bradshaw Susan Kiefer design Jacqui Cheramie, Director stuller standard online Trenton Bolfer, Mgr. Ron Domingue Kim Thibodeaux, Mgr. info@stuller.com contact us stullerstandard@ stuller.com Stuller Standard Magazine P.O. Box Lafayette, LA fax photography Frank Centrilla, Sr. Photographer Maggie Hidalgo Noelle White, Photographer Marie Vest production Maureen Benjamin Lori Bouillion Leslie Dumatrait Shannon Guidry, Mgr. Missy Kruger Brenda Landry, Mgr. Yolanda Laviolette Robert Lawson Stephanie Pellerin Kisha Thompson contributing writers Claudia Rose product management contributors Kathleen Blanchard, Diamond Fashion Nathan Button, Findings Chookie Diaz, Metal Fashion Vanessa Calais Jones, Moissanite Finished Jewelry Dottie Lukaszeski, Metals Eleanor Lipps, G.G., Bridal James Louviere, Symbolic Mary Mouton, Mountings Denise Quebedeaux, Color Fashion Sandi Segura, Packaging & Display Virginia Stuller, Stuller Pearls Kelly Tauzin, Gemstones Jim Wright, Findings Jodi Venable, Tools Xathena Carter, Diamonds editorial advisory board Linus Cortez, EVP, Finance Bob Cox, EVP, Sales Jay Jackson, EVP, Logistics Jack McKay, EVP, IT Chuck Bowman, BVP, Mountings Elizabeth Brehmer, BVP, Findings Michael Clarke, BVP, Finished Jewelry Joe Orlando, BVP, Gemstones J.P. Walrond, BVP, Bridal Jewelry Darrell Warren, BVP, Tools & Supplies/Metals Stanley Zale, BVP, Diamonds 2008, Stuller, Inc. All rights reserved. SEPTEMBER 2008 Stuller, Inc. is a Diamond Trading Company (DTC) Sightholder. the stuller standard

6 C ATA L O G R E S O U R C E S Finished Jewelry Catalog, Vol 67 Just in Time Catalog a Must for This Holiday Season The Finished Jewelry Collection If you re a retailer without a bench jeweler and you want to sell beautiful finished jewelry, you have the perfect resource in your store! It s The Finished Jewelry Collection, Vol. 67 from Stuller. And, it has a wide selection of finished jewelry items ready to go from catalog to counter overnight. Bold, exciting visual images from the front cover and continuing throughout the book mark a new direction for us, says Matthew Stuller, Chairman and Chief Executive Officer. This is a significant departure from previous catalogs, just the start of what you can expect from the new Stuller. The time available for holiday shopping has continued to compress over the years, and just as important, today s consumers have often done their homework before ever setting foot in a store. They have very little time to spare and have a good idea of what they want. Retailers need to be prepared to accommodate these realities. With this in mind, the Finished Jewelry Collection Volume 67 is intended as a countertop show piece, featuring modern, contemporary design with a strong color message sure to draw the attention of the most discerning clients, says Michael Clarke, Vice President of Finished Jewelry. The book has stunning photography that provides a beautiful jewelry showcase that extends the scope of the merchandise on display. As the perfect over-the-counter resource for closing sales, this new catalog has quickly become one more way Stuller provides the beauty of it all. Editor s Note: High-resolution images from Wedding Bands from the Bridal Collection, Vol. 68; The Finished Jewelry Collection, Vol. 67; The Platinum Book, Vol. 61; The Bridal Book, Vol. 48; The Moissanite Book, Vol. 53; and The Mountings Book, Vol. 55 are available for purchase by clicking on the Marketing Services tab at Catalog Resources Catalog Resources Lein Appointed to New Trade Show Board More than a dozen innovative vendors and retailers set to help guide development of trade show INSTORE recently created a board to govern its new trade show consisting of jewelry vendors and retailers. Stuller s COO Chuck Lein was one of the vendor representatives tapped for the new board. The INSTORE tradeshow will be held April at Chicago s Navy Pier. Other board members include (vendors) Laura Klemt of Artistry Ltd, Steve Binder of Aurafin, Barry Sullivan of Camelot Bridal, Rhonda Edelman and Mindy Fielman of Hearts On Fire and Phyllis Bergman of Mercury Ring; (retailers) Joe Pankratz of Avenue Jewelers (Appleton, WI); Cathy Calhoun of Calhoun Jewelers (Royersford, PA); Mark and Monika Clodius of Clodius & Co. (Rockford, IL); James Pesis of Continental Diamond (Minneapolis, MN); Vicki Cunningham of Cunningham Fine Jewelry (Tulsa, OK) and Lee Krombholz of Krombholz Jewelers (Cincinnati, OH). The new board met for the first time in July in Chicago. In order for us to make this event more valuable to the industry, we need to listen to the people who are involved in it every day, said Jim Reed, director of THE INSTORE SHOW. The manufacturers and retailers we have assembled have the perfect combination of industry experience and innovative thinking that will add a lot of value to our plans for THE INSTORE SHOW. We re very excited about the opportunity to meet with such smart, forward-looking people, said Dan Kisch, publisher of INSTORE. They will add a broad range of creative ideas to the mix as we work to build a truly different and exciting show experience. In addition to the show advisory board, THE INSTORE SHOW recruited an online panel of more than 80 retailers who are helping to contribute ideas and insights as the show takes shape. The group has been participating in online surveys and questionnaires since January For more information on THE INSTORE SHOW, go to theinstoreshow.com. Free Educational Seminars and Training at TSJM MJSA s third annual Trade Show for Jewelry Making (TSJM) will be Sept at the Rhode Island Convention Center in downtown Providence. Learn everything from soldering, casting, refining, and design techniques to pricing and promoting your products. Advance registration is free. On-site registration is free for MJSA members and $10 for non-mjsa members. For more information about the show or to register in advance, call or visit mjsa.org. the stuller standard SEPTEMBER 2008

7 S T U L L E R N E W S Introducing Luxecor A New Innovation in Wedding Bands The Luxecor band is an alternative in wedding bands that is lighter in weight while maintaining superior strength with a classic look. Using patent-pending technology, Stuller has found a way for you to overcome high metal market pricing by offering Luxecor Wedding Bands. Luxecor bands are approximately 25% lighter than regular wedding bands, which means lower price points for your customers. Luxecor is a lighter band with the same great look at the right price. Styles Luxecor bands are available as Inside Round Bands (LCIR) and Milgrain Inside Round (LCMGR). The LCIR series can also be engraved on the inside and outside. SEPTEMBER 2008 Lifetime Warranty Each Luxecor wedding band comes with a lifetime warranty. This warranty provides for replacement (if returned to Stuller) for damage as a result of manufacturing defects. Normal wear and tear is excluded. Key features of the warranty are: New rings may be returned for size exchange if unworn and unaltered. Sizing exchange on worn or altered bands will incur a service charge. Rings returned are replaced with new rings. All returns are processed within 10 working days. Current shipping charges will apply on returns. For complete Luxecor warranty information, visit: Luxecor Selling Systems Luxecor bands are also available in convenient selling systems that can be customized to your best selling widths and sizes. For more information, please visit: or call your friendly sales consultant today at Finger Size LCMGR Series LCIR Series LCIR Series Engraved Stuller Style Availability The LCIR and LCMGR are both available in 14kt yellow and 14kt white in these sizes and widths: mm width LCIR LCMGR While Luxecor Bands are available in whole and half sizes, they cannot be stretched due to their patent-pending design. They can, however, be sized with regular sizing stock because they have the same size and appearance of regular wedding bands. the stuller standard

8 W H AT S N E W & H O T R42156D R42153 Los Rosales at stuller.com Grand and gorgeous. Stuller s los Rosales Mysterious and marvelous. collection is stocked in 14K Rich as the garden of roses yellow, 14K white and 14K that inspired the name, this rose gold. Visit magnificent collection of com and search los Rosales crosses was designed to to see all six styles. Two of honor the festive and fabulous the six styles hold gemstones Hispanic tradition. we stock them already The vibrant color and set with diamonds or you heavenly fragrance of roses can have us set any stones have long been associated through Stuller Studio, or you with sacred themes and can buy the mounting and set supreme love, and so it was a your own stones. natural to use when designing these crosses. R42156D Los Rosales Diamond Cross Pendant,.14 ct tw, 14kt yellow, $954 (Shown with CH768, sold separately). R42153 Los Rosales Cross Pendant, 26.25mm x 17mm, 14kt rose, $294 (Shown with CH768, sold separately). What s New What s Hot New Journey Diamond Jewelry Styles Smooth. Modern. Urbane. Give her all the style she is looking for in diamonds with a piece of jewelry to show how your love has grown. 3-stone Moissanite Jewelry Now you can have the beauty of Created Moissanite paired with Chatham Created Ruby. This is an exciting new twist to a jewelry category that is rapidly becoming the symbol of smart, savvy, and fashionable women worldwide. It s perfect for the woman who is an independent decision maker. Though moissanite jewelry is the perfect gift, many choose to purchase and wear moissanite to reward themselves for what they ve earned and celebrate their own achievements. Journey Diamond Jewelry signifies love s milestones in your lives. To see our full line of created moissanite jewelry, go to To purchase this piece, or other Journey Diamond Jewelry pieces, call or go to Journey Pendant for Diamonds 1-1.8,1-1.9, ,1-3.1,1.3.5 (Shown on CH128 sold separately.) Mounting only $ Chatham Created Ruby and Created Moissanite Ring, 14kt white, $1,257. Mounting #70492, $399. the stuller standard SEPTEMBER 2008

9 W H AT S N E W & H O T Amethyst Ensemble Sizzles Heading into fall, purple is among the most popular fashion colors. These large amethyst and diamond pendant and ring will make passersby stop and take a second look. Stunning in color, size and design, your customer will be glad to see these in your showcase. The checkerboard cut gemstone allows light to dance throughout the piece, giving you a jewelry ensemble sure to become the center of conversation. At you ll see these fashion-forward gemstone styles and more Genuine Checkerboard Amethyst and 1 /3 ct tw Diamond Pendant, 18x13, 14kt white, $1, Genuine Checkerboard Amethyst and 1 /4 ct tw Diamond Ring, 18x13, 14kt white, $2,139. What s New What s Hot Amari by Stuller Cuff Links Double Diamond Dynamite Exclusively designed and crafted by Stuller, the Amari by Stuller Collection is exceptional! These Amari cuff links are part of one of our most recent sterling silver and 14kt yellow collections of diamond product for men and women. The name means having great strength. Jewelry in this collection is boldly designed with the look of animal hides. Men s accessories continue to grow as an opportunity business. These cuff links reflect fashionsensitive snake motifs. See these and more styles in the collection at Men s Diamond Cuff Links, 1 /2 ct tw, sterling silver/14kt yellow, 110 $1,700 per pair Men s Diamond Cuff Links, 1 /2 ct tw, sterling silver/14kt yellow, 110 $1,721 per pair. Brilliant gem matching, precision pairing and stonesetting, and fully-articulated mountings make these earrings a stunning sensation. Allowing movement to catch the light easily, this style emphasizes the brilliance of the diamonds. Pull-through hooks make these easy to wear, day or night. Not only are they a real wow, but the price point is terrific for diamond earrings. Order now at or at Diamond Earrings, 3 /4 ct tw, 14kt white, 110 $2,407 per pair. SEPTEMBER the stuller standard

10 A B O U T D I A M O N D S make a unique statement Cushion-Cut Diamonds one of the oldest diamond shapes, the cushion-cut is enjoying a resurgence of popularity. Often referred to as the pillow cut or candlelight diamond, the cushion-cut displays a softer, more subtle glow that is meant to be its most dazzling in candlelight. Cushion-cuts come in various shapes ranging from almost square to rectangular, but with curved corners. The beauty of this diamond cut is in the depth of the diamond, which encourages you to look deep within and appreciate its exquisiteness. Whether used in antique settings or contemporary designs, cushion-cut diamonds make a unique statement. As your Diamond Trading Company Sightholder and direct supplier, we are your source for Cushion-cut diamonds. Looking for Cushion-cut Calibrated Diamonds? Whether you are designing a piece of jewelry or repairing one, our inventory of cushion-cut calibrated diamonds gives you the range of sizes that will fit your needs. Have a replacement diamond that is difficult to match? Take advantage of our mail-in matching service and let us do the hard work for you. Looking for Large Cushion-cut Diamonds? Cushion-cut Red Box Diamonds are backed by a selling system that is a powerful tool for you to use to grow your diamond business and build trusting relationships with your customers. Comprised of diamonds ranging in size from 3 /8 carat to 5 carat and larger, our Red Box Diamond program gives you access to a breadth and depth of inventory second to none. Experience the Beauty of it all. Call your sales consultant today and say yes to Cushion-cut Diamonds from Stuller. The Beauty of the Red Box Diamond Selling System Great Prices on Cushion-cut Red Box Diamonds Serial Shape Clarity Color Wgt. Sale/CT % off RAP * Cushion SI3 D 0.53 $1, % * Cushion SI2 F 0.67 $1, % * Cushion SI3 K 0.72 $1, % * Cushion SI1 D 0.72 $3, % * Cushion SI3 H 1.01 $2, % Cushion SI2 F 1.01 $3, % * Cushion SI2 H 1.06 $2, % * Cushion SI2 F 1.12 $3, % * Cushion SI1 D 1.52 $6, % ** Cushion SI2 G 1.53 $4, % * Cushion SI2 D 1.56 $4, % ** Cushion SI2 G 1.56 $4, % 85750* Cushion SI1 I 2.23 $5, % ** Cushion SI2 J 2.26 $4, % * Cushion SI3 G 2.42 $4, % ** Cushion (Matched to ) SI1 H 3.01 $10, % ** Cushion (Matched to ) SI1 H 3.02 $10, % ** Cushion SI2 I 3.06 $6, % ** Cushion SI1 H 3.40 $8, % ** Cushion SI3 H 3.53 $5, % Serial #s noted with * have Stuller report; those with ** have a GIA certificate. All others have an AGS report. Pricing is jeweler cost. The Red Box Diamond selling system is designed to satisfy your customer s need for trust, confidence and security in a diamond purchase. Trust starts with knowing that every Red Box Diamond is guaranteed to hold its value. With the Trade-Up program, you can exchange a Red Box Diamond for another one of greater value that is in our inventory. So long as the diamond is in its original condition, you will receive credit of exactly what you paid for the diamond. This means that your customer can be assured that their purchase will always be worth the price paid. When it comes to confidence, we provide assurance that our diamonds are ethically obtained and in complete compliance with the Kimberley Process. We also guarantee the accuracy of all Stuller grading reports. This allows you to provide your customers with peace-of-mind. Your customers can feel secure that their Red Box Diamond is safe. With free loss protection for one full year, and a laser inscribed serial number on the girdle of the diamond, your customers are covered in the event of a loss. Trust. Confidence. Security. The beauty of Red Box Diamonds! 10 the stuller standard september 2008

11 sultry. smoldering. stylish. The Story of Brown using color as the starting place for your gemstone sales puts you on the road to profitability. Colored gemstone jewelry serves as stunning fashion accessories that find appeal amongst those consumers who look to color as a way to enhance their beauty, their identity and their wardrobe. If you are not sure what to say about color, read on! Brown is our color focus for the month of September. Below is our Top 5 list of things to tell your customers about brown. Get them excited about color and then help them find a gemstone that fits within their budget and lifestyle. 1. Color Communications Luxurious chocolate, sumptuous caramel and sparkling beiges will warm your soul and catch your eye with their shimmering color. 2. The Brown Personality Lovers of brown are down-to-earth individuals who appreciate simple elegance, comfort and harmony. These individuals strive for consistency in their routine. They would prefer a movie night at home versus a night out on the town. A B O U T G E M S T O N E S spectrum, opulent cream and taupe add elegance to clothing in the coming year. 4. Sultry, Stylish Designs As an accessory, try combining essential chocolate or coffee-colored gems to pastel fashions or to rich, earth-toned apparel. Mixing different gems together is another idea that makes a unique fashion statement - Smoky Quartz with Pink Tourmaline, Aquamarine or Citrine creates jewelry that is as distinctive as its owner is. 5. Gem Varieties Brown is both timeless and trendy. It connects us to the earth and all things organic. Be original with smoldering brown gems like Smoky Quartz, Tiger s Eye or Bronze-colored Tourmaline. Try combining these gems with colors like blue Aquamarine or Pink Sapphire to make a bold statement. To help you and your staff focus on a color-centric message, order your gemstone marketing package today. Just ask your sales consultant for KIT:90217:T, just $ Brown in Fashion Trend experts report that chocolate and caramel colors are neutrals that anchor other hues. Natural fabrics and urban designs feature sandy-beiges and cinnamon browns. On the lighter side of the brown From beautiful to amazing, customize your jewelry with Stuller s selection of loose gemstones and mountings. Save yourself time and effort with Stuller Studio ; we will set it for you! Gemstones: Black Box Gemstone Serial # ct Bronze Tourmaline. 8mm fantasy-cut Smoky Quartz 12x8mm pear-shaped, Smoky Quartz, AA 8mm honey-colored Tiger s Eye Set Pieces: #R45057 Smoky Quartz pendant available through Stuller Studio. 12mm x 10mm pendant set with AA Smoky Quartz, 14kt yellow, Sugg. retail $279. (Chain sold separately.) #71376 Tiger s Eye and diamond ring available through Stuller Studio. 12mm x 10mm ring set with genuine Tiger s Eye, 14kt yellow, Sugg. retail $1,105. (Diamonds: G-H, SI 2 -SI 3 1 /6 ct tw.) SEPTEMBER the stuller standard 11

12 D P S C O L U M N wdps diam nd facets Inside the mind of the female consumer e had the pleasure of meeting some Stuller Standard readers at the AGS Conclave in April, where our breakfast presentation explored the interests of women shoppers. This column summarizes the top ten points of the presentation. I. Experts tell us gender is the single most important factor influencing our behavior. Our industry needs to better understand how men and women shop in order to appeal to each gender more effectively since they have very different approaches to shopping. II. Certainly men are extremely important to jewelers, since over 75% of diamond jewelry is purchased by men for the women they love. However, women are crucial influencers of diamond gifts. Women often pre-shop extensively to tell their husbands just what they want and where to find it. In fact, 65% of women either instruct their husbands or provide a print ad to guide purchase. Many of the rest influence the purchase in other ways. Therefore, no savvy jeweler should view women as time-wasting browsers, even if they do not purchase. They are there on a mission. If alienated, they will go elsewhere, and so will their husbands! III. Since 80% of women surveyed state that they enjoy shopping for books or apparel more than for diamond jewelry, our industry needs to make the purchase experience more enticing for women. Competing against entertaining new retail environments, jewelry stores seem too much alike and too predictable, according to women. Many women feel unwelcome, even intimidated, in jewelry stores. This is often due to the behavior of sales associates who need training to engage these shoppers and make them feel comfortable. IV. Women follow a circuitous path when seeking important purchases, reconsidering decisions and incorporating new information to achieve an optimal solution. She s on an exciting hunt for the piece of her dreams, not just pursuit of an acceptable product. She s eager to connect and find common ground with the sales associate. The associate who lets her try on the most pieces and encourages her to take her time will probably win her business. In contrast, most men follow a logical, linear path in search of a good enough solution when making Strategy, at the Diamond Promotion Service. important purchases. They want to get it done and they need clear explanations of the rational benefits of one choice versus another say trading down on diamond color to obtain a larger stone. V. Train associates to help each man feel like a hero when he buys diamond gifts. He truly fears getting the wrong thing. But, he wants to avoid seeming naïve or uninformed to the salesperson. It is critical for him to hear an explanation of why the price is fair for the selected piece. In contrast, a woman is most interested in finding the precise design of her dreams, although she too wants clear pricing information. If you do not have the piece she is seeking, can you order it or have it custom designed? VI. We found that women believe that jewelry brands are a signal about the uniqueness of the rest of the merchandise in a particular store. In research, women indicated that the presence of designer jewelry brands provided a halo over all of the rest of the store s merchandise. They believe that all the merchandise in stores that carry at least a few nationally-known designer jewelry brands has more distinctive style, as compared to stores with no brands. VII. Women want to feel pampered and be invited to explore your inventory. Men are looking for a place to sit and relax while their wives are looking at jewelry. Studies show that the most important factor determining how much people will spend at your store is time spent. Organize your store to give him a place to chill out while offering her a collection of exquisite designs to consider. VIII. Remember that she likes to linger over the merchandise while he wants it to be quick and easy when he s shopping on his own. She likes to assess jewelry in a full-length mirror and under a range of different kinds of lights, from bright illumination to evening light. IX. One data surprise is the role of the internet. It is women who are now more likely than men to go online to research diamond purchases and even to buy jewelry. A third of women always go online to see what a store offers before visiting the shop. Is your website ready for her? X. Finally, women as well as men need to trust you and your store, now more than ever. Two signals of high retailer ethics are having a clear, understandable pricing policy and having knowledgeable salespeople. For more information, visit the new section of dps.org called Promoting Your Reputation. You ll find the complete Conclave presentation on which this column is based at our website, dps.org. Feel free to download it and discuss with your staff. It s at: Editor s Note: This is part of a running series from Claudia Rose, Director of Industry 12 the stuller standard september 2008

13 o store strategy IDEX Online Research: Challenges 2008 Online Jewelers Poised to Change the Industry nline Jewelers Have Above Average Market Share In the U.S. market online jewelers have captured about 3.9 percent of total jewelry sales, based on 2006 retail sales figures. In contrast, online merchants of all other retail categories have captured just 2.8 percent of all retail sales. The graph below illustrates the disparity between market share of online jewelry sales and sales in other retail categories. 5% Why have online jewelers been able to capture above-average market share? 4% After all, jewelry is difficult enough to 3% sell in a store environment where each sale must be handled by a sales 2% associate, and there is no such thing as self-service. 1% The primary reason online jewelers have captured significant market share 0% Source: US Department of Commerce is because of the product mix of online jewelry sales. In a typical specialty jeweler s store, about 50 percent of the sales are diamonds and diamond jewelry which carry an average ticket (at the mass market level) which is double the average ticket of the entire store. In other words, diamond jewelry is among the most expensive product category in a jewelry store. Online merchants, by contrast, generate nearly 80 percent of their sales from diamond jewelry, with its inherently higher average ticket. Further, the average ticket for online jewelers who specialize in diamond engagement jewelry is far higher than a store-based merchant. Among bricks-and-mortar stores in the U.S. market, the average ticket for a diamond engagement ring is about $3,200, while Blue Nile s average ticket for a diamond engagement ring is about $5,700. Further, Blue Nile s average jewelry ticket is over $1,500 while the typical mass market jeweler generates an average ticket of about $350 and a better-end AGS type jeweler generates an average ticket of nearly $1,100. Thus, online jewelers are skimming the cream by taking the big ticket sales that generate significant gross profit dollars, even though the online jeweler s margin is far below the industry average for a storebased jeweler. The two graphs illustrate the difference in the product mix between online jewelers and store-based jewelers. The first graph, bottom left, shows that online jewelers sales mix is about 80 percent diamonds and diamond jewelry. The balance is comprised of all other categories. The second graph, top right, illustrates that the typical specialty jeweler generates about 48 percent of sales from diamonds and diamond jewelry. A higher-end store relies even less on diamond jewelry the typical AGS-type store generates less than 40 percent of sales from diamonds and diamond jewelry. Furthermore, it is important to note that most online jewelry Source: JIRI estimates sales are commodity goods basic S T O R E S T R AT E G Y pendants, rings and ear studs. It is easy to compare prices on these basic goods, and the certificates which accompany them summarize the specifications of the diamond. Most online jewelers have been unable to penetrate Source: JA the market for fashion jewelry. Their business model does not work well with one-off products, and it is difficult for the customer and the jeweler to interact on custom jewelry designs. Blue Nile is exploring jewelry customization, but the heart of the company s product mix remains commodity diamond jewelry. Online Financial Model There is no question about it: online jewelers have developed a streamlined financial model that allows them to sell for less, but generate pretax profit margins that are nearly double the level of a typical store-based specialty jeweler. The most glaring difference in the financial model between online jewelers and bricks-and-mortar merchants is their gross margin, defined as revenues less cost of goods. The typical store-based jeweler generates a gross margin near 50 percent. In dramatic contrast, the typical online jewelry merchant such as Blue Nile generates a gross margin of just over 20 percent. Here s what this means: online jewelers sell for less. There is no escaping this conclusion. Even without the financials, which can be found in legal filings with the Securities and Exchange Commission, consumers can price-compare like-for-like goods, especially since the industry now provides certificates with most diamonds. The graph below illustrates the disparity between online merchants gross margin and bricks-and-mortar retailers gross margin. 60% While shoppers are less 50% interested in the comparison of other financial metrics of online 40% jewelers versus store-based 30% jewelers, both commercial bankers 20% and investment bankers are very interested in these financial 10% comparisons. 0% From the viewpoint of a banker, Source: Company Reports online jewelers have an extremely attractive financial model. Not only are pretax margins nearly double the level of store-based jewelers, but online jewelers inventory turn multiples faster than store-based jewelers. Online jewelers leverage their suppliers much more, and need far less capital to run their business. Thus, interest costs are minimal for online merchants. Editor s Note: This is the second in a 3-part article reprinted with the permission of Ken Gassman and IDEX online. SEPTEMBER the stuller standard 13

14 S T U L L E R PA R T N E R did you know that The Jewelers Board of Trade (JBT) the only commercial credit reporting agency dedicated solely to the jewelry industry lists and tracks more than 30,000 jewelry-related businesses DIONE (retailers, manufacturers, wholesalers and related service providers) throughout the United States? And that there s a good chance you are one of them? When you are listed with JBT, information on your company is stored in our database and accessible to our members to aid in their credit decision making. This can help you get on the radar of the supplier community. All companies listed with JBT are assigned a rating reflecting the level of financial information on file with us, payment history, and information gathered by JBT from other sources. JBT members, primarily suppliers of jewelry products and related services, may use this information to assess the risk associated with making a sale to a particular account, and to help determine how much credit to extend. Increasingly, retailers are also joining the JBT to better know their supplier business partners. The JBT has more than 120 years of experience gathering credit information and offering collections services, assigning credit ratings when sufficient data and disclosure are available, and serving as a resource on credit matters. You should be aware of how credit ratings are determined, how you can impact the rating for your company, and how you, too, can use the JBT to make sound business decisions. Having good credit can benefit you in several ways. First, it gives you access to better sources of supply. The strongest suppliers earn margins on the quality of their product and services vs. financing the trade. You may receive better pricing and better service when you pay on time. In the long run, that translates into a more successful business for you. Don t be fooled. Slow payers do pay more, since suppliers often build in extra costs for slow or extended payments. Without a doubt, good credit is an extension of your reputation and translates into a competitive advantage in an increasingly challenging marketplace. Every day, JBT investigators compile and update business and financial information on companies in our database, providing necessary background data to determine credit ratings. Every JBT listed company is mailed an update form at least once each year to notify us of new developments and suppliers to contact for payment experience. If we do not hear from you, our investigators follow up by phone. Our credit ratings are updated regularly, with changes JBT Your Suppliers Know You. Shouldn t You Know Them? D. KENYON PRESIDENT OF JBT published weekly, and are considered by JBT members to qualify new accounts and monitor existing customer relationships. Over the past few years, JBT has modernized its credit report format and ratings system with expanded data, using new technology to better compile the more than 2 million payment references provided and processed at JBT each year. Payment scores range from 0-4 and are assigned to all accounts. Scores of 1-4 continue to indicate paying habits of prompt to slow. A payment score of 0 indicates no basis for pay rating for example, insufficient trade references or claims on file, the subject company is too new to rate, is currently operating in bankruptcy or receivership, or another circumstance (such as limited information) that prevents JBT from assigning a payment score. Collection claims placed by members with JBT may also be considered. Payment scores are regularly updated as new information is available and processed. The longer you ve been in business, the better. We require three years of consecutive financial statements to consider the assignment of a capital (financial strength) rating. We also look at the backgrounds of owners and key managers to uncover any past financial problems, check public records and other information resources for supplemental information, and we research our database for your recent payment track record to the vendor community. We then compile a report for members to use when deciding to extend credit. The more complete the information you can provide, the more qualified your company may become. Retailers who decline to give us any information may be sending a red flag to members considering credit lines. Let s face it. Suppliers want and need to be repaid in full in a reasonable timeframe. Each has a different appetite for risk and will balance risk factors against rewards. The higher their risk, the more you as a retailer may pay in terms of higher prices, later deliveries, slower service, and less access to occasional accommodations. More and more retailers are interested in evaluating their supplier business partners for reliability and stability. Given the recent enactment of the USA PATRIOT Act, and emerging issues around reputation risk and social responsibility throughout the supply chain, more vigilance is required to adequately know your suppliers. Thus, retailers may find membership beneficial. Because, knowing with whom you are doing business is simply a sound business practice. To learn about JBT membership for retailers, visit www. jewelersboard.com or call us at And be sure to ask us whether you are a JBT listed retailer or how to become one. We ll also tell you whether your company is currently rated. Sound credit practices will benefit you now and in the future. And the JBT can help. 14 the stuller standard september 2008

15 Create Interest, Generate Traffic with Stuller s New Customized Print Program We utilized Stuller s new customized print program and created a beautiful newspaper insert, says Gale Sammons-Welch of the Jewel Box Jewelers. The results were amazing. Guests came to the Brick Street Gallery Walk and made a point to stop in the store to see the Charles & Colvard Created Moissanite Collection, which we promoted in our customized brochure. The newspaper insert definitely brought them in. Our guests were so excited to see the new collection. The insert gave us more credibility as the main jewelry store on Main Street! Gale Sammons-Welch The Jewel Box Jewelers Indianapolis, IN According to Ms. Sammons-Welch, The Jewel Box Jewelers continues to enjoy increased traffic and sales since their event. They have already scheduled their next Stuller and Charles & Colvard Created Moissanite event for the Christmas Season, and plan to again customize their advertising using Stuller s Customized Print Program. (See page 4.) Create your own customized advertising with new easy-to-use drag-and-drop product placement. Go to our website, and click on the Marketing Services tab.

16 Celebrate Rich Texture, Sumptuous Design L D B C K M P N A Q H E F R S T J G A Diamond Engagement Ring, ¾ ct tw, 14kt white, 30 $2, Matching Diamond Band, 1 6 ct tw,14kt white, 30 $606. B Diamond Engagement Ring, ¾ ct tw, 14kt two-tone, 30 $2, Matching Diamond Band, 1 6 ct tw, 14kt white, 30 $527. C Diamond Semi-Set Engagement Ring, 9 10 ct tw, 14kt white, 30, 34 $2,574. (5mm x 5mm center sold separately.) Matching Diamond Band, 1 6 ct tw, 14kt white, 30 $528. D Diamond Engagement Ring, ¾ ct tw, 14kt two-tone, 30 $2, Matching Diamond Band, 1 6 ct tw, 14kt white, 30 $574. E Diamond Engagement Ring, ½ ct tw, 14kt white, 30 $1, Matching Diamond Band, ¼ ct tw, 14kt white, 30 $688. F Diamond Engagement Ring, ½ ct tw, 14kt white, 30 $1,742. G Diamond Semi-Set Engagement Ring, 9 10 ct tw, 14kt white, 30 $2,391. (1½ ct center, sold separately.) H Diamond Engagement Ring, ¾ ct tw, 14kt white, 30 $3,093. J Diamond Engagement Ring, ¾ ct tw, 14kt white, 30 $2,443. K Diamond Anniversary Band, 1 5 ct tw, 14kt white, 32, $1,437. L Diamond Anniversary Band, 1 3 ct tw, 14kt white, 32 $1,498. M Diamond Anniversary Band, 1 3 ct tw, 14kt white, 32 $1,725. N Diamond Ring, 1 ct tw, 14kt two-tone, size 7, 33 $2,604. P Diamond 3-Stone Anniversary Ring, ½ ct tw, 14kt white, 30, 34 $1,931. Q Diamond Ring, 1 ct tw, 14kt white, size 7, 33 $2,604. R Diamond 3-Stone Anniversary Ring, 1 ct tw, 14kt yellow, 30 $3,504. S Diamond 3-Stone Anniversary Ring, ½ ct tw, 14kt two-tone, 32 $2,988. T Diamond Anniversary Band, 1 ct tw, 14kt white 30 $3,558.

17 FA S H I O N Selling Gemstones For fun and profit! GeNuINe MADeIRA CITRINe & DIAMOND RING GeNuINe CHeCkeRBOARD GReeN QuARTz & DIAMOND earring GeNuINe MuLTICOLOR GeMSTONe AND DIAMOND RINGS & GeNuINe SMOkY QuARTz & DIAMOND RING Realtors may cry Location, Location, Location, but fine jewelers looking to succeed in a crowded marketplace are increasingly adopting the mantra Color, Color, Color to expand their market share and reap greater profits with a product category that s difficult to price shop, broad in variety, and strong in fashion. You can make serious money with colored stones, advocates James Fiebig, retail jewelry consultant and president of sellmorecolor.com, Sturgis, Michigan. With color, jewelers have much more flexibility in product, price and profit. There are no online price references for gemstones as there are for diamonds. There are bargains in the gem world that would radically improve a jeweler s bottom line. What s that incredible 10-carat spessartite garnet really worth? Whatever the jeweler says it s worth. Because colored gemstones offer such diversity in color and price there s truly something for every taste and budget. Currently, the quartz family of gems has become a designer dandy offering big bold looks for modest price points. Among the favorites are smoky quartz, green quartz, rutilated quartz, Madeira citrine, and classic amethyst, particularly in deep shades of purple and plum. Fashion Color Today s gem darlings are the ideal complements to the hottest fashions for fall. Conventional tones in variations of warm reds, oranges and golden yellows, as well as chocolate browns are top choices, describes Leatrice eiseman, executive director of the Pantone Color Institute, By Deborah Yonick Carlstadt, NJ. Cooler blues, greens and purples also rate high on the radar. Perhaps the biggest influencer has been our growing fascination with the environment. While fallwinter will embrace desert hues, tropical florals, and cool marine shades, says Ramona Gautreaux, director of marketing for Diamonds and Gemstones for Stuller, springsummer 09 will reflect mid-tone pastels reminiscent of 1950s houseware. But Gautreaux says that many jewelers are locked into the birthstone track, not talking about gems in the context of fashion. The modern birthstone list has been around for 100 years and jewelers have trained their sales people and customers to think of gems only in that way. But when you shop for a car, you re not asked what month you were born in. You re asked about your lifestyle and favorite color. Douglas Hucker, executive director of the American Gem Trade Association (AGTA) contends that the fashion industry is doing much of the legwork for jewelers in promoting color. Fashion magazine editorial is selling fine jewelry for our industry with color its biggest plug, he says, noting that self-purchasing women are buying fine jewelry like better handbags and shoes. Women are looking to fine jewelry as key accessories in reflecting their personal style. even in a down economy the accessories market, which includes fine jewelry, is resilient, reported Women s Wear Daily (WWD) June 25. When the economy is good, people buy a lot of new apparel so accessories are strong. But when the economy is such that people are being 18 ThE STullER STandaRd SEPTEMBER 2008

18 FA S H I O N judicious about their ready-towear expenditures, they re still buying accessories to update their look, Britton Jones, president Business Journals Inc., Norwalk, CT told WWD. In fact, Denise Quebedeaux, product manager Finished Color and Pearl Fashion Jewelry for Stuller, reports that despite the economic downturn gem-set jewelry sales this year have been very good. She notes particular interest in smoky and green quartz, as well as citrine set pieces. Different faceting techniques have also been popular including checkerboard tops, barrel shapes and cabochon cuts. Hucker advises jewelers teach their sales staff how to translate the latest fashion trends into the context of the gem-set jewelry they carry. Position your sales associates as fashion consultants. Speak Color When connecting fashion to gems, Gautreaux encourages jewelers speak the language of color. There are so many evocative words to describe gemstones, she tells. Many jewelers are turned off by the term smoky for brown quartz. Why not chocolate or mocha? If you look at any gemstone, its color can inspire a host of expressions like citrine makes me think of golden honey or sunflowers. The words you use to sell a gem can make or break the sale. Our senses are very powerful, and words trigger memories of experiences and feelings, explains color marketing consultant and gem wholesaler Cynthia Marcusson of Cynthia Renee Co., Fallbrook, CA. Gems present many opportunities to sensuously describe jewelry like raspberry rhodolite or butterscotch garnet. Marcusson advises against adjectives like pale. Don t use pale to describe gems that are lighter in tone, it summons images of sickliness. Instead use subtle, soft or pastel. She is most adamant about calling gems stones! The Stones is an aging rock band, they re also on the beach and occasionally in your kidneys. Women don t want a stone around their neck; they want a fine gem. Retailers must be aware of the emotional links in color something the flower industry has done a good job of by promoting what different colors mean in flowers and why you would give them. Jewelers can capitalize on this concept and use color to market to the heart, rather than the mind. Just look at the enormous success of the Apple ipod after it came out in five different colors. Show Color The key to selling gemstones is showing gemstones, advocates Michael Babinski, owner of Foxfire Jewelers, Woodinville, WA. Instead of six cases of diamonds and one of color, we have six cases of color and one of diamonds, he says. When people see all the wonderful pieces we have in color they just love it! When displaying gems, make sure they look their best, advocates color consultant Leslie J. Harrington, principal of L.H. Color, Old Greenwich, CT. Colors are interdependent. You never see an aquamarine alone, it s always against clothing, skin, or material in a showcase. She suggests jewelers use basic color techniques, noting that complementary colors enhance each other. She advises taking a cue from Mother Nature. But if you re showing many colors together, consider a mid-tone gray background to avoid color interference. The bottom line color is personal. Fashion icon Coco Chanel once eloquently said: The best color in the world, is the one that looks good, on you. Find out what colors look best on your customers and close more gem sales! gemstones for fun & profit. Antique Citrine Checkerboard Antique Smoky Quartz Checkerboard Emerald-Shape Green Quartz Checkerboard Oval Amethyst Checkerboard Faceted Oval Amethyst Faceted Madeira Citrine genuine smoky quartz & diamond ring genuine checkerboard citrine & diamond ring genuine multicolor citrine & diamond ring SEPTEMBER the stuller standard 19

19 B C H D A J G E F Luxuriate A Genuine Checkerboard Cinnamon Quartz & Diamond Necklace, 9mm x 9mm,.04 ct tw, 14kt yellow, $455. B Genuine Checkerboard Cinnamon Quartz & Diamond Earrings, 9mm x 9mm,.05 ct tw, 14kt yellow, $516 per pair. C Genuine Checkerboard Citrine & Diamond Ring, 12mm x 10mm, 1 6 ct tw, 14kt yellow, 48, 33 $919. D Genuine Checkerboard Madeira Citrine & Diamond Ring, 12mm x 10mm, 1 6 ct tw, 14kt yellow, 105, 33 $964. E Genuine Checkerboard Cinnamon Quartz & Diamond Ring, 13mm x 13mm,.05 ct tw, 14kt yellow, $1,068. F Genuine Checkerboard Citrine Ring, 12mm x 12mm, 14kt yellow, 48 $545. G Genuine Checkerboard Smoky Quartz & Diamond Ring, 16mm x 13mm, ½ ct tw, 14kt white, 126, 33 $1,905. H Genuine Carved Honey Citrine & Diamond Ring, 11mm x 9mm,.06 ct tw, 14kt yellow, $651.

20 N M Q L A P K in the Warmth & Texture of Fall K Genuine Honey Quartz Earrings, 7mm x 5mm, sterling silver & 14kt yellow, $282 per pair. L Genuine Honey Quartz Ring, 9mm x 7mm, sterling silver & 14kt yellow, $212. M Genuine Checkerboard Smoky Quartz, Citrine & Diamond Ring, 6mm x 6mm, 1 6 ct tw, 14kt white, 126, 33, 48 $778. N Genuine Checkerboard Cinnamon Quartz & Diamond Pendant, 18mm x 13mm, 1 3 ct tw, 14kt yellow, $1,669. (Shown with CH521, sold separately.) P Genuine Honey Quartz Bracelet, 11mm x 9mm, sterling silver & 14kt yellow, $420. Q Genuine Cinnamon Quartz & Diamond Ring,18mm x 13mm, ½ ct tw, 14kt yellow, $2,455. To order, call or go to

21 S T U L L E R S T U D I O Earring Customization with Stuller Studio Stuller Studio introduces a new level of customization. Studio makes it easy to build a pair of earrings exactly the way your customer wants them through our new Earring Program. You choose the setting, post style and matching backs. Choose stones from our extensive Diamond & Gemstone inventory, and let Stuller Studio send you a beautifully finished pair of custom earrings, ready to wear, within five working days. Call to learn more about all of our style options available through this program. How to Spot a Football Fan NFL season starts in September, so remember to talk it up with your sports enthusiast customers. They aren t hard to spot. Suspicious activity includes: wearing a football cap into your store wearing a football T-shirt or jacket into your store watching a football game on their ipod while in your store carrying a football into your store, under their arm, as though fighting off tacklers If you spot any of the above behaviors, feel free to open up to pages 252 to 259 of the Religious and Family Jewelry Catalog, Vol. 62, or bring them online to and search NFL. This is one game both you and your customer can win New York Giants Helmet Pendant with Enamel, 21.25mm x 21mm, 14kt yellow, $ New England Patriots Helmet Pendant with Enamel, 21.25mm x 21mm, 14kt yellow, $ Dallas Cowboys Helmet Pendant with Enamel, 21.25mm x 21mm, 14kt yellow, $211. Mountings: Pricing is suggested retail in U.S. Dollars at a $900 gold market; $2,000 platinum; $20 silver, and subject to change without notice. Sold by DWT, plus labor and invoiced by exact DWT shipped, blank, without stones. Most items available set Stuller Studio with your choice of stones from our exclusive inventory within five days and are non returnable, non cancelable. Photography: Most products enlarged to show beauty of detail. Finished Jewelry: Pricing is suggested retail in U.S. Dollars at a $900 gold market; $2,000 platinum; and subject to change without notice. Sold by piece, not weight, with stones featured. Product stone code descriptions can be found on pages of The Finished Jewelry Collection, Vol. 67. Many styles are exclusive copyright of Stuller, Inc. and strictly enforced. 22 the stuller standard SEPTEMBER 2008

22 Fancy Anniversary Bands Alloy Kit For this Fancy Anniversary Band Alloy Kit, we ve replicated our best selling, Fancy Anniversary Bands in gold-plated or rhodium-plated alloy set with Cubic Zirconia stones. The alloy Fancy Anniversary Bands are tagged with finished jewelry series numbers and a $900 gold market suggested retail. All bands are approximate finger size 7 and are featured in a white leatherette case that includes the tray, lid and strap. The 11 rings featured in this kit are 60208, (white & yellow), 60286, (white & yellow), 61573, 60204, 63004, 62244, and All for $399. Sorry, no substitutions. All 14kt bands are in stock and ready for overnight delivery. Call your friendly Stuller consultant today at ext 200 and ask for the Fancy Anniversary Band Kit (KIT:304458:P).