September Stuller Provides CAM Services. Handwritten Engraving for Bridal Bands. iphone App Brings Live Diamond Try-On to Your Customers!

September 2009 Stuller Provides CAM Services Handwritten Engraving for Bridal Bands iphone App Brings Live Diamond Try-On to Your Customers!

Gemstone prototypes put fashionable color styling in your cases now. KITPTO:90165:P You get Maximum gemstone exposure with a minimal $999 investment; Customizable, affordable gemstone fashion designs your customers can touch and try on; Profit center for your store with $150,000 sales potential average margin of 60%; Each design is available next day,* or it can be customized using the power of Stuller Studio in 3 to 5 business days. To order, or for more information call 800.877.7777 or log on to stuller.com. *Next day delivery applies to orders placed before 5pm central standard time and is dependent on availability. www.stuller.com 800 877 7777

C O N T E N T S contents S E P T E M B E R 2 0 0 9 I s s u e # 8 1 6 Stuller & Industry News 6 catalogs diamond & gemstone 7 stuller expert clarke speaks at gia seminar 8 what s hot/new handwritten engraving for bridal bands 9 what s hot/new new lower pricing on moissanite 16 Small & Delicate features 10 Red Box Diamonds new iphone application 11 Black Box Gemstones green musings 12 diamond facets managing inventory 13 store strategy CAM services available 15 customized showcases display your way trends & fashion 17 petite styling dainty & sweet 18 blazing diamonds inside outside hoops for all occasions 21 big bold texture striking ensembles 22 stuller studio set yourself apart 23 diamond earring program interactive selling On our cover: Diamond Inside-Outside Hoops 61378 in 1 /2 ct tw, 1 ct tw and 3 ct tw. 20 The Exotic Look for Everyday Wear SEPTEMBER 2009 stuller.com your resource 24/7 for everything you need to run a successful business! www.stuller.com the stuller standard

New 3-D Engraver Makes Wedding Band Personalization Easy Nothing says I Love You more than a personalized message in a wedding band. Make your customers wedding bands special with our 3D Ring Engraver. Our engraver represents the most advanced web-based wedding band engraving functionality today. Simply follow these easy steps: Speak with one of our friendly sales associates to receive our digital selling systems kiosks. After logging in, get started by selecting the Engraveable Wedding Bands button from the kiosk home screen. Select the specific band you would like to engrave polished or fancy wedding band. Type in the message. Use the preview controls to view your message in 3D all the way around the ring! Additional options such as a black epoxy Shadow Fill can also be added to this powerful web-based 3D engraving preview tool. Select from multiple font styles and sizes to achieve the perfect look for your special message. Enter your text and see a live dynamic preview appear in 3D on your ring LIVE as you type it. Just think of how unique your business becomes to the wedding couple when you assist them in creating their personal heirloom wedding bands! For more information on the 3D Ring Engraver Kiosk, call us at 800.877.7777 ext. 428.

E D I T O R I A L notes from Matt C A D / C A M : I f Y o u r e n o t familiar with the acronym, it stands for Computer Aided Design and Computer Aided Manufacturing technology that a few years ago was rarely seen in independent jewelry stores. Today, stores across the country use CAD software. Thousands choose Gemvision s Matrix 6, as their method of choice to create custom jewelry. If you haven t seen the result, let me tell you it is spectacular. Imagine handson design and carving time being reduced dramatically. Imagine knowing the precise weight before the item is even made. Most effective, imagine showing your customer a three dimensional rendering that looks better than an actual color photograph. It is the wave of the future, it is here now and Stuller can help you take advantage of it. As many of you know, in July we launched Stuller Studio CAM Services to provide manufacturing fulfillment for your CAD designs. You send us your CAD file, we will produce it to whatever level of completion you would like raw casting to fully set and finished product all in 6 to 8 days. We ll even receive and set your stones if you wish. This digital direction is so powerful and critical to the future of our industry, I want to encourage you to not miss our October issue. matthew g. stuller, sr. CEO, FOUNDER AND PRESIDENT CEO, FOUNDER AND PRESIDENT Matthew G. Stuller, Sr. chief operating officer Jay Jackson 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 Randi LeBlanc, PR Susan Kiefer design Maria Viator stuller standard online Trenton Bolfer, Mgr. Ron Domingue Kim Thibodeaux, Mgr. info@stuller.com contact us stullerstandard@ stuller.com www.stuller.com Stuller Standard Magazine P.O. Box 87777 Lafayette, LA 70598-7777 800.877.7777 337.262.7785 fax photography Maggie Hidalgo John Rowland Noelle White Marie Vest production Maureen Benjamin Lori Bouillion Shannon Guidry, Mgr. Brenda Landry, Mgr. Yolanda Laviolette Robert Lawson Stephanie Pellerin Kisha Thompson contributing writers Emmy Kondo 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 Troy Racca, Tools 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 Chuck Bowman, VP, Mountings Elizabeth Brehmer, VP, Findings Michael Clarke, VP, Finished Jewelry Joe Orlando, VP, Gemstones Darrell Warren, VP, Tools & Supplies/Metals Stanley Zale, VP, Diamonds 2009, Stuller, Inc. All rights reserved. SEPTEMBER 2009 Stuller, Inc. is a Diamond Trading Company (DTC) Sightholder. www.stuller.com the stuller standard

N E W S New Catalog Coming Soon to Your Store! The Diamond & Gemstone Book provides inventory solutions The DiamonD & GemsTone Book Our Diamond & Gemstone Book contains 192 pages of diamonds, colored gemstones and pearls. We ve provided charts to explain colors, size ranges, historical information on diamonds, gemstones and pearls, as well as other consumer-friendly information you can use at your sales counter or at the bench. Look for your book in the mail in late September. JA Redefines Affiliate Association Relationships Jewelers of America, the national trade association for businesses serving the fine jewelry retail marketplace, has announced it is redefining its relationship with the state and regional affiliate jewelers associations. The 39 affiliate associations have the opportunity to continue their relationships with JA. After careful evaluation, JA s Board of Directors determined that the organization s current business model was not sustainable to cover its operating costs. Traditionally, JA has produced and developed the majority of services offered to members, yet it retains less than 20% [on average $12.21 per storefront in 2008] of the annual dues paid by member companies. JA remits the balance of annual dues back to the affiliate associations. In the new partnership model, JA will no longer offer operational assistance to affiliate associations, such as dues collection and database maintenance but will continue a positive, ongoing relationship through other educational and marketing support. While the current economic forecast has made it necessary to redefine the relationship JA has with its affiliates, the association intends to continue a long-term connection with them through restructured agreements and future partnership opportunities, says President & CEO Matthew A. Runci. In the notification sent to affiliate presidents, Chairman John Green wrote that JA will continually strive to strengthen and grow the partnerships it has with all state and regional jewelry associations, as it works to increase the benefits and services it offers to its membership. Our organizations share many of the same goals, [such as] establishing and preserving high professional standards, and the continuing and growing prosperity of our members. The association also has exciting new benefits on the horizon, such as a redesigned, user-friendly website that is set to launch this fall. This will improve ease of access to all member services, including its exclusive regulatory and legislative guidance materials and online educational offerings from GIA and other education partners. JA is also strengthening its efforts in Washington, D.C., to support the independent jeweler through legislative advocacy on key retail issues, such as sales tax fairness and group healthcare access. JA Members Save on GIA Courses Through its strategic partnership with the Gemological Institute of America (GIA), JA members can now receive 10% savings on tuition to GIA Distance Learning courses and related Lab classes. GIA s Distance Learning program includes at-home coursework and/or lab and online courses, covering diamonds, colored stones and jewelry sales. Distance Learning students use the same course materials and textbooks as on-campus courses. Yet, they can study and complete courses at their own pace and schedule. Jewelers of America members also save 10% on Distance Learning Lab classes, which can be completed at GIA campuses and regional centers in Atlanta, Chicago and Dallas. For more information on the educational scholarship opportunities available from Jewelers of America, visit http://www.jewelers. org/profdevelopment/seminars.html. the stuller standard www.stuller.com september 2009

N E W S GIA Pearl Seminar Stuller Pearl Expert Featured Michael Clarke, Business Vice President of Finished Jewelry will be a featured speaker at an educational seminar, The World of Pearls: A New Profit Center for You early next month, hosted by the Lonestar GIA chapter. Designed to provide attendees with a high comfort level when selecting and purchasing pearls for their businesses, the seminar shows how to explain quality considerations and valuable pearl information to retail customers. Participants include professional gemologists, jewelers, designers and pearl lovers from all over the country. Clarke is one of several pearl experts who will be providing advice during the one-day seminar. After the presentations, experts will respond to audience questions about creating pearl profit centers in their stores. A wide range of pearls South Sea to Tahitian will be displayed for guests to learn to judge pearl quality firsthand. Seminar details: Location: Austin, Texas Date: October 4, 2009 (Sunday) Time: 8:00 a.m. to 5:00 p.m. (Lunch is included) Topic: Pearls as a Profit Center for Jewelers (tentative title) Format: 20-30 minute presentation in the morning; afternoon panel session with hands on pearl exposure For details about this year s educational pearl seminar, visit www. lonestargia.com. INSTORE Cool Stores Named Stuller s Clarke a Judge Winners of the 8th annual America s Coolest Stores, were featured in INSTORE s August edition. More than 100 stores competed for top honors this year. According to INSTORE, judges commented that decisions were tougher this year than ever before. Stuller s own Michael Clarke, Business Vice President of Finished Jewelry was selected to be a judge in this year s competition. And, here are the Coolest winners: 1st Place Big Cool London Jewelers Manhasset, NY 1st Place Small Cool Zoltan David Bee Cave, TX 2nd Place Big Cool Hyde Park Jewelers Phoenix, AZ 2nd Place Small Cool Patronik Designs and Jewelry Gallery Burlingame, CA 3rd Place Big Cool Ylang 23 Dallas, TX 3rd Place Small Cool The Green Bull Fine Jewelry Couture Boerne, TX 4th Place Big Cool Diana Vincent Jewelry Designs Washington Crossing, PA 4th Place Small Cool Spexton Tulsa, OK 5th Place Big Cool Manfredi Jewels Greenwich, CT 5th Place Small Cool Dumont Estate Jewelry New York, NY Clean Scrap Return Gets Better! Now Accepting you asked; we listened. You can now send us your platinum and palladium clean scrap as well as your gold and silver. Turn time on palladium and Platinum & platinum will be five Palladium days, as compared with three for your gold and silver returns. Metal accountability percentages are as follows: Gold (98%), Silver (96%), Palladium (85%) and Platinum (90%). We will always handle your scrap shipment with the same honesty and integrity that you ve come to expect from us. When your scrap shipment arrives, we will weigh it and verify the integrity of the metal. Next, we will melt your clean scrap and fire assay a sample. We will then proceed to refine your clean scrap. All settlements will be credited to your Stuller account based on after-melt weight at second London Fix on day of settlement. You ve come to trust Stuller when purchasing mill products, findings, grain, castings, finished jewelry and thousands of other products. Discover today how you can earn credits toward your Stuller account by allowing us to refine your clean scrap through our unique clean scrap program. For more information on our Clean Scrap program, contact your friendly consultant at 800.877.7777. SEPTEMBER 2009 www.stuller.com the stuller standard

W H AT S N E W New Introductions in Gemstone Jewelry Another Stuller Exclusive! 67310 67282 67281 Carved Onyx provides the perfect backdrop to this series of exquisite cabochon gemstones. Set in 18 kt yellow/sterling silver, these rings are bold in size and dramatic in presentation. 67309 67310 Genuine Peridot & Onyx Ring, 18kt yellow/sterling silver, size 7, $275 67309 Genuine Swiss Blue Topaz & Onyx Ring, 18kt yellow/sterling silver, size 7, $250 67282 Genuine Amethyst & Onyx Ring, 18kt yellow/sterling silver, size 7, 10mm, $270 67281 Genuine Citrine & Onyx Ring, 18kt yellow/sterling silver, size 7, 12mm x 8mm, $265 To order, call 800.877.7777 or go to stuller.com. What s New What s Hot HR11 outside: All you need is love inside: I Shall love because of you. Handwritten Expressions of Love Your personal message can now be engraved in your own handwriting. Stuller s newest engraving service now provides the way for you to capture and treasure forever those most magical words, I love you Be mine forever Today, tomorrow and forever or the phrase that you hold dear in the personal handwriting of the speaker. Select the band, write the message, select the color and capture a special memory forever. Either secretly hidden inside, boldly displayed on the outside, or both places, you can keep the dearest words you have ever heard with you forever. 5971 outside: I found love and love was you. inside: My love, my soul, my best friend. Visit www.stuller.com, select Stuller Studio and review how easy this can be accomplished or call the sales department at 800.877.777 for details. 8 THE STULLER STANDARD www.stuller.com SEPTEMBER 2009

W H AT S H O T While Quantities Last! Exceptional Pricing on Moissanite Jewelry Moissanite jewels created by Charles & Colvard deliver more fire, luster, and brilliance than any other popular hard jewel. Moissanite customers are independent decision makers. These women are fashion and valueconscious shoppers and 70% of them are self-purchasing customers age 35+. Our selection of moissanite jewelry includes solitaire rings, fashion earrings and necklaces as well as fashion rings. You can now have Created Moissanite by Charles & Colvard available for your customers at exceptional, reduced pricing. But, you need to purchase now. Quantities are limited and expected to sell out quickly! Contact us at 800.877.7777 or view the full selection at stuller.com. Keyword Moissanite Jewelry. 66932 66970 66921 66933 66833 66831 66840 66768 SEPTEMBER 2009 www.stuller.com the stuller standard

A B O U T D I A M O N D S driving diamond desire send me some customers! You ve been chanting this mantra for years. At every show, with every phone call, and at every face-to-face visit you ve asked us to send you business. We are. With the introduction of a new iphone application, we re doing just that. Since we demonstrated this technology for trade press editors and visitors in Las Vegas, we ve received many questions about the new application. So, we ve included answers to the most frequently asked questions and details about how you can take advantage of our unprecedented consumer marketing effort. Live Diamond Try On Comes to iphone App Store Question: What is the iphone application (app) Stuller is developing? Answer: The iphone app is a consumer tool that creates interest in diamonds and ultimately drives business to the Red Box Diamond Moment retailer. Question: What is a Red Box Diamond Moment retailer? Answer: A Red Box Diamond Moment retailer is a Stuller customer who is willing to invest in the training of their staff, and in the sales and marketing of Red Box Diamonds at the local level. Stuller supports these retailers through consumer marketing efforts this year, we ve directed our consumer efforts toward tech-savvy bridal buyers who currently go online to research and purchase diamonds. Question: How do I become a Red Box Diamond Moment retailer? Answer: How much is it worth to you to take advantage of this opportunity? How about $65, an hour of your time and the commitment to purchase as least three Red Box Diamonds before Dec. 31, 2009? To be listed you need to invest $65, asking your sales consultant for KIT:90212:T. For your $65, you will receive marketing and training information it s all in one box. Open the box Review the training video (there is a print out/transcript in the kit also) Fill out and return the questionnaire To stay listed you need to: Purchase three or more Red Box Diamonds before Dec. 31, 2009 Purchase five or more Red Box Diamonds each year We have done all the development work, investing in marketing materials, training, and selling benefits that bring trust, confidence, and security to the diamond buying experience. The iphone app is the next step the consumer marketing to help drive diamond desire and business to your store. You need to take the final step invest, train your staff and sell Red Box Diamonds. Call your consultant today and ask for your Red Box Diamond Marketing package! For your minimal investment, you receive marketing and training information. You need to review these materials, complete the training questionnaire and return it to Stuller (directions are included). Your completed questionnaire does two things first, it lets us know that you are familiar with the benefits and selling features of Red Box Diamonds. Second, it serves as our permission to distribute your contact information to consumers. The completed questionnaire assures your store of being included in the resource list used by consumers who want to locate a retailer near them. Your purchase of three or more Red Box Diamonds before Dec. 31 will keep you listed. After that to maintain your listing, we require that you purchase at least five Red Box Diamonds each year.* 10 the stuller standard www.stuller.com september 2009

profitable sales come from innovative s e l l i n g strategies. One such strategy is the Color of the Month gemstone campaign. The idea is simple gemstones are your most profitable category why not sell as many as possible? To keep your promotional messages focused, promote gems grouped by color. This allows your customers to find a color they like and then find the gemstone that fits within their budget and lifestyle. Our color focus for September is green. To help you even more you can save 15% on all in stock, loose Green Quartz during the month of September. A little observation and simple questioning is a good way to start your color-focused sales strategy. Below are some general color questions, along with information to help you sell green. What is your customer s favorite color? Let your customers know what their favorite color says about their personality. Those who favor green are said to be social, stable and balanced. Kind and generous, green lovers are a loyal partner and friend. While they are open-minded, they are not risk takers. When pushed, they usually stay with what is safe. What color eyes, hair and skin tone do they have? The best rule of thumb when trying to find the perfect color is to try it on. Gems that complement a person s complexion will make the person glow, whereas gems that do not enhance the complexion will dull their appearance. musings of green An Autumn Favorite A B O U T G E M S T O N E S Pastel green and rich vibrant green gems enhance those with rich cocoa or golden skin tones and those with a peaches and cream complexion. Chrome Tourmaline, Tsavorite Garnet, Emerald or Green Quartz are some suggestions. Olive complexions glow with green gems that have a hint of yellow or mossy greens such as Peridot, Jade or Olive Tourmaline. Those with rosy or blue undertones to their skin look best in brighter greens, and green-blue hues. Paraiba-like Blue and Green Tourmaline, Indicolite and Emerald are gems to recommend. 83765 Leaf-motif pendant mounting, shown with genuine Green Quartz, A and Diamonds,.06 ct tw, G-H; SI1, 14kt yellow, $575 via Stuller Studio. Mounting only 14kt white, $360. Loose gemstones shown left to right: Genuine Peridot, Chatham Created Emerald, Genuine Green Tourmaline, Genuine Green Tourmaline; Genuine Tsavorite Garnet. Is there a color your customer wears frequently? Green is known as the great harmonizer. It goes with everything from a simple black suit to a stunning red dress. You cannot go wrong with a green accessory. What are they looking for in a piece of jewelry a sense of escape, energy, balance or a stunning fashion statement? Pastel and earthy greens give a sense of escape a great way to add a relaxing touch to the day. Energetic greens greens touched with yellow or gold, are uplifting and revitalizing. True green is the balance between blue and yellow thus, a pure green gem brings balance to life. There is a green gem to suit every budget, complexion, wardrobe and lifestyle. Helping your customers find their ideal hue will not only go a long way in building relationships, but will also help you profit. Black Box Gemstones Emerald (O) Serial #51444 1.38ct Sugg. Ret. $4,500/ct Green Tourm. (H) Serial #93351 2.31 ct Sugg. Ret. $600/ct Tsavorite Garnet (N) Serial #115039.96 ct Sugg. Ret. $1,890/ct Tourmaline, Paraiba-Like (H) Serial #109770 4.82 ct Sugg. Ret. $4,440/ct Chrome Tourm. (N) Serial #112195 1.92 ct Sugg. Ret. $1,125/ct Olive Tourm. (N) Serial #120460 1.67 ct Sugg. Ret. $225/ct Reports: Featured gemstones have Stuller report. Enhancement Code: N (natural), O (oiling), H (heated). Pricing is Suggested Retail and subject to change without notice. Visit stuller.com for complete product information and availability. SEPTEMBER 2009 www.stuller.com the stuller standard 11

D P S C O L U M N w DPS diam nd facets Focus on Inventory that Speaks to Your Customers ith the recession dragging on, retailers of discretionary goods of all sorts from electronics to apparel to jewelry are focusing in on inventory: what to acquire, and how to manage it. American consumers attitudes have fundamentally shifted they are focused on saving more, and spending less. However, the retail economy seems to have entered Phase Two of this crisis: Consumers who are still able to spend are emerging from paralysis, and beginning to indulge themselves again. They are tired of living in fear, and are tiptoeing cautiously back into buying. However, there is a much greater need to justify spending to spend selectively, do their homework and seek out true value rather than spending impulsively and voraciously. Diamond jewelry is in some ways the easiest sell for jewelers who need to talk to today s customers about longstanding value. Consumers are receptive to the message that diamonds not only communicate love, but will be treasured for a lifetime and handed down to the next generation. But managing your inventory mix so that you have the right selection of diamond jewelry for your customers is both an art and a science. Jewelers who plan ahead for holiday 2009 and the coming year with smart inventory strategies and communicate the value they provide to their customers should see improvements over last year s performance. Inventory Selection Inventory selection is critical to the sales growth of your business, as well as to the maintenance of your customer base and acquisition of new customers. In the current environment of rapid consolidation, surviving jewelers are poised to increase market share with the right buying and marketing decisions. Buying and stocking now in the same old patterns would be a mistake. Examining every single SKU you carry with a critical eye is essential. We believe the most important customer to buy for now is your Heavy Owner. This is the diamond jewelry owner with eight or more pieces of diamond jewelry and there are many more out there than you may think. In these recessionary times, Heavy Owners are the bedrock of our industry you can think of them as diamond addicts who still need their fix. They are the primary consumer segment (beyond bridal customers) that is still actively planning to acquire and are intensely involved with the category. They exist plentifully at every income level, and in every channel. So what should you stock for them? Remember that they already have eight or more pieces. It is unlikely they are looking for the basics. While you must, of course, have classic staples in stock, the Heavy Owner is looking for what she perceives to be unique design. This often means a small variation on theme for example, studs surrounded by pave rather than set as simple solitaires. It may mean fun diamond charms. She needs merchandise that is so crave-worthy that she cannot stop thinking about it, and can t put it off for another year (or longer). And that merchandise should be unique enough that she is not seeing it in every other jewelry retailer she visits. Most importantly, she really needs to see value in the piece. The Value Equation Never assume that value means discount. It means believing that you have gotten an excellent deal for what you paid. A strong emotional concept, a unique designer, or a story of quality, craftsmanship, and heritage can all provide diamond jewelry shoppers with the justifying rationale they need to perceive inherent value in a piece. Price thresholds are changing, however. Take a look back at your sales data over the last few years look at the average price for diamond jewelry sales that were non-bridal. How has that shifted in the last 18 months? Plan your new merchandise selection to hit a range of price-points that will create a sweet spot for your average customer, whether she is looking for a big purchase or a small treat, while offering unique design and value. Clean House Your vendor relationships will be critical to being able to make the right inventory decisions. At this stage of the game, you should be consolidating your business with vendors who will be true partners to you helping you keep pieces that are moving in stock, supplying you with your needs, and being able to provide fast turnaround on pieces that you decide to minimize in your inventory mix but may need to be able to provide on short notice. Narrowing and deepening your field of partners right now is very important to careful tracking of inventory and costs, and minimizing risk. Turn, Turn, Turn Having the right mix of diamond jewelry is key to inventory turn. And inventory turn is critical to the profitability of your business. The most recent Cost of Doing Business Report from Jewelers of America reports that stores with high profits have a 20% greater inventory turnover than those with low profits. But a surprising number of retailers do not keep careful track. You can t be sure you are keeping it moving unless you know when it came in, and when it went out. Make sure that every piece of merchandise in your store is stickered or tagged unobtrusively with its arrival date, and entered into an Excel sheet or database. And make sure that when it is purchased, that piece of information is also logged. You will quickly get a sense of the average turn of each category of merchandise in your store, which you can then use as a benchmark for individual SKUs. Pieces that move slower than average should not be relegated to a case in the back of the store to languish. Experiment briefly: 1). Move to a different position in the store, perhaps with better signage 2). Make them a focus in sales meetings, ensuring that sales staff is appropriately trained to sell the pieces 3). Move them to another store location. If you don t begin to see an improvement, discontinue them, and swap them out for something new. Work with your vendor to find a replacement piece that will help you create more variety, and be better aligned with your customers wants and needs. Perhaps more important than knowing what is selling slowly is to know what is selling well. Stock up, stock variations in it, feature it. Make sure that your sales associates are aware of bestsellers (sometimes it s not what they think) and are letting your customers know people are highly influenced by knowing what others are buying. And back to that all-important Heavy Owner: Unlike other jewelry shoppers, who shop infrequently even in good economic times, she is browsing in jewelry stores once a month on average. Keeping your inventory in motion around your store, but also having new pieces to show her as you swap out slow-moving items with new merchandise, will keep her interested and purchasing. The bottom line: Don t reduce diamond inventory by deciding to offer a small selection of bridal pieces and other staples alone. The current retail situation requires a delicate balancing act and careful thought. Exercise discipline keeping inventories lean and doing more with less but ensure that what you do offer are strong sellers and unique designs that signal value, and that you have vendors you can rely on to be true partners. Editor s Note: This standing column, promoting the diamond industry, as provided by Emmy Kondo, Planning Director of the Diamond Promotion Service. 12 the stuller standard www.stuller.com september 2009

S T O R E S T R AT E G Y we all know the retail landscape is changing as never before. Competition from other luxury products is fierce and if independents are to survive and prosper, we must find our specialty our niche what sets us apart. One strategy is custom jewelry a staple and standard of the professional jeweler and craftsman. You have probably been doing custom work for years, but have you asked yourself recently if you re doing it in the most profitable, effective and efficient way? One of the most exciting evolutions in retail jewelry is becoming a revolution Computer Aided Design. If you haven t seen the latest technology, you will be amazed. As with all things electronic, you get more and more capability and power for the money than ever before and even better, with the introduction of Stuller Studio CAM Services, you can join this revolution without the expense of the associated milling or rapid-prototyping equipment. According to Gemvision, the learning curve for Matrix is between three to six months. Within a few weeks most new users are fluent in basic tools and commands and are making jewelry. But it s usually in months four and five that customers really seem to exploit the fuller power of the software. It s a very intuitive program so it s easy to learn, but the capability is enormous and it takes a while to grow familiar with that fuller ability. What this means to the independent jeweler is affordable entry into the most exciting jewelry design technology and custom jewelry sales tool available. Craig J. Brey, Chief Operating Officer of Diamond Nexus Lab in South Carolina relates the impact of some recently manufactured custom rings on his business: WOW! These rings came out great! Jewelers are talented designers and most customers are happy with their custom work. But getting the customer to visualize the piece beforehand to imagine what the piece will look like even with decent sketches, is often difficult. CAD is a great design tool but it is a fantastic sales tool. Particularly given its incredible rendering capability, with Matrix, the sale closes itself. store strategy Stuller Studio CAM Services How to Get Started: 1. From the stuller.com/studio page, click on the CAM Services link to learn how to upload your CAD file. 2. Soon after submitting your file, you will receive a callback from one of our CAD/ CAM experts to discuss your 3D model and explain all the specifics. 3. Once you approve the job, we ll start making your creation a reality in just 6-8 working days. Mountings: Pricing is suggested retail in U.S. Dollars at a $1,000 gold market; $1,100 platinum; $12 silver, 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. Finished Jewelry: Pricing is suggested retail in U.S. Dollars at a $1,000 gold market; $1,100 platinum; and subject to change without notice. Sold by piece, not weight, with stones featured. Product stone code descriptions can be found on pages 499-502 of The Finished Jewelry Collection, Vol. 67, or at www. stuller.com, keyword search: AGTA Codes. Photography: Most products enlarged to show beauty of detail. Many styles are exclusive copyright of Stuller, Inc. and strictly enforced. Pricing subject to change without notice. SEPTEMBER 2009 www.stuller.com the stuller standard 13

Are You a Trendsetter? For over 25 years, the AGTA Spectrum Awards has continued to raise the bar for Designers who work with colored gemstones and cultured pearls. Winning a Spectrum Award is considered one of the industry s most-esteemed honors, and winning designs often set the trends for seasons to come. Enter Now. A G T A Details Entries for the 2010 Spectrum Awards will be due in Dallas by September 25, 2009 or at our New York drop-off on October 6, 2009 Platinum Honors sponsored by 14 the stuller standard www.stuller.com JULY 2009 For more details, please visit www.agta.org

Display Your Way Myth: Beautiful customized color displays take a long time to get, and they're expensive. T ruth: You can have them in your showcases in 6 weeks after design appoval They begin at $600 You can see what they would look like in your showcase BEFORE you spend a dime! How can this be? With Case by Case from Stuller! Our Technology: New, computerized technology allows you to see it before you buy it. Preconfigured or customized designs available based on showcase size (3', 4', 5' or 6') at 3 different price levels. You can tell us how many rings, pendants and earrings you would like to have in the case, and we can render the possibilities for you. Your Choices: 3 design styles: Cologne, Contour & Designer More than 50 colors; more than 200 display ideas To brand your store with personalized showcase presentations, send a picture of your showcase(s) to our Personalized Showcase Planners: Sandi Segura at sandi_segura@stuller.com, or Trissy Boutin at trissy_boutin@stuller.com.

A V T F B N W U Q C D E M P R S H G J K L The Allure of Petite & Delicate A. 84533 Gold Fashion Starfish Earrings, 25mm x 18mm, 14kt yellow, $362 per pair. B. 66714 Diamond Anniversary Band, ½ ct tw, 14kt two-tone, 30 $1,657. C. 66715 Diamond Anniversary Band, ¼ ct tw, 14kt two-tone, 30 $1,028. D. 67095 Diamond Ring, 1 6 ct tw, 14kt yellow/ rhodium-plated, 110 $1,060. To order, visit www.stuller.com, or call 800.877.7777. E. 69213 Diamond Necklace,.03 ct tw, 14kt yellow, 33 18 $795. Mounting #84469. F. 69215 Diamond Necklace, 1 5 ct tw, 14kt yellow, 33 18 $927. Mounting #84489. G. Loose gemstones. H. 71490 Ring for Round Gemstone, shown set with 1-6.0mm AAA Pink Tourmaline and 21-1.1mm SI2-SI3 G-H diamonds, 1.85mm width, 2.10dwt7, 14kt white, through Stuller Studio $963. Mounting only, 14kt yellow, $369. J. 84535 Dolphin Charm, 19mm x 4.75mm, sterling silver, $47. (Shown with CH656, sold separately.) K. 84551 Starfish Charm, 18.5mm x 12.5mm, sterling silver, $51. (Shown with CH656, sold separately.) L. 84539 Octopus Charm, 17mm, sterling silver, $56. (Shown with CH656, sold separately.) M. 84536 Seahorse Charm, 18.5mm x 4.25mm, sterling silver, $47. (Shown with CH656, sold separately.) N. 84071 Pendant for Diamonds, shown set with 48-1.3mm, I1 G-H diamonds, 34.75mm x 13.75mm, 14kt white, 1.24dwt7*, through Stuller Studio, $993. Mounting only, 14kt yellow, $242. P. 67211 Diamond Necklace, 1 10 ct tw, 14kt twotone, 110 18 $545. Q 67209 Diamond Earrings, 1 8 ct tw, 14kt twotone, 110 $734 per pair. R. 67210 Diamond Ring, 1 10 ct tw, 14kt two-tone, 110 $608. S. 64394 Diamond Ring, 1 3 ct tw, 14kt white, 110 $2,590. T. 67120 Diamond Necklace, 3 8 ct tw, 14kt white, 33 18 $995. U. 84400 Tiny Sun Pendant, 78-1.0mm, 21mm x 20mm, 1.20dwt, 14kt white, $236. V. 66946 Genuine Tsavorite Garnet & Diamond Earrings, 5 8 ct tw, 14kt white, 84, 110 $2,844 per pair. (Also available semi-mount.) W. 66963 Genuine Tsavorite Garnet & Diamond Ring, ½ ct tw, 14kt white, 84, 33 $2,844. (Also available semi-mount.)

FA S H I O N A Capturing Diamond s Sparkle in the twinkling of an earring or bracelet... B Cocktail parties, dinner and dancing, Girl s Night D E C Out all of these bring up mental pictures of occasions to wear diamond jewelry. Add diamonds to denim and you have a great accessory to leisure activity. As earrings and as bracelets, diamond accessories are the perfect choice for any occasion. This year s hoop styling is a twist on a classic. Some of the most popular new hoop earring styles show diamonds on the outside, and on the inside. Available in the classic hoop shape as well as in twists and other looks, new inside outside diamond hoop styles gravitate toward one of three major setting styles: prong set, pavé set and channel set. The diamond is the hero with our prong set styles. They are clear communicators of the diamond element, and the diamonds featured are generally.02 ct each and larger. Pavé sets are modern. They dazzle with a smooth multi-surface diamond appeal, yet reveal a thousand sparks of light with every turn of the head. They generally feature diamonds smaller than.02 ct each. Painstaking craftsmanship and design are required to achieve that perfect finish that feels like F Channel Set & Bamboo-Style Hoop Earrings a. 62190 1 ct tw, $2,025 per pair b. 63588 1 ct tw, $1,915 per pair c. 22073 3 /8 ct tw, $1,880 per pair d. 67155 3 /4 ct tw, $4,195 per pair e. 22073 5 /8 ct tw, $2,810 per pair f. 66766 1 1 /2 ct tw, $3,930 per pair 18 the stuller standard www.stuller.com september 2009

FA S H I O N G Prong & Pavé Set J Hoop Earrings H g. 67159 1 ct tw, $3,815 per pair h. 67159 1 1 /2 ct tw, $4,805 per pair j. 61378 1 /2 ct tw, $1,300 per pair satin to the touch. Channel k. 61378 1 ct tw, $2,270 per pair l. 61378 3 /4 ct tw, $1,775 per pair set hoops are reminiscent m. 61378 1 /2 ct tw, $1,300 per pair of late 20th century styling. They are simple to put on and easy to wear. Most often seen with diamonds ranging.02 to.05 carat each, channel sets are usually seen in yellow gold, which uses the borders as a fashion asset. Equally beautiful are the channel sets in white, for today s customer who still wants to wear a classic, but prefers white metals. No diamond look would be complete with just the earrings. Stackable bangles and pieces makes the entire jewelry palette come together. You can see more of our newest diamond styling in The Finished Jewelry Book, Vol. 78, due to be in your store this fall. The inside outside diamond hoop styling exploits the striking simplicity of linear style. This gives these product collections versatility for wear from day into night, and casual to dresswear. L K rings are fun to wear, great conversation pieces and so versatile! Adding playful M coordinating ensemble N Multi-Diamond Stackable Bangle Bracelets Sold Individually n. 66937 14kt Rose, $3,140 p. 66937 14kt White, $3,175 q. 66937 14kt Yellow, $3,140 P Q SEPTEMBER 2009 We love our magazine, but stuller.com has today s pricing. Please visit us online for the most current information. www.stuller.com the stuller standard 19

A D B C E F G The Magic of Black Accents A. 67268 Genuine Onyx Earrings, 20mm, sterling silver, 59 $129 per pair. B. 67267 Genuine Onyx Pendant, 27mm, sterling silver, 59 $94. (Shown on CH606, sold separately.) C. 67250 Genuine Onyx & Black Tourmalinated Quartz Pendant, 20mm x 5mm, 20mm x 12mm, sterling silver, 59, 195 $332. (Shown on CH606, sold separately.) D. 67252 Genuine Onyx & Black Tourmalinated Quartz Earrings, 20mm x 5mm, 20mm x 12mm, sterling silver, 59, 195 $682 per pair. E. 67051 Diamond Earrings, 3 8 ct tw, 14kt yellow/ sterling silver, 33 $1,081 per pair. Mounting #84332. F. 67074 Diamond Necklace, 1 3 ct tw, 14kt yellow/ sterling silver, 33 18 $786. Mounting #84329. G. CH911 Endless Fashion Chain, 60mm x 30.56mm, sterling silver, 60 $383.

H J M L N K H. 50848 Fashion Ring, 21.75mm, 18kt yellow/ sterling silver, size 7, $522. The Drama of Big Bold Texture J. BRC418 Fashion Link Bracelet with Toggle Clasp, 15mm, 18kt yellow/sterling silver, 7½ $445. K. 84528 Fashion Circle Necklace with Toggle Clasp, 18kt yellow/sterling silver, 18 $324. L. 50852 Fashion Ring, 16mm, 18kt yellow/sterling silver, size 7, $754. N. 50845 Fashion Ring, 13.5mm, 18kt yellow/ sterling silver, size 7, $152. M. BRC426 Fashion Bracelet, 24.4mm, 18kt yellow/ sterling silver, 7 $578. To order, visit www.stuller.com, or call 800.877.7777.

With Stuller Studio s new CAM services, profitably executing your CAD designs just became easier. Our new CAM Services can handle your manufacturing, freeing you to focus on what really drives your profit designing and selling. Whether you work in Matrix, Rhino or other popular modeling programs, Stuller Studio can validate and process all common CAD formats, transforming your design from file to fully finished jewelry in just 6 to 8 business days. We'll even receive and set your stones if your wish. Don t forget Studio s new, lower setting pricing starting at 45 per stone. To learn more visit www.stuller.com/studio. Not a CAD user yet? or interested in information on one of the jewelry industry s most popular CAD programs? Visit www.gemvision.com to learn how Gemvision s Matrix 6 can easily transform your store into the custom jewelry destination of choice in your area.

Build a Pair of Diamond Stud Earrings. Digital Selling Solution allows you to design them with your customer. What could be more powerful than working at your counter with your customer, creating the exact diamond stud earrings for which she is looking? Our Design Your Earrings tool gives you: five metal choices the option to filter diamonds by shape, total carat weight and see retail price as well as to select the post and back style customized diamond stud earrings in your store in 3 to 5 business days To learn more, go to stuller.com and select the Marketing Services tab and then go to Digital Selling Solutions.

The Ideal Source A combination of beauty and science, ideal-cut diamonds are offered through our powerful Red Box Diamond program. Available in sizes from 3 /8 carat to 5 carat and larger in all shapes and qualities. You can rest assured that your customer will receive the trust, confidence and security you have come to expect from us. Direct manufacturing Prime source No inventory investment Just-in-time delivery. Stuller. The beauty of it all. Bridal Jewelry Finished Jewelry Mountings Diamonds Gemstones Findings Metals Tools Packaging & Display Stuller, Inc. is a DTC Sightholder.