RAPAPORT... Mark Moeller radiates energy. His telephone message informs callers that he’s not in the office, but might be in any one of his three stores in the greater Twin Cities area. The store’s call-waiting message is his voice, inviting customers into the store; even the website has his animated image. So it’s no surprise that during one of the busiest sales times of the year, one has to interrupt him on the sale floor while he is talking to his customers.
R.F. Moeller Jeweler exemplifies the term family business. Robert Frances Moeller founded the store in 1951 in the upscale Highland Park neighborhood of St. Paul, Minnesota. Mark, his son and the second-generation owner, took over as president in 1988 and bought the store from his family in 1991. Today, Mark’s brother, sister, wife and son all work in one of the three branches.
In addition to the Highland Park location, there is another store in an upscale strip mall in Edina, and another in a mall in Minneapolis, whose anchor stores include Saks and Neiman Marcus. Overall, Moeller’s customer base is broad, but the focus is on upscale, college-educated clients earning $100,000 and more.
The jeweler’s website, developed just over a year ago, is friendly, informative and easy to navigate, with its diamond information clearly aimed at young men. The Moeller Support Center, a tutorial on the 4Cs and tips on how to choose the right diamond, have encouraging headings such as “Making You Look Good,” “Zero to Hero,” and “Behind You 100 %.” The Ring Wizard section helps a man hone in on the right diamond by offering a quiz. In a series of images, it asks him to select her hand shape, nail color, stone shape and ultimately, to sketch out the perfect ring.
ONLINE TO IN-STOREWhen Moeller’s decided to create the website, the principals did their homework. According to the president, he hired a marketing company to conduct research. They put together a panel of 20 men who had purchased a diamond engagement ring over the previous year. Eventually the panel was narrowed down to ten men who were interviewed extensively about their shopping experience. What they learned set the tone and purpose of the website.
Most of the responses were similar. All said they had gone to a mall to shop first. One had bought the engagement ring at a store there. Ten went online to shop but none bought online. According to Moeller, when they were queried about the rings, all used certain words or phrases, such as “my gift to her” and “I spent more than I intended.” The most important message, however, was they bought the ring from someone who was knowledgeable and made them comfortable.
As such, Moeller says, he intends his website to be used informationally, to give men the background they need to shop. He does not necessarily expect them to order a diamond online, sight unseen. Unlike other retailers who fear the internet, Moeller takes a realistic outlook. “The techies are never going to take over our business,” he says. On a purchase like a diamond engagement ring, couples need to see the stones, the rings and the designs before they will be ready to buy.
Diamonds and diamond jewelry contribute 60 percent to overall sales, says Moeller, and the store makes aggressive efforts to set its products apart. Lazare Diamond is the retailer’s primary brand, but in addition to that, the store offers a range of diamonds under the Moeller Diamond insignia. The range of color and clarity is wide, from flawless to SI2; D to K, and the cut grade is 0 to 3.
Because diamond engagement rings are a huge part of the business, Moeller says it’s important to satisfy that young customer making his first purchase. In addition to its own custom designs, Moeller carries branded bridal collections from Kwiat, Scott Kay, A. Jaffe and Varna. The retailer offers design and production by four in-house jewelers, as well as exclusive designs that are manufactured overseas.
Although diamonds are the primary focus, Moeller offers a wide range of timepieces, Mikimoto pearls and colored gemstone jewelry. “We don’t turn anyone away,” Moeller says, “even the young person who has just $50 to spend. We treat every customer with respect.”
GIVING BACK
Community service is more than just a catch phrase for the principals at this store. The names of the charities and community organizations supported by Moeller take up more than two columns on its website. In fact, the retailer actively invites worthy organizations to contact the company directly for support.
Chief among the beneficiaries is the Muscular Dystrophy Association (MDA), for which Mark serves as national vice president. In 2006, the retailer raised more than $100,000 for the group for the fifth year in a row, making this event the largest fundraiser for MDA in Minnesota. Another favorite organization is the Minnesota Wild hockey team.
Moeller’s “Champagne on Ice” event to benefit the team helped establish a friendship between Moeller and Bob Naegele, former owner of the Wild, that resulted in Naegele acting as spokesperson for the store on local radio ads. At the party, guests were given a glass of champagne with a stone at the bottom. All were cubic zirconia except for one, which was a 1-carat diamond.
Other radio ads feature local show hosts as spokespeople. Overall, this technique has been a solid investment, says the owner. For a fee of $4,000 paid to a talk show host, Moeller says, one ad alone brought in $160,000 in sales. “People who listen to particular radio stations are passionate and will support the ads of the station,” he observes. The balance of Moeller’s ads are done in local luxury magazines; ads in glossy national magazines proved to be poor return on investment.
Plans for the immediate future? “To double our volume just by doing a better job,” says Moeller. After that is achieved, perhaps opening another branch or two, but in the meantime, the store’s overall goal remains the same: “To exceed our customers’ expectations.”
Article from the Rapaport Magazine - February 2008. To subscribe click here.