When it comes to developing successful relationships with retailers,
“it’s all about creating a mutually beneficial partnership,” says Andrew
Rickard, vice president of operations at RDI Diamonds, a wholesaler in
Rochester, New York.
It’s a sentiment shared by Erik Runyan, owner of retailer
Erik Runyan Jewelers in Vancouver, Washington. “I can buy stones from a variety
of vendors. But I choose to let the relationship dictate whom I do business
with,” he emphasizes.
The dynamic between wholesalers and jewelers has evolved
over the years in response to new business models and fluctuating economic
environments. “Business changes every five years, and you have to adapt,” says
Michael Rosin, owner of Chicago-based wholesaler M.R. Diamonds. “People sell
and stock diamonds differently, and the internet is playing a huge role,” he continues. “You can’t fight the
changes.”
Runyan notes that much of the buying is done at shows now,
whereas he recalls his father selecting merchandise from a traveling salesman
with jewelry-filled suitcases.
So what are the criteria for a good relationship? Having the
right merchandise specifically for your market is number one, according to
Rosin, who specializes in 6- to 12-carat diamonds. Secondly, he advocates a
positive attitude, a characteristic that takes on greater importance when
business is slow. While he insists that price alone is not a factor in
establishing a long-term working relationship, he advises wholesalers to
consider consignment or short and long memo, especially with the more expensive
stones. And wholesalers must keep their eyes open for opportunities — whether
they supply exclusive merchandise to a few jewelers, or replenish stocks of
0.5- to 1.5-carat stones for many jewelers.
As part of efforts to create partnerships that exceed
expectations, says Rickard, RDI Diamonds developed the YouMeWe stock program to
help retailers promote in-store sales. About five years ago, the company
conducted a survey to see what jewelers were selling.
“Certain stores gave us specific A and B price points for
specific sizes. YouMeWe basically mirrored their selling and allowed us to
create an inventory assortment that addressed their needs,” says Rickard,
adding that it consisted mostly of rounds in 0.5 to 1.5 carats. To make the
program more attractive, he provided a display to feature the loose diamonds so
the stores showed them “front and center.” He also offered extended terms and
the flexibility to exchange their stock for other stones of equivalent value.
“YouMeWe helps jewelers sell diamonds with a compelling
story,” he adds.
One of the added-value options wholesalers can offer their
retail clients is marketing support, Runyan suggests. Simply bookending a De
Beers TV ad with the jeweler’s logo is no longer an effective strategy, he
explains. “I need to see how wholesalers can help drive customers to me. And
it’s 100% social media now. I want them to push buying clicks or use
geo-targeting to get their product or brand in front of my customers.”
Rickard, meanwhile, says his job is “to be at the forefront
of what’s happening in the market and to be able to provide insights to our
partners, which entails communicating and sharing success stories. And that can
help separate me from the competition.”
Article from the Rapaport Magazine - November 2017. To subscribe click here.