Buying
The first thing to consider when buying diamonds or anything else is how you are adding value to whatever it is you are buying. Retailers and their suppliers add value by providing the right product to the right customer for the right price at the right time. Product, customer, price, time. You often add value through curated merchandising. This involves balancing quality, cost and customer needs. So buying is really about selling. Buy what you can sell.
Be bold, be creative. Think about what your customer needs, not just what they want. If your customers are able to profitably sell what you buy and sell them, they will come back and buy more from you. Develop a trust relationship by meeting your customers’ and their customers’ needs. Be a trusted adviser, using superior product and market knowledge to help your customers make more money.
The success of your business is all about buying. And buying is all about product, customer, market knowledge and experience. It’s also about discipline. Be clear about your limitations. Focus.
Take responsibility for what you buy. Make sure you can sell what you buy and learn from your mistakes. Most importantly, be ethical. The quality of the people you buy from is as or more important than the quality of the product. Don’t buy anything that causes evil. Always consider the unintended consequences of your purchases. You can do a lot of good by buying responsibly. Be responsible.
martin@rapaport.comArticle from the Rapaport Magazine - May 2022. To subscribe click here.