As I Have Gotten Older...

• Do as you say.


• Think before you speak.


• Speak the truth.


• Treat others as you would like to be treated.


• Share.


• Mind your manners.


• Follow your heart.


• Forgive and forget.

We were taught these things as little children, but if you are anything like me, as an adult I am still learning them. And what do these really mean as an adult anyway? They seem so simplistic. When we were little kids the decisions were pretty easy and the consequences were predictable.

As I have gotten older (some would say "old") things have gotten much more complicated, especially when you are trying to explain to a tweener, teenager, or young adult. They will call you on things they see as black and white. They may even call you a hypocrite, using that term and knowing what it means. While shades of gray seem to grow as we get older, truth is still truth.

As I have gotten older I have become pretty good at justifying my actions and my thoughts in my own mind first. I try to do this before I actually do what I am going to do or say what I am going to say, rather than after the fact. That is easier to do on the big things and much harder on the day-to-day, live-life-as-it-comes pace of normal interaction with others, you know, when you just have to react to things. Getting older means getting more set in one's ways and thinking, too, which makes it harder to always react with patience and contemplation because you already know so much.

As I have gotten older I better understand the need to have a checkpoint at the link between thought and words. I have a better understanding of what Mom meant when she told me to bite my tongue. Just because something pops into my head doesn't mean I should clutter up anyone else's with it. Some things are just better kept for one's own enjoyment or misery.

As I have gotten older I have learned how important it is to do what you say you are going to do and not over-promise and under-deliver. That's not always easy either because I think I can do so much, everything really, and I am still learning to say 'no' sometimes and work to manage expectations. The saying, "Under-Promise and Over-Deliver" runs through my mind daily.

As I have gotten older I have worked to regain and further hone my sense of empathy for others. I had it as a kid, believe it or not, then lost a bit of it in my early adult years as I focused on myself and my desire to achieve and become. In dealing with my children from the time they were pups and now into late teenage-hood I have tried to remember what it's like to be their age. I'm sure if you ask them right now, I have failed miserably at putting myself in their shoes, but hopefully one day in the not too distant future they will think otherwise.

As I have gotten older I have tried to take the idea of sharing with others to include serving others. This is a constant challenge, for it is easy for me to share an old coat or pair of slacks by giving them to charity, but much tougher to get in my car and drive to see and meet the people who need my coat and old slacks. I'm working on that.

As I have gotten older it is actually easier for me to mind my manners most of the time. I don't drool; I use a napkin; I put the seat down and close the lid when I'm finished; I wash my hands regularly; and I usually pick up after myself, eventually if not immediately. And I really try not to offend people when I first meet them. If after awhile the opportunity arises to do so, well that's another matter, of course.

As I have gotten older I am just now beginning to realize what it means to follow your heart. That saying is heard over and over again throughout life and I have always been so admiring of those who have truly found their passion and have pursued it with vigor, inevitably finding success and happiness. I am working on that. I really am, because I know no one else will do it for me or hand it to me with a set of instructions. I have to find my own way on this one.

As I have gotten older I more appreciate and understand the gift of forgiveness and the art of forgetting. There are always things in life which don't go as planned or as hoped. People around us don't always act as we think they should and they don't always say the right things. Neither do we. Neither do I. But I do know the load becomes lighter when you forgive and forget.

As I have gotten older the best is still to come.

Heroes in Our Midst

There are heroes all around us, every day, in very quiet corners of our lives doing what they do and knowing what they have done to set themselves apart from the rest of us. But they would never tell you they are different. They would never let on that they have done something extraordinary in their lives.

Many have done their heroic acts in a space and time away from the cameras and away from the view of crowds. They would tell you their actions were just a part of their job, or an instinct, and that anyone would have done the same thing and reacted the same way given the same circumstance. I'm not always so sure of that. I would guess many heroic acts have gone unnoticed and unrecognized, maybe for years or maybe even forever, known only to the heroes themselves and those they helped.

A hero in my midst emerged just the other day, unknown to me in prior conversations over years of interaction. In fact, like most heroes, I didn't hear it from him. I heard about it in the course of a typical conversation with one of his employees while she was telling me he wasn't going to be in this week. He was in Washington DC to receive an "award" with his troop from Vietnam.

Oh.

Then I got to thinking: He was in Vietnam? Wow. I wonder what he did there? I wonder what it must have been like for him? How come I never knew that?

John Sorich, part of the senior management team at Diamonds Direct in Edina, MN, was part of Alpha Troop, 11th Armored Cavalry Regiment of the United States Army, which engaged in what became known as "The Anonymous Battle." The troop rescued more than 70 fellow U.S. soldiers from a larger North Vietnamese force on March 26, 1970.

The action went largely unnoticed and unrecognized until Alpha Troop's former commander, John Poindexter, documented the battle in great detail and submitted it to the Army six years ago. This led to the unit receiving the highest military honor possible for a unit, The Presidential Unit Citation, at a formal White House ceremony on Tuesday, October 20, 2009.

Details of the battle and rescue can be found in a number of places, but a nice article and account by James Dao of the NY Times, published September 30, 2009, can be read by following this link:
http://www.nytimes.com/2009/10/01/us/01vietnam.html?pagewanted=1&_r=1&adxnnlx=1256223690-yrHl2RdkcQMMgBmTjIMHeg

An excerpt:

"...Mr. Hobson says he believes Charlie Company would have been “wiped out” if Alpha Troop had not arrived when it did. But at the time, it was just another day in Vietnam. Weeks later, Alpha Troop joined the invasion of Cambodia. And the battle became a footnote to history — or less.

One troop member, August Whitlock, recalled that when he left Vietnam, the soldier processing his papers asked if he had been in any major battles. When Mr. Whitlock mentioned the rescue mission, the soldier scanned a list.

No, the soldier told him, there was no such battle on that date."


It makes one wonder how frequently the details of heroism go unnoticed and unrecognized. For me, I am grateful to have learned of my friend's heroic actions and involvement in a war that is far too often anonymous and, for many, far too readily forgotten. A heartfelt thank you to my friend and business associate, John Sorich, for being a part of something much larger than self and doing what needed to be done, regardless of peril.

And thanks to all the heroes who have gone unsung, carrying out their duties the only way they know how: by doing what needs to be done, every day.

Diamonds, Friends and Sierra Leone

Last night I had the distinct pleasure of viewing the North American premier of a new documentary entitled "Pride of Lions", depicting the plight, passion, and pride of the people of Sierra Leone.

This film was developed and produced by John and Louise Woerhle, a brother and sister team from Minneapolis who, through a very unsuspecting set of circumstances, found themselves drawn into the story of Sierra Leone, its 10 year civil war, and its people. We in the jewelry industry are quite familiar with Sierra Leone because of its diamond resources and are painfully aware of blood diamonds, Leonardo DiCaprio's film, and the highly charged spotlight which has been cast on a seamier side of the diamond trade. http://www.prideoflionsfilm.com/

This story, however, is not about diamonds. It is about the resiliency of a people and their country coming out from the depths of a hell. Diamonds happen to be a great natural resource of this country and for many of its people, provide an opportunity to earn a living---difficult work as it may be.

I have another set of friends, Julie Watts and her husband Sam from Sacramento. Julie is an Emmy Award winning reporter/meteorologist and Sam is an industry veteran and former business associate of mine. Julie and Sam combined their compassion for humanity and their passion for diamonds to take a trip and follow a diamond from its source in Sierra Leone to the market in Sacramento.

What they discovered on that journey was far beyond their expectations and has been documented in a piece by Julie now being aired on select PBS stations. You can visit http://www.juliewatts.net/ for more information.

As jewelry professionals it is our responsibility to know and understand as much about our industry as possible. More importantly, as people it is incumbent upon us to be as conscious about our impact on others and the world, as we are about our customers and our own little worlds.

I am moved by the sincerity and zest for life of the people of Sierra Leone. The horrors they have endured have not dampened their spirit, ingenuity, or quest for peaceful living. But they can use some help. I strongly encourage each of you to take a moment to visit the websites noted above. Keep an eye out for an opportunity to view these compassionate and heartfelt works, produced and developed by real people with no agenda other than to shine a different kind of spotlight on an area and a people living too long in darkness.

Surely the world, even through the small avenue of the jewelry industry, can become a better place because of those who care to make it so.

On Choices, Spiro Agnew, and Cheerleaders

Opportunity. Anticipation. Eagerness. Beginning. Change.


These are the words I have chosen for this Monday.


They are in place of the ones assaulting me as I listen to the radio, tap into my laptop's home page, and read some of today's headlines.


Upheaval. Outrage. Uncertainty. Fear. Change.


Read them again, both sets. Isn't it interesting how the company of words affect the perception and meaning of the word "change"? It is a matter of choosing what to see, what to hear, what to experience. There is always a choice.


These are the kinds of times when people become more practical in thought and in action. Decisions are based more on logic and the definition of need than on want. Most emotion is removed from the formula, because we are taught that emotion clouds our thinking and gets in the way of rational, analytical, and productive decision making.


So how does that work with us? We are in the jewelry business, selling something that people don't really need and it may be easy to fall under the spell of the naysayers' loud messages using words like the ones above. They can cripple us if they seep into our psyche.


Disgraced and ousted former Nixon VP Spiro Agnew, speaking of the press, once called them "Nattering naybobs of negativity." I like that. If nothing else, Agnew was good for that one memorable quote.

Most of us recognize that bad news sells, but aren't you getting tired of it? Turn it off. Forget about what is being said and sold as truth through the mainstream media outlets. That's what I'm trying to do. I'm trying to let it go, which doesn't mean I don't care, but I need to get worked up over what I can affect.

A friend of mine once told me, "Picture this: you get together with all of your friends around a table and everyone throws their lives into the middle, the good, the bad, the boring...everything. Everyone's life is out there for everyone else to see and you have a chance to grab any one of them you like. Once you get to see everyone else's and understand the breadth and depth of what they are living, chances are you'd be quick to grab your own back."

The choice is between dealing with what is known as opposed to what is unknown. Choosing that which you know you can affect over that which will have an effect on you. It's not that you have problems or challenges, but how you choose to handle them that makes all the difference.

And for some reason I have a cheer running through my head right now, but despite this blog's title it isn't about cheering or being a cheerleader. No, this is about a mindset. A choice. Cheers are cute little rhyming mantras for temporary motivation toward a short term goal.

Like "You can do it if you try V - I - C - T - O - R - Y!"

I never really liked that cheer, but since it has been running through my head I thought I'd get it out of mine and into yours.

Now go do what you need to do and have a good week.

Negotiations and Love Songs

We are replete with manufacturers, designers, and vendors offering a mind-numbing and dizzying array of product, all with the intent of reaching the retail jeweler's showcase. But how do you, the retail jeweler, begin to discern which company or companies make the best business partner? How do you sort through the myriad of companies to find the best one for you?

Maybe a start would be to examine your current vendor list from the bottom up. Take a look at the company from whom you buy the least. This may or may not be the same company whose goods you sell the least, but that is something to consider as well. Ask the following questions:

1) Why is this company on my vendor list?
2) Can I get what they offer from another vendor further up my list? Or do I need to look elsewhere?
3) Is what I have sold from them profitable? How profitable? Should I be doing more?
4) How much inventory do I have on-hand from this company?
5) Is this company active in helping to improve my business with them?
6) What do I like about them? What is lacking?

You will begin to see an image of whether or not this company is important to keep as is; grow with as a partner; or eliminate altogether. You will also more clearly see what you need and expect from a vendor partner.

I know a jeweler who, over the years, has eliminated a number of vendors for many reasons. Problem is he adds new vendors each year, too, so the list never really shrinks all that much. He effectively weeds out weak performers while seeking new ones who he thinks can help build his business, but I wonder sometimes if he is really an active partner in the relationship or if he just thinks the grass is always greener elsewhere.

I know another who is so particular about his vendor partnerships that he rarely takes on someone new unless he has exhausted all possibilities of furthering his existing relationship for that product or category. He feels he chooses vendors carefully and not exploring ways to make things work, even when difficult, is a cop out which reduces the relationship to a complete waste of time, money, and effort for everyone. He would much prefer to do his homework up front and minimize the potential of a failed relationship, but I sometimes wonder if he is the clinger who can't leave a relationship, no matter how bad it is.

Somewhere between those two extremes lie the healthy partnerships.

How do you give yourself the best chance for success?

How do you sort through all the chatter and clutter out there to find your partners?

Do they measure up to your expectations once the relationship begins?

Are you, yourself, a good partner?

Remember that business relationships are a bit like personal relationships. In the beginning it all looks very rosy and attractive. Its meant to be that way. But how each react and respond when things get a bit rocky is what defines the relationship and whether it will grow or die. I'm reminded of Paul Simon's Train in the Distance in which he sings,

"The thought that life could be better is woven indelibly into our hearts and our brains."

Wanting things better is human nature, but how we seek to make them better makes all the difference. Retailer and vendor alike should now be taking the time to clearly define expectations and review partner relationship experiences.

Life will be better, but it can be better still with dynamic partnerships pursuing the same goals.

Try Something New

A friend of mine used to tell me stories of how he would prospect for jewelers to consider carrying his company's collection. In one instance early in his career his sales manager was traveling with him. The week was to include set appointments with customers, pre-arranged visits to a few prospects, and cold call drop-ins to other prospects.

As they were driving around the territory, the manager would notice jewelry stores here and there and ask the rep about them as they drove by. My friend the rep would respond as best he could with answers ranging from "Oh they don't sell this kind of stuff" to "I sell their competitor" and "I already know they don't need anything."

After a few days of this the sales manager asked him if he would be willing to make a presentation at the upcoming sales meeting. Surprised by this offer, my friend asked "On what? What would you want me to talk about?"

The sales manager replied, "I like the way you do your job. You have an uncanny knack of being able to drive by a store and know, just by looking at it, whether they need anything you have to sell. Really, it's brilliant. Can you imagine how much time the rest of the reps will save by learning your secrets?"

With that they stopped at the very next store they saw, went in and introduced themselves.

Now this was probably 20 years ago and things have maybe changed a bit, but the lesson is still worthwhile when it comes to learning about potential customers whether as a retailer, rep or vendor. People buy for all kinds of reasons:

1) Some may actually want what you are selling.
2) Some may not realize they need what you are selling.
3) Some may not want or need it today, but if they know about it may buy in the future.
4) Some may buy just because they can.
5) Some may buy because they like you.
6) And still others may buy because they feel sorry for you.

Whatever the reason, if you don't take the time and effort to reach a potential customer, chances are they won't buy from you. Rarely is it a random set of circumstances. Somebody has to do something 'on-purpose' to set things in motion.

What are going to be your 'on-purpose' somethings this week? Will one of them be a different kind of conversation starter? Maybe a different set of questions? How will you tap into the real reasons someone has walked into your store? Or how will you and your staff inspire a client to come in and visit your store? Or as a vendor, how will you engage jewelers in conversations which are more about their business and less about yours?

One last note, this same rep friend of mine and his manager were thrown out of a store that week, too. The rep, always a bit too sure of himself, strode into a store and noticed they didn't carry any product like he was selling. After a brief exchange and the jeweler telling him he never sells anything like that so he doesn't carry it, the rep asked, "Do you do any haircuts here?"

"What?" the jeweler asked. "What are you talking about? This is a jewelry store not a barber shop."

"Well," the rep said, "that may be, but I bet if you put a few barber chairs in here you'd sell a few haircuts."

The jeweler hesitated for a moment before raising his finger toward the door and yelling, "Get out!"

The point? Don't be a fool while trying new ways to engage a customer and worse, don't make them out to be a fool.

Be Like an Ant

It's late and I've been sitting here replaying the tapes, running back through my mind the conversations and happenings of the day. I do that quite frequently, I guess, wanting to make sure I didn't miss anything or maybe in an effort to clear my mind a bit before nodding off. I'm not sure which always, but it does seem to help me sleep more soundly.

Sleeping soundly is nice, but I imagine there have been many restless nights these last months for most of us. So what have you been thinking about? What has kept you awake or tossing and turning?

I'm hoping the questions are more like, "How do I take advantage of the opportunity before me? What can I do to set myself apart and excel in these times?"

And less like, "How am I possibly going to make it?...through this new year?...or even tomorrow?"

Everyday I find myself searching for the good news, the positive stuff that doesn't make the front page of anything. I can find it, but I have to regularly sift through a lot of crap to see it. Maybe that's what makes me enjoy and appreciate it all the more.

I live in Minnesota. Those of you who don't or haven't or haven't been, probably hold a certain image of this place. Some are accurate and some perpetuate legends. But I can tell you, having moved and lived in a few different climates, that Minnesotans probably embrace the seasons more fervently than many others, though I'm sure we are not alone in our fervor.

Why is that? Well, logical thought and a common answer would be the length and severity of the winter. You would probably hear that from most anyone you asked, but I believe it has something more to do with acceptance and anticipation.

There is a certainty, a knowing, that nothing lasts forever. I remember my mother telling me exactly that at a younger age when pimples seemed to appear, re-appear, and multiply daily--at the most crucial dating moments. (I wondered if she secretly oiled my face at night as I slept, in an effort to thwart my plans of an acne-free approach to a potential date.)

But nothing does last forever. Not the Minneapolis winters, the Seattle rain, nor the Houston humidity. Nor acne. They come. They go. Just like the good times and the bad times. They come. They go.

It's what we do with the in-between that makes the difference. It is how we prepare for each that sets us apart and sets us up.

A former mentor of mine used to tell me to study ants. You see, he'd say, ants have it all right. All summer long they work like mad, constantly reaping and harvesting and storing and preparing for winter, because they know it is coming. It always does. And they always have enough to make it through the winter, but while they are surviving that they are making plans for the spring and summer and how they are going to take advantage of the bounty that is promised each and every time the good weather rolls around. He'd tell me the ants were always making plans well beyond the moment of their circumstance. They were always looking forward, always preparing.

That's good stuff and for some reason I thought about it as I re-ran the tapes of my day. I guess I want to be like an ant in some ways. If you put something in front of an ant, they either grab it and drag it with them or go around it and continue with their business, focused on their mission. Either way, they are not easily distracted from what they have set out to do regardless of what is going on around them.

Yup, I want to be more like an ant.

Who Are You? What Do You Do? And Why?

Stand for something.

Be meaningful and on-purpose.

Be sure that everything you do is in line with your core values, your mission, and your vision.

What's that? You say you don't have a clearly stated and understood mission and vision? You need to get one by asking yourself the questions "Who am I? What do I do? Why?" Write down the answers for yourself and then for your business, whatever it is that you do.

From those answers you can develop a succinct and clear statement defining your mission and vision, both personally and in business. It is especially important for being prepared and effective at making sound decisions, because every one of them should be guided by your core mission and vision. It is also important for anyone who works with you to understand it, buy into it, and know how they fit into it - what their role is and how they contribute to that mission and vision.

Retailers are faced with having to make meaningful decisions regularly, whether it be to set a new company policy, add or decrease staff, or bring on a new vendor. These decisions and others are undoubtedly more critical now because one can ill afford to make mistakes which may prove costly.

For instance, when considering a new vendor partner ask yourself the following questions:

1. Is this product/service in line with our mission - a) to our market? b) to ourselves?

2. Can we quantify and verbalize how this will - a) enhance our offerings to our clients? b) enhance our position in the market? c) enhance our profitablity?

3. Can we get the necessary critical vendor support to - a) train and engage our staff? b) satisfy our clients? c) manage our investment (ROI) and inventory?

4. Can we see this as a long-term investment - a) toward the betterment of our company? b) to grow with the vendor as a meaningful contributor to our business? c) to be able to really get behind the offerings and proudly present them as an integral extension of who we are?

5. Can we establish a business partnership that fits OUR terms and needs or are we being dictated to? Or is it a combination we can live with? And finally, is it worth it?

Everything you represent, sell, instill, advocate must be done with intent. Every associate in the company must buy into that philosophy and intent. They must understand how your decisions and their roles and actions contribute to the overall vitality, success, and mission of the company. They must be immersed in the culture and you must be able to explain, even defend, decisions and policies which are engaged and implemented within.

"Because I said so," doesn't quite have the same impact or acceptance as when you used to hear it from your mother. Know how to articulate your reasons for your decisions. It's easy once you have defined your core values, mission, and vision and adhered to them as you've conducted your business.

You Can't Please Everyone, So...

I recently had a conversation with a jeweler friend of mine who was lamenting the fact one of his vendors let his rep go. It seems the vendor is going through some downsizing and reorganization to get leaner and more profitable. We discussed the factors: the economy, a rising cost of sales, and shrinking gross margins due to fewer sales to fewer jewelers and greater competition for the same dollar.

While that was understood, he was upset that a company would cut off his reason for starting in business with them in the first place. This was a rep with whom he built a relationship of trust and understanding over many years. My jeweler friend now wonders how his business will be serviced as the vendor has no intention of replacing him with a new rep, but will be handling his account from the home office with personal interaction being limited to trade shows.

Oh, and the jeweler will continue to be able to order product online, just as he has for the past couple of years.

Hmmm. So, he has been ordering online and it has been efficient and simple. He knows the product, knows the company and trusts the quality and delivery enough to order by computer without having to touch, feel and look at it in person each time there's a buying decision. And it has been a profitable line for him, so...

"And the rep? What did he do?", I asked. Well, to begin with he introduced him to the company. Without the rep the jeweler would never have known they existed or given them a chance. He sold him on the collection and placed the first order for inventory and became his primary link as his business grew with them, presenting new designs, new marketing concepts, and handling customer service and inventory issues with prompt, effective attention. He continued to receive commission on all sales to the store, whether he actually wrote the order or it was placed online or by phone. My jeweler friend made sure of that. Had it been otherwise he would have always called him to place an order. Very thoughtful and very nice---the way a partnership should be: thoughtful and nice....and mutually profitable.

So the company may lose an account over this? The jeweler told me he is now beginning to look for someone to replace them, but wonders who he can find that will provide the kind of support and service to which he is accustomed and provide the kind of product he knows he can sell.

So big deal right? On the surface it may seem it has always been that way, but as I see it, the industry paradigm is now shifting daily. For years vendors have relied on reps to build their business and that is where the relationships with jewelers have been cemented. For the most part relationships have NOT been nurtured, maintained, and enhanced by the vendor home office, though they should be. Reps have had no incentive to caress the jeweler closer to the company than to themselves. Why do you think it has been so important to vendors to know the kind of account list a rep has before hiring or contracting? Because traditionally they are the ones with the relationships.

While technology exists to streamline the process, reps are not yet a thing of the past. If there is to be an effort by some companies to eliminate them I might suggest a well thought out strategy to make certain accounts are ready. Maybe even include and provide the rep an incentive for transitioning and cementing the vendor/retailer realtionship before a series of unintended consequences kicks in...like the jeweler beginning to search for a new business partner.

As Ricky Nelson sang in Garden Party, "You can't please everyone, so you've got to please yourself." But that's no way to run a business, is it?

Commentary on JCK's "Can US Jewelry Manufacturer's Survive?"

I read with interest the March 1, 2009 published piece on JCK's website, by William George Shuster. You can read it in it's entirety by clicking on the title of this blog.

As I see it, the fundamental problem with our industry is the business model. Bruce Pucciarello of Novell is right in saying, "Learning not to resist necessary change, manufacturers must adjust their technology and electronic commerce systems to the new economy."

We have perpetuated an archaic system of business for far too long, resisting participation in the technology age to a large degree. Sure there are jeweler websites and certainly there are those who sell jewelry through e-commerce, yet there is far greater room for efficiencies through technology than most realize. And I'm not techie. Many people these days are carrying out business in a virtual environment. Whether conducting meetings, introducing new products, or closing sales, companies and industries in whole have embraced technology as a faster, more efficient, and more cost effective path to doing business.

Our industry was built largely on handshakes and personal relationships. An honorable and worthy way of establishing and perpetuating partnerships, but it required regular hands-on, face to face visits in order to work well. With travel costs skyrocketing, a general decline in retail sales, and swollen inventories it has become extremely difficult for vendors to make those visits profitable.

So what can be done? Change. Change the way we do business. Get more comfortable with virtual meetings, video conferencing, web-cam product introductions, and electronic inventory analysis and management. And plan on an in-person meeting a couple times a year, both in the store and at trade shows.

Jeweler's will have to become more knowledgable in selecting the right vendors to partner with, and in so doing become a more loyal partner. And they will have to become more disciplined at keeping their vendor list shorter. Vendor's will have to become better partners by having a real interest and role in making sure their product goes over the counter into the hands of consumers, thereby earning the jeweler's loyalty. And they will have to get better at helping the jeweler manage inventory for proper turn and profit so business for both can grow.

The old ways of doing business simply don't cut it anymore, but we have to be in this together to make it work. Still, through this transition there will be many who can't or won't change and that is just the way it is. For us to get better as an industry we must also get leaner.

To the victors go the spoils, but there will be plenty to go around.

Change is coming...like it or not

So the jewelry industry is going through some tough times. That's what I've been hearing; that's what I've been reading; and, yes, that's what I've been experiencing too. The common questions to the retailer have been things like, "How's your business? You doing OK? What are you doing to weather this and how long do you think it will last?"


The questions to vendors are, "Are you selling anything? Is anyone buying? Do you think anyone will show up in Vegas? How much longer before people start buying again?"


You know the questions and probably know there are very few real answers. Our industry has been poised for a serious correction for some time now. Years, really. The business model under which we have operated for about a century has run its course. No longer can vendors continue to spend hundreds of thousands of dollars on product development and advertising to entice jewelers to buy from them. The reason? Jewelers aren't buying. Or more accurately, they can't. And shouldn't. At least not the way they have been in the past.


A fundamental problem with our industry's model of business is most vendors have treated the jeweler as the end user, relying on the jeweler to continue to make significant and regular stock purchases in order to keep their revenues growing. This isn't to say the retail jeweler is blameless in this flawed formula. On the contrary, the jeweler is an active participant constantly searching for the next best and soon-to-be-hot jewelry trends to set them apart in their market and attract customers. And they are often too willing to move away from existing vendors in favor of that greener grass.

So what happens? The jeweler adds yet another to the vendor list while adding to the store's inventory, hoping a good decision has been made; the product will sell; and the vendor will fulfill it's promises.


The vendor hopes so too, except hoping the jeweler will also be fulfilling promises. But through it all, the vendor constantly searches for more ways to get more product in the store---and keeps searching for yet another jeweler, knowing this or another business relationship won't last.


The jeweler rarely ends up selling everything purchased for inventory and the cycle is repeated year after year, vendor after vendor, causing an overstock of the wrong stuff. And this causes a problem when economic times are tough like they are now because the jeweler is not making enough sales over the counter to justify adding new inventory---even if it is from a vendor who has had success through the store.


So what can be done to break the cycle of co-dependency which has been created over so many years? It needs to be broken completely, then fixed in a whole new way so both retailer and vendor can benefit in long term, meaningful, and mutually profitable partnerships. Not only can it happen, but it must and will.


Clearly we all need to become better, smarter, more efficient, and more effective at what we do in the jewelry industry. Where would you start?