Article: 'Who's Your Jeweler? & How They Categorize You'

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LaBoheme

J'ai deux amours...
O.G.
May 20, 2006
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http://www.diamondcuttersintl.com/diamond_education/articles/reference/whosyourjeweler.html


Who's Your Jeweler? & How They Categorize You


There are three categories of jewelers. A jeweler is either Brick & Mortar (B&M--has a physical store front); Virtual (internet based-- no physical store front) or combo B&M & Virtual. I am not including TV vendors for this article because they only deal in commercial quality and costume jewelry.
Within all three categories of jewelers there are four distinct approaches used in selling based on four customer types: the Discounter, the Bargain Shopper, the Brander, and the Better Thans.

A. The Discounter: The discount shopper isn't particularly interested that an item is top of the line as long as their particular need gets satisfied. They focus on "category needs" not "detailed needs." A discounter buys a car to get from point A to B, not because of how sexy they will look in it or what their neighbors will think. A discounter buys toilet paper, cars, bikes, trucks, & TVs. The rest of us buy Charmin, Lexus, Harley, Ford, and Sony. The Discounters' motto is "Get the job done at the lowest possible price." These are the people that will be in line at 2:00a.m. outside Best Buy in the frigid cold on Black Friday (day after Thanksgiving) in order to get something for as close to nothing as possible.

B. Bargain Shopper: Wal-Mart has proven that most of us are bargain shoppers; quality merchandise at a low price. Unlike the discounter mentality, the bargainer isn't willing to waste the time and effort that it takes to buy at the absolutely, positively, guaranteed lowest price. They want quality merchandise (generally name brand) but at a savings. Bargainers love to compare notes with other bargainers about what a great deal they got on their new Sony DVD or flat screen. Bargainers will make the effort to visit a few stores until they are reasonably sure they've done well and quit shopping. Whereas the Discounters will only tend to stop shopping when they've been to every store in their area. Of course with the internet it's taking longer & longer to "shop around."

C. The Brander: Like the Bargain shopper, the Brander wants quality but he's also looking for an emotional connection with the brand. Something that represents him or her. Something that tells the world who they are. Price is less important to Branders than actually having the item that other people have so they can connect with them. That's why celebrity endorsements work so successfully. If an individual sees a celebrity endorse a product, or better yet actually use the product, they form a bond with the product. "Let's see, Robert DiNiro uses the American Express card. If I have an American Express card, then Robert and I have something in common! We're connected in some cool cosmic way!" Branders want to buy products that other groups tend to buy. These groups are not limited to but include women, men, the wealthy, the affluent, the sexy, the smart, etc. A Brander may not even "need" a product but purchases it anyway because others in their identity group have the same item.


D. The Better Thans: As the title insinuates, the Better Thans honestly believe that on some social, economic, intellectual level they are "better than" others. There's the right religion, the right political party, the right everything. Naturally, for them to be right, many have to be wrong or "less than." Better Than shoppers only want products that the masses can't have and if the masses get it, then they don't want it. Yesterday, I was shopping with my wife and we wandered into Cartier. They had a pink diamond, yellow diamond, & white diamond, tight knit pave, rolling ring that I could produce for about 5K. They were selling it for $52,000! And you know what? They are selling them!? And the reason they are selling them is that they are so expensive. It isn't enough to just own jewelry any more. The consolidators like Costco, Sam's, Wal-Mart, J.C. Penny's, & Blue Nile burst that bubble. People are hung up on where they bought it; when they bought it (the right season); and what they spent. Louis Vuitton has made a fortune as a mega successful brand name because of recognition of their line. When people see someone with one of their hand-bags, every one immediately knows, "Wow! That hand-bag cost major $$$! They must be somebody!" (P.S. Last time I checked, we were all somebodies.) Louis Vuitton even has a new spring & winter line that is only available to their top clients (clients that have spent over 100K with them) that nobody else can buy during that season! In some cases they will only release ten of a type of hand-bag and let the socialites and celebrities duke it out for the power purse. I've been accused many times of being a "better than" because of some choices I made. My Patek Phillipe or Rolex watch is a popular "Better Than" selection. My problem is that in most cases there seems to be a direct correlation between quality (which is important to me) & the "Better Than" brands. But I'm also the same guy who was at Target this weekend to stock up on toilet paper. Grocery store prices are too high. To Better Thans, the importance price plays in the buying decision is that it has to be priced high enough that most people can't afford it.

The Pitch
Now that I've described the four customer mind sets, let me outline how the jewelry industry attacks each to get your hard-earned dollar. They know there are many different avenues you can take to buy a piece of jewelry. You can visit a jewelry store that specializes in selling jewelry. This of course could be a mom & pop store or a national jewelry chain. You can visit a department store that has a jewelry department or even a "superstore" like Wal-Mart where you can buy a new pair of jeans, a gallon of milk, and a new engagement ring at the same time! There are high end jewelry stores like Tiffany, Cartier, Harry Winston (also referred to as guild jewelers); and of course you can surf the web. If we set aside Wal-Mart, the top three companies that sell jewelry in the United States are Zales, Sterling, & Finlay. Together they are responsible for almost 5 billion dollars worth of sales annually out of their 4,375 stores nationwide. In a survey of young, upwardly mobile, professional couples, 93.7% told me they would never consider purchasing a major piece of jewelry from a mall jeweler.

When I pointed out that there were some pretty high end stores like Tiffany & Cartier that happened to be in malls they commented by a ratio of 4 to 1 that they would not shop at Tiffany's or Cartier either, because you were just paying for a name. When I asked about companies like Bailey, Banks & Biddle; Mappins; Friedlanders; Marks & Morgan; Osterman; Jared the Galleria of Fine Jewelry, the usual response was "Well, yeah sure; someone in-between the high enders & the discounters like Kay's; J.B. Robinson; Zales; Gordon's, and such." When I asked what was wrong with Kay's or Zales, the general response from these college educated affluent young men & ladies was they were for people who need to buy in installments; the salespeople weren't perceived as knowledgeable; and the décor was, well, in a word, "déclassé."

So it seems people tend to shop where they believe they fit in. Kinda like Goldielocks, the choice has to be just right. However, though people believe they are being given a choice of where to shop, in reality, the deck has been stacked. What the big jewelry retailers did decades ago was buy up most of the mom & pop jewelers. These are the same jewelers that spent decades building a loyal clientele and then were bought up by the big corporations, leaving, of course, the original owners name on the awning so you, the loyal clientele, wouldn't be the wiser. For the first time I'm listing for all to see the true owners of the jewelry stores you frequent; so you know exactly who is getting your money...

 
I can't get the formatting right so I've done screencaps of the article's ending.

He lists the companies and various stores.

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This is fascinating.
Thanks for posting.
It's not very surprising.
I think that the economy may be changing a lot of people from 'better thans' into bargain shoppers.

I buy very high end jewelry sometimes (22k gold, diamonds with AGS certs) and very low end sometimes. I have bought jewelry at Walmart before. The way I see it is, the jewelry in Walmart is the same as what you see in Kay's or the mall stores--I1 or I2 diamonds, 10k gold, sometimes 14k. It's not any kind of quality, but sometimes its sparkly and cute. And at Walmart, I know I didn't pay huge markup for it--I'm paying that an included diamond is actually worth.

I don't necessarily always want to buy the cheapest, but I don't want to pay more than something is WORTH.
 
I don't want to pay more than something is WORTH.

^^^ ITA!

Great article.

When it comes to jewelry, I'd say I'm a hybred of these.
Definately bargain to where I have a list of things I want. Whatever happens to be the best qualtiy at the best price is what I will buy. For example now is not the time to buy a big fat gold necklace. Wait on that till the price comes down.
I will not pay for designer name. And I don't want what others have. JMO - the independents tend to be more creative & since its not mass produced, I think its better quality for the money.
 
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I'm a jeweler and I own brick and mortars.

I don't much care for the article. I don't think it gives consumers enough credit, to be honest. Yes, we sell to some of the types above and we ecounter 'branders' and 'one-uppers'. But we deal with a different breed more often than not. The bulk of our clients don't come in blindly. They have researched, they know what they want, they have a certain budget in mind and they seek out independant jewelers to helpo them find or create the item they want at non-retail price. These are savvy consumers, smart buyers who know better than to toss their money away on junk and don't buy JUST for a label. They're eduated consumers.

My husband and our staff see a lot more of the 'savvy buyer' than the other types anyday.

People aren't al just blind sheep, purchasing whatever comes along. Most jewelry is a gift or a token to commemorate something like a wedding, graduation, anniversary- these are thoughtful gifts that take some planning.

Maybe we just are lucky to sell to a better group of people. But, again, we are independant operations, family owned and staffed only by GIA graduates. We are NOT a mall store and we don't carry national chain supplies.
 
I guess I didn't really see the "aha!" in this article since I knew that most of these stores were owned by larger conglomerates. Admittedly, though, 99% of my jewelry is from an independent store that my parents have been going to for years, and my wedding set is from a wholesaler. Other than that, I have a few Tiffany items that were gifts.
 
I've had problems finding a few rings I wanted, so have visited a private jeweler. He is a master goldsmith in addition to being an artist, and has made me some very fine pieces of jewelry.

Since I'm the originator of the ideas, and he helps me by designing & creating each piece, I don't see his b&m store or me has a shopper fitting into any of the seller or buyer categories above.
 
for me it is all about the design not only the big stones.
i have branded pieces by the very well known becaue for the pieces i bought and wanted they always could deliver!
but i also have a lot of pices of family owned stores that are famous(by winning design awards or being known for their quality and eye or their stones and so on ..) but only to people who are in the trade(and know) and those usually only have one or two locations

there maybe are people out there who fit in those roster above but i would say not me or any of my friends and like Gnome said i really think you have to cut the modern customer some slack - mostly they are more educated(in the sense of what they want what is quality) than you think
plus a lot more want something unique one of a kind (and not only haute joaillerie also specially made dainty rings by a local jeweller for example or basically all price ranges)
 
Adoptastray, you take your ideas and go find a local independant jeweler.

No, that wasn't really my point. There are mainline retailers that have beautifully and wittily designed jewelry. These categories do reflect brands like Yurman, but there's no fit for an Annette Ferdinandsen or Devon Page McCleary or Sydney Evan at Barneys or Ylang23 or Neiman Marcus.
 
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