Thank God
We Got That Wrong!

WHETHER IT’S TRUSTING the wrong person, buying the wrong inventory or learning the hard way that “No” is a complete sentence, jewelers say their biggest blunders became their best education. We asked Brain Squad members to share the early missteps that shaped how they run their businesses today.

Trust, But Verify

• “When I was in my twenties, in the 80s, I was a bit of a show-off. I was always happy to pipe in with my knowledge. One day, a woman came in and handed me a long strand of pearls. She was looking to see what I thought of them. I immediately recognized them as faux pearls, but instead of delivering that verdict, I asked, ‘Where did you get them?’ She replied, ‘My brother gave them to me, right before he died.’ I then replied, ‘Well they sure are nice ones. Would you like something to keep them in?’ I was lucky. I could have spoiled everything for her. The incident taught me that it is better to be tactful than to be an authority sometimes, and to be thoughtful rather than to show off.” — Steven W., Chatham, MA
• “Early on in my current store, I didn’t fully understand how inventory records are evaluated after a loss. Following a robbery in 2013, I learned that insurance adjusters focus on documented replacement cost, not resale value or perceived market worth. Some diamonds I had purchased over the counter were entered at their acquisition cost, which did not reflect what it would cost to replace them in the current market. That stinking involuntary experience taught me the importance of maintaining inventory records that clearly reflect current replacement value. A favorable purchase price doesn’t diminish an item’s true replacement value — it simply represents earned margin. It was a difficult lesson, but it fundamentally changed how I document, insure and protect my inventory. Hard, hard lesson.” — Denise O., La Grange, IL

“We were fortunate to get cornholed by an unscrupulous but insanely likable and charismatic diamond dealer in the 1980s. This experience made us into the grumpy cynics we are today.” — Gretchen S., Sherman Oaks, CA

• “Working on custom without identifying the gemstones. This is actually what pushed me to become a graduate gemologist. A customer came in with gemstones he purchased from a friend and wanted them bezel set in custom earrings. We had 10 to do. We ordered the mountings, and on setting the seventh stone the jeweler cracked it and we found out they were CZ to begin with. The customer was disappointed, but didn’t want to spend the money on CZ. At the time, we had no GG to test the gemstones before proceeding, so we had no way to know what the stones were and took the customer — who was a good friend of ours — at his word. The customer still shops with us today.” — Amy H., Jacksonville, FL
• “Trusting friends to take my jewelry on consignment. I saw only a fraction of the money I should have gotten, and never saw the rest of the jewelry, nor my ‘friends’ again. Happened twice before I decided that I am the best seller of the jewelry I make. I have the passion, I have the knowledge of the stones and metals and the process of creating. I would never do a consignment arrangement again, but if I did there would definitely be contracts and payback schedules and police reports if things disappeared!” — Janne E., Cocoa, FL
• “Trusting that holding something without a non-refundable deposit will ever be picked up.” — James D., Kingston, NH
• “Keeping lousy inventory records that I thought were fine. Then, we had our first B&E.” — Stew B., Natick, MA

The People Problem

• “In the beginning, I tried to be lenient and empathetic regarding my employees’ personal issues, such as being late or needing to leave early for significant life events like wedding planning. However, this led to the store policy being misused, resulting in staff shortages and hurt feelings when I eventually had to enforce boundaries. Recently, I spoke with another store owner who told me that she doesn’t allow her employees to provide reasons for time off or attendance issues. She believes it’s not her business, and that sometimes, when an employee tries to appeal to a manager’s emotions, it can be a form of manipulation. Since adopting this policy in my store in October, I’ve noticed a significant change. The rules regarding attendance are now straightforward, making those difficult conversations less personal. The line has been clearly drawn, so no feelings are hurt, and the policy is consistently followed.” — Beth G., Endwell, NY

“Letting older men intimidate me to get the ‘deal.’ I sell on my terms now. Once I stood up to them I earned respect and some became valued mentors.” — Amanda L., Steinbach, MB

• “Not being firm as a boss, tolerating lateness, various abuses … soon it spread and became uncontrollable!” — Eve J. A., Evanston, IL
• “Early on — dating employees or co-workers. DON’T! It’s true, but not necessarily for the reasons one would expect.” — Jon W., Virginia Beach, VA
• “We hired a good friend. Big mistake.” — Tim S., Mobile, AL
• “Not having patience with customers — and I’m still working on it with employees. It’s a tough one especially during the holidays.” — Christine M., Boyertown, PA

Buy Smart, Sell Smarter

“Used to focus on the 4 C’s and GIA reports. It was a great way to get customers’ eyes to roll up in their heads.” — Bill E., Terre Haute, IN

• “I spent a lot of money on an ad in a Porsche magazine and on a video screen at a local gym. I learned that people come to me because of my personal touch, so spending time and money on more personal touches is best for my business marketing.” — Angela C., Atascadero, CA
• “I don’t think gimmicks work — we tried the package bundles with the teddy bear and/or flowers, we tried giving away plants, etc. It never generated excitement. I think customers worry that it’s a mask for poor quality. Instead we focus on what we do well — quality and excellent customer service.” — Becky B., Peabody, MA
• “Tried to be the master of all trades. Silver, watches, cheap goods … Not good. Stay lean and mean and do what you do best. Stay high end and real custom. Works for me.” — Klaus K., Bristol, RI
• “Had prices too low, couldn’t ever discount.” — Julee J., Mankato, MN
• “Discounting fine jewelry is a mistake. Sell quality and let the chains sell the junk discounted.” — Joe T., Lubbock, TX

Words of Wisdom

• “Quit undervaluing my time — I don’t think I have quite learned it yet.” — Loann S., Stillwater, MN
• “Control the growth of your business. Bigger is not always better.” — Lee K., Montgomery, OH
• “If it feels like it is going to be Pandora’s box, then it probably will be … saying No is okay!!!” — Autumn K., Tucson, AZ

“Don’t judge a book by its cover. Some of our biggest and best sales have come from people that look and dress like tradespeople or dress NOT to impress.” — David B., Calgary, AB

• “Not to act like I know what I’m talking about but to actually know. If you don’t know the answer to a question, ask.” — Cindy S., Southport, NC
• “I realized early on that our repair intake process had to be more dynamic, so I purchased the Edge system software and was able to take much more detailed repair information including photographs and notes.” — Daniela B., Guilford, CT

Quick Hits

Brain Squad members also shared these hard-won lessons in brief: Don’t judge customers by how they look and dress (Deb L., Appleton, WI) … Always take a down payment (Susan M., Dunedin, FL) … Stock enough popular-priced inventory (Steven R., Houston, TX) … Don’t buy without a fair stock-balancing system (Elizabeth S., San Diego, CA) … Do background checks on new hires (Kelly V., Geneva, IL) … Buying name-brand stuff that wasn’t our market was a costly lesson (Gene A., Reidsville, NC) … Don’t overstock, period (John A., Bala Cynwyd, PA) … Always document very clearly what items you take in for repair (Joe C., Bristol, RI) … I should have bought the building I was in rather than rent (Peter T., Show Low, AZ) … Don’t rely on other professionals — do your own research (Barry F., Bardonia, NY) … Do videos for social media (Cathy C., Royersford, PA) … Bought into an up-and-coming brand that went defunct (Connie S., Friendswood, TX) … Take the customer at their word? When you have the ability to check, check (Trevor W., Myerstown, PA) … Should have had more voices beyond the one person I thought was teaching me the business (Jo G., Oconomowoc, WI) … Overbuying stock — doing more and more custom work and inventory is sitting longer and longer (Marc M., Midland, TX) … Didn’t inspect the quality of manufacturing on engagement rings and ended up remaking a bunch (Steve H., Lake Havasu City, AZ).