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Brands Are A Strong Strategy At Alvin Goldfarb Jeweler | July 10, 2013 (0 comments)
Bellevue, WA—Steven Goldfarb of Alvin Goldfarb Jeweler is a believer in brands. He's got a store full of them, including his own. So, how does he characterize a brand? "My definition is when a customer walks in and has interest in the product. When they already know about a line, now that's a brand."
Goldfarb (left) remembers the start of modern jewelry branding, launched in the 1990s. "The big mantra was 'brands, brands, brands.' The criteria then were to give the brand big money, case space and a big wall display and watch what happens. And sure enough, it worked."
It worked well enough that today Goldfarb carries 20+ brands, including both jewelry and watches. "For us, watches are a level of legitimacy for inventory. When a customer is looking for watches, they may need guidance on a specific model, but they know the quality level."
Goldfarb himself has a recent 'brand' experience. He visited a customer's car dealership, going in looking for one specific car. He ended up buying a different car of the same brand because he was exposed to the entire line of autos. Comparing the experience to carrying an entire watch line (instead of just a few selected pieces), Goldfarb says simply, "That's why watches work."
Exterior of Goldfarb's.
Goldfarb believes that certain brands work well for jewelers. "I'm blessed that I carry those types of brands. Customers judge the store's jewelry by the watches they carry. You can see big diamonds, but you can't know the quality at a distance. If a jeweler carries Rolex, Breitling, etc., you know they are good. Same with designer jewelry and pearls; the brands stand out." Goldfarb recently finished a new space dedicated to Rolex watches. It was a seldom-used office; now it's a three-sided room filled with Rolex watches.
Alvin Goldfarb's sales are about one-third watches, one-third finished jewelry and one-third custom work. It currently has 10 employees, although Goldfarb says he'd like to add one or two more. The store is about 5,000 square feet with 3,000 devoted to the sales floor. According to Goldfarb, the store does a "big repair business for customers. That drives traffic for us. On the slowest day of the year, we see 10-15 people a day coming in for repair work." All that business keeps Goldfarb's on-site watchmaker and jeweler busy, plus three additional jewelers nearby in a spot that they call the 'jewelry annex.'
Left, a gift-laden table in Goldfarb's; right, the distinctive silver and black packaging.
Custom work at Goldfarb's is a joint effort between Goldfarb and the customer. After the initial consultation, "I usually do initial crude drawings," says Goldfarb. The next step is a finished design in CAD/CAM, then casting, then on to the finished piece." Goldfarb knows the value of having the customer involved at every step. "I can design something and they might love it. But they will love it more if they help me design it and see it at each step along the way. We figure out what they like about that ring Grandma used to wear if they are trying to recreate that. It starts with talking about their jewelry experiences."
Goldfarb is sharing the custom experience in the magazine he produces in-house. They are currently working on an article showing each step of the process, ending with a picture of someone wearing the piece. (Here's a link to the online version of their magazine.)
Above, the print version of Goldfarb's magazine, Bejeweled.
Along with his in-house magazine, Goldfarb reaches his customers through traditional media, although in more targeted process than he did a few years ago. "We did lots of radio, TV and print when the recession hit. We needed to make a change. We kept our word on all the contracts we had signed, but then started to cut back in 2010; not out of genius but of necessity. We kept direct mail; we have a large client list and we reach out to them a few times a year. More recently, we've been sending out email blasts. I resist sending out weekly emails, we have Facebook and our website for those who want to look in on us more often." (Here's a Facebook video of Goldfarb with his dog in the store.)
And who are the clients at Alvin Goldfarb Jeweler? Many are the locals in Bellevue, where the store is located. "It's the third largest city in Washington," says Goldfarb. "We've been a suburb of Seattle since the late 70s when Microsoft, Nintendo and Boeing all came to town." Goldfarb says his local customers are a bit older and many are married from engagement rings that came from his store. "A few clients are children of clients, whose parents made them comfortable in jewelry stores. Not all people that age are."
Goldfarb credits his dad with the store's location. "I give him visionary status for having figured out that Bellevue was the place to put the store. We opened in 1980 when Bellevue was still a sleepy shopping mecca. Dad built a free-standing store before that was the popular model."
Goldfarb didn't grow up thinking he would be a jeweler; even today, he considers himself a businessman first. "I was more interested in the business side in the beginning," he said. "I now really appreciate the jewelry part and love how it fits into people's lives. I can see, even when I give a gift of jewelry, how people love getting something that's perceived as a little extravagant, a little special. If you inherit jewelry, you don't just inherit the piece, you get the meaning behind it. Jewelry does last forever."
Goldfarb's favorite part of the business is business. "Think of me as a small business man. If it's a day I don't want to talk to customers, I can talk to the banker or the ad agency. There are so many things you do as a business owner that are above and beyond. I never forget that jewelry is the engine that drives what we do. It offers a connection to people that you don't get with other products. It's a level of intimacy. You can see how you change and impact lives. It's me, bartenders, doctors and attorneys," said Goldfarb with a smile.
The team at Alvin Goldfarb Jeweler, both two- and four-legged members. The dog's name is Ellie. Says a post on Goldfarb's Facebook page, "Eleanor Rigby Goldfarb to be exact. She was named after the Beatles tune. The idea was for her to visit 'all the lonely people' in hospitals and nursing homes. But she has so many fans here at the store, she rarely has time for her philanthropic work."