[Jewelry making - Article 01338] - Re: [Orchid] Feedback - Salesman with Loose Color

[Gerry]

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All,

    Gemstone business in the USA has changing so much in the last five
    years that it is hardly recognizeable. Differences between wholoesale
    and retail are often so small that there is no difference. I can get
    almost any stone you can think of on memo for 30 days, 60 days or
    more with no charge. Supply is seemingly unlimited. Sales people are
    all over. Africans, Brazilians, Sri-Lankans, Chinese, Thais, and
    Australians, just to name a few countries people that have contacted
    me to show stones to me in my place of business just since Tucson
    (Feb 2005). No money necessary. Sales people say - Take my stones and
    sell them. Then send me the money. Add to this dealers that are US
    citizens and the market is flooded with product. Sapphires, emeralds,
    alexandrite, opals, you name the stone and I can get enough to fill
    any store front for no money down. 

    All the sales people in the USA, both foreign and USA dealers, I
    have talked to say the same thing. Travel on the road is dangerous,
    expenses are high, and thier product is not selling. Yet these same
    sales people are still on the road bringing into the USA more
    product. Many gemstone dealers have now opened thier own store fronts
    selling finished jewelry. These deallers travel to Asia to buy thier
    stones. Cutting out all other dealers in the USA. Television and
    computer sales also cut out the middleman. 

    The old system in the USA of a gradual increase in price of product
    as it passes from supplier to supplier is now broken. Instead of
    three, or more, people in the USA making a little money off one
    product as the product changes ownership, one person hogs all the
    profit. 

    My opinion is simple. To survive you must diversify, take advantage
    of opportunities, sell direct and get immediate payment, do not make
    alliances that are closed loops, take chances that are reasonable,
    and protect yourself first.  It is a tough world when there are no
    protections against worldwide trade abuses. It has become survival
    of the fittest, not the most ethical or caring. The business is not
    all gloom.  Some of us are doing quite well by adapting our sales
    techinques to the changing environment. If you stick with the
    traditional sales approach you will have a much tougher life. 

    Gerry Galarneau, Showing this weekend July 1-3 at the Flagstaff,
    Arizona Little America Hotel, just off the I-40 exit at Butler
    Avenue. This is a great show in the cool pines of Arizona. see you
    there.

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