Question

G. G. Gems, Inc.

Background

Glenna Gibbons received a Bachelor's Degree in Elementary Education with a minor in early childhood education and music. She taught kindergarten in Northern Virginia. Later she moved to San Diego to get a Master's Degree in Elementary Education from U.S. International University in San Diego. While in San Diego, she worked for the National Steel and Shipbuilding Company as a facilities administrator during the day and went to school at night. She was in charge of naval ship repair, crane inspections, land leases, and the Dry Dock Facility. She met and married MIchael Gibbons, a naval officer/dentist stationed in San Diego. Glenna and MIchael were married and moved to Tucson. She taught third grade in Tucson, Arizona. In 1980 Glenna stopped teaching when her oldest son, Gabriel, was born. When Gabriel was 5 months old, the Gibbons family moved to Wilmington, Delaware, where Michael completed a three-year prosthodontics residency at the Veterans Hospital. When Gabriel was an infant, Glenna wanted educational toys and inquired about Discovery Toys, an educational toy company. She was so impressed with their products that she decided to represent the company as an educational consultant. Her second child, Goldie, was born in 1984. By then Michael had completed his education and the family moved to Scottsdale, Arizona, where he established his practice.

Glenna continued her work as a consultant with Discovery Toys. She used her children as her toy testers so that she could discuss the toys from the viewpoint of a mom who actually used them rather than being just a representative of the company. For a period of eight years, she sold educational toys for this multilevel marketing firm and built a network of over 100 consultants. At this point, she chose to leave and resigned as she wanted to spend more time with the children. Glenna soon realized that she was not a stay-at-home mom. She had always been interested in fine jewelry and Michael, because of her interests, suggested that she go into the fine jewelry business. Glenna's primary concern was being a mom first and a business person second.

Business Beginnings

In 1990 they establish G. G. Gems, which was run by appointment only. Glenna told her educational toy associates that she was going into business and many of them became clients. She began her business with less than $2,000. Glenna has a unique jewelry business because she has never borrowed money and has always been debt-free. When she sold a piece of jewelry, Glenna would ask the client to refer friends if they really liked her work. The business is the jewelry, but it is the customer behind the jewelry who really matters. Without client referrals, this type of business cannot expand. When one goes to a party or other social function with a unique piece of jewelry, people admire it and will often ask where it was purchased. A jeweler with an excellet reputation can build a client list base on those referrals. Her office was within five minutes of her home and her children's school. Although her business was not as important as being a full-time wife and mother. She knew that after they graduated from high school and were off to college, she would have plenty of time to devote to building her business.

Business Strategy

Over the period of several years Glenna took numerous courses through the Gemological Institute of America. G.G. Gems is a member of the Independent Jeweler's Organization (IJO). Becoming a master IJO jeweler held several advantages for Glenna. She is a member of an elite group of retailers who are hand-selected for membership. These jewelers have the highest ethical standards and superior professional integrity. IJO offers member access to diamond cutters in Antwerp Belgium and a truly unique jewelry selection. They have continuing educational courses and participate in unique trade shows, which are offered twice a year. Their courses included evaluation and design of diamonds and other fine gemstone jewelery. Her education in this field is ongoing. Glenna began with a minimum of inventory and a large collection of jewelry catalogues. With her educational background and personality, she has the abilitiy to work with clients and help them find special pieces of jewelry. Her client list has continually expanded and she now has 800 clients and their imeddiate and extended family members. She has a unique client base. Her business is based on quality jewelery, knowing every customer personally, and maintaing the highest ethical standards. She has her own personal label watches. Her designs are unique and Glenna works with her clients on designing special pieces of jewelry. She carries some inventory, but not as much as a typical jewelry store. She has a unique list of artists and artisans who take Glenna's design and produce the finished product for her clients.

With her client list, Glenna will call clients and remind them of anniversaries, birth dates, and other unique family events. She has had clients who have called on the date of an anniversary or birthday and desperately needed a piece of jewelry. Since she knows her clients so well, she can accommodate these last-minute requests with a piece of jewelry that is unique and suited to the spouse or family member. For example, Glenna tells the story of a client who was on his way to pick up a birthday cake for his wife, but had forgotten to buy an actual gift. He called Glenna who met him in a parking lot with four pieces of jewelry that she knew his wife would like. He selected the perfect piece, she wrapped the figt, and then he asked if there was a card shop close by. Glenna opened the trunk of her car and handed him a card from him to his wife and from his children to his wife. The client stated that he at least had a pen. Providing this type of unique service makes a client and the family lifetime customers.

Glenna and her husband, Michael, strongly believe in giving back to the community. She is on the board of The Children's Cancer Network, reads in an afternoon program at a local elementary school, and volunteers at the local synagogue. Michael provides free dental care for residents of Kivel Campus of Care, a local senior center. One of the authors of this text has been a customer of GG Gems for many years. He has nothing but admiration for this woman who is the ultimate business professional and an outstanding member of the local community.

For further information on this uniq business, visit Glenna's website at http://www.gggemsinc.com

For more information on the IJO, visit their website at htt://ijo.com/zip/index.html

Questions

1. What other businesses rely on this type of customer relationship?

2. How important is the trust and integry element in this business?

3. What must Glenna do prior to going on an extended vacation?

4. How would you take care of your client base if you were in this type of business?

Answer 1

1)

1) E-Commerce Like Amazon.Com, Ebay, Flipkart

2)Hotel and Restaurant Chains

3)Hospitals and Health Care

2)Trust and Integrity are very important in Jewellery business.

It is very easy to cheat customers with less carat gold and selling them at higher prices

Jewellery business partners must maintain a good and honest business reputation, must never misrepresent synthetic, treated, or simulated stones as natural diamonds, and must never submit to any form of enhancement or artificial treatment

Commercial integrity is equally important , so companies have to ensure that the people they work with adhere to and benefit from legal, safe and responsible business practices.

3) She should inform all her customers well in advance about her absence and prviding them with alternate point of contact with clear details in her absence

4)

• Schedule follow-up tasks and set up meetings with customers
• Get reminders for follow-up calls by email for all sales, important dates and wishlists