After 30 years in this industry as a qualified jeweller and recently opening my first store, I must express my disappointment at the lack of ethics of some wholesalers who turn their back on customer loyalty merely to chase a buck.
What constitutes customer loyalty between wholesalers and retailers you ask?
Well, a mere phone call to say, "We will also be supplying our brand to someone else in your shopping centre" would be a nice place to start.
I'm also concerned that, after I've done all the hard work to promote branded jewellery in my store by distributing brochures, erecting stands and advertising and promoting the product, these brands will be popular enough to open their own boutique retail outlets or start selling to major retailers.
In doing so, will they forget about the humble independent who did all the hard work promoting their brand in the first place? I certainly hope not.
In the case of my business, a wholesaler of sterling silver jewellery who supplies me is now selling to a lotto agency, newsagent and chemist in the same shopping centre as my store.
It seems the wholesaler felt the need to do this to supplement poor sales brought on by an apparent lack of support from jewellery stockists like myself.
While I only made a small purchase to stock in my shop, the newsagent saw the supplier at a recent gift fair and placed a large, $5,000 order.
When I contacted this supplier, I was told I did not do enough to support the brand in my store.
I was very disappointed.
Needless to say, I no longer stock this brand, but focus instead on the companies that understand how to operate according to the Australian way that all in the industry should abide by.
Furthermore, stocking this brand in such non-jewellery stores as chemists and newsagents has cheapened the image of the silver products we sell in our store, as the newsagents and lotto agencies can retail the stock at a much lower price than we do, thanks to their lower overheads.
My customers also comment on how they're reluctant to buy from a newsagent and chemist because it seems too cheap.
Quite simply, I don't believe precious jewellery should be supplied to stores like this.
I could almost guarantee that sales of this brand in my store would have been slow if I had have continued to stock it.
I cannot compete with newsagents and chemists with all the additional running costs I have.
These include the need for greater security, better product packaging, jeweller's block insurance and so forth.
It is hard enough to run a jewellery shop today, let alone having to compete with lotto agencies, newsagents and chemists selling the same brands at a lower price.
I was a big fan of stocking designer sterling silver jewellery in my shop and still do stock certain pieces from other sterling silver suppliers who operate ethically.
I will continue to be supportive of wholesalers that are loyal and ethical. These companies will be around long-term - you can definitely count on that.
But when you have to compete within your own shopping centre with lotto agents and the like, it makes me wonder why I bother promoting branded silver companies in my store.
Do suppliers restrict the kinds of stores they supply? Yes, some do, and it is a pleasure to deal with these companies.
I prefer to do business with companies that do abide by a code of ethics.
Unfortunately, though, there are the cowboys that enter our industry just to chase the dollar instead of trying to run an ethical business that prides itself on customer loyalty and supporting those who support you.
In the end, a courtesy phone call would have sufficed, just to check there was no conflict created in stocking neighbouring, non-jewellery stores with the same brands. Most companies do this anyway.
My advice to other retailers is to choose your supplier wisely and ask lots of questions before you decide to stock their product in your store. And only support the companies that continue to support you.
Name: Rhonda Ferraro
Business: Ferraro Jewellers
Position: Owner
Qualifications: Jeweller
Years in industry: 30