Read the following discussion and give response:

Some key success factors in diamond retailing are offering the products with high demands, ease of access, educating the shoppers, entailing the correct amount of pressure-selling tactics, and having a comparative price. For example, Blue Nile appealed to customers with high-quality diamonds and fine jewelry at outstanding prices; this drew in customers at first, while their low-pressure tactics focused on the education of the diamond, rather than the demand

Blue Nile’s approach taught the customer’s about the four C’s of a diamond – the cut, color, clarity, and carat; allowing the customer’s the essentials to build their own ring, offering the feeling of empowerment t to the customer, as well as uniqueness, for a low price

Blue Nile’s success is not only due to their access points and educational approach, but their pricing techniques as well. “Whereas retail jewelers routinely marked up diamonds by up to 50 percent, Blue Nile kept a lower markup of around 20 percent”

Blue Nile did have set backs, however. Some customers did not jump for discounted prices, but would rather have name brand products, while others were skeptical about spending thousands of dollars on a product they never saw or touched

Blue Nile was able to easily rebuke these concerns by offering a 30-day money back guarantee on items in original condition. Blue Nile’s strategy has been working, however, with sales at approximately $400 million with a net income of $8.4 million in year 2012

Zales jewelry’s strategy is much different than Blue Nile’s. Rather than offering discounted diamonds, Zales offered a credit plan to give the perception of being more affordable. Zales also expanded their jewelry to reach out to different age groups as well as different price ranges. Zales began opening different divisions of jewelry sales including the piercing pagoda- a mall-based kiosk for teenagers, Zales Jewelers- who sell to working-class mall shoppers, Gordon’s for upscale shoppers, and Bailey Banks & Biddle Fine Jewelers – which offers even pricier products found within pricier malls

Tiffany’s, however, chose to do an even different tactic. Not only did they sell high end jewelry like the other two companies, but after going public in 1987, they expanded into watches and even high-end items for the home, like crystal and sterling silver serving trays. That, however, was not it for Tiffany, Tiffany took it one step further to sell not only their own name brand, originally designed products, but they paired with famous designers Elsa Peretti, Paloma Picasso, and Jean Schlumberger, even the architect Frank Gehry

I feel Blue Nile’s ability to sell such tremendous amounts of jewelry, at such tremendous prices, even without a single physical store, is amazing! They have managed to sell $400 million dollars’ worth of jewelry, priced at around $2,500 or higher, where their competitors sell the same products priced at around $200

I feel that Blue Nile’s approach is actually better than their competitor’s attempts. I feel it is better to have a higher priced product (in this specific case) in order to guarantee profit. This means it doesn’t matter if they sell one product, or a million, they are getting a larger amount with one sale, than the other’s do.

Although I personally like Blue Nile’s strategy the best, I feel that Tiffany’s will be the best set up for poorer economic situations. I feel this way because Tiffany’s offers an array of products, from jewelry to watches, even to home goods. No matter what the economy is, I feel someone is going to need or want something from Tiffany.

The only advice I would have to offer the three jewelry companies would be to take a page out of the other’s book. I feel Blue Nile and Zales may see success in branching out, the way Tiffany’s did. Finding other options, products, even styles or brands to sell would be effective. Also, Blue Nile may see some improvement by adding a lesser priced selection for younger age groups. I feel Zales’ could find improvement by advancing into the technological stage by joining the internet sales the way Tiffany did. I also feel Blue Nile could use Tiffany’s idea to branch into catalogs or magazines for advertisements. Judging by the description of Tiffany’s strategy and their product lists, I cannot find any obvious advice I could offer. I am sure there is room for improvement; I just cannot obviously find it.

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