Oliver Smith may have entered the jewelry industry in an unusual way, but this 25-year retail veteran is growing his business in a gradual, logical pattern. Born in Philadelphia, his first out-of-college job was working in a casino in Atlantic City. This was during the go-go 1980s and to provide some side income, he sold gold chains. His sister on the West Coast was also selling gold. After a couple of years, Smith moved out there to partner with her in a small shop on Balboa Island in the Newport Beach area of California.
In 1985, Smith moved to Scottsdale, Arizona, and set up his first solo store, a 550-square-foot space with a bench jeweler working at the back while he met customers at the front. Three moves later, Smith arrived at his current 4,500-square-foot location on stylish Scottsdale Road in this upscale city. His business, like the city, has grown exponentially. When he arrived, Scottsdale had just 65,000 residents; now, there are 230,000. Because there are relatively few natives, Smith says, “Everyone is a potential client because they are all looking for a new jeweler.”
House Brand
In the beginning, Smith created one-of-a-kind jewelry with diamonds and gemstones in karat gold. He also carried the collections of a number of other designers, but says many of them moved their focus to higher price points, abandoning clients needing popular-priced gifts. To fill the void, he started producing the Oliver Smith brand of items made in-house for his regular clientele.
“The recession hit hard in this region,” Smith says. “The customer wanted to spend $500, not $5,000. So we began producing a silver collection.” The new collection includes his popular earring charms and “Element” chains of silver with diamond accents. They retail from $50 to $500 and have been a solid hit. Other new designs that pair blackened silver with rose gold and diamonds are priced from $300 to $700.
The diamond engagement and wedding ring business is growing steadily, Smith says. Almost 100 percent of the rings are custom made. The designer used to travel to Belgium and Israel to buy diamonds, but now relies on online suppliers from RapNet. “Diamonds are the real core of my business,” he says. “In rounds, I use triple EX, fine-grade, SI1-plus and H color-plus. We sell a lot of cushions and our parameters are fine cut and brilliance.”
A Growing Business
Many of Smith’s clients, he points out, “have grown with us in age and most are now in their 40s and 50s. They are well-traveled and sophisticated. We try to offer them something unique. There’s a Neiman Marcus a few miles away; we don’t try to compete.”
Recently, Smith began a wholesale operation, spurred by a request from a national retailer who saw his designs on the website and asked him to produce a collection for its stores. He manufactured the collection and in June, made his first foray into wholesaling by exhibiting at the JCK show. “We plan to do other trade shows. Our brand grows due to word of mouth, so it will take time to build.” His website — oliversmithjeweler.com — is a good reference point for his work, Smith says. “Generally, people don’t buy from the website but it’s professional and easy to navigate, so it brings customers into our store. Most clients want to establish a trust level and prefer meeting eye to eye.”
Community
Smith and his wife Aimee maintain close ties with local and regional groups, serving on several boards and doing numerous outreach and charity events. For example, Smith says he has a passion for the outdoors and has channeled that love into support for the local McDowell Sonoran Conservancy. This group is working to create the largest urban land preservancy in the country. An estimated 450 volunteers are working for the conservancy and Smith is chairman of the group. A portion of the sales from his eco-friendly line of Boho macramé bracelets, made in his shop of natural gemstones strung on woven silk cord, with prices starting at $295, go to support the effort.
Although watch batteries are changed for free at his store, Smith asks clients to make a donation for the service. Beneficiaries of the funds raised include the Phoenix Children’s Hospital and an orphanage in Haiti. At the time of this writing, there was a contest ongoing on Facebook offering a prize of a signature Smith bracelet if he reached his goal of 1,000 “friends” and potential new customers by a specified deadline. Another outreach effort is entitled “24 Hours of Quality Time,” in which Smith hosts a few top watch buyers on a one-day trip to “someplace fun, like Las Vegas.”
A highly popular seasonal event is Cars and Cigars, held the Sunday before Christmas. While the store is normally closed on Sundays, Smith recalls he always felt he was missing something by not being open on the Sunday before Christmas. He tried opening one year but no one came in, except a couple of guys “with shiny cars,” which gave him the idea of Cars and Cigars, now an annual event. As Smith explains it, “They park their shiny cars in the lot out back, we give them a drink, a cigar and some barbecue. They talk about cars with other guys, then come into the store to pick out Christmas gifts for their wives.”
Article from the Rapaport Magazine - October 2010. To subscribe click here.