National Jeweler Hall of Fame 2008 - (Page 6)

SINGLE-STORE INDEPENDENT 20th Annual Retailer Hall of Fame 2008 Molina’s priceless strategy By Joseph Dobrian PHOENIX—Shopping at Molina Fine Jewelers will, quite frankly, set you back substantially. But for the owner, being the priciest jeweler around is not meant to be kept a secret. “If all you do is sell jewelry, someone else will sell it cheaper,” says Alfredo Molina, chairman and chief executive officer of Molina Fine Jewelers in Phoenix. “I’m not a jeweler: I’m a lifestyle consultant—I’m in the emotions business. I don’t have sales. I don’t discount. I have a reputation as the most expensive jeweler in Arizona.” Molina says his policy of offering unique pieces and not competing on price has made his operation soar. He claims that his net profit last year was more than five times the industry average—and nearly 10 times the average for a high-end jeweler. “When you come into my store, I’ll tell you what you’re going to buy, and I’ll tell you why,” Molina says. “Consumers don’t want to make decisions. They want the person behind the counter to make the decision If that stone is speaking to them, they need to buy that stone.” Molina says he’ll bring that same philosophy to Black, Starr & Frost, another highend operation that he acquired in late 2006 and which he’s now trying to restore as a national presence. “Black, Starr & Frost was around when Tiffany was a “I don’t have sales. I don’t discount. I have a reputation as the most expensive jeweler in Arizona.” —Al Molina, chairman and CEO, Molina Fine Jewelers Alfredo Molina, inset, started his business 20 years ago with $1,500 to his name and $110,000 in debt. Now, Molina Fine Jewelers in Phoenix, above, has a reputation for lofty prices and over-the-top service. housewares store. It was founded in 1810, and for years, it was America’s jeweler,” he says. “It went bankrupt during the Depression and has had various owners since, and it’s been reduced to a small operation in Orange County, California.” Now, plans are in the works to open a store in Scottsdale, Ariz., and possibly in Chicago and on Madison Avenue in New York. The company is also in negotiations to open in San Francisco. Molina has eliminated branded vendors from Black, Starr & Frost, intending to make its own name the only one associated with the store. Independent designers and vendors will have to provide products that will be exclusive to the retailer. “I do the same thing at Molina Fine Jewelers,” he says. “We sell one-of-a-kind pieces. I can put 300 one-carat diamonds onto a necklace, and nobody can tell me what I can charge for it. If you depend on an outside dealer for your profits, you’re asking for trouble.” Molina believes that many jewelers actually lose money by selling branded goods. “You have to be able to say, ‘I won’t carry your brand because I can’t make it on your margin,’” Molina says. He believes many jewelers also make a fundamental MOLINA >page 8 6 I National Jeweler I 20th Annual Retailer Hall of Fame 2008 www.nationaljewelernetwork.com http://www.nationaljewelernetwork.com

Table of Contents for the Digital Edition of National Jeweler Hall of Fame 2008

National Jeweler Hall of Fame 2008
Contents
Alfredo Molina
Michael Pollak
H. Marvin Beasley
Past Inductees

National Jeweler Hall of Fame 2008

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