GIA's Arch Nemesis...GCAL?
Customers come in saying; “I would like a certified diamond, a GIA certified diamond.” You know they're reports, you repeat the word report back to them…while they look at you with a grin thinking you have no idea what you’re talking about because they looked it up on the net. Unfortunately, most sales associates don’t take the time to inform customers that they are “reports” not “certificates.” Most don’t want to confuse the customer more then they already are.
The customer has faith in GIA and trusts jewelers to supply them with diamonds that have this piece of paper. Do you tell them any different? Do they really want or need to know that the results of a GIA report are opinions (note: tested and highly respected opinions) but not guaranteed beyond that.
Along comes GCAL. A lab that actually does issue diamond certificates. Modern Jeweler’s January article states, “GCAL guarantees color and clarity grade accuracy to within one grade of GIA or the lab will refund the difference in value in cash.” How is this possible? Isn’t GIA “the world’s most trusted name in diamond grading and gemstone identification?” Then why didn’t GIA develop this same kind of consumer guarantee?
I don’t deny that GIA will always be a huge part of our industry. “GIA is the corporate birthplace of the International Diamond Grading System™ and the creator of the famous 4Cs of Diamond Value – color, clarity, cut, and carat weight,” but aren’t they now behind?
Did you know Blue Nile is selling diamonds with GCAL certificates…a company that thinks they are going to hit a billion dollars in sales? Word gets around fast when you’re selling a billion dollars in diamonds.
Should we all jump on the bandwagon and start getting our diamonds certified instead of having them accompany reports? Will our customers feel even more secure? Could GCAL certificates lead to an increasing amount of diamonds sales?
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Donald A. Palmieri commented:
First, I would like to thank all of you for sharing your thoughts
and discussing our GCAL “Zero Tolerance Consumer
Guarantee.” With regards to Shanu, we would like to thank you
for providing the stimulus for this discussion, which has brought
forth both positive and negative feedback. As you know, that is the
desired result with the launch of a new product or service. With
regards to Rob, I encourage critical thought and feedback, but I am
also somewhat puzzled…at each step in the process of diamond
jewelry, be it mining, polishing, certifying, setting, or writing
about it, don’t we all owe our jobs to the end user
(consumer)? Shouldn’t we strive for excellence in our work
every step of the way, in order to build consumer confidence?
Consumer confidence in diamond jewelry and jewelers who sell it is
at about 50% according to the latest research from WDC and DTC. Can
you answer why? I can, and have answered it with positive actions.
Cheryl, we appreciate the corrections you added and hope you had an
enlightening day at the NJJAC lab panel. We appreciate the
objective coverage your magazine has given to GCAL, especially
regarding light performance, which Modern Jeweler has been covering
thoroughly since 1997. Amy, everyone is entitled to their opinion
and for some, GIA will be the only lab they will ever use,
regardless of other services and facts. While we hope people will
make informed judgments about our services, GCAL was formed in 2001
because we weren’t happy with the performance of other
labs….they gave us the inspiration. This didn’t happen
overnight. This is something I had been doing since 1981. I always
stood behind my work with a guarantee and never filled my report
with disclaimers. You may call that a marketing ploy if you like,
we like to call that Integrity, Honesty, & Accountability. We
are making our presence known at Trade Shows and in the Trade
Publications, that is “Marketing 101: Awareness.” The
guarantee, which has recently been tightened to “Zero
Tolerance,” was one of the pillars in which this lab was
founded, and is our “call to arms”. Doesn’t the
consumer deserve this type of assurance? William, there is
something to be said for longevity in an industry; it certainly can
breed trust and a strong reputation, of which, GIA deserves their
fair share. They have made great strides in the education of young
men and women all over the world, for which most of us owe our base
of gemological knowledge. As for your comment on Blue Nile, GCAL
provides a “Certificate of Authenticity” on all of the
Blue Nile Signature Collection diamonds. That is only after GIA or
AGSL has produced a grading report on each. All the GIA and AGSL
diamonds do not pass automatically and receive a “Certificate
of Authenticity,” but when they do, we warrant their work to
the Blue Nile customer, because GIA and AGSL don’t. Given
your statement, I suppose you will stay away from GIA, AGSL, &
GCAL. I would like to thank all of you sincerely for contributing
to this blog and hope that it continues after my reply. Some of you
may be receptive to GCAL and utilize our certificates in your sales
process and some of you may not. Both positive and negative
comments are welcome and we hope that you will give us a call or
send us an e-mail when you have any comments, questions, concerns.
Wishing you all the best and hope to see you in Las Vegas. You may
learn more about our guarantee, and all of our services at
www.gemfacts.com. Thanks Don Palmieri, President…GCAL
William Patty, Gemstone Designs commented:
I disagree. According to the book, "22 Immutable Laws of Branding",
those who establish a niche will always have the majority of the
name brand recognition. GCAL, even if they are superior to GIA,
will never have the prestige of GIA (way too much marketing went
into branding GIA). GIA started it all and for the most part, I and
my customers find their reports very comforting to have. Its like
having a thumbs up for a product from consumer reports. I hope Blue
Nile uses GCAL for all there diamonds. As long as they do, I will
stay away from GCAL. I will be able to use that to sell my GIA
certed diamonds.
Shanu S. Guliani commented:
Rob-There are people out there who would resubmit for the hell of
it, but being without your diamond for a couple weeks is a huge
downside unless you really are sure and have received a few
appraisals that contradict GCAL's cert (funny thought...there are
people out there like that). Cheryl-Thanks for the update. Amy-I
don't think it's about being at the same level...it sometimes has
to do with the marketing. Look at any brand...POLO...you pay way
less for a Roundtree York shirt of the same fabric. Lexus and
Toyota...marketing...Lexus is made by Toyota the shape and style
are the same. HOF...pay for for an ideal diamond because of their
marketing and branding. I think if pushed GCAL's cert could really
have an affect on customers.
amy commented:
hi do you realy thin GIA, is the same level as GCAL? all this
policy, is just for marketing, and show the weakness of GCAL, and
the power of GIA amy
Cheryl Kremkow, Modern Jeweler commented:
Hi Shanu: GCAL actually updated the terms of its guarantee on March
13, 2007. According to Dan Gillen, GCAL’s lab director, who I
interviewed about the change at the New Jersey Jewelers Association
Convention that day, GCAL now guarantees exact grades (they removed
the one-grade margin of error) but they now no longer accept GIA
reports as evidence of an error: the lab’s graders must agree
that the grade is in error. Here’s my story about the new
policy: blogs.modernjeweler.com/blog/2007/03/13/guaranteed-grading/
Rob Bates commented:
Hi Shanu ... One point that occurred to me after my post on this is
if you were a consumer with a GCAL cert, wouldn't you resubmit it
just for the hell of it. I mean, you can have several thousand
bucks to gain, why not? (I guess you don't have property of your
diamond for a little while. But with a lot of money to gain, who
cares?) Anyway, it's an interesting notion and we'll see how much
it ends up costing them. It's also worth nothing that they are NOT
offering this to the trade, which could be really costly. Since GIA
doesn't consider themselves a consumer name they probably won't
match it.
