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Final Thoughts on Brand Disaster: Hearts on Fire

December 2, 2008

Yes, I have been bold and created bad blood between HOF and I but why should I hide from the truth. I asked to return the line (we were not selling it); they wouldn’t take it back, and ultimately I have to do what is best for Guliani’s Fine Jewelry. Since discounting the line 30% I have already sold a diamond remount, the whimsical oval pendant, my first cross, and a few others. I have opened an account with eBay and the pieces are going online soon.

 

Thank you to all those who have called me, commented, and opened up about their experiences with Hearts on Fire as well as other brands. Of the 8 to 10 people who contacted me:

  1. Two of them returned HOF and were given their money back BUT they owed HOF more than 40K. In my case—I don’t owe them much at all so they don’t care. NOTE: To others purchasing the line—ALWAYS KEEP A LARGE OPEN BALANCE SO THEY ARE FORCED TO TAKE BACK THE LINE IF YOU ARE NOT DOING WELL WITH IT.
  2. Five of them are going to be discounting HOF this holiday season. My advice to those doing that—DON’T LET HOF know right away because they will take your company’s name off their website like they did Guliani’s. At least this way—the folks looking for HOF will see your store as a retailer in their area.
  3. Then there are those who have been successful with the brand—way to go! As long as you’re selling something and can keep your store up and running who cares what you’re selling.

So—I KNOW there are many others who have NOT been successful with one brand or another—whether it be Yurman, Hearts on Fire, Rolex, Mikimoto—it doesn’t matter.

 

  1. What are you doing to get rid of the last bit of merchandise and get your money? (Have you ever thought of purchasing from the jewelers who are dissolving a brand?)
  2. Selling it on EBay or online elsewhere—well there are many jewelers doing that—click here, and here.
  3. What about those who had to get rid of the line because the brand kept calling and bitching for you to buy more because you have to X amount of brand presence?

JEWELERS OUT THERE DOING WELL WITH BRANDS—have you ever thought of purchasing from the jewelers who are dissolving a brand? I bought HOF Nov 07—they had two price increases since then—and that’s why I can discount it at 30%. Any jewelers out there whom purchased brands—any brands—who want to sell your old stock—list your info and maybe we all can benefit from helping each other and sell to each other. If you don’t want to list your store’s name create an email account and list that in the comment box so other’s can contact you.

 

I would love to hear from more jewelers who were not successful with Hearts on Fire or other brands and what they did to get rid of it. Call me at 704-542-2980 or you can email me at shanu@gulianis.com

Posted by Shanu Singh Guliani on December 2, 2008 | Comments (72)

December 23, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Alan Freed commented:







Are you the same Abe Sherman who owned Sherman Jlrs in Flemington?
It was rated 4th pay in JBT for longer than I can remember. If so,
does this qualify you to give advice?


December 23, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Alan Freed commented:







Are you the same Abe Sherman who owned Sherman Jlrs in Flemington?
It was rated 4th pay in JBT for longer than I can remember. If so,
does this qualify as to give advice?


December 23, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Alan Freed commented:







Mr Sherman- I've been reading your self-important,analysis of this
issue. Are you the same Abe Sherman who owned Sherman Jlrs in
Flemington? It was rated 4th pay in JBT for longer than I can
remember. If so, does this qualify as to give advice?


December 9, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Shanu S. Guliani commented:







I reposted about it so read the above


December 9, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Hedda Schupak commented:







Comments for this topic are now closed. While acknowledging this
discussion has been both interesting and controversial, JCK
believes it especially has emphasized the need to address the issue
of brand-retailer relationships in a broader editorial forum,
rather continue to debate what did or didn’t happen in this
particular instance. We therefore will be addressing the
brand/retailer issue in print shortly, and request that both
everyone who has posted on here as well as all retailers and brands
who have dealt with a similar situation, to please contact us
offline. Please contact me directly: Hedda Schupak, JCK
editor-in-chief, hschupak@reedbusiness.com, or (646) 746-6440.


December 9, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
a different anonymous commented:







I am really curious to see the posts someone mentioned that Shanu
posted and deleted


December 9, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
a different anonymous commented:







I am really curious to see the posts someone mentioned that Shanu
posted and deleted


December 9, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Kate Peterson commented:







Abe - I agree completely. My company is fortunate to work with a
number of companies representing branded product lines who truly do
work to form mutually beneficial partnerships with their retailers.
That's not what we're discussing here. There are genuine
partnership brands and then there are predatory brands, which, in
my opinion, often employ highly manipulative bullying tactics an a
single focused effort to advance their own agenda.


December 9, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Kate Peterson commented:







Abe - I agree completely. My company is fortunate to work with a
number of companies representing branded product lines who truly do
work to form mutually beneficial partnerships with their retailers.
That's not what we're discussing here. There are genuine
partnership brands and then there are predatory brands, which, in
my opinion, often employ highly manipulative bullying tactics an a
single focused effort to advance their own agenda.


December 9, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Abe Sherman commented:







Anon I says "Let us not blame our issues on "predatory brands"
where there aren't actually any." Forgive me, but that's just
naive, or if you'd like, uninformed. Either way, it's inaccurate.


December 9, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Anonymous I commented:







Abe Sherman, I do not appreciate you calling me naive. Perhaps the
watch brands may be guilty of being predatory, but don't forget we
are talking about HOF. It all depends on the brand, doesn't it.
Let's not be brand-ist.


December 9, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Anonymous I commented:







Well, Shanu, I do wish you the best. It does take a lot of courage
for you to put yourself out there like this. However, as HOF
Retailer pointed out, it is ultimately the owner or buyer who makes
the final decision on the order. Thank you for stepping up and
clarifying this, HOF Retailer. Well done. Abe Sherman, also see HOF
Retailer's comments, which confirms my belief that no bullying took
place. And you were also not in the room with Shanu, so you equally
don't know whether she was bullied or not. It is this belief that
small business owners, or individual consumers for that matter,
have an innate need to be "protected" that I have a strong
objection to. I sometimes catch myself doing this and if we can all
overcome it, nothing but good could come from it. Many people go
through life thinking that other people owe them something. We
often take the short term perspective instead of looking at the
long term. We often feel we were pressured into making a decision.
However, aren't we giving away too much of our own power by looking
at our circumstances as something forced upon us rather than as
something which we can play a very proactive role in defining? We
have almost become collective victims and this is what I'm
disputing. And it is because Glenn Rothman refuses to accept the
status quo that makes the HOF success story such a compelling and
inspirational role model for the industry. And yet, he remains very
humble and open to learning and adapting. We all have a lot to
learn from his integrity and his spirit. And Abe Sherman, I hope
you do realize that if the whole industry were to do as you say and
now try to liquidate their inventory for cash, we would have a
subprime jewelry crisis, now don't you. I have no trouble admitting
that I do believe it is the people who make a promise to pay a
creditor for a loan and then fail to do so that is causing today's
crisis. Though the banks get a bad reputation, I genuinely feel
that individuals must also accept that it was their choice to take
out these loans. Ultimately, the people who eventually fail to pull
their weight end up pulling down everyone else. We may have
differences of opinions, but we are all looking out for the good of
the industry in our own ways.


December 9, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Shanu S. Guliani commented:







HOF retailer--why no name? They picked my opening order and were
not willing to change out pieces unless I kept the items for 6
months or so. The hearts they picked out in the beginning at the
opening order I called before the order was shipped and said we do
not really sell hearts but they said those are the "proven best
seller" so I wasn't allowed to take those off the order. I am happy
you are doing well with the line! Good luck--I think we have a
tough next two weeks.


December 9, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Abe Sherman commented:







Anon I says "Let us not blame our issues on "predatory brands"
where there aren't actually any." This is perhaps the most naive
statement made so far, but I'll cut you a break. If you haven't
heard about brands dictating to retailers; telling them what OTHER
brands they can and cannot carry; dictating position and real
estate, inventory levels, etc, then you are completely removed from
what's happening in our industry. Specifically, I point to the
watch brands who are the most guilty of this practice. While THIS
discussion started with and is often about HOF, the issue is brands
in general, and unless you work in a heavily branded store, you
wouldn't understand the pressures. Only then could you make such a
naive statement.


December 9, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Abe Sherman commented:







Anon I - So, THIS is what's wrong with our economy? The people who
were SOLD sub-prime mortgages are to blame, but not the people who
were doing the SELLING? Are you sure you want to go down that road?
And how do you KNOW that no one 'bullied' Shanu? Were you in the
room? Where you on the phone calls? And now you're saying that SHE
is the bully? Remarkable. You may want to go back and re-read all
of her posts from the beginning. As I've said several times, she IS
taking responsibility and turning non-productive inventory into
cash. If our entire industry had been doing this for the past 10
years we wouldn't have the cash flow problems with have now.


December 9, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
HOF retailer commented:







We carry Hearts on Fire and they do not pick our product for us.
They recommend certain items based on their top sellers, but
ultimately the owner and buyer make the final decision on the
order. We have also stock balanced throughout the year on old
pieces that we haven't been able to sell. They have always worked
with us to get the right product in our store.


December 9, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
interested commented:







Have you put anything up yet on Ebay? What is your sellers name?


December 9, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Shanu S. Guliani commented:







Anon-You can be impressed by a companies strategy but the strategy
might not work for you. You are not an HOF retailer so don't
realize they pick your products for you. I stood up in the
beginning--but you are right probably not enough. I was scared in
the beginning scared that they were such a large company scared of
brands in general. Thought to be able to keep the brand I had to do
what they said--but I DON'T. If it's not selling and they aren't
willing to change out product then I had to do what was ultimately
right for the store. We grow everyday--I'm not scared now and don't
want to make these kinds of mistakes in the future. I'm not denying
I am angry but this blog is not meant with revenge in mind. I want
to work with retailers and help change our industry--we need to
start with our educational programs and licenses for being an
appraiser and vendors willing to help their retailers when we
aren't doing well with certain products, etc, etc. Let's change the
industry together. Why can you get into GIA without two years work
experience? Getting and MBA requires that? Why can any JOE BLOW
appraise jewelry?


December 9, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Anonymous I commented:







Abe Sherman - Shanu might have earned your trust, but her behavior
is the epitome of what is wrong with our economy. We as a
collective are becoming increasingly passive aggressive. It is
difficult to accept responsibility for what has ensued, but if you
ask me, the signs were there all along. If she thought that the HOF
merchandising was all wrong, why didn't she stand up to that in the
first place? Why stand up to it now? You may claim that she is
standing up against "


December 9, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Anonymous I commented:







Abe Sherman - Shanu might have earned your trust, but her behavior
is the epitome of what is wrong with our economy. We as a
collective are becoming increasingly passive aggressive. It is
difficult to accept responsibility for what has ensued, but if you
ask me, the signs were there all along. If she thought that the HOF
merchandising was all wrong, why didn't she stand up to that in the
first place? Why stand up to it now? You may claim that she is
standing up against "bullying," but no one has bullied her.
Ironically, in her own way, she has become a bully. She is being
unfair to HOF and unfair to HOF retailers everywhere. Her blog is
very clearly designed with revenge in mind. There is a serious
disconnect here. On the one hand, Shanu is claiming that she is
"extremely impressed with HOF," and on the other, she is selling it
on ebay. As hard as it is to accept, the problem was clearly in the
execution. Come on, independent jewelry retailers everywhere.
Looking at external factors and projecting blame on those factors
is not going to take anyone to the next level. The sub-prime
mortgage "victims" blamed their problems on "predatory lenders."
Let us not blame our issues on "predatory brands" where there
aren't actually any.


December 9, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Abe Sherman commented:







Observer wrote: "As an observer, I must admit you have completely
destroyed your relationship as a retailer, and other brands that
view this blog will be hesitant to let you represent and sell their
line(s) in your store." Observer, that's a REALLY naive statement.
Shanu has destroyed nothing; she's earned the respect of hundreds
of readers and has shown retailers that THEY are in charge of their
businesses and that they shouldn't be bullied by anyone. Insofar as
brands being hesitant to sell her... well, I don't think you're
paying attention to what's been happening in our industry the past
18 months. If she pays her bills, they will open her. Why is it
that those taking the opposing view never signs their name?


December 9, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
EX HOF Retailer commented:







Brands will still open in your store as long as your selling it. I
said it before they all only care about money.


December 9, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Shanu S. Guliani commented:







Continued from above: Those doing well with the line Great! I have
said this a zillion times but what about others who are not? GOT
ANY IDEAS ON HOW TO MOVE THE LEFTOVERS?


December 9, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Shanu S. Guliani commented:







Observer-Brands give to stores that are selling--we all want to
make our business grow. I took out the word lie because I am upset
by Glenn's lies or you can call it miss communication with his
staff. I asked bluntly to Kim if they would take back the line in
Jan and if so I WOULD NOT discount it she said I cannot say yes--SO
I TOLD THEM IN AN EMAIL I am posting a blog to ask for help from my
peers. Last night I was angry but at least I am talking about it
and not hiding from this ordeal--many other jewelers are scared to
stand up to their brands or tell them NO i can't take on more
product. I have brands and do well with the ones I have. Peter has
in my opinion been arrogant--When I went to the owners forum he
said, "The reason your not selling HOF is because you carry other
diamonds. HOF should be the only diamonds in your store." That's
arrogant--I love brands but can't only force my customers to buy
only those--I wouldn't be in business. I am writing blogs on brands
right now and wanted to save that for then--but observer this is
for you--no I have articulated why HOF hasn't worked for me. Wrong
product mix that they wouldn't fix. Plus my customer's were sticker
shocked and yes I couldn't sell them too. I only sold a few pieces
myself. HOF didn't work for me but other brands do. Many of you
have lines that didn't work and are stuck with the product--I want
to work with other jewelers on how to solve this--do I get
frustrated and pissed off yes--but we need to help each other. I'm
not a big fan of dumping on EBay but if that's what it takes then
fine. Why can't we all buy from each other? What about
remerchandising which I just did last night? I don't have any other
ways of getting rid of the product and am asking you all for ideas
because many others are in this situation--if saying this is
ruining my reputation so be it. You are not the first one to tell
me not to blog so openly and "put it all out there."


December 9, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
an observer commented:







*correction - you have destroyed your reputation


December 9, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
an observer commented:







Shanu, I have been anxiously reading this blog to see where it
goes, and especially to see how you would respond to Glenn's
sincere response. As an observer, I must admit you have completely
destroyed your relationship as a retailer, and other brands that
view this blog will be hesitant to let you represent and sell their
line(s) in your store. Furthermore, I see you have edited your last
comment since last night, including specific remarks to Glenn
blogging "A BIG FAT LIE" and the "arrogant e-mail from Peter
Smith". What made you take those down? Did you realize you might
have dug yourself into a hole? You are rude, and you are causing an
uproar in the industry and for an innocent brand for no reason
whatsoever. Again, you have made a mockery of yourself and your
brand's reputation. I wish you luck digging yourself out of this
one.


December 9, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
EX HOF Retailer commented:







If it's not turning do whatever you can to get rid of it. Take
advantage of the holidays. Glenn and Eurostar whom aren't taking
any responsibility only care about their retailers when they want
money. They are like all brands and force retailers to take on more
product otherwise threaten to open doors nearby. Do what you have
to.


December 9, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Shanu S. Guliani commented:







Glen-"Since her first negative Blog, Ms Guliani’s language
has deteriorated into “that we wouldn’t take the
product back”. This is patently not true." Why hasn't HOF
contacted me to say they are taking back the line
then??????????????? My phone number is 704-542-2980. Do you want my
cell too? Kim has it.


December 9, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Shanu S. Guliani commented:







Glen--Yes I am extremely impressed with HOF. I have never denied
that. You all are marketing a product that has sold in many stores
for as much as double when other AGS triple zeros are priced at
retail stores for 1/4 to a 1/3 of HOF's price--you must be doing
something right but unfortunately the line isn't working for me.
The owners forum was awesome--but I also couldn't say things I
trully believed about the company because I was carrying the
line--I couldn''t say your company is like all others in that when
I needed help to change out items back in Feb after the forum your
company wouldn't approve it. "Ms. Guliani, our team will contact
her to resolve her inventory issues."--not so TRUE AT ALL. Kim said
you were working with people selling the line and if I wanted to
discuss then we can talk in January. I asked Kim will you take back
the line otherwise I will begin to discount and go to my peers for
help of how to turn the line--she said I cannot say yes--well WHAT
DOES THAT MEAN? I have to do what is best for Guliani's and
discount the line to get my money. Did I want cash fast--YES I
wouldn't want what happened to others to happen to me...others who
had to wait 5 to 6 months for their money. I can't and won't do
that--I'm discounting it and getting my money that way. If you all
said you would send me a CHECK in JAN I would have held onto the
merchandise and not discounted it. You all ignored my calls and
emails for TWO MONTHS--you can't disregard--that's just nasty. If
you want to even give me a check in January and come and take the
line FINE--GREAT PLEASE DO. I would love that--SO TO LET OTHERS
KNOW this is the first time HOF posted and they still haven't
contacted me about the line. Come on GLEN. The point of this blog
was to ASK my peers if a line is not working for you and the
company is not taking it back what is the best way to get cash for
the goods that have not turned in a whole year? We all know the
reality of selling goods that haven't sold in the first year? I
wanted to go to my peers and ask for their help because HOF was not
helping me. To those of you selling the line--great and good luck.
I'm will continue to discount it 30% and sell it on ebay unless HOF
is willing to send me a check in January BUT i will not send
merchandise back without funds in HAND. I have talked to way too
many jewelers whom did not receive their money for at least 6
months.


December 8, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Glenn Rothman commented:







(CONTINUED FROM ABOVE) In my humble opinion, it provides only
partial realities based on perception not fact…..based on
uninformed outside participants who may have alternative agendas.
So I ask myself why Jennifer Heebner, a journalist and
professional, jumped into the fray without so much as a single
conversation on the matter with anyone at Hearts On Fire.
Isn’t it Ms. Heebner’s inherent responsibility to make
a sincere attempt to get the facts straight before attaching her
name to a public Blog sponsored by her publisher? In my thirty
years of dealing with the press, I have never experienced such
unprofessional behavior from a journalist. Other brands beware! I
can only guess that Ms. Heebner thought our lack of response to
this Blog activity was some sort of admission that we acted
unprofessionally or without integrity. In fact, our entire team has
been focused on twelve hour work days, six days a week, to maximize
the support of our retail family. We did not have the luxury in
peak season to be dedicating proper thought and words to this Blog.
So after all the postings, I find myself spending Sunday afternoon
writing my very first Blog and hoping with all sincerity, that the
discourse can now focus on the positives. Hearts On Fire will
continue to dedicate all of its resources to creating a future of
success for the Independent Retail Jeweler. Glenn Rothman CEO
Hearts On Fire


December 8, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Glenn Rothman commented:







Integrity… lives are built on integrity… businesses are
built on integrity. Susan and I have spent the last thirty years
committing our integrity and energy to making a positive difference
in the lives we touch. Our professional focus and all of our
resources have been exclusively dedicated to the growth and
financial success of the world’s most accomplished
Independent retail jewelers. The results speak for themselves: 2007
retail sales exceeding $350million… In Store Magazine
repeatedly reporting Hearts On Fire as the number one or two
selling brand. LGI market research reports Hearts On Fire as the
number one or two product sold in Independent Jewelers carrying the
Hearts On Fire brand. In all data collected, the Hearts On Fire
brand provides the best overall margins and highest gross profit
dollars of any brand in our industry. In other words, I am proud of
our profitable contributions to over 700 Independent retail
locations in 32 countries across the globe. Hearts On Fire’s
historical contribution to our industry has been recognized
repeatedly by the trade press and the financial press, including:
Fortune, Forbes, Wall Street Journal, WWD, CNN, CNBC, with likewise
recognition from the consumer press, fashion press, television, and
many other independent sources too long to list in this Blog. Susan
and I have been honored with many awards of recognition for our
philanthropic work, our leadership and innovation, but most
important to both of us, our integrity and values. (2008 Winners of
the American Gem Society Prestigious “Shipley Award”).
This public dialogue initiated on Ms. Guliani’s Blog has
questioned the integrity of the Hearts On Fire Brand and in turn
the integrity of Susan and Glenn Rothman. Why? It is because a
young, anxious retailer frustrated by an inability to execute in
what may be the most difficult retail environment since the
1930’s, wants cash and wants it fast, even before the
important selling season begins. Hearts On Fire is a brand, not a
bank. At no time did anyone at Hearts On Fire speak the dirty word
“no” to Ms. Guliani. Was it too much for Hearts On Fire
to expect from a new retailer in whom we have invested up front
many thousands of dollars… in-store training, displays,
owner’s forum, heavy subsides in regional training and
HOFU… to work with the brand through the most crucial holiday
selling weeks? Our response as reported by Ms. Guliani was
“We can further discuss our partnership in January”.
Obviously, the delay was not a satisfactory answer and has lead to
Ms. Guliani discounting, posting on eBay, and attacking our
integrity. Since her first negative Blog, Ms Guliani’s
language has deteriorated into “that we wouldn’t take
the product back”. This is patently not true. I am sorry we
did not satisfy her immediate needs for cash, but I challenge
anyone participating in this Blog to find any brand, vendor, or
supplier that will give any money back under similar circumstances.
In January, as previously communicated to Ms. Guliani, our team
will contact her to resolve her inventory issues. I am confounded
by Ms. Guliani’s intent to harm the brand; to harm her
neighbors in Charlotte who are carrying Hearts On Fire; to harm her
future relationships with other brands. We only asked that Ms.
Guliani and her team give it their best through the Holiday season.
Let me quote Ms. Guliani’s own words from her Blog entry,
“What Keeps You Up at Night” on February 25th, 2008: I
have never been so impressed by a company before. The CEO (Glen),
the COO (Mark), the CFO (Bill), Executive VP (Peter), etc. are all
from others backgrounds besides jewelry so they each brought
different perspectives to the table. We work with so many vendors
but I’ve never felt any one vendor to go out of their way.
Yes I have some wonderful reps who go out of their way to help me
sell their brand but I haven’t had a partnership like we do
with HOF—at this owner’s forum we didn’t talk
about HOF the entire time but instead we talked about us and our
business. Many topics of huge interest came up and we all commented
and brought up our own problems and solutions. The next couple of
days I’m going to Blog about many topics that we talked about
at the Forum that either never crossed my mind or did but I knew no
way in hell how to deal or implement a solution. (Guliani; Feb 25,
2008; What Keeps You Up at Night?) Ms. Guliani, you reach the heart
of the issue with your quote above by saying, “I knew no way
in hell how to deal or implement a solution”. Execution,
execution, execution, is always the challenge. In our short time
together in Boston last February I found you to be both intelligent
and determined. I take your failure with Hearts On Fire seriously
and truly wish you success in finding a future formula of retail
profitability. Our future vision lives with the Hearts On Fire
brand, its meaning and its emotion. We know that discounting and
price selling a commodity in an internet world is a broken business
model. Frankly, bricks and mortar can never be the lowest cost
provider. We will miss you from the Hearts On Fire family, and only
regret that you didn’t achieve success before you gave up. As
for Abe Sherman quoting me directly on this Blog…. first and
most importantly, Abe and I share many of the same goals. We both
have an unyielding determination to create prosperity for the
Independent retail jeweler. Hearts On Fire works relentlessly every
day to maximize our retail partners’ profitability, talent,
and overall health. It is who we are, what drives our motivation,
and what will create our future. I publicly extend an open
invitation to Abe Sherman and his team, at Hearts On Fire’s
expense, to put our intellectual resources together for the purpose
of reviewing Hearts On Fire’s Menu for Success and
BIG’s approach to Financial Management and success. These are
unprecedented times, requiring new strategies of business
management. Together we can “white board” our strengths
and weaknesses; we can pool our efforts to support the well being
of our beloved retailers; together we can analyze risk, and
identify opportunities. My offer includes a full day of learning
facilitated by Benson Shapiro, Harvard Business School’s
world renowned Professor of Sales, Marketing, and Pricing. Abe,
please accept our invitation for a stimulating and fascinating day
of learning in Boston to build our knowledge and strategy in
support of our retail family. After all, people’s lives and
livelihoods are at stake. Now for my last comment on this long
Sunday afternoon Blog… Hearts On Fire has never before
discussed matters concerning our relationships with our current or
past retailers in a public forum. This type of “He said, She
said” in a public forum does not pass my personal integrity
test. In my humble opinion, it provides only partial realities
based on perception not fact…..based on uninformed outside
participants who may have a


December 8, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
David N. commented:







We were one of those seven figure companies. As we were successful,
our competitors wanted to carry the line and we were not protected.
HOF kept opening accounts and several began discounting in order to
steal sales from each other. We had my seven doors with two chains,
and three more independent doors in a market of 2.5 million people.
We also noticed how the stock requirements continued to increase to
a point where we could no longer get the 2x stock turn which made
the line work for us. Another problem was the shortened payment
terms. Let's project out. If the line gets a two time stock turn,
it covers itself every 180 days, but they can only fund net 90-120
terms


December 8, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Abe Sherman commented:







We have long recommended that the jeweler not allow HOF incentives
be paid directly to the employee, but rather to the store. To your
point about incremental business, the answer is no, the
heavy-handed brand-push cannibalizes the rest of the store's
business. Unfortunately, what we see is an increase in the store's
average ticket and a decrease in their number of transactions -
which over several years, leads to a decline in customer base and
overall sales. The employees get so dialed in to getting POINTS
toward prizes, that they stop showing generic merchandise. It's the
combination of the investment in real estate, marketing, University
(Kool-aid) and every-increasing inventory demands that causes an
under-inventory situation for other, generic merchandise. In this
economy, that can be a disastrous cycle.


December 8, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Abe Sherman commented:







Kate wrote: As a point of irony... HOF has somehow managed to
position itself ad an 'icon' of business management - instructing
retailers (through their University and Owners Forums) in
everything from client development to hiring solutions, invenory
management to financial strategies and succession planning. Does
anyone else find it odd that this 'icon' is now the company that
cannot honor its commitments? - - - HOF appears to follow the
age-old business adage, "Do as I say, not as I do."


December 8, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Kate Peterson commented:







Abe - that makes perfect sense - and Shanu, I too applaud your
willingness to put the health of your business ahead of what
appears to be our industry's version of 'politically correct'. For
those who worry that the actions you're taking somehow damage the
brand, I might point out that a brand irreparably damages itself
the minute it begins to compromise its integrity by failing in the
commitments it makes to its retail partners.


December 8, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Kate Peterson commented:







Sorry - previous post got cut off. How much to the dictum that the
product must be shown to every customer, represented clearly
(though some may argue inaccurately) as "The World's Most Perfectly
Cut..."? How much to the heavy investment the retailer is required
to make in getting their sales staff to 'drink the Kool Aid'? Most
importantly, are the HOF sales truly incremental increases, or are
they made at the expense of other, similar owned inventory - which
salespeople tend to ignore because: (1) There is no added incentive
for selling it like there is with HOF and (2) It's very tough to
show other product after you've already presented one brand as the
very best? Keeping in mind that the real success of the HOF brand
from the very beginning has been tied to their positioning within
market-leading stores, could these retailers be getting a far
greater long term benefit from building their own brand, investing
to the same degree in marketing, real estate, display, training and
associate incentives? Maybe - maybe not... but I think the real
problem lies in the fact that more often than not, in the apparent
glow of 'everyone is selling it', the the questions are not even
being asked - until it's too late.


December 8, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Abe Sherman commented:







Kate, We have been recommending to our clients that they NOT send
merchandise back to the manufacturers IF THEY ARE EXPECTING A
REFUND since no one knows how long those refunds will take. The
store should make as much margin as they can, as Shanu is doing,
and use the sale of the product this season to drive customers in
their doors. I wrote a newsletter about this subject; "The Blogger
and the Brand", based on Shanu's experience.


December 8, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Kate Peterson commented:







(Continued) What most retailers don't understand is that HOF
targets the stores they want in the markets they want, and they
dictate the product you put in. Yes, for many retailers, the line
sells, and sells well. In my experience, however, many retailers
are a bit short-sighted in their analysis. How much of the sales
success is attributed to the heavy concentration of marketing
dollars? How much to the prime store positioning and large 'real
estate' commitment they are required to make? How much to the
dictum that the product must be shown to every customer,
represented clearly (though some may argue inaccurately) as "


December 8, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Kate Peterson commented:







(Continued) What most retailers don't understand is that HOF
targets the stores they want in the markets they want, and they
dictate the product you put in. Yes, for many retailers, the line
sells, and sells well. In my experience, however, many retailers
are a bit short-sighted in their analysis. How much of the sales
success is attributed to the heavy concentration of marketing
dollars? How much to the prime store positioning and large 'real
estate' commitment they are required to make? How much to the
dictum that the product must be shown to every customer,
represented clearly (though some may argue inaccurately) as "


December 8, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Kate Peterson commented:







Abe - (I'm smiling as I write this), there are those who will be
quite surprised, I'm sure - but on this one, you and I are in
COMPLETE agreement! We, too spend our days working with retailers
throughout the world, dealing with every variety of operational
issues. We have seen countless problems with the 'predatory brand'
aproach taken by HOF and others over the years, and we, too have
had many clients drop the line. In fact, I personally have worked
with no less than 3 clients in the past quarter who have been
battling with HOF just to get them to honor their commitment to buy
the line back (or to actually send the money, even after they have
the returned goods). My company had been associated with HOF since
very near their beginning, and while I applaud their Hurculean
effort at brand building, I have personally been very concerned
with their underlying disregard for the overall health of the
retailer's business. As a point of irony... HOF has somehow managed
to position itself ad an 'icon' of business management -
instructing retailers (through their University and Owners Forums)
in everything from client development to hiring solutions, invenory
management to financial strategies and succession planning. Does
anyone else find it odd that this 'icon' is now the company that
cannot honor its commitments?


December 7, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Abe Sherman commented:







Following is re-printed with permission from a Polygon post on this
subject. "We too, had great difficulty getting our money back from
HOF. Promises, promises, promises and stories from one person that
would be repudiated by someone else, all within their organization.
After a lot of effort and dozens of calls we got it back in about 3
or 4 separate payments. I feel extremely lucky." Dwight Belew,
American Jewelry, Mt. Juliet, TN.


December 6, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Abe Sherman commented:







Anon, you need to go back and read Shanu's original posts. She
decided to close out the line after months of getting the run
around. Someone just posted on Polygon's business channel having
had a similar month's-long experience with HOF.


December 6, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
anonymous commented:







A fact that seems to have been forgotten by everyone. Didn't HOF
say they'd talk to you after the first of the year? This is our
industries busiest time of the year, is it so hard to believe that
they are saying they need some time to sort it out.


December 5, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Abe Sherman commented:







This is the beginning of the above post. Anonymous - we don't
compete with any supplier, as we don't sell jewelry, we analyze the
data of the stores. The $125 million is the total inventory we have
in our system, at cost. HOF is $11 million of that inventory and,
at last count $4.5 million of HOF was aged. Insofar as that being
too small of a sampling, as I said in an earlier post, that
represents roughly 10% of all HOF doors in the country, some of
whom do 7 figures with the line. If you don't think that's
statistically viable, so be it. If you think our data is biased, I
invite you or anyone else who is concerned about various brands or
cash flow to upload your own data and I'll give you the unbiased
results. Perhaps after seeing your own data, you then post here
about whether it is biased or not. Calculating Key Performance
Indicators can't BE a biased process, its just math. Insofar as
this being a one-sided argument, that's nonsense. YOU have taken up
the other side and anyone is free to post here in support of their
favorite brand. The reason I offered to post the data on HOF and
not the other brands is we work with far more HOF stores than any
other brand. The programming is being done now to aggregate all
vendors in the system automatically so we will be able to report
the KPI’s on anyone.


December 5, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Shanu S. Guliani commented:







Anonymous--HOF picks out your pieces for you for the opening order
and are very hesitant to trade out pieces until you've kept them
for one year. I wish HOF would respond too. I even told them I
would be posting a blog b/c they were not helping me. I understand
folks are doing well with the line--I am not blaming HOF
entirely--JUST FOR SAYING THEY WOULD TAKE BACK THE MERCH BUT THEN
DECIDE NOT TOO BECAUSE I DON"T OWE THEM MUCH MONEY.


December 5, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Abe Sherman commented:







s on anyone. Shanu will likely tell you that HOF chose the
inventory for her opening order, as do many of the brands, because
‘they know best’ about what sells. Now, you say you
don’t work for HOF, which means you work in a retail store
and from your perspective, HOF works great for you; we all cheer
your success. I spend my days on the phone with jewelers around the
country going over their data and their problems, much of which is
cash flow related and much of the cash flow related problems have
to do with inventory. One or two jewelers a DAY have been calling
over the past month as they are concerned about Christmas –
and because HOF inventory is among the highest of any brand they
carry, and because lots of stores have been experiencing a slow
down of the product, whether due to their multiple price increases,
the lack of entry level prices (I’m talking about $700, not
$3,000 as entry level), or the slow down in the economy, the fact
is that things are slowing down and jewelers are concerned. I am
more than happy to have them call you so you can speak to their
marketing and merchandising issues and help them fix their
problems. It should be noted that the stores that carry lots of
other brands are not just concerned about HOF, or Rolex, or
Mikimoto or Yurman, but the general slow down of all brands. I had
an email from a client yesterday who has seen Rolex sales off by
75% in November compared with 2007. Maybe he has the wrong
inventory or his marketing is weak… ya think? This
isn’t personal for me, as it seems to be for you, as I have
no dog in this fight other than the health and well-being of the
Independent retail jeweler. I decided not to drink the Kool-aid a
long time ago: When we analyze a jewelry store, there are no sacred
cows. Shanu didn’t ‘take a year’ to give up the
brand, she ‘gave’ the line a year and decided it was
wrong for her store and to move on. HOF had the opportunity (and as
far as I know it is par of their ‘promise’) to buy back
the line ‘after’ one year of the jeweler carrying the
product. Shanu said she offered to return it and they declined. If
you feel that’s one sided, please get in touch with the good
people at HOF and either ask them to post their side here or you
can continue to speak for them. But the innuendo that Shanu is not
being completely honest is offensive. ;


December 5, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Neil The Jeweler commented:







(continued) lifelong jewelry salesperson (old school is still
relevant I believe) who mentored me when I was just starting
out..."Be everybody's best friend". While you can't and won't
please all the people all the time, you can strive to please the
people who affect your business materially, customer and supplier
alike, while striking a balance with your own interests. All might
be better served if the discussion was moderated so perhaps JCK
will take up the issue.


December 5, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
neil pennell commented:







Shanu, decisions like yours are never easy and bound to be
controversial. You have to watch out for your self interest, no one
else is going to, but you'll have to deal with the fallout. I
googled your store name and this very article came up as the third
listing. So any customers interested in perhaps patronizing
Guliani's or prospective vendors could very well read about the
whole affair and be impressed in whatever way they are going to be,
good or bad. You might want to consider the longer term
ramifications. As an independent myself I often consider the advice
of a lifelong jewelry salesperson (old school is still relevant I
believe) who mentored me when I was just starting out..."


December 5, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
neil pennell commented:







Shanu, decisions like yours are never easy and bound to be
controversial. You have to watch out for your self interest, no one
else is going to, but you'll have to deal with the fallout. I
googled your store name and this very article came up as the third
listing. So any customers interested in perhaps patronizing
Guliani's or prospective vendors could very well read about the
whole affair and be impressed in whatever way they are going to be,
good or bad. You might want to consider the longer term
ramifications. As an independent myself I often consider the advice
of a lifelong jewelry salesperson (old school is still relevant I
believe) who mentored me when I was just starting out..."


December 5, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Anonymous commented:







Abe Sherman - please clarify if that $125 M inventory you refer to
is only HOF or if it includes other brands.


December 5, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Anonymous commented:







I am definitely not a HOF employee. In fact, when I first heard
about HOF, I was really quite skeptical about them. However, over
the years, they have proven themselves and I now definitely feel
they are doing so much good for this industry – either for
the majority of HOF retailers who are doing well with the line or
for being an inspiration and role model for others. Like Jennifer
Heebner, I wish they would post here. I am not a HOF employee and I
cannot speak for them. However, I do feel it is unfair that this
one-sided discussion is taking place so publicly. And I feel it is
unfair that Shanu is blaming it all on HOF when it seems she took a
year to decide to return that inventory. Now that is not quick
action – nor was it done in a timely manner. At the same
time, it would be reasonable for HOF to explain their position on
this. Abe Sherman – Are you a HOF competitor? I do believe
you sound much more bitter and antagonistic than me. If you feel
compelled to share data, I encourage you to do so. You need not ask
my permission for it. However, since you only track a small
percentage of HOF doors, I think your data would not be a true
reflection of HOF’s total business. If you post this data
here, I ask you to place a disclaimer on it that the sample you are
basing your data on is a small sample and may not necessarily
reflect HOF’s true business. And while you’re at it,
why not post the data from Rolex or Mikimoto as well? $125 million
might be a large inventory for one or two stores, but it is
certainly a very small piece of the pie, so don’t presume
that that is a lot of inventory and make it sound like it’s
the entire market because it isn’t. What you present may seem
like facts according to you, but those ‘facts’ could
very well be biased. What I meant about the price points was that
Shanu should have considered which price points her clients would
be comfortable with prior to ordering the HOF pieces she wanted in
her collection. This does not detract from the aspirational aspect
of the brand. Price does not equal value. And value is much broader
than price. With other luxury brands, there are always pieces with
lower price points that are designed to be debut pieces for
first-time buyers. I’m sure this must also be the case for
HOF. Neither you nor I know which pieces Shanu selected for her HOF
line, but from what I could tell, merchandising seemed to be a big
part of the problem because Shanu mentioned “sticker
shock” as the primary reason for lack of HOF sales. So
wasn’t Shanu the one selecting the HOF pieces? Suppose we
have a certain demographic that would be willing to purchase $3000
pieces. If all the pieces Shanu had in stock were above this
– say $4000 or above, then she is actually decreasing her
chances of making a sale when the consumer walks in the door. What
I would have done with the inventory was to ensure that there were
bread and butter pieces under every brand I carry. This would mean
that I would get in HOF studs, bridal, hearts, crosses, etc. within
that $3000 price point. I would then do a pilot test and present
pieces with higher price points via a catalogue to gauge whether
those higher price points could sell or not. That’s really
all I have to say on this matter. And though my opinion is not
popular, it certainly has a lot of merit.


December 5, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Abe Sherman commented:







MORE ANONYMOUS - "Aside from commenting on the fact that I have
chosen to post as Anonymous, no one else really had any other
objections to the facts that I included in my previous post. Right
now, it's Shanu's word against HOF." Anonymous, so, you like
"facts", great, that's what we deal with every day. Please let me
know what facts you'd like me to post. We track about 50 of the 500
or so HOF doors in the country, so we have a pretty decent set of
data. Would you like to know what the average HOF turn is? Average
ticket? GMROI? GP? AGED INVENTORY!!! (It's 40% aged in case you
were curious). Since WE deal with facts, I'm happy to share them
here. All of our client's data has been aggregated into a single
file, so it's simple for me to report on this supplier. Our
industry needs more transparency... just ask away.


December 5, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Abe Sherman commented:







Anonymous continues: "And the basic issue here seems to be one of
merchandising rather than the HOF brand itself. Shanu has clearly
purchased pieces from the HOF line that do not fit in with her
client's ideal price points. Is this HOF's fault? Shouldn’t
Shanu accept this as her responsibility first and foremost? Shanu
knows which price points her clients are comfortable with. Why
didn’t she take this into account? Right now, the reality may
be that for whatever reason, Shanu needs to liquidate her HOF
inventory. However, why spend so much time posting about it when
she could be using the time out in the real world to do something
both constructive and productive for her business?" Anonymous -
Ironic that you mention getting the right price points in the
store, as developing a comprehensive merchandise selection across
ALL price points is fundamental to our strategy. In an email to one
of our clients Glenn Rothman, founder and CEO of HOF said that our
advice, which it appears you agree with, is a very poor business
practice. In fact, he said, it would lead to "disaster". In fact!,
he went on to say that jewelers should be carrying HOF diamond
exclusively as consumers will only want to buy the best in these
difficult economic times; that they ASPIRE to own a Hearts on Fire
diamond! Well, all evidence to the contrary. So which is it?
Comprehensive selection across all price points, or carrying only
the 'best', aspirational merchandise? You choose. Please check in
with Glenn before you answer. Oh, and Shanu is spending so much
time posting about it, primarily to respond to all of YOUR posts!


December 5, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Abe Sherman commented:







Anonymous, Part of the above post was cut off. It started with, We
analyze the sales and inventory for roughly 10% of all Hearts On
Fire doors in the United States, so if you’d like to have a
conversation about what’s working and what’s not, I
encourage you to have it with me.


December 5, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Abe Sherman commented:







d like to have a conversation about what’s working and
what’s not, I encourage you to have it with me. There’s
no reason to guess about what’s working, I’m happy to
share it with you. While there are many HOF dealers who are
thrilled with the line, there isn’t a brand in the country
that works for everyone, period. We have two clients, both of whom
are HOF dealers, by the way, who gave up Rolex this year based on
the lines performance in their stores. In each case, they needed to
feed their HOF inventory (and others) as those lines were
performing whereas Rolex was not. Another client decided to give up
Mikimoto last week – sales do not warrant their inventory
levels. You seem to be taking Shanu’s decision to close out
HOF very personally; do you feel the same sense of antagonism
toward the jewelers who sold off their Rolex or Mikimoto inventory?
You either work for a HOF retailer or work for the company, either
way, we’re all very happy that you feel the brand has such
‘value’. Not everyone shares your opinion. Those are
the jewelers who are questioning the continuation of the brand in
their stores – some after many years of affiliation with the
brand, and each for their own reasons. We deal with dozens of
multi-million brand driven stores; at least two of them have also
given up on HOF this year. Would you like to make snide comments
about their stores as well: About them not ‘getting the right
inventory mix’ or about them not doing the right marketing?
These people must be STUPID! Or, are they? You can blame the
retailer, but you should know that other retailers are asking the
same questions about these lines that Shanu has. Many well
established retailers have decided to brand themselves; creating
their own house signature brand and selling Hearts & Arrows
makes for far less money without being dictated to. You seem to
have a problem with that. You mentioned that Shanu should take
responsibility for her decisions, which I found to be a fascinating
statement. She IS taking responsibility for her mistake by turning
the line back into cash! If every jeweler had been doing what Shanu
is doing now, our industry wouldn’t have the cash flow
problems that we do. It’s the INACTION of dealing with the
non-performing inventory that is the problem. Of the $125 million
of inventory we have in our database, 40% or $50 million is at
least one year old! Shanu won’t be having any of that in her
store. I applaud Shanu for her gumption, for recognizing the brand
was a mistake in her store and for pulling the trigger in a timely
manner in order to use her resources in other, more productive
areas. ;


December 4, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Shanu S. Guliani commented:







PS--I provided constant communication with my HOF REP and even said
you all forced me to take all these hearts and we don't sell
any--the made me keep them because "our numbers show they are
popular and the most selling pieces." I've had lots of problems
with HOF--in the beginning I was supposed to receive the
merchandise in SEPT 07 and I was to have to pay 4 equal payments of
25K starting DEC--they SAID WE ARE NOT SENDING THE LINE WITHOUT A
DEPOSIT two days before my grand opening--WHEN I WAS WAITING FOR IT
AND ALL MY MARKETING GRAND OPENING MATERIAL HAS HOF ON IT--WE even
gave away a heart hof neclace at the grand opening as a
giveaway--because I was stupid I sent them a check--so there is so
much more to this HOF story..........The bottom line is they are
not taking it back and I am going to discount the hell out of it to
get my money back--100-105K is way too much for a line that's not
moving


December 4, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Shanu S. Guliani commented:







Just an update--I have done an email blast letting our customers
know who have HOF on their wish list it is 30% off, each employee
has called their own customer's as well. Because it is not good for
my market and the pieces are not selling I figured Xmas is the time
I will get some money out of it and rid of the line. We have just
sold another diamond remount--the repetoire because of the 30% off.
I chose Ebay because I want to liquidate. If other jewelers out
there are doing well and want to buy the product from me give me a
call. HOF left me a voicemail saying those exact words--in post
one. They gave me a run around for two months and wouldn't respond
to my emails requesting an RA. I have to do what is best and get
whatever money I can out of the line. Regarding my marketing--that
is one of several--yes we have a full bar and the men love it--you
don't do parties for men? So we boast about our bar and guys
watching the game while their wives shop--because of that we now
are selling men's diamond bracelets. The campaigns are working
because sales prove it! We also have did a "rock for love" contest
which I don't know how to post a recording yet. We are starting
bridal events. HOF was a part of every advertising campaign--it
just hasn't sold here and we did our best so anyone out there doing
well with--GOOD FOR YOU!


December 4, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Jennifer Heebner commented:







Of course, not every brand will work in every market. Which is why
it is prudent and ethical for brands to know something about
potential markets so that they are not just pocketing the lump-sum
buy in of the jeweler and then essentially saying, 'oh well, not my
problem!' And since HOF's response to all of this is no response,
what are we to think? And correct, we don't know what exact
conversations transpired between Shanu and HOF, which is why a
response from that company in this forum would be most helpful to
clarify concern and confusion. Seems like you might have an in,
there, Anonymous! Help us out. Alternatively, I would be happy to
speak to HOF offline about this and I can be reached at
267-481-4120 or at JHeebner@reedbusiness.com.


December 4, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Anonymous commented:







Jennifer Heebner - As you know, not every collection will work for
every market. A good merchandiser will know which collections will
be appropriate and which won't be appropriate. The responsibility
ultimately lies with the merchandiser because he or she is supposed
to have specialized knowledge about his or her specific market and
know what the price points of that market are. If you look back on
Shanu's other posts, sticker shock was one of the reasons Shanu
suggested for the lack of HOF sales. It was not lack of value
proposition. I am a firm believer that if something has value, we
should do all we can to protect that value - which means avoid
discounting and especially selling on ebay. This is what's eroding
margins. As far as not being able to meet price points, is HOF
supposed to know this or is it not Shanu's responsibility to know
her target market well enough to get pricing right? How was the
feedback mechanism between Shanu and HOF? We do not know how
closely Shanu and her HOF sales person communicated - which is of
critical importance here. If Shanu did not provide her HOF sales
person with constant feedback, how was HOF supposed to know sales
weren't working out? How could they help if they didn't get an SOS
signal? Even in different parts of one city, the demographics could
be so different. In a city like New York, for instance, the
demographic disparities are very vast - as it is with most other
cities. At the same time, there are so many different products to
choose from. This is why pilot testing is so important because
sometimes getting the right product mix in a store is a matter of
trial and error. As I said, no one knows the full details of the
discussions between Shanu and HOF. I just wish that more jewelers
would take ownership of their business by owning the responsibility
for both failure and success. Because in this instance, I feel
Shanu really needs to own this responsibility. And if she sees it
as a lesson, then she can use it to accelerate future sales.


December 4, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Jennifer Heebner commented:







HOF is refusing to take the inventory back by avoiding a
conversation with Shanu now about the topic. Vague declarations of
"We'll talk to you in January" does not constitute a firm response.
And as far as "fault" for the line not selling, how about HOF
having the business sense to determine, along with Shanu, that
Charlotte was a good fit for the brand? It would seem that a brand
as organized as HOF would have done some homework on their part to
determine that the Charlotte market was appropriate for their
jewelry. The decision to enter any store must be mutually
beneficial for the retailer and brand. I have a lot of respect for
HOF. They are singularly focused on excellent training and product,
and invest heavily in marketing--something few other jewelry firms
do. JCK has written many positive reviews of HOF, and will again.
But Shanu has valid points here. She is also not the only account
to have not done well with HOF. Look on ebay now and you'll see
that Medniknow, with stores in Atlanta and Tennesse, is also
selling HOF inventory. I have also been speaking with numerous
other stores over the past few weeks that have dropped brands like
HOF, David Yurman, and Rolex, for a variety of reasons.
Unfortunately, we are only hearing about HOF because other
retailers aren't as bold as Shanu to discuss these issues publicly,
although many benefit, including the brands, from these candid
conversations. It would be nice if HOF would post a response here
in this forum to clear up the concern and confusion surrounding
this issue.


December 4, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Delia commented:







Anonymous, Shanu was told when she took on the HOF line, that the
company would take it back if she couldn't sell it. That's the
bottom line.


December 4, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Anonymous commented:







Aside from commenting on the fact that I have chosen to post as
Anonymous, no one else really had any other objections to the facts
that I included in my previous post. Right now, it's Shanu's word
against HOF. We actually do not know what really went on during
Shanu's discussions with HOF. However, the fact is that they did
not refuse to take the inventory back. This was clear to me from
Shanu's first post. It's also clear to me that Shanu has had a
history of marketing-related issues, as was evident from the
InStore Magazine article. The strategic mismatch between the HOF
line and her client demographic profile is something Shanu as
business owner should have caught straight away. Why wait until the
very last minute to do something about a problem? If a problem
exists, deal with it right away. If Shanu had contacted HOF just a
few months ago, I’m sure we wouldn’t all be here
debating about this. If she had overhauled her inventory then, who
knows, HOF could have been a successful line for her. To me,
attending HOF University is just one part of the equation.
It’s like the extra credit points we got in school. The real
difference between passing and failing is whether we get the basics
right. There are larger issues at play. And the basic issue here
seems to be one of merchandising rather than the HOF brand itself.
Shanu has clearly purchased pieces from the HOF line that do not
fit in with her client's ideal price points. Is this HOF's fault?
Shouldn’t Shanu accept this as her responsibility first and
foremost? Shanu knows which price points her clients are
comfortable with. Why didn’t she take this into account?
Right now, the reality may be that for whatever reason, Shanu needs
to liquidate her HOF inventory. However, why spend so much time
posting about it when she could be using the time out in the real
world to do something both constructive and productive for her
business? Why put the line on ebay? That is really an action of
revenge rather than of logic. Why didn’t she do a direct
mailing to let her clients know about the HOF line? A
jeweler’s first line of defense seems to be to lower price
points and this is exactly what is eroding margins away. Instead,
our first line of defense should be to promote value. And like I
said before, there is a definite value in a HOF piece, or any ideal
cut piece, really. Not keeping a broader perspective is what is
limiting the industry. It's always the other party's fault, which
makes it difficult if not impossible to learn the lesson. For all
the retailers who have not been able to do well with a brand, you
need to explore the issue on a deeper level. Many brands offer
different price points. Which of those will be most suitable for
your client demographic? Without getting the merchandising right,
how can we expect to succeed with any brand? I wish you the best of
luck, Shanu. Times are tough for everyone. However, approach it
from a winner’s perspective.


December 4, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Anonymous commented:







Aside from commenting on the fact that I have chosen to post as
Anonymous, no one else really had any other objections to the facts
that I included in my previous post. Right now, it's Shanu's word
against HOF. We actually do not know what really went on during
Shanu's discussions with HOF. However, the fact is that they did
not refuse to take the inventory back. This was clear to me from
Shanu's first post. It's also clear to me that Shanu has had a
history of marketing-related issues, as was evident from the
InStore Magazine article. The strategic mismatch between the HOF
line and her client demographic profile is something Shanu as
business owner should have caught straight away. Why wait until the
very last minute to do something about a problem? If a problem
exists, deal with it right away. If Shanu had contacted HOF just a
few months ago, I’


December 3, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Shanu S. Guliani commented:







Jennifer--David my husband is slacking. He registered under
Gulianis2 I think. I will have that info shortly. He was supposed
to have them up today but now he's saying Friday.


December 3, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
JH commented:







Seriously, what is your ebay account name so we can watch the
auctions?


December 3, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
JH commented:







Seriously, what is your ebay account name so we can watch the
auctions?


December 3, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
jack800 commented:







To ANONYMOUS: HOF is being unfair to Gulani’s. Based on
Shanu’s recounting of her efforts to make a go of the brand,
she did everything she could to make the HOF brand successful using
the HOF sales philosophy and resources. Obviously the HOF brand is
not a good fit for her store and clientele. These things happen.
Since the HOF agreement, from what I understand, clearly states
that they will take back the line within 1 year, why aren’t
they honoring their contract? It’s their promise to take the
line back. End of story. I think what is more telling is that HOF
told her “We can further discuss our partnership in January
but right now we are working with partners who are selling the
line.” As in buzz off loser, honoring our commitment to you
is not a priority.


December 3, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Sean Dunn commented:







Shanu is doing what she needs to do period! Shanu, in your last
paragraph you brought up an interesting point about working
inventory problems out with jewelers who are doing well with
jewelry brands. I might be able to help with some of the bigger
names. I cannot get involved with watches though. Let me know.


December 3, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Anonymous commented:







Right. And that's why you commented as 'Mall Jewelry Boy.'


December 3, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Mall Jewelry Boy commented:







Times are tough. Money is tight. Co-Op involves spending more
money. Who would spend that money on a line that has never sold?
Clearance involves making money from failed product. Jewelry stores
are folding all over...and cash is king. Cash tied into failed
inventory cannot be used to pay the bills. It's Shanu's decision,
and she is brave enough and gutsy enough to not post as
"anonymous". I think it takes a lot to put yourself out there on
the internet, open to attacks...like people posting a link to an ad
sent in to seek help with a marketing campaign. I wish more people
were as brave and helpful and OPEN as Shanu is, because she is
opening up the secretive jewelry industry and providing
transparency to a retail sector that is trusted at the same level
as car dealers. Thank you, Shanu. If a company will not abide by
their agreements to take back inventory, then they deserve to be
called out on it, no matter what bitter authorized dealers post
anonymously.


December 3, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Anonymous commented:







I feel you are being really unfair to HOF. They have not indicated
that they are not willing to take back the line. Rather, they
requested to hold off the discussion until after the holiday. If
you have not asked them to take back the line earlier in the year,
I think the timeframe they requested is reasonable given the
holiday selling season. There could be many reasons you have not
been able to sell the HOF line as much as you'd like - for
instance, your client demographic profile not matching the brand's
price points, or your overall marketing campaign not bringing in
the right clients. Discounting the line is not exactly constructive
nor productive. What would have been a better play would be to tap
your HOF sales rep for more ideas on finetuning your HOF inventory
to better match your target audience given the demographic
information they are likely to have. Which pieces will have the
highest sales probability in your area? What co-op advertising can
you participate in? Can they help you do a HOF-focused direct
mailing? If you focused on bread and butter items such as diamond
engagement rings and diamond stud earrings, there's no way you
wouldn't be able to increase your HOF sales. These are pieces that
last a lifetime and based on the value that a HOF piece would
provide, a lot of people would be willing to pay for this value. My
friends are always complimenting me on my ideal cut diamond stud
earrings, so I know there's a definite market out there for these
diamonds. But you aren't even convinced of the value yourself, so
how can you sell it? I read the InStore article about your store's
marketing campaign, it seems you really need to look at your
overall marketing plan and see if it's the right strategic fit for
your audience before all else.
instoremag.com/instore/editorial_detail.asp?eid=2223 I think there
is a larger issue here and for your own good, you need to examine
these issues rather than go on about HOF or any other brands. A
brand doesn't just sell itself. If you place Gucci in a Walmart,
it's not going to work out.


December 3, 2008
In response to: Final Thoughts on Brand Disaster: Hearts on Fire
Jennifer Heebner commented:







What is your ebay account name so we can watch the auctions?

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