Silver Jewelry in Mexico: Don’t touch Anything: (Part 3)

Susan – the buyer — and me, Jan Brassem, – the owner — were sitting in Sangria’s (the shop owner), spacious and sunny combination office, showroom and living room. (Sangria and her smile is on the left.) The room was decorated with a decidedly female flair – frilly curtains, pink walls and pretty pictures of horses and hearts. The room smelled, er, ‘flowery’.

Everything on the tables and breakfront was porcelain and apparantly very delicate so I didn’t dare touch anything. I was big and somewhat clumsy. There was no evidence of computers anywhere.

Susan and I sat across from Sangria at her over-sized desk. The Tony Soprano look-alike, (our bodyguard), still wearing dark sunglasses, was reading a magazine, guarding her door. I was not sure what he was guarding. (In case you don’t remember, the original  Tony Soprano’s picture is on the right.) An assistant stood, almost at attention, next to Sangria waiting for instructions. Our driver, Brett, was across the street, watching the girls and guarding his big, black Mercedes.

Since the styling was beautiful, unique and imminently saleable, Susan would have to use her professionalism and figure out a way to solve the difficult problem(s).

Without a word, Sangria nodded to the assistant who quickly brought in  jewelry in pink and powder-blue trays. Susan gasped. She had never seen so many beautiful styles merchandised so carefully. In fact, she told me later, she had never seen such beautiful trays.

Susan started working. Within an hour, she had pre-selected 90 styles, which she quickly whittled down to 45. She asked Sangria if it was okay to change the stone configuration of a few styles. Sangria told her that since production was an issue, changing stones – from ruby to emerald, for example – would slow down the production process. Susan would use the stones shown in the samples.

She reached into her briefcase and, writing feverishly, prepared a Purchase Order. (A “PO” is music to a  salesman’s ears). Susan would order 50 pieces of some styles and 100 of a few others.

Sangria smiled.

Susan asked her how quick she could ‘deliver’. Sangria replied that since she only has five jewelers working in her shop – most of those used to make her designs — she would have to ‘farm-out-the-order’. She could have the order ready for shipment in the normal six weeks, she said.

When a professional buyer – Susan – hears the phrase, ‘farm-out-the-order’, mental bells, whistles and sirens sound a warning. As it turns out, Sangria’s company was not a jewelry manufacturer at all, but rather a design shop – although a good one.

Sangria would send out Susan’s order to ten, or even 20, small factories in and around Taxco’s colorful streets, (see the picture below), – the perfect definition of a ‘cottage industry’. As a matter of fact, we learned later, many of Mexico’s famous designers operate using this cottage industry ‘model.’

Under this purchasing system, quality becomes a major issue. In addition, production communication, payment terms, pricing, responsibility and a host of related issues can quickly lead to disaster.

Since the styling was beautiful, unique and imminently saleable, Susan would have to use her professionalism and negotiate a way to solve the difficult problem(s).

To be continued…

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