by Maurice Silber
As discussed in the Architecture and Design section, my first job was with an architect-builder doing drafting. After leaving my job with the architectural firm it was very difficult to find any worthwhile employment in 1940. It was proposed by a cousin already in business that I join him. After learning the business I was to become his partner in the fur manufacturing trade, which catered to the department stores throughout the country. I spent two and a half years in which time I learned the manufacturing business. I sorted, stretched, and cut Persian lamb which I assembled by machine to fit patterns. As time went by my interest grew and I attended the Fashion Institute with the intention of using the knowledge in fashioning patterns and styles.
My flair for design and line was to stand me in good stead, and a good eye for matching was important. Things were going well. A feel for quality and price was absorbed. World War ll came along and I volunteered for military service in the Air Force. Expecting to be called up immediately I left my prospective partnership to wind up my affairs. I was then notified that it would take several months to absorb me due to the large influx. Instead of waiting I took what I thought would be a temporary job with B. Altman Co. as a salesperson in the men's department which exposed me to all sorts of people directly.
I achieved high sales records and was asked to stay on. My introduction to salesmanship with all its myriad facets interested me, from simple one-on-one, to marketing and personnel. I handled customers adroitly and this involved communication skills of various sorts. It was proposed that if I stayed on I would be working with the department head and from there who knows what would have developed. This lasted about five months in which time I developed a knowledge in salesmanship and was motivated to produce. I found that people trusted me and working with that basis my customer's confidence was well placed. I was honest, never pushed merchandise, saw their leanings and helped them make decisions. In this selling situation the customers came to the store and since most were serious I encouraged them in subtle ways. The human factor was involved in every situation. I found I could make people trust their own judgment and be happy with the decision.
Obviously in a manufacturing business in which I was engaged the entire scope was very complicated. I founded Jewel Arts Inc. in 1947. This necessitated my creating a new line of jewelry. All my acquired knowledge and skills were put to use in the building of my business. In addition to handling the many areas of my company such as administration, supervision, selling, marketing, personnel, systems incorporating filing, material flow. coordination, ordering, billing and so forth I ran the shop. I dealt with union problems, I set up exhibits, prepared advertising, photographed, did line drawings, designed, made the master models and in general you could call me chief cook and bottle washer. Though I employed people in these areas I found it important to be on top of everything and I ran a tight ship.
Initially I attended a veteran's program at the Museum of Modern Art in jewelry making. I was asked to submit some of my pieces for inclusion in a book being prepared for publication. Soon after I obtained employment in a special order shop making precious jewelry from idea and sketch to a finished product. After one and a half years I went into business. I was always good with my hands and since childhood I made models and all sorts of objects from assorted materials. Since jewelry is an applied art I felt that the possibilities favored me. I could work in three dimensions and so I decided to spend a great deal of time in this area. Between the arts, sculpture, a sojourn in a dental laboratory using almost the same techniques and industrial design the chances of success were good.
Starting out with a very limited capital base I could not embark on long range planning. It was important to establish immediate cash flow. In order to accomplish this I had to fall into rather narrow goals. I knew that in order to get a foothold in this conservative profession I had to fill a need. My targets were in the New York area and I catered to the wholesaler. They were tired of seeing the same old jewelry year in and year out. My contribution would have to be sprinkled with innovative designs. Hopefully these experienced firms would indulge my ideas and sample a few numbers for distribution to the stores throughout the country. Traveling was impossible with the limited resources at my disposal. A few pieces were placed and slowly began to catch on. As orders came in for some of the new designs, clients relaxed some of their conservative ways and looked forward to seeing new things. Truthfully, not being too aware of the recent past of the jewelry business because I was in the military service for over three years, it may have been an advantage. I was not jaded and nearly all the pieces had a peculiar freshness. I was in a terribly competitive field.
I solicited clients, made sales presentations and received feedback on customers desires. I was able to act quickly and translate ideas into finished products. My unique designs began to be accepted widely and at the present time some of these rings are considered "bread and butter" numbers. I could sketch in front of the customer and show a three dimensional drawing and this was a big advantage. Salesmen generally do not have this skill to consult on a one-to-one basis and translate customers ideas and concepts into a finished piece. Working within a framework of cost to the customer I had to calculate pretty accurately how to accomplish my profit making. If the piece were to be a production run the costs involved in manufacturing were broken down, and analyzed. If the item in question could not meet the fair profit I was entitled to, the customer was made aware and we found a way to work out an equitable solution. I seldom lost an order since my costs were low in relation to my competitors. As time went by and my firm grew the costs also increased and I began to find myself falling into the same trap as the competition. Profit margins were reduced and like other firms I found it necessary to institute a minimum order policy. In spite of this, it was the line that made repeat customers. If they made money so did I. If it was absolutely necessary I raised prices, and if there was great resistance and no meaningful sales the item was dropped as being to costly.
If the customer relied on the item I made adjustments in order not to lose him as a client. This policy was fair and helped. My strategy was changing as I hired salesmen. Goals were to now sell throughout the country if possible. Now I was involved in a gamble because my costs increased and selling became a substantial mission. Pricing decisions and break-even analysis became part of my vocabulary. I had to increase sales and reduce production costs. I tried to make accurate estimates as much as possible and base my profit on it. For the short term I had no other way to do this since it was a new situation for me.
After one season I could gauge where the sales could be made and what territories to avoid. In addition it was discovered that certain parts of the country would order very conservatively and other parts would be fashion conscious. Unprofitable merchandise (samples) would be removed from the line. At first I maintained inventory in order to deliver rapidly but this became a burdensome problem. As time went by I only stocked running numbers. From record keeping I determined product movement and salesmen provided information on such vital topics as competitors' activities. I tried to get maximum results from all this and constantly upgraded the line, weeding out dead numbers and replacing them with new ones, In time it was expected that I would always have something new to show. This was great because it provided entrée.
It was found that the salesmen when on a draw against commission performed better and had more incentive in opening up new territories. Many new accounts were opened and this missionary work increased the volume of business.
As the volume of business increased it became urgent to approach the banks for a line of credit. Credit was extended at the prevailing interest rates. Since so much money was always tied up in accounts receivable it was important to keep a constant watch to avoid late payments and bad debts. The jewelry business was notorious for taking notes and the stronger firms could extend credit far in excess of safety. This seems to have been prevalent, but very dangerous. I avoided this like the plague but had been trapped occasionally. There was always pressure for working capital. As much as was feasible credit was tightened and when gold was freed the price started its rise. It became a daily chore to adjust selling prices, as a manufacturer, to the market place. Working with tables and charts we delivered with surcharges and used a base gold price. This was a common practice and instead of carrying inventory we became an order house. More than ever it was most important to be cost conscious and have better control systems. I designed a card system especially for the work related to jewelry manufacturing. Material was carefully dispensed from inventory and with duplicate cards followed the job to the various departments. Time was kept on everything and analyzed. Each job was weighed as it went from process to process. Filings were weighed against the finished job and had to match our records. So, from raw material to finished goods I knew that no losses occurred due to the tight controls. There was no waste and production statistics were kept up to date.
My commitment was for the long term and I was willing to invest my ideas for the long haul. I feel that the reason for the success enjoyed, was due to paying attention to our customers needs. Quality was number one and our reputation spread. I followed the trends but was also an innovator and pioneer. Departing from tradition was difficult or impossible due to the nature of the business. People had fixed ideas and being a pioneer was risky. Nevertheless my customers were eager to see what new samples were created. More or less with them in mind I wrestled with how they make decisions, will it sell, what does the customer want, what is moving today? Divorcing oneself from convention would be ideal but there is an interdependence that gave us boundaries with all the gross limitations. It was important to identify the customers needs. There was always personal communication, Not being a large company had its advantages. All functions could be supervised, problems easily rectified quickly, points of view discussed and generally a good rapport all around.
What I considered significant was a good environment. The physical plant and it's surroundings played a large part in favorable reactions from personnel. It was a good place to work and this atmosphere contributed to productivity. Before the shop became unionized I had done things that were not normally expected in the industry. I insisted that there be regular breaks and free refreshments and thus loyalty was enhanced. My philosophy was to treat everyone as I would like to be treated. Simply stated it was the golden rule, and it worked.
As time went by I was in a stronger position with working capital. Nevertheless as business increased and prices of services and goods went up I had to turn to the banks more than ever. My credit rating was very good and there was no difficulty in obtaining larger loans. Accounts receivable payables and inventories climbed. Liabilities were always under control and we tried to decrease the time lag between delivery and collections. Customers that did not meet obligations on time were noted and when possible weeded out. There was adequate capital to meet our own obligations and to take advantage of opportunities, and therefore my cash position gave me liquidity.
Advertising was done on a limited scale. Institutional ads were of little value to the firm. Getting the most value from the sales dollar was on a direct sales call. The best method for being noted was to stuff the statement envelope with new designs that the clients looked forward to. Catalogs were printed for distribution, fliers of special items sent to new and old customers. At first I had done all the photography and drawings for the ads, but it became necessary to delegate this to a hired agency, including the layouts. There were more and more details to be delegated and I found myself reviewing, checking and making decisions. In managing my business I relied on trustworthy people and basic techniques. The peculiarities of the jewelry business are unique unto itself and I am grateful that I was endowed with some of the talents that made my business successful.
