The difference in Helzberg Diamonds
Rachel Moten, posted Dec. 5, 2006
On Nov. 2, a group of Masters of Business Administration students along with other MU College of Business students got the opportunity to have an informal discussion and interact with Barnett Helzberg Jr. at the Tom and Betty Scott CEO Forum. This forum allows faculty, students, and the local business community to hear a prominent executive speak about the business world. Barnett discussed important trends and substantive issues in the business world.
“I got a better understanding of the roots of the company I now work for,” said Carlanda McKinney, a Helzberg Diamonds management training intern. “He used a lot of quotes that I found very useful, to use as life slogans.”
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Barnett Helzberg Jr. signs his book, What I Learned From Warren Buffett, that he gave to students. He was on the MU campus Nov. 2 to speak at the Tom and Betty Scott CEO Forum.
— Photo by Rachel Moten |
“Business is people,” said Morris Helzberg, Barnett Helzberg Jr.’s father. Barnett was born in Kansas City and led his family-owned business, Helzberg Diamonds, to grow from 15 stores to the third largest retailer in the U.S. What distinguishes Helzberg Diamond from other jewelry retailers is Helzberg’s “quality of people,” said Barnett.
Initially, Morris established the first Helzberg jewelry store in 1915. His son worked along the side of his father in the shop on Saturdays. When Morris became ill, his son found himself responsible for operating the entire business at the age of 12. Barnett never dreamed of being president of a company. “At 12, [he] thought he wanted to be an advertiser,” Barnett said. “Stars were lined up pretty tight because my mother’s father was a jewel retailer.”
Entering the market that already had existing jewelry retailers was not simple for Barnett. He was told there was no need for the type of jewelry retailer he wanted to have. If he wanted to enter the market, he figured “it would have to be a strange commodity” that his business would have to sell.
Once Barnett’s brother, Gilbert, returned from the war to help out with the business, Barnett was an enthusiastic businessman. The feeling of managing his own family’s business had him “very, very excited,” Barnett said.
By 1928, Barnett took his biggest step and moved the store to 11 and Walnut in Kansas City, Mo., and the business became infamous as a prominent jeweler in the Midwest.
Barnett always came up with creative ways to set his jewelry retail from others. One of his ideas was selling Certified Perfect Diamonds, which the jewelry industry had to label as perfect under 10 power magnification. This successful idea became the cornerstone of Helzberg’s merchandising program for years.
Barnett is a “rare individual who is a successful entrepreneur, generous philanthropist, and dedicated educator,” said Dean of MU College of Business, Dr. Bruce Walker.
After being in the business for some time, Barnett decided to invent another idea. According to Heidi Bornhuse, media contact for Tristan Publishing, it was during his wedding plans in 1967 that Barnett sketched a simple drawing for his engagement that he came up with the idea of creating the ‘I Am Loved’ button. This button showed how he felt once his wife said yes she would marry him. Barnett’s mission for this project was to spread the message of love, and it has because today the buttons are still selling. There have been 44 million buttons sold.
The next step Barnett took in advancing Helzberg Diamond’s expansion was launching the concept of having the Helzberg value tag. This pink tag became known as the cornerstone for their marketing strategy. In the Helzberg Diamond’s website history, Barnett stayed ahead of its competitors because they increase purchases in the international markets, offering the wide selections of unique jewelry at the most competitive prices. Helzberg Diamonds also commit to offering the best customer service in retailing. “What you do impacts the customer,” Barnett said. “Service is everything because service is the economy.”
“I was also struck and impressed by his belief that if a company treats its employees as No.1, then the customer will be served well,” Walker said.
Once Barnett began to look at retirement after about 30 years in the business, he began to search for someone to ensure his family’s three generation business would continue to enjoy financial stability. Coincidentally, Barnett bumped into Warren Buffett on the streets of New York. At the time, Buffett was chairman of Berkshire Hathaway Inc., which gave Barnett the perfect solution. He sold the company in 1995, to Berkshire Hathaway because he knew the company would grow without sacrificing the legacy of the Helzberg Diamonds traditions.
When he retired, Barnett decided to share with students in various settings what it means to have a successful business. Some of the other jobs he is doing or has done are: adjunct professor at Rockhurst University and taught at the University Academy that he co-founded for youths in urban Kansas City.
Barnett has also authored two books, including What I Learned from Warren Buffett. “He gave our students copies of [this] book,” Walker said. “They will definitely learn some important practical lessons from it.”
Barnett also founded the Helzberg Entrepreneurial Mentoring Program. He is very passionate about educating kindergarten through 12th grade. “I love mentoring,” Barnett said.
“He is using some of the funds he received when he sold Helzberg Diamonds for the benefit of society, most notably in support of both kindergarten through 12th grade and higher education,” Walker said.
I benefited by just being able to hear the insights of an apparently successful entrepreneur,” McKinney said. “The best teacher next to experience is listening to someone with experience, and that’s what happened at this presentation.”
