Diversifying and staying lean and nimble keep Shaftel Diamonds shining,
even in a pandemic.

When Shaftel Diamonds opened its doors way back in 1978, it was a family-owned and -operated business. And it still is today. Founded by Keith Shaftel, the business originally catered to wholesale clients. Over time, Shaftel Diamonds started picking up a few private clients, expanding their business model, and growing their customer base organically through word-of-mouth advertising until finally, in 2001, the business opened a custom jewelry retail showroom on Richmond Avenue.

It’s the kind of scenario most small business owners dream of: starting a business, growing it over time, and developing a superior reputation for quality and integrity along the way. In 2005, Keith’s son, Danny, was ready to join the family business, and the pair operated efficiently with just one additional employee.

So, by the time the Great Recession hit in 2008, Shaftel Diamonds already knew how to operate nimbly and adjust as the economy and times demanded. As the recession brought with it devastating unemployment across the country as well as the greater Houston area, the Shaftels saw a new retail demand: Without an income, people were looking to sell their diamonds, jewelry, and watches for much-needed cash.

To meet the need, the Shaftels promptly established a new, separate business division, DiamondBuyers.com. It put money in the hands of those who needed it to make ends meet and gave the Shaftels a new business division that would keep them working and profitable even in an economic downturn when jewelry buying typically slows.

As times improved, Shaftel Diamonds’ sales sides of the business gradually shifted back into full focus and the online jewelry buying business continued. Times were good. Business was booming. Shaftel Diamonds was even featured nationally on ABC’s February broadcast of the Academy Awards as celebrities walked the red carpet wearing Shaftel Diamonds’ custom creations. It’s the kind of advertising a small business simply can’t buy. The small family business even signed a lease for a new location in the heart of Tanglewood on San Felipe and Chimney Rock, with plans to open later this year.

But it was the kind of booming economic times that simply could not last in the face of a pandemic.

Suddenly, the lean staff of seven found themselves with no business coming in – at all.  “Business took a huge hit,” recalls Danny, who is now Shaftel Diamonds’ general manager. “It completely stopped for a good two weeks. We forwarded all calls to our cell phones, but when a call would come in, it would be spam or robo calls.”

Danny and Keith thought the business was going to have to make drastic cuts after 42 years. But as they worried about the future of the business, they decided from the beginning to keep everyone on staff as long as possible, even though they didn’t know what kind of help would come their way.

“Our staff is like family. They’ve been with us for 15 years and more. We just couldn’t break ties,” says Danny.

That means the Shaftels were grateful to have the opportunity to apply and be approved for a Paycheck Protection Program loan, which is helping the business cover its expenses for two months. They don’t expect the loan funds will be enough but are convinced they will find a way to retain their staff.

“Our staff comes in one at a time to do whatever they can, whether that be driving to jewelry designers’ houses, setting up temporary desks, following up on orders, sending messages, and contributing as much as they can,” Danny explains.

And eventually calls started coming in. Individuals out of work are in need of funds and looking to sell and turn their unwanted jewelry into cash at Shaftel’s DiamondBuyers.com, which was recently featured in the Houston Chronicle. On the other side, there were those who used the time of quarantine to convince themselves they were ready for marriage and started proposing – and buying engagement rings. Shaftel even started a hashtag for it: #quarantinelove.

“For us, lockdown trends have gone two ways. First, people are stuck together at home and relationships start to fail, so there are break-ups and resulting jewelry sales. Or, second, people start realizing relationships are working and want to take the next step,” says Danny.

Over the weeks, business has slowly drifted back to a new normal, and Shaftel Diamonds is again adjusting to stay afloat. The buying division is helping to offset the sales slowdown, and Danny is forging ahead strategically – staying lean, undertaking no unnecessary expenses, and adapting to sell virtually. Danny brought home a camera and inventory to take and edit photos, with his 17-year-old daughter and wife serving as hand models. He then puts the photos on Instagram and high-end online sales platforms like 1stDibs and is making more online sales than ever before.

To further adjust to the current environment, Shaftel Diamonds launched a “Virtual Jewelry Concierge” service, which they plan to continue beyond the pandemic. “Customers can work with our staff remotely and, once they have narrowed down their final selection, they can come in to see the items in person and finalize the purchase,” Danny explains.

What you can do now:

As he looks to the future, Danny is cautiously optimistic. He knows that for Shaftel Diamonds, their business is very personal, and that is a good thing. “We know our customers, hug them, have their personal phone numbers,” he says, pointing out the difference between them and big retailers. “I think a lot of people will want to support local and the faces they know.”

Danny hopes that as businesses continue to open and evolve to meet their customers’ needs, that

people throughout Houston use this time to support local businesses. “Patron the buying side of the business if you need to sell your jewelry and patron our retail side by buying when you can,” he urges. Shaftel Diamonds’ showroom is open again and, in the interest of safety, they are keeping limited hours and are encouraging customers to call in advance. As they participate more and more on social media, Danny also encourages Shaftel Diamonds fans to engage with them online by sharing posts and connecting with the staff.

However people choose to support Shaftel Diamonds, Danny wants them to know that support is appreciated. And he really means it. In fact, Danny has been sending a thank you note to every single customer these days. “When the phone started ringing again, we were just so thankful for whoever came in, even if it’s just a $40 repair,” Danny explains.

It’s those simple, even small ways, that Houston can rally around its small businesses and keep them going step by step.