For 130 years B.A. Ballou has found success in the fine jewelry market by listening year after year to the same source for direction. Their ‘consultants’ are their customers.
“It’s the customer who tells us what is most important. They will tell us where to be in regards to quality and where to be with cost,” said Frank DiPietro, marketing manager at the East Providence company.
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The company, founded by Barton A. Ballou in 1868, is known internationally for its fine jewelry and the jewelry parts they sell to other manufacturers. The company, which employs 300 people, uses sterling silver to platinum and gold for a variety of products, including earrings, bracelets and pendants.
Ballou has managed to be successful in a troubled climate for the jewelry industry, mostly because they deal in fine jewelry, which has been stronger than fashion jewelry. DiPietro, who was with Balfour in Attleboro for 13 years, said another key has been the reputation Ballou carries in the industry.
“I think the leadership of the Ballou family has a lot to do with it. They are now in their fifth generation with the company. They stand by their products,” he said.
Barton Ballou started the company in downtown Providence near the existing Textron headquarters. The company was located there for 100 years before moving to its 110,000-square-foot location at Waterman Avenue in East Providence.
“As far back as Barton Ballou the company made jewelry as heirlooms. We realized the importance of durability,” said Curtis Ley, president and CEO of Ballou.
Ley came to Ballou after working for Tiffany & Co. of New York. However, Ley spent most of his career with Rhode Island jewelry companies, including Howard Sweet where he worked for 17 years.
“We have been one of the best in the industry because we have treated customers the way they should be treated. We have superior quality. This is not a lightweight jewelry house,” he said.
Ley said it has also been important understanding the company’s market. Ballou sells its finish fine jewelry only to independent domestic jewelers, which have specific needs. Ley said in the coming years the company will stay within the independent market, but will look abroad as well.
“We export very little fine jewelry right now, but that will have to change. There is no question that the world is getting smaller and smaller so we have to look globally. We have a lot of market share to gain in that direction,” said Ley.
The findings (or jewelry components) the business makes rely both on domestic and international sales, but he said that area also has room for growth.
The company does have a small operation in Ireland, which gives it a presence in Europe that helps it to deal with issues like the common currency.
Aside from testing new markets, Ballou has invested in technology to help keep up quality with an eye on cost.
“We’re just like the printing industry, which is going through a revolution,” DiPietro said. “There is a need for bigger, faster equipment. Yet while it is important to be leading edge it is also important not to be bleeding edge.”
He said the more technical the machinery, the higher the salaries you have to pay skilled workers. He said it is a balancing act that most companies in Rhode Island are working on.
DiPietro said unfair practices overseas and incentives offered by other states have put jewelry manufacturers here in a tough position, but the bottom line often comes down to why Providence is known for its jewelry industry: the workers.
“My old company (Balfour) moved to Texas, because of higher costs in Rhode Island. But, they ran into problems with quality,” he explained. “The Route 195 corridor here is the preeminent part of the country for this work. Yes, there are higher costs, but we definitely have craftsmanship.”
Ley added, “We could not move this company to Dubuque, Iowa. The skill base here is a huge advantage. Just having the reputation in the industry that Rhode Island has for jewelry is an advantage that we have enjoyed.”