Subscribe
Share
Share
Embed
NWA Founders is a voice for Founders, Owners, and Builders driving growth in Northwest Arkansas, and is hosted by Cameron Clark and Nick Beyer.
'NWA Founders' is a voice for Founders, Owners, and Builders driving growth in Northwest Arkansas, hosted by Cameron Clark and Nick Beyer.
To recommend a guest or ask questions, reach out at nwafounders@gmail.com and follow us on YouTube and LinkedIn for video content.
[00:00:00] Troy Underwood: Most jewelry stores are purchasing, finished jewelry and marking it up. And really being a merchant at the end of the day for us, we take a more old world approach. We are flying directly to the diamond cutter. Being able to handpick, you know, great quality and great value, bring those back to our shop, create pieces of around those or have 'em loose for our clients to come in and handpick.
[00:00:33] Cameron Clark: Well, thanks for having us outta your space.
[00:00:35] Troy Underwood: Absolutely.
[00:00:35] Cameron Clark: Sitting here in the new edition, as of a year ago, right? Yeah, A year ago in the Underwood building. Mm-hmm. Yeah. Um, Faye Jones building. Yes. Correct. Yeah. Um, a lot of history. Yeah, A lot of history. If you're not, if you're not aware of, of who he is, just an Arkansas legend.
Mm-hmm. Um, but, uh. So talk, give us, before we dive in, give us the synap synopsis. Kinda like you were just saying. Mm-hmm. What [00:01:00] is a, what's the difference between a manufacturer
[00:01:02] Troy Underwood: mm-hmm.
[00:01:02] Cameron Clark: Um, a manufacturer of diamonds that's like going straight to the consumer. Mm-hmm. You were describing the underwoods as
[00:01:10] Troy Underwood: mm-hmm.
[00:01:10] Cameron Clark: Compared to just, you know, selling, selling a product. Mm-hmm. That's, that's already out there in the market. Like why, why choose one or the other and then what is Underwoods?
[00:01:19] Troy Underwood: Yeah. Yeah. I'd say, you know, again, going back to it, most jewelry stores are, are going to market, purchasing, finished jewelry, bringing their back to their shop and, and marking it up and, and really being immersion at the end of the day 'cause they're carrying designer brands and things of that nature.
For us, we take a more old world approach where we're doing the design and the manufacturing. And all on site. And we're traveling the world and we're acquiring gemstones, purchasing gemstones directly from the source. We're And you
[00:01:54] Cameron Clark: traveling, your dad's traveling your whole, whole, whole team. What's the both of us mom?
Yeah,
[00:01:58] Troy Underwood: both of us. Sometimes we'll travel [00:02:00] together. Um, my dad and I will travel to Tucson every February, and that's where the largest loose gemstone show is in the world. Mm-hmm. So that's where Gemstone Cutters will travel, will travel to Tucson. So you'll have, um, cutters from Columbia bringing the finest emeralds.
Mm-hmm. And they'll bring those there. And we're able to go through using our expertise and our credentials that we have and being able to handpick, you know, great quality at great value. Yeah. And be able to bring those back to our shop, be able to create pieces of around those, uh, gemstones or have 'em loose for our clients to come in and handpick.
Hmm. And that's just one, um. One trip that I've made a few times, um, is to Mumbai, India. And so that's where over 90% of the world's diamonds are Cut. Really? Mm, mm-hmm. Okay. Yeah. Wow. So when you think of the, the journey a national diamond takes, it's really incredible. You know, it was formed almost a [00:03:00] billion years ago, hundreds of miles deep within the earth.
Mm-hmm. And it shot out through very violent volcanoes. It's not the volcanoes you think of, like in Hawaii or other places on on earth, but it's, it's like ejected from hundred miles down deep into the earth onto the surface. And those mines are Australia, southern parts of Africa, Canada. And so once these diamonds come out of the earth and they're mined, mm, nine out of every 10 of those rough diamonds are sent to India.
To be finished, polished and cut. So like, oh wow. The diamonds you think of in ju in jewelry, that's how it's being shaped and finished and moved by. Typically, the path from there, once it's cut, it's sent to, it's sent through multiple middlemen, so it's passes through a hand to get to New York. May be, may go through a few hands in New York to LA, Chicago and [00:04:00] then eventually we'll find its way to a retailer where typically they won't even own it.
They'll just have it and hold it on memo. Um, and. A lot of people do that because it's, you're taking a risk by it, by per sure. And, and tying up some of your, your cash flow and assets into that. Mm-hmm. Um, and, and knowing what's going to sell. Mm-hmm. But that's, that's common is Yeah. Some a, a retailer bringing in a diamond, not owning it and showing it to a customer.
Mm-hmm. What we're doing is we're bypassing all of those middlemen. Mm. And we are flying directly to Mumbai, India, where we're dealing directly with the diamond cutter. So there's a huge advantage to that. Mm. There's, there's obviously a risk. Yeah. But there's an advantage to that where, you know, we're able to get a much better value.
Oh yeah. Yeah. Because each hand, it passes through, it gets spark. Everybody's making money when it, when it finds its way back to the customer. So we're bypassing that, and by doing that too, we get to hand pick. The diamonds before it reaches the [00:05:00] masses in the market.
[00:05:01] Cameron Clark: And how do you get good at that? How do, like, how do you know?
Okay. O obviously, you know, the, the, the big three cut clarity and, uh,
[00:05:07] Troy Underwood: yeah. Cut color, clarity cut carrot weight. Yep. Carrot weight. Okay.
[00:05:11] Cameron Clark: The, how do you, like, how does one just, is it muscle you kind of exercise that you understand after you look at thousands of them? Yeah,
[00:05:20] Troy Underwood: yeah, to a sense, to a degree. Um, there's definitely practice involved something that, an approach we've taken is having, you know, the highest credentials in the jewelry industry.
Mm-hmm. So like for example, I studied out at, in Carlsbad, California, just north of San Diego at GIA, which is Gemology Institute of of America. Hmm. I got my graduate Gemology certificate. It's about a year long course. Oh wow. And what you're doing is you're learning the ins and outs of diamonds, the quality characteristics, how to grade diamonds, and in addition to that colored gemstones, being able to identify a gemstone from national, just synthetic.
Be able to assign a value on it. So there's credentials [00:06:00] that go into it, and that's a certificate going out to GIA. But we also, um, do continued education through the American Chimp Society, which is another organization through, uh, in the jewelry industry. Okay. And so that's where you have to recertify each year.
So they have different titles. Um, and here right now we have three certified Gemologist Appraisers, which is the highest title in the jewelry industry. And you have to recertify each year. Mm-hmm. And so I'm actually going through the recertification process right now. Okay. All that to say is you use your education, you use your expertise, and you use that knowledge, but also the hands-on experience as well, dealing with diamonds every single day, looking at thousands like you had mentioned, and being able to use that real world experience.
Then now you're looking at the diamonds, you I'll screen diamonds and then I'll go through, while I'm over there, within three days I'll look through over a thousand diamonds, [00:07:00] maybe only purchase 75 to a hundred. Oh wow. Um, and so it's, and we're just, we're grading them and we're making sure that it meets just the top quality and top standards, um, to pass through our, our store and to be, to carry the Underwood name at the end of
[00:07:15] Cameron Clark: the day.
Because like you're saying, everything is branded Underwoods here. It's not. Yes. Yeah. Um. Can no other brands held Right. Held here under what's Yeah, it's,
[00:07:24] Troy Underwood: it's another way We're, we're unique, um mm-hmm. In the sense of what most jewelry stores are. You know, a lot of jewelry stores carry brand names, designer brands, which have been really popular.
That wave is kind of shifting where people are wanting custom, one of a kind pieces, unique heirloom pieces to be created, which were really set up for that, where we're doing manufacturing here in house. Mm. You're exactly right. Everything is under the Underwood name
[00:07:50] Cameron Clark: here at our store. Wow. So tell and was that from your grandfather?
Was that how, like that, how he started the business? That was like the beginning. His instinct to [00:08:00] do that is compared to. Just, you know, selling different products.
[00:08:04] Troy Underwood: Yeah. And I think it was through trial and error as well. You know, when, when he first started it was really anything that he could sell and carry in his, in his cases, you know.
What year was that? When was that? That was back in 1957. Okay. And so that's when the business was founded. And so we're coming up on 70 years. Wow. And during that time, the, the store was actually just one building over. Okay. And it's just a small little space. I mean a couple hundred square feet. And at the time, I mean we were, our business name was Underwood's College Jewelers.
Our customers was like Greek life. Yeah. Coming out, I had college students getting married. Come outta college. Yes, yes. Hey, buy
[00:08:41] Cameron Clark: your, buy your engagement ring here. So it
[00:08:43] Troy Underwood: wasn't these insane, expensive pieces, you know, over the top lavish things that you may think of when you think of high end jewelry. It was like gold plated sterling silver.
Uh, KKG bracelets. Yeah. You know, like, and, and anything that we could [00:09:00] kind of fill the case. At that time, he had like stuffed animals in the cases and like giftware Wow. And things like that. And, and like Crystal. Yeah. Just to fill the cases. And at that time he was, he was living in the shop. He was, had a Oh wow.
He was living, you know, in the back. Yeah. Had, that's kind of where he had his bed set up. And he was taking classes at, uh, the Walton Business School at that time. And so he would, like, he was this, he was the only employee and so he would, you know, open up for business. He may have a class at one clo, you know.
Mm-hmm. Put out the sign, we'll be back later, we'll go to class and then come back, reopen and, and do that. And just over the years, it was one of those things where you just. The money he made, he invested back into the business. Yeah, absolutely. And you know, as, as you know, time went on. Absolutely. There were certain brands that we carried.
'cause those are things that were popular at that time. I think as, as the business grew and things that he [00:10:00] learned was, you know, if I'm, if I'm promoting somebody else's name, how much control do I actually have? At the end of the day, some designers can be con very controlling and demanding on how much floor space they deserve, how much you have to buy to even carry the line.
So. Let's just use whatever designer. You can't just say, Hey, I want to carry your line. They say, okay, you can carry my line if you spend a hundred thousand dollars. Yeah. And that's the entry. And so now you, they may have 10,000 of that being, you know, uh, fast sellers and they're, and their top sellers, well, 90,000 is, are products that aren't gonna move.
Yeah. Mm-hmm. And so there's, there's pros and cons to it. You know, people associate that name or may recognize that name, that brand name, but goes, goes back to kind of controlling your own path and controlling the brand as well. Yeah. Um, there was, uh, there was a time where there was [00:11:00] a brand that we carry.
This was decades ago where that brand started to get a tarnished name and, but we're carrying it. And so now you're having this brand have a negative impact on, on yourself. And so. We found just over the years trial and error, that when it's our name, we can control it fully. Um, the same thing with the manufacturing, where we're not outsourcing anything.
Everything that we do here, we're able to put under a microscope and just monitor and, and maximize the quality control
[00:11:32] Nick Beyer: throughout the entire process. Yeah. When you travel around to different places, do you try to pop in other jewelry stores and or how many jewelry stores have you been to or do you know of that are comparable?
[00:11:47] Troy Underwood: Mm-hmm. Just
[00:11:47] Nick Beyer: custom? Yeah. You know, I think most of the ones I think of are not that way, and so I'm just trying to get an idea.
[00:11:54] Troy Underwood: Yeah. It's few and far between. Okay. Uh, for jewelry stores that have a, a setup like we do, [00:12:00] um, where it's completely a white label. Okay. Uh, it's very rare because it's not easy to do.
Yeah. Um, you're taking a huge risk by doing that and it's in a sense it. Easier. Easier. It is just easier to carry somebody else's name. Yeah. That's already done. The national brand branding, brand recognition, brand awareness, that type of marketing. Um, there's co-op as well, so you can get a break when it comes to advertising.
There's also, say you purchase some jewelry and it doesn't sell, you can do a trade-in and say, this isn't this, you can, you can kind of do a two to one trade-in or a swap where you're able to get new jewelry. Mm-hmm. So in a sense, it, it's less risky. Yeah. It's, it can be easier to do. Um, although the path that we've chosen may be more risky, and there's times where we may create a piece of jewelry and it, and it doesn't move and we've, [00:13:00] you know, we've invested the time, energy, and labor into manufacturing this piece, whether it's a beautiful gemstone in the center or not, but it doesn't move.
Maybe we have to take that out and maybe tear it apart and create something new. And so you, you, you lose that. You don't have that trade in. Mm-hmm. And so it, it, it is a more difficult path to take. Um, but we found it to be more rewarding as well.
[00:13:24] Nick Beyer: Yeah. That's good. Well, you talked a little bit about the inception.
Talk a little bit about, is it Bill your, your grandpa?
[00:13:29] Troy Underwood: Yeah. Bill.
[00:13:30] Nick Beyer: Okay. Talk about Bill. Talk about some of the values that have been instilled mm-hmm. Into you, into the business. Yeah. Some of the things that you, you know, when you think about Underwood's, like we do this because Yeah. Of Bill. Absolutely.
[00:13:44] Troy Underwood: Well, he has an amazing story. I mean, he grew up in Mountain View, Oklahoma, dust Bowl, Oklahoma, uh, back in the Great Depression. And you know, he always said, you know, they didn't have two pennies to rub together. You know, it was, it was one of those [00:14:00] times. And so went to high school, you know, grew up there.
And so he was looking for, you know, a path to take. And they had a trade school in that area for horology. And so that's the study of time and in a sense that's watchmaking. Yeah, so it's watch manufacturing becoming a watch technician. So he went to that trade school, really loved it. He wanted to kind of further his business acumen and so he didn't have the money to go to college, so he decided to join the Navy for the gi, the bi, the benefits of the GI Bill.
Yeah. So he joined the Navy. And at one point in time he was in the Mediterranean on a warship, and he was the watch technician on that warship. So he was the, he was the main guy keeping up with the time. That was back in the day where nothing was digital. Yeah. No one has phones. No,
[00:14:53] Cameron Clark: Hey, we need our watches to work.
[00:14:55] Troy Underwood: Yeah. Which is so important you think if you're coordinating Yeah. Whatever. Tax rendezvous, [00:15:00] whatever. Yeah. I mean, you gotta be to the millisecond. Right. And so he was that guy, so he did that. It was wild. Uh, just kind of a wild time. And then comes back and then he goes to the University of Arkansas while he's opening, opens up the shop back in 1957.
And so he's taking classes while running the shop. That's where his, you know, how lodging was, was in, in the, in the back of the shop. So doing that and just investing. Basically everything he had back into the business, a few years goes by and he starts outgrow that small 200 square foot, uh, you know, showroom.
And at the time he was friends with Faye Jones, you know, well, well-known architect in Arkansas. Um, starts having lunch with, with Fay. He's like, Faye, I'm, I'm thinking about designing a building. And uh, he's like, I know you need an office space. He said, here, what if we did this? What if you designed the building [00:16:00] for me?
Mm-hmm. And I carved you out space upstairs and give you reduced rent upstairs. And so Fay was like, awesome, let's do it. So that was gonna be Faye's, like first office. And so they come up with this partnership design, this building, this building is about 10,000 square feet. And so Faye had, uh, office space upstairs.
There was, at the time, there was a, um, therapist office, I think where we're sitting, was actually a therapist's office back early, early on, and it was a lawyer's office. Um, and there was a dentist's office here. And then below us was a men's clothing store. They had a lot, a lot of renters here. Yeah. Yeah.
And then over time we started outgrowing just our space. We only had a quarter of, of the store, only about 2,500 square feet. Mm-hmm. And then, so we took over the men's clothing store, and so we were able to combine the whole bottom floor. We then ended up taking over the dentist office. Um, that's [00:17:00] upstairs.
And so that's where now our shop is, that's where our three master, uh, bench jewelers are, and that's where we're manufacturing our jewelry. Mm-hmm. Um, and then just recently, the log that was here, that had this, you know, this office space up here. He was retiring and we were potentially looking for another renter.
Um, but we were like, we could really use this space. Um, so just last year we expanded into this space, uh, that we're using for, we've called it the Atelier by Ander Woods, and at is a French word for artist workshop. And this is an area where clients can come up more private showroom, intimate showroom where we can bring, you know, jewelry, um, out for them and where they can work a one-on-one with a designer.
Just yesterday we had a client that they're looking for an engagement ring. And so we had three diamonds, uh, that we had for them that were all within their parameters. And then we also had designs for 'em. [00:18:00] But in addition to that, we had wax bolt. So we have a 3D printer where we're able to print. A two scale, 3D wax mold of the ring, um, with all the design aspects on it.
So she could have the three diamonds with the different designs where she could literally put it on her finger, put the diamond in the mounting, and be able to see what it will look like exactly the scale. Wow. Um, all in this kind of environment. And so, um, we, it's, it's been a really great addition that we've had
[00:18:34] Cameron Clark: here and talk about.
So the, the range of that, I mean, can, can, you know, can someone come in here and with a thousand dollars and so something like that. I imagine you can spend a hundred grand or, or I don't, I imagine the rain for that is, is huge. Yeah. Like, um, and I'm sure you kind of see things across, across the board. Yeah.
On like it's because it's such a. Like a red carpet
[00:18:55] Troy Underwood: experience. Yeah. Like absolutely. And, and really no matter the [00:19:00] budget, we're gonna quote unquote roll out the red carpet for our clients. I mean, that's, we're so fortunate to be in, in the celebration business. We really are. We get to deal with customers at the happiest times of their lives, which is just so rewarding.
Mm-hmm. It's, we, I have to pinch myself sometimes 'cause it's just, we're so lucky that we're dealing with people at those times in their lives. Going back to the price point, I mean, we have, we have items starting from $50 on, on up. Going back to what you had mentioned, some of the values, uh, that my grandfather had is, you know, no matter the price point, we're going to carry the highest quality of that item.
And so it could be, it could be a sterling silver pendant that might have a value of $50, $75, but it's going to be the highest quality sterling silver pendant at that price point. And something that he always said was he would never carry anything in Underwoods that he wouldn't give his wife Leanne.
And so that's something that we kind of stick with as well. It's like, is [00:20:00] this, are we providing something to our clients that we would feel, you know, very comfortable, not only comfortable, but would love to surprise our significant others with, uh, as a gift. And, and so that's something kind of a guiding light that we've, that we've held near and dear to us.
[00:20:17] Nick Beyer: Yeah. That's cool.
[00:20:19] Troy Underwood: Yeah.
[00:20:19] Nick Beyer: So talk about kind of the transition between Bill and then your dad. Mm-hmm. Greg, talk about when that started to happen. Yeah. His interest in the business and just kind of like how that progressed over time.
[00:20:32] Troy Underwood: Yeah, absolutely. So. He came into the business, it would've been mid eighties, uh, mid to late eighties is when he came into the business.
And so, you know, he's going on almost, almost 40 years. Hmm. Uh, he's been part of the, part of the business and industry. And, um, I think it was one of those things, one of the beautiful things about the way my grandfather kind of started it is just there was [00:21:00] no pressure to go into the family business. It was not a requirement, it was no pressure.
It was an open invitation. Love to have you, if you choose to go into the family business. No harm, no foul if you don't go into the family business. Um, my dad, he, he knew he wanted to go into it. He, after he graduated high school, went to Baylor University, um, studied entrepreneurship there, and then he came, well actually he didn't come back right away, kind of another.
Um, thing that my grandfather set up was, okay, you can come back. We'd love to have you, but you gotta do a couple things. First. You gotta go get your gemology education. So he went to GIA as well. Um, at that time it was up in Santa Monica, up in la. Now it's down Carlsbad, close to San Diego. Spent a year out there, did a jewelry design course, did the, the GG course as well.
And then the next thing was to work for another jeweler for two years to do an [00:22:00] apprenticeship, um, to get that outside experience just so beneficial. Um, I think it really gives you an opportunity to learn other operations, learn different systems. Mm-hmm. You know, in the business that we're in, I mean, there's no perfect way to do it.
There's not just one way to be successful. Yep. And so he worked at a, another family owned jewelry store down in Baton Rouge, Louisiana, and great family down there. Very successful business. Mm-hmm. Now they have, I think, 10 stores in four different states. Um, they are one of the, they're a designer, brand focused, which is great to be able to experience that, see the pros and cons of Yeah.
What they do, what we do. Uh, but got that outside experience. Then, then moved up here,
[00:22:42] Cameron Clark: I
[00:22:42] Troy Underwood: think it was
[00:22:43] Cameron Clark: the late eighties is when it was, and you and your grandfather and Bill was, I mean, back to the whole, like getting, uh, the designation. Mm-hmm. Um, uh, he was focused on like, I, I don't know if words accolades, but like mm-hmm.
Hey, education, the mm-hmm. You know, hey, we're gonna, we're gonna [00:23:00] take this extremely Yeah. Seriously, we're gonna, we're gonna know what we're doing. Yeah. Like, that started kind of after he started to see some success Yeah. In the business. I guess. It wasn't no longer just selling anything and everything in the store.
Yeah,
[00:23:12] Troy Underwood: yeah, yeah. We kind of, yeah, we kind of fine tuned what we were carrying. Mm-hmm. And ultimately the way we, we view the education, the credentials, the expertise is. Honestly consumer protection where we know what we are carrying and caring for our clients and selling our clients. And so we know the ins and outs of it.
Um, if you, you can almost get into a dangerous game where if you were to say, okay, I'm gonna open up a jewelry store, don't have any experience in your credentials. A lot of the items we carry are blind items where it's, I mean, you could have a stone that's blue, but what is, is it a sapphire? Is it a piece of glass?
You know, you have to have that expertise and that knowledge and at the end of the day, you're protecting the consumer. Yeah. Um, to do that. And [00:24:00] certain, we're part of the American Gym Society, which is an industry within the, the organization within the jewelry industry focuses on continued education. You have to be peer elected, so other retailers have to actually elect you to be part of it.
Um, and so you have to, you know, uphold certain ethical, moral standards, you know, and you're, and you're advertising, you, you know, you have to advertise a certain way. You can't be misleading. I know there's the, uh, FTC and things like that, but to a certain, you know, to another level. Um, and so we're, we're part of those things.
And you know, I think. That's one of the reasons that he knew, he knew that that needed to be a foundation. Um, a cornerstone of our business is the education is the credentials, but also it, he, it helps us whenever we're, we're in a sense going in blind and we're flying halfway across the world and we're dealing with, it may be a new diamond manufacturer that [00:25:00] we've never dealt with.
We need to know what we're buying. Yeah. We need to, we need to know what we're spending our money on, and we need to know that that's a good buy. It's, it's something that's quality, but it's something that's, uh, at a great value. Mm-hmm. Um, and we're able to take that and bypass middlemen and bring that back to our clients.
How
[00:25:18] Cameron Clark: often do you see someone bring in a, a, a diamond or, or what, whatever that it was a family heirloom. They want to mm-hmm. You know, make, make a new ring out or. Um, something that's like, and they get it under the microscope and it's like, yeah. Oh man, this isn't what, what, uh, I was told that it was.
[00:25:36] Troy Underwood: Unfortunately, it happens. Yeah. It, it really is unfortunate and I see it a couple of different ways. Like, one way I've seen it is the, you, the one I see the most is cruise ships. People I go on cruise ship and they're doing the blind buying. They're like, okay, I got the, I some, somebody on the cruise ship is like, I have this insane piece at an insane price.
If things are too good to be true, they're probably too good to be true. Yeah. And so [00:26:00] they'll buy something and then they'll come to us, be like, this is what I bought. Was it a good deal? Yeah. And first off, we don't want to be the jewelry police, you know, in a sense. Yeah. But it is, it's, it's can be a difficult conversation where it's where, where you have to give them the, the reality of the situation.
Mm-hmm. And then on the flip side, a piece that they may have inherited. Those are always kind of sad because if it, if it does turn out to be something that's not genuine or authentic Hmm. Um, you know, they may come in and and be under the impression that is this magnificent rare gemstone when a, when in reality it may be a synthetic gemstone, um, that's in, you know, um, you know, maybe a gold plated piece of jewelry and mm-hmm.
So it is unfortunate when that happens. Um, I will say this though, we're, it is so awesome when it comes to fine jewelry and jewelry that can be passed down from generation to generation. And you flip do it on the flip side when somebody comes in. With their [00:27:00] great-grandmother's prize engagement ring that's finally been passed down to them and now they're looking at getting engaged and they wanna use that diamond or whatever gemstone it is and maybe create something new and something unique and personalized to them.
Hmm. So that it is a, it is a really cool thing how jewelry can be passed down from generation to generation and carry that sentimental value. Um, it's really fun to work on those projects.
[00:27:26] Cameron Clark: I mean, y'all did it with us then. My mom's engagement ring. I mean, you made that ring and then, and then, uh, and then my wife's, my wife's, uh, ring is, is off that same diamond and, uh, yeah, it's a, it's really, it's really amazing.
[00:27:39] Troy Underwood: It makes
[00:27:40] Cameron Clark: it special. Um,
[00:27:40] Troy Underwood: oh yeah,
[00:27:41] Cameron Clark: yeah, yeah. One day our, our daughter will get it, so. Yeah. Yeah.
[00:27:44] Troy Underwood: It's really cool.
[00:27:45] Nick Beyer: Yeah.
[00:27:45] Troy Underwood: Um,
[00:27:47] Nick Beyer: so. So let's go back to, to Craig coming on. So at that time, were y'all carrying other brands and when mm-hmm. When did that transition go from, Hey, we're, we're not carrying other brands here anymore.
Mm-hmm. To, hey, [00:28:00] we're, we're gonna manufacture all of our own stuff. Mm-hmm. When did that happen?
[00:28:04] Troy Underwood: I would say the last designer brand we carried was probably 15 years ago. Okay. Um, and that's, so we were carrying some, not a whole lot. That was not our, our focus, our bread and butter. It was still carrying the Underwood name with some of those designer brands.
And then about 15 years ago, we, we discontinued all designer brands. We discontinued all of our watches as well. And that's where we really took the focus and invested into in-house custom and at a time. I mean, you look back. 10 to 15 years ago, we decided to do that. It may have not been the best time to do that.
I mean, we, there were certainly times where even in bridal there were certain engage rings or, uh, diamonds that had certain brands attached to it. And at that time people were very brand focused. People [00:29:00] loved brands, people loved designer brands. Again, that has kind of subsided and, and gone more towards what we have specialized in.
Um, but we, I mean we did, I mean, there was times where there was, during that time, you know, where we were probably losing out on some sales because we, we did not carry those designer brands. We felt for the longevity of our business, that was the right move. And that's been another thing that we've, we've had kind of to our core is not.
Not, you know, taking on not sacrificing our integrity and our core fundamentals and our values for short-term profits. Mm-hmm. There's always new fads, always new trends, but if it's not who we are and it's not something that we, and going back to it, it's not something that we see ourselves gifting to our significant other.
Even if it's really popular right now and people are making a lot of money off of it, it's not who we are. We're not, we're not gonna dip our toes into that and we're [00:30:00] gonna stay true to who we are.
[00:30:01] Nick Beyer: Yeah. That's cool. Yeah. So your dad comes on, uh, in the eighties. Mm-hmm. And when does it feel like the business actually really starts growing, really has some legs?
Have you heard, have you heard them talk about kind of those times in those days?
[00:30:17] Troy Underwood: Yeah, a little bit. Um, I would say they continued to see growth. I mean, we, at that time, I mean our store may have been five or six employees. Um, when he, when he joined, and now it's a team of about 15 people. So we've just, it's, we've just continued to grow and it's has been a reflection of choices we've made.
We like to think, but it's also the community and the areas that we're in the areas have, has seen so much growth. Um, and, and so many people that have decided to move here, but also this area is so amazing in the sense of they support [00:31:00] local and, and it's, it's a really incredible area to be in, uh, uh, an area to have roots in while we've seen this growth.
Um, and so it's kind of been part of the community, part of that growth, but also us perfecting our skills as well. That's good.
[00:31:17] Nick Beyer: And I, I mean, the store's been in this, you know, 50 foot, you know, radius or whatever for a long, long time.
[00:31:25] Troy Underwood: Yeah.
[00:31:26] Nick Beyer: I assume at some point there had to have been some conversations about.
Should we build another store? Mm-hmm. And talk a little bit about why y'all have or haven't done that. Mm-hmm. And kind of just the, the reflections on that as part of, you know, your business.
[00:31:41] Troy Underwood: Absolutely. Well, I, I'll talk a little bit just about this area. There was a time where we were thinking about moving.
Okay. Um, and, you know, there was a time, I can't think of the exact years or times span, but Dixon Street was not in a good place. I mean, you had some of our anchors here, you had Colliers, Georges and and us have been, [00:32:00] been here for a long time. Um, but there was a time where Dixon Street was not headed in a good direction.
Um, not a whole lot of growth, not a whole lot of businesses here. I dunno if y'all have seen pictures of like Dixon Street back in the day. That's, it's pretty wild to look at. But really the turning point, from what I understand, the, the biggest turning point for Dixon Street was the Walton Art Center.
And they, at the time. The Waltons were looking at doing an art center somewhere in Fayetteville, and they had proposed like four or five different locations for that. And those four or five did not include Dixon Street. I think my grandfather kind of caught wind of that, and I think he became part of the, you know, part of one of the people that was deciding where that Wal Arts Center was going to be.
So he had to input and, and finally they did decide to put it on Dixon Street. And, and that has really transformed Dixon Street and into [00:33:00] the positives. And, uh, and so we've, we've decided to stay here on Dixon Street. It is a very historic area, and, and we love it. We, we love being on Dixon Street. Going back to your question about expanding, it's one of those things that we're constantly thinking of.
We we're thinking of it all the time, uh, always playing around with that idea. Um, there was a time going back to my dad. They were going to expand into Little Rock, and this was over 20 years ago. And at that time, I mean, they had plans. They had already scoped out an area No, I, no, I take that back. That was, that was longer than that.
That was before I was born. Um, so that would've been over 30 years ago. So th 35 years ago, they had scoped at an area in Little Rock. They were picked out like an area in the mall. 'cause that was, malls were hot back then. Yeah. Yeah. And they had this area chosen, and he was about to make the drive down there.
They had a house picked out and everything like that. And at the last second, [00:34:00] they decided, this isn't the right fit. We're gonna stay here. I gotta say thank goodness. 'cause I'm glad that I grew up here in Fayetteville, to be honest with you. Um, but yeah, I mean, that was a time where we all, I mean, it was almost there, decided not to.
And there's been, there's been some different times in the past that we've, that we've thought about it and it just hasn't been the right time. Uh, but we're always thinking about that.
[00:34:27] Nick Beyer: Yeah. Yeah. Yeah. Yeah. Yeah. That's cool. Um, why don't you talk about, like, so you talk about how your business is, is very different.
Talk about mm-hmm. Like, maybe it's a few stories of these custom pieces mm-hmm. Some interesting, really unique pieces that, I mean, we've got the, you know, we've got the, a co, a couple of the pieces have been on the Emmy Awards.
[00:34:51] Troy Underwood: Mm-hmm.
[00:34:52] Nick Beyer: Just, are there any just big unique things that come to mind when you think through your career here and Yeah.
Some of the big [00:35:00] projects you've worked on?
[00:35:00] Troy Underwood: Yeah, absolutely. And there's been some really cool projects, um, since I've been here. One, a really cool one was one that my, so my dad and I, our first buying trip together, since I had joined the family business full time, we, him and I, we handpicked this insane four karat sapphire.
We ended up coming back. We had it, we designed a piece around incredible rain, kind of a vintage style, beautiful filigree diamond cushion, diamond halo diamonds, down the shank. It was in platinum. It was absolutely stunning. And we submitted that to a design competition last year, uh, to the HETA spectrums.
And it ended up winning, um, first place for, uh, the platinum Honors. And so in the engagement category. So that was a national competition, uh, design competition that we ended up winning last year, uh, which was really cool. And then last year we also won, um, uh, the case [00:36:00] awards as well for, uh, jewelry piece between, I think it was two and 5,000 was the category.
Beautiful amethyst, uh, center stone, and a really cool hand forge, which is like this almost this raw gold, very organic and natural feel to it all crafted here on site. Submitted that. And we won as well last year. So last year was a big year for us in, in terms of, uh, design, um, design awards and recognition and things like that, which those are great.
But I would say the best are creating, you know, one of a kind pieces for our customers that are celebrating huge milestones. I mean, we, we've had customers that are like. Second, second generation, third generation that are coming in. I had a guy, it was like a month or two ago that came in with his dad. Um, they're, his grandfather purchased from my grandfather.
His dad that was with him, purchased from my dad and he wanted to buy, you [00:37:00] know, an engagement ring from us. And he came in and, and so it was like third three generations working with the third generation. It was just, it was really special. And so, and you gotta think too, it's like working with whether they're young, whatever age they are.
But engagement ring is, is such a special piece of jewelry. I mean, it really is one of the biggest pieces of jewelry a guy will buy. That's at least the first one, you know, the first purchase. Um, and, and that really starts the foundation of a relationship of a marriage, is that en engagement ring. Um, it's that promise, it's that commitment, uh, for eternal love.
And so those are really fun projects to work on. Engagement rings in bridal. But fun ones too are, we talked about a little bit on heirloom pieces where somebody comes in and they inherited a piece of jewelry and it's something that's very, very special and prize. They saw their grandmother wearing it every day.
Mm-hmm. And so now they're gonna recreate something that's unique to them. And here we're [00:38:00] able to offer the full custom experience, the full design experience where we're able to have a, they have that piece of jewelry and we come up with 10, 15 different designs and then be able to have them part of the entire design process of creating those renderings, creating the 3D models, having them feel, see and touch the piece, and then be able to see their eyes when you unveil the piece, see their eyes just like light up and, and, and then they get to cherish that.
They get to enjoy that and keep it safe for the next generation. Yeah. So tho those are really fun projects. And we're very spoiled that we get to work with people at, you know, at the happiest times of their lives.
[00:38:41] Nick Beyer: So it's, it's very rewarding. That's cool. Yeah. So talk about those custom pieces from a business perspective.
Is that, you know, if I wanted to do something like that, do I have to pay for every rendering or is that kind of part of the experience? How does that
[00:38:55] Troy Underwood: Yeah,
[00:38:55] Nick Beyer: yeah,
[00:38:56] Troy Underwood: that's
[00:38:56] Nick Beyer: a,
[00:38:56] Troy Underwood: that's a great question. So the way it works, [00:39:00] it works out is you can come in free design consultation, sit down with a designer, and we can kind of go through preferences, different parameters, style, and things like that.
We can take that, we can come up with quite a few different design options, that design option, that individual can come into the store, view those renderings free of charge. If they want to take those renderings with them, or if they wanted us to send them digitally, we would require a $500 deposit. Um, but that goes towards the, the, the bottom, the bottom line at the end of the project sure gets taken off the bottom.
Um, and that just protects us. And, and yeah, our creative, uh, that goes into it, the time, energy, and effort. But say you do that, okay? You, you find a project that you love or find a design that you love. And then typically, if they don't own the gemstone, all we require is a 10% deposit down on the gemstone.
That's to [00:40:00] pull it from our inventory. It's a fully refundable deposit. Fully transferrable too. So if they're in between two, but they want to have the sense of security hold one stone, um, and say they changed their mind a couple days later, we can transfer that, but that holds the stone. And then we would just need half down on the custom piece.
So half down on the mounting, 10% down on the stone. Then once it's completed, they could either pay in full. We have financing layaway and different, different things like that, different options. Um, and of course if they, um, own the stone, then it's
[00:40:34] Nick Beyer: just a half down deposit. That's cool. Yeah. Talk about a little bit more about the business.
So, I mean, obviously very capital intensive business. Mm-hmm. I know you mentioned the word memo earlier. Mm-hmm. And I'm not sure if that's something y'all participate in or not. Mm-hmm. Mm-hmm. So just talk about what it's, look, what, what that's looked like over the years. Operating, owning a business.
Mm-hmm. That is so capitally intensive.
[00:40:58] Troy Underwood: Yeah. [00:41:00] There, there is a lot of investment that goes into, you know, our, our merchandise and, and the inventory that we carry, whether it's gemstones or just the gold casting grain. I mean, that's something you may not think about, but gold has reached an all time high.
Yeah. It's over $3,700 an ounce. Hmm. Which is insane. Uh, over 30 days ago was at like 3,300, which is an all record, all time record. A year ago it was like at 2000. So it's just, that continues to go up. So just the casting grain that we have to use to melt down and inject into our designs, that's, that's one aspect of it.
Um, but also, you know, the, the gemstones as well. You know, there, there is a lot of investment into it. Um, but we have found that. It's worth the risk to, to own that merchandise. Um, you know, we, we believe if, if we're going out and we're buying it, we're able to [00:42:00] get a better price than any of our competitors.
So when you're comparing apples to apples, uh, light quality to light quality, we're gonna have the best value between those two because we are taking that
[00:42:12] Nick Beyer: capital risk. So do wholesalers do the same thing? Are they not, not the custom piece. Mm-hmm. Mm-hmm. Are they going to, are they buying them directly like y'all are or how would you, or is that, is that a similar pro?
I know they're probably not all different but the same. I see what you're saying. All the same.
[00:42:31] Troy Underwood: And, you know, wholesaler is a funny word. Um, you know, a lot of times. Businesses will claim to be wholesalers when in reality they're just like any other business that's doing something typically online. Yeah.
Um, most of the time it's still going through middlemen and that diamond is still passing through quite a few hands. Um, there's not too many people that are, that are taking the [00:43:00] time and traveling all over the world to handpick
[00:43:03] Nick Beyer: from the cutters. Yeah.
[00:43:04] Troy Underwood: Yeah.
[00:43:05] Nick Beyer: So, I mean, what percent of your inventory are you, is it all your inventory you're buying directly from those people traveling?
[00:43:13] Troy Underwood: Yeah, so anything that we're, that we own, any diamond gemstone or anything like that, we're, we're buying directly from the cutter. So, I mean, last time I went over there, I mean we, we probably bought over a million dollars worth of diamonds, um, and. Well, those are diamonds from, you know, a half carat, all the way up to four carats.
So we have a huge selection, and again, that comes with a risk, but being able to offer that to our clients and to have that, that big of a selection, different qualities, different price points mm-hmm. Uh, throughout those different shapes and sizes and things like that. Um, it just gives our customers a just a really, really nice experience to be able to come in, come in [00:44:00] and, and view those.
It's awesome. Yeah.
[00:44:02] Nick Beyer: And then I assume you're watching that inventory, I'm sure there's been times where some of that inventory has sat for a long time and you're, you, you and your dad, y'all are kind of making some mental mm-hmm. Checklists of like, okay, well this, this one didn't move. Mm-hmm. And that's how you make adjustments kind of moving forward, is that
[00:44:18] Troy Underwood: Yeah.
You use your best judgment and, and. You do what you believe is gonna be the best decision. Um, and so absolutely there's times where we buy a diamond and it may, it may not move for a year or two years. But the way I see it and the way that my dad and I talk about it, is there will always be a market for a beautiful high quality diamond.
Mm-hmm. Um, we truly believe that if it doesn't move in a year, it doesn't move in two years. We're completely comfortable with that. Um, and we know the right client, the right client or customer is gonna come by and see that, and it's gonna be the perfect diamond for them. [00:45:00] And then on the gemstone aspect, I mean, we've seen some gemstones like Ruby's sapphires, which we've purchased some in the past, and, and they don't move as quickly as diamonds do, which is fine, but those values have gone up.
I mean, they're, they are appreciating. Yeah. Although they're sitting in our vault. Um, they're appreciating and so, which is, you know, not, not the worst thing to happen either, you
[00:45:28] Cameron Clark: know? Yeah. Well, what, what percent of your clients right now are, are local in Northwest Arkansas versus you're outside. Outside?
[00:45:35] Troy Underwood: Yeah. I would say 90 to 95% are gonna be Northwest Arkansas, if you include Fort Smith and some regions out Sure. Outside of Northwest Arkansas. Now, of course, we have a lot of, we have clients that come from Dallas. We have clients that come from Oklahoma, Missouri, a lot of Texas clients, honestly. And then [00:46:00] Little Rock will have people come up as well.
Hmm. We have clients that may see us on social media or catch wind of our, our, our website. We have people that'll purchase from us on the east coast and the west coast. Mm-hmm. Uh, that we're able to do. And that's, that's really evolved with our, just our capabilities to be able to do digital presentations and Yeah.
As technology has gotten better, um, so really all over the nation, but the vast
[00:46:29] Cameron Clark: majority is
[00:46:30] Troy Underwood: here. Are here. Yeah. Or is
[00:46:31] Cameron Clark: here. Yeah. And you were, so the, the family you were talking about, you know, three generations of Yeah. Of, of buying diamonds here. Yeah. It's absolutely incredible. Yeah. It's insane. Um, what percent of your clients are, you know, are, are second or third generation buying a product?
Mm-hmm. Um, from you? I mean, I, what I, what I imagine is, is like that you're. I mean, your business is, your business is very sticky. Mm-hmm. It's like once you, once you get someone who's committed to a custom piece mm-hmm. They're all in on acus custom pieces. [00:47:00] Yeah. Is that correct? And, and yes. No, why?
[00:47:03] Troy Underwood: Absolutely. I mean, we have so many customers that will come in, whether they're young, looking for an engagement ring and be like, you know, my, my parents got their engagement ring from you or my grandparents. You know, we're a customer of yours and so we've always kind of had your name in the back of their mind.
Do you keep track of that when people say that? We should. Yeah, we should. That would be a good metric. Metric. I know we do. That would be a really good metric to keep, uh, uh, keep in check. You know, I was actually, something that was interesting was, uh, working with one of our website developers and we're coming up on time to making the decision of revamping investing or re revamping our current website or doing a whole new website.
Yeah. So going through that, but looking at the analytics on Google search. And we have more direct searches than organic searches, so that'd be somebody, rather than looking for jewelry store near me, people are searching Underwoods more than they are just for jewelry [00:48:00] store. Oh, wow. Um, and so I think that kind of goes back to, to what you're saying, where it's, it kind of is whether their family has shopped with us before, but it is kind of a generational community,
[00:48:12] Cameron Clark: um, name.
And is there a, a, I mean, do y'all ever do any trade scenario where someone brings in a piece or is, does that, does that happen? Is that, I mean, as far as the marketplace goes, like how, how common is that? And so it's
[00:48:28] Troy Underwood: becoming more and more common? We, we do, to answer that. We do not offer that. Um, that would be like a consignment.
Yeah. So somebody would come in, say, I have, I have this family diamond. I want you to carry it, mark it up, sell it, and then we will split the profits in a sense. Yeah. Some jewelry stores do do that. Some jewelry stores will do that with watches, jewelry, et cetera. That's not something that, that we do most of the time.
You know, especially back in the day, diamonds just weren't cut to the precision [00:49:00] that they are today. Mm-hmm. So they just wouldn't really meet our, our standards Sure. Our quality standards. Um, and so we haven't done that. But something that we do offer is if somebody comes in and is looking to sell, you know, a diamond, typically our standards like one character above mm-hmm.
We do offer a brokerage service where we are able to reach out to some of our contacts, LA, Chicago, New York, uh, that may have a state, uh, departments, and we can kind of have that communication f. For the client and be able to hopefully broker a deal for 'em.
[00:49:33] Cameron Clark: Yeah.
[00:49:33] Troy Underwood: Yeah. That's cool.
[00:49:34] Cameron Clark: And
[00:49:34] Troy Underwood: bring your Bitcoin in too, right?
Yeah. There you go.
[00:49:37] Cameron Clark: That's outta the roof right now. Yeah. Yeah. So tell
[00:49:39] Nick Beyer: me about your standards. So we've talked a little bit about GIA Yeah. Or all your diamonds G certified, like talk through some of the, talk through some of the standards.
[00:49:48] Troy Underwood: That is a great question. And you know, it's, the grades can be very misleading.
People really get fixated on the grading report, [00:50:00] and essentially that's a piece of paper that's assigning a diamond a grade. And within those grades there's a huge range. And so, and the, the gemological report does not give you the total scope of the beauty of a diamond. Hmm. So we never, we never sell a diamond based off its paper or grade report.
We sell the diamond on the beauty of the diamond. Hmm. The most important factor when it comes to a diamond is the cut. Hmm. And the cut grade. Is really the grade that we assigned to a diamond based off the amount of life, sparkle, beauty, and ultimately the, the light performance. So what you want out of a perfect diamond is you want a hundred percent of the light to enter into the diamond and return to the viewer.
A lot of diamonds are cut really thick or really shallow for either weight retention or to give the illusion of a large diamond. But the problem with that, the light just leaks out through the diamond and it's, it [00:51:00] just creates a, a very dull and lifeless diamond. And then for color and clarity, there's a huge range when it comes to those grades.
So if I'm looking online and I type in like a one carat that has this color grade, that clarity grade, there's gonna be thousands that populate. And that's because there's a huge range, which within every single quality characteristic. But like for color grade, I'll give you an example. If there's a diamond that has a color grade of a two, um, that or an H would be the GIA report.
There's a range. And so the analogy I give is if we were to take a midterm exam and say, you got an 89% and I got an 80%, we both technically got Bs, but we all know your 89% is better than my 80%. And yet both of those diamonds have the same grade, just like we got the same b. But what we're looking for, we're looking for those 89 percents.
And so that's where our gemological expertise and our credentials come into play. Especially when [00:52:00] we're traveling across the world and we're looking at an array of diamonds that are all assigned the same grade. Yeah. Which one's better? Which one's the 89% and then which 89% is the best value. Yeah. And so we're able to cherry pick those diamonds and pass those savings back to our clients.
But going back to it, yes. Every diamond passes through our accredited gym lab. We have the first accredited gym lab in the state of Arkansas through the American Gym Society. Every single diamond has to pass through our credited gym lab where we are extremely stringent on cut color and clarity. So good to have best cut, best color, but the clarity, if it's, if it's that 80%.
It's not for us. It has to be an 89% on the cut. Color and clarity. Choose. So you able to do that
[00:52:52] Nick Beyer: moly, or do you ever buy diamonds, fly back here, take 'em to your lab, and then one or one doesn't make the cut, like doesn't [00:53:00] meet the qualifications?
[00:53:01] Troy Underwood: Every diamond has to pass through our credited gym lab. Okay.
[00:53:04] Nick Beyer: Yeah. And get, get our stamp approval on it. Cool.
[00:53:07] Cameron Clark: Yeah. So I think we kind of got to the point like where you're in the business now. Mm-hmm. Talk, talk about you coming in the business. Mm-hmm. Um, and, um, like how much is your dad still involved and mm-hmm. Um, and just like what your role is now. Yeah. Yeah.
[00:53:24] Troy Underwood: My dad is, is still very involved, president of the business.
We do have a succession and, and transition, uh, plan. Um, it'll be, uh. When I turn 40 will be when the shares will shift over and I'll become presidents. That's not for another eight years. He is taking, you know, rightfully so more and more time off. Uh, you know, he's been doing the retail game for a long time and did, and you gotta be here in the retail world.
Oh my goodness. It's like, you're, you're here on Saturdays. I mean,
[00:53:56] Cameron Clark: it's
[00:53:56] Troy Underwood: like you're, you're here on Saturday. This is a tough time of year to be here on Saturdays too, with the [00:54:00] Razorbacks right down the road, man. It's tough. But that's just the name of the game. Yeah. And then holidays, I mean, holidays are hard.
I mean that Q4, especially the week of Thanksgiving going into Christmas, that is our busiest time of year. Mm-hmm. Um, I mean, kind of what they say when you read in the trade magazines for your typical brick and mortar, uh, jewelry retail, you're doing about 30% of your business within those four or five weeks.
Mm-hmm. So you have to be here. Yeah. You gotta be, that's a very important time. Which is, which is tough in terms of a lot of people, a lot of people's business. You're able to take a lot of time off or at least take some days off during Thanksgiving, take a couple days off near than, or during Christmas.
Mm-hmm. Spend time with the family the day, you know, that the Wednesday before Thanksgiving, the Friday after Thanksgiving, those were very busy days for us. Mm. Chris busy day for us, you know, and so there's certainly pros and cons, uh, [00:55:00] to jewelry, retail, um, and that, that is, you know, that's a, that's definitely a difficult part.
Um, but you know, you have to, with anything life, you have to weigh the pros and cons. Yeah. Yeah.
[00:55:11] Cameron Clark: Yeah.
[00:55:11] Troy Underwood: Um, and so how, how long have you been in the business Full time now? It's been, I've been here at the store for about five years, so I did some, I did something similar to the, to my dad where I got my gemological education.
So I spent a year out in California. Mm-hmm. At GIA. Yeah. Did a jewelry design course, got my graduate gemology certificate, and then I was just like hanging on to try to stay out in San Diego. So I was like, what other classes could I take out here? That's awesome. So I did like, I did this like, uh, uh, stone setting and like a, uh, a jewelers course.
Yeah. Like intro to jewelers. It's not my forte. It's very difficult. I mean, I, the guys up here that are able to craft those pieces, I mean, it's unbelievable what they're able to do. But like [00:56:00] I, I was like out there for a few weeks doing that, which was awesome. And then my dad was like, all right, we got, let's get back to reality here.
Yeah. And so after that, went down to Baton Rouge and I actually worked for the same family jewelry store. Oh, that's cool. My dad did. Yeah. And so I was down there from, it's kind of crazy times. I was down there 2019 and then it was gonna be a two year stint. Was there for a year. COVID came through and Louisiana got hit hard 'cause this is New Orleans.
New Orleans, that being a port city got just, just decimated with just in sense in the terms of just the amount of cases that they had. Yeah. So Louisiana, we were catching wind that Louisiana was gonna shut their borders down. So I was literally on my way to work on a Monday morning dressed and everything like that.
My dad called me and he said, don't go into work today. He said, unplug your fridge. He said, turn your AC off. You need to come back up to [00:57:00] Fayetteville. And so I came back up to Fayetteville in the middle of COVID, was up here for about six months, and then had the opportunity to go back to Baton Rouge Okay.
And finish up my apprenticeship. So I went back down there for another eight or 10 months. Uh, did that. And so I moved up here full-time about five years ago, but I've been on the path to come back for a little bit longer than that. Yeah, yeah.
[00:57:24] Cameron Clark: Yeah. Um, and so, and then talk about, so, um, I wanna talk about like, hey, where the, where the business is going.
[00:57:30] Troy Underwood: Mm-hmm.
[00:57:31] Cameron Clark: But y'all's family's done so much for the community. Mm-hmm. And like, did your grandfather start kind of instill that from the beginning? Mm-hmm. And then the, the park that's happening now mm-hmm. And just started construction. Talk about, talk about some of that.
[00:57:44] Troy Underwood: Yeah. So the park we're really excited about, um, they just had the, uh, groundbreaking last Monday.
Underwood Park. Underwood Park, and so west side of Fayetteville off Dean Solomon. And it's gonna be 58 acres. And in a couple phases, [00:58:00] but they came out with the master plan and it's gonna be phenomenal. Um, they have a lot of capital that they're putting into that park. It's gonna be unbelievable. I mean, there's gonna be pickle pickleball, courts, there's gonna be areas for food trucks, hammocks, um, a lot of green space, a lot of walking paths.
Eventually they're gonna take over the pond, um, and they're gonna have like kayaking stations and things like that. And so it's gonna be really incredible. So we're really excited about that. And so they're, they're just starting that. But I mean, ultimately we feel so really blessed to be in such a beautiful area in northwest Arkansas.
And, you know, gully Park was always part of our childhood. I mean, as a family, me and my two brothers, my parents, we go to Gully Park all the time. And to have those memories and have an area like that is just, it's a great thing. It's a beautiful thing. It so to be able to have the opportunity to. To give Fayetteville and Northwest Arkansas a large space like [00:59:00] that.
It's, it's really special. So we're, we're really excited about that.
[00:59:04] Cameron Clark: And, uh, and so when is it gonna be completed? What's the,
[00:59:07] Troy Underwood: actually, I, I don't, I think a year from now is when it's gonna be almost fully up and running. If, if I have my time timeline. Yeah, yeah. Correct. But with the groundbreaking being, you know, just 10 days ago.
Yeah. I think it's about a, a year path to get it to where it's, I mean, it's gonna be really incredible. Wow. Yeah. Yeah.
[00:59:30] Cameron Clark: It's gonna be awesome. Um, and so the future, now future of the business. Mm-hmm. Um, Benton County. Mm-hmm. Y'all going, what's the
[00:59:39] Troy Underwood: There's always talks. There's always talks of it. You know, this area is growing so much, um, in northwest Arkansas, it's, it is amazing, you know, being down southern, southern tip of northwest Arkansas, being down in Fayetteville.
We absolutely love Fayetteville. And so I, I don't imagine us moving this, this location or [01:00:00] moving out of Fayetteville in terms of expanding. We're always playing around with that. Yeah. That thought. Um, and p it's amazing the growth that Bentonville is seeing and just the infrastructure that they're building up there.
And I mean, my goodness, I was up there, you know, just a few days ago. I'm sure everybody that's listening or you guys are familiar with it, I mean, it's to see it today compared to what it was five years ago mm-hmm. Compared
[01:00:23] Cameron Clark: to what it was 10 years ago. It's unbelievable. It's crazy. Crazy. I mean, I was looking at a stat, a stat yesterday, it was like 10 years ago.
They were only two homes that sold over a million dollars in Menville. And it's like there's been in the 87 so far at this point this year. Yeah. It's like just completely different. Yeah. It really, it really is. Yeah. Yes. So I mean, is that, like, have you, have you talked about if we, hey, if we're going to Ben, uh, Benton County, we're going to Rogers or Bentonville, is that kind of on the radar or is that, um, you know,
[01:00:52] Troy Underwood: I would, I think to expand if, if, if we were to expand to go, it would make [01:01:00] sense to be South Fayetteville or south NWA, possibly north NWA Mm.
Uh, to have the north and south. I don't know if NWA would be big enough for, for three. Yeah. Uh, we, you know, you had mentioned looking at other jewelry stores and things like that and other metropolitan areas. You go back a few years, a lot of jewelry stores were opening like two jewelry stores within the own, their own city.
Mm-hmm. Um, so two stores in the same metropolitan area, a lot of places have actually consolidated. Consolidated. That's actually been a very common theme that we've started to see. Um, it's one of those things where it's. We, where we are right now, we had the opportunity to expand up here into this, into this office, um, and build this out into a private showroom, uh, which is, which has really been incredible.
Um, with that being said, and we're always exploring new opportunities. Yeah. And so, and nothing's concrete just yet on, on our future [01:02:00] plans, but we're always, always thinking Yeah. Look about it. Yeah. Yeah. Yeah. We are.
[01:02:03] Nick Beyer: Talk a little bit more about how the industry's changed. I mean, younger people, what they're buying
[01:02:10] Troy Underwood: mm-hmm.
[01:02:10] Nick Beyer: Lab grown thing. Mm-hmm. I don't know if, if there's anything you, you would share there, but Yeah, absolutely. That's been a huge topic
[01:02:17] Troy Underwood: is, is synthetic diamonds. And for us, we've never, never carried a synthetic diamond. Um, so they've been around for a while. They've been around for about four or five years.
Okay. And they've really. Caught a lot of popularity probably in the past two or three years. Um, we're seeing more people in the past couple years, uh, ask about them. Um, so it's definitely a, a trending thing the way we see it. Going back to really what my grandfather started, what my dad has kind of been handed the torch from, what what I believe is, is carrying something that's of quality, but something that has value as well.
Mm. And the way I see synthetic [01:03:00] diamonds is they're mass produced. The major vast majority are produced in China or India. So you're taking a billion year old process, condensing that into a one to two week period and using coal as your, your power source. And so it's takes a lot of energy to do that. Um, so it's not great for the environment, but also because it is mass produced, there's an infinite supply.
Um, and it's technology based too. So as technology gets better. It becomes less expensive and more efficient to make. So with those two factors, when we've been monitoring the, the price of synthetic diamonds, it just continues to plummet. Yeah. Every single day it goes down. Not one day has the value of synthetic diamonds gone up.
We can't predict the future, but to us that's pretty good data saying that's not a good value for our clients. And so that wouldn't be something that we feel comfortable caring or, you know, [01:04:00] whether it was something that we carried, given to our loved ones. Yeah. Uh, but ultimately that we think that would have value.
Um, and so we've decided not, not to carry synthetic diamonds. And the way that I see natural diamonds is it's, they're unbelievable. Just in. The fact that Mother Nature made them over a billion years ago. God's creation, the path and journey that they take, it's really incredible to take a look at some of the, um, areas that their mind and they can actually be manufactured.
Like there's an area in Botswana and Africa, and that whole country has been entirely transformed for the better because there's been diamond mining there and diamond manufacturing. So they, the, the diamond manufacturing employees, the, the most women in that whole country. And so a lot of villages that I think they offer education, uh, for [01:05:00] free across the entire, uh, country as well.
So it's, it's totally transformed that country for the better. Um, and so, and I think there's just a really symbolic meaning to a national diamond where. With Mother Nature creating it. Every single one is unique. No two are the same. Yeah. And that's the same thing with a fingerprint snowflake or you know, one person's love for another.
You know, I think there's, I just don't believe that same message, symbolism, uniqueness, is offered with something that was manmade in a couple
[01:05:37] Nick Beyer: of weeks. Yeah. Yeah. I know. It's very popular right now. Yeah. And especially, I mean, my little brother graduated last year, a bunch of his friends, I think they all did that.
Mm-hmm. Have you seen prices? Right. If demand for synthetic diamonds has gone up mm-hmm. Pretty significantly. Mm-hmm. Has that impacted the price in a negative way? Mm-hmm. Of, I guess [01:06:00] non-synthetic diamonds. Mm-hmm. Natural, yeah. Natural stones. So
[01:06:03] Troy Underwood: you bring up a good point. Supply and demand. Um, although the demand has been higher today than it was a few years ago.
The supply of synthetic diamonds will vastly outweighs the, the demand. Um, so they are, it is so oversaturated with synthetic diamonds and with synthetic diamonds. It's really interesting. It's when you look at price per carat. So I think the price per carat of a one carat, a price per carat of a two carat, a price per carat of a three carat.
For, with synthetic diamonds, it's, it's like a piece of glass no matter the size. That one inch by one inch is gonna be, let's just call it a dollar, a one inch by two inch is gonna be $2. And it goes on up in that way. 'cause it can just be created that way. Uh, with national diamonds, it is not that way. Uh, it is so rare.
It, I mean, it increases exponentially to, to have. [01:07:00] The amount of one carat natural diamonds that come outta the earth in one year only fit within the size of a, like a medicine ball. And then, wow. The, the amount of five carat natural diamonds that come outta the earth in one year can only fit within the size of a basketball.
And so you're, it's just that much more rare to have a gym quality, high quality diamond to go into an engagement ring of that size. It just is. With synthetic diamonds, you can grow that five carat in a couple of weeks. Yeah. And so we just, for us, we just, we don't see that as a good value to our customers.
We don't, with natural diamonds, those have gone back a long, long time. And over the long run they've, they've appreciated and value. And right now, I mean, they're, they're steady. There's ebbs and flows. Yeah. There was a huge spike, uh, back during COVID. The jewelry industry, if you were [01:08:00] positioned well, you had a lot of success.
And you have to think, a lot of people don't know this, but our biggest competitors in the jewelry industry for big anniversaries and things like that is travel or house renovations. You couldn't travel and you didn't want strangers in your house during COVID, but people still wanted to celebrate. Yeah.
Anniversaries, birthdays and things like that. So if you were positioned well, um, you found a lot of success during, during COVID and that skyrocketed natural diamonds. It really did. Now it's kind of taken just kind of a soft landing. Um, but I, I see them only, again, we can't predict the future. Right. Yeah.
But, uh, I see them taking a very different path than synthetic diamonds. Mm. Mm-hmm.
[01:08:44] Nick Beyer: Yeah. That's good. So, so talk a little bit more about, so we talked about synthetic diamonds, but mm-hmm. A little bit more about. Young, the younger generation. Mm-hmm. I think when I think of that mm-hmm. I think a lot of the older generation, they would do that for anniversaries mm-hmm.
And things. Yeah. And they'd buy [01:09:00] jewelries. Yeah. What are you seeing right now and how are y'all positioning yourself mm-hmm. As you think 5, 10, 15 years from now?
[01:09:06] Troy Underwood: Yeah. You know, we're in a, in a great place, um, in northwest Arkansas where it's great being here next to the college campus. A lot of people graduate, stay here because there's so many job opportunities.
Really young, average age here. Um, and I would say especially for engagement rings, that's typically when we're dealing with the, the younger age clientele. And we offer pieces at all different price points, kind of like we mentioned. Mm-hmm. Um, but we offer natural diamonds at all different price points.
And something that we are very proud to offer to all of our clients is the lifetime guarantee of investment on our natural diamonds that we carry. So that means the lifetime of the diamond. You can trade that diamond in and get every penny you would spend towards that, towards an upgrade. Mm. Um, or a trade in.
And so that allows somebody, we see [01:10:00] it all the time where someone is just graduated. They may not have all the money in the world mm-hmm. But they still wanna buy something that's meaningful, something that they perceive to be, to, to be valuable and, and carry, carry that sentimental value. And they may purchase a diamond that's maybe smaller than they want right now, but they know in a couple years that their circumstances are going to change.
So they're able to get every dollar they spent today, back in two years
[01:10:31] Cameron Clark: towards an upgrade. That's cool.
[01:10:32] Troy Underwood: Mm-hmm. Yeah.
[01:10:34] Cameron Clark: So I, I, I guess one thing that's, you know, as we're getting towards, we're wrapping up. One thing's popped my head. Why, why do you love this business?
[01:10:43] Troy Underwood: It's the, it's the best. I mean, it really is.
I. I know I've kind of mentioned it before, but I absolutely love working with clients, especially at that, you know, we get to work with them at the happiest times of their lives. It's, we're in the celebration business [01:11:00] and so when people are coming in, whether they're buying for themselves, buying for somebody else, something that comes with a lot of excitement and joy, and we get to be part of that.
Mm-hmm. And so it's extremely rewarding when we get to work with customers on those different projects. And it could be all the way down. It doesn't even have to be a new purchase. It could be somebody that came in, inherited a piece of jewelry that just needs it. Maybe some repair work done. Yeah. And refinished where it turn when it looks brand new.
Yeah. And to work with somebody that inherits a piece and we're able to offer that. I mean, it's, it is amazing to see people's faces light up and just see what. These, these beautiful creations are able to, you know, the, the positive impact that has on individuals. It's really something special. And also to be part of a family business.
I just feel like that's, it's just something I'm very proud of and [01:12:00] feel extremely blessed to have that opportunity, um, and kind of carry the legacy that, you know, my grandfather started almost 70 years ago. Get to get to work with my dad and we work really well together and just be able to come in to work, work with him.
Have an amazing team here. You, you wear a lot of different caps. As a small business owner, a team of 15 people work on a lot of different things, whether it's diamond buying, you're doing the marketing, working on a new website. Hiring. You might be the HR department one day taking out the trash the next day.
Yeah, yeah. But it's fun. No two days are the same. They aren't. And, and so there's a, there's, it's just you, you're able to put your, you know, creative hat on certain days, creating a, a new piece of jewelry, working with clients, seeing, seeing family, friends that get to come in. So it's, it's really incredible being, being part of this business.
Yeah. That's amazing.
[01:12:56] Cameron Clark: Awesome. Um, well kind of wrapping up here. Yeah. There's, there's a couple [01:13:00] questions we ask every Yes. To the end. Every episode. Yeah. Um, number one. You know, why Northwest Arkansas? Why do you continue to, like, obviously there's the history here of what y'all have done, but like looking forward to the future mm-hmm.
Why build a business in northwest Arkansas? What would you tell somebody? Yeah. Um, and why are y'all doing that?
[01:13:17] Troy Underwood: Yeah. I think if you're looking at an area in the United States, I mean, I know Northwest Arkansas has cut a lot of eyes, and I, I think it's a no brainer why? I mean, we're growing at such a, a rapid rate, but there's so many intangibles and benefits outside of just these beautiful looking numbers of all these green arrows going up, right?
It's, it's the quality of life. It's everything that this area has to offer. Whether you love the outdoors or love going to see concerts or love the fine arts. I mean, this area offers all those things. Um, it's amazing. You know, we have these large companies, I don't need a name of the names. We all know who they are, [01:14:00] but they invest so much back into this area.
Mm. And. In my mind, it goes full circle. I, I think the companies invest in this area, but the community supports local to the highest level. And so it's a really incredible place. Um, and, and so I think it's a, it's a, it would be a no brainer. I think right now it's such a, an opportune time. Um, you know, you look at Austin, you look at Nashville, I think we're, if we position it right, we're gonna have even more success than, than those areas.
Um, but we're, I mean, we are only going up from here. So I think it's, it's a really, really great time. If you were looking at investing in an area like this
[01:14:43] Cameron Clark: Hmm. Couldn't agree more. Um, and then how do you define success?
[01:14:49] Troy Underwood: So, I, I would've to say, I mean, ultimately I think success is finding a career, finding a job, um, finding your, your path [01:15:00] where when you wake up in the morning.
You're not thinking, oh, I have to go to work. You're thinking I get to go to work. I, you find, you find something you're passionate about, you find something that you love to do, and then you, you don't have to work a day in your life. And then in addition to that, I think outside of just work, I think it's having a, having a family.
And I think it's having a support system. I have a beautiful wife, two kids, and I, I couldn't be happier with where I am right now. And I think having, having those relationships outside of work mm-hmm. But also finding, finding your passion within your career where it's something that you just, just wake up and just love to do.
Yeah. Yeah. Yeah.
[01:15:46] Nick Beyer: That's awesome. That's awesome. Well, at the end, we kind of, at the end of each episode, we talk through just a few things. One, you know, two to three things that we think people will learn, um, from, from you, and. Um, Underwood's, jewelry, jewelry [01:16:00] store. And so I think as, as I think through one of the clearest things that was communicated throughout the entire episode mm-hmm.
Was just the commitment to quality. Mm-hmm. And there any business, it doesn't matter what you, what sort of business you do, there's a scale of price and quality, and oftentimes those things are, are pretty interlocked. And just hearing you talk about how we can deliver the most value for our clients, for our customers, um, wi without compromising quality, I think is super admirable.
It doesn't matter what you do, what sort of business you, you own, if you can instill that as a core belief, as a core value into your business, you'll have success. Um, and then I think the, the next one that was really cool, as I was reflecting on this, is just the family business. I mean, three generations now just being committed to.
To something bigger than you. Mm-hmm. And even hearing you talk through waiting eight more years, you said that joyfully not spitefully. Mm-hmm. [01:17:00] You said it joyfully. And I think a lot of younger of the younger generation doesn't want to wait for success or for, you know, taking over something. I think the way that you appreciated, um, your dad and your grandfather and what you learned from them and talking through those values, just really, really admirable.
Um, and I think all of those things, that patience that you have to wait eight years, the encouragement you had in your voice, getting to learn from your dad, getting to work from your dad, all those things show up in the way that you treat your clients and the way that you treat your customers. Mm-hmm. So that's.
Yeah, I think anyone listening to this is those things are gonna stick out very clearly to them. So thanks for your time, Troy. Absolutely. We love getting to know, um, to know you and just more about the family business, so Yeah. Yeah. Appreciate it guys. This was, thanks Troy. This was a great time. Absolutely, absolutely.
[01:17:55] Cameron Clark: Thank you for listening to this episode of NWA Founders, where we sit down with founders, [01:18:00] owners and builders driving growth here in northwest Arkansas. For recommendations are to connect with us, reach out at nwa, founders@gmail.com. Lastly, if you enjoyed this episode, then please consider leaving a rating, a review, and sending it to someone who you think would benefit from it.
We'll see you in the next episode.