Pearl Outlet makes good in its Web-based business venture
It’s every entrepreneur’s dream – make a $35 investment, and eight years later, own a business that has consistently topped the $1 million dollar mark in sales. That’s exactly how it worked out for Terry Shepherd, owner of The Pearl Outlet.
In 1998, Shepherd, then a software design engineer for Hewlett Packard, made a trip to Beijing. While he was there, he bought a set of freshwater pearls for $35. Upon returning to the United States, he had them appraised and discovered they were worth ten times what he had paid. Seizing the opportunity, Shepherd sold the pearls through a Web-based auction.
The alacrity with which the original set of pearls sold on the Internet told Shepherd he had discovered an emerging market and an under served market niche – online pearl jewelry retail. To learn more about the industry, Shepherd attended and was certified by the Gemological Institute of America in Carlsbad, Calif. He posted more online auctions at first, but within two years his annual online sales had grown to $50,000 and he formed an LLC and launched his own Web site – www.thepearloutlet.com. In 2004, Shepherd’s online sales reached $1.4 million, which prompted him to leave his job at HP and focus full-time on his burgeoning business. The Pearl Outlet has achieved 150 percent annual growth every single year.
The secret to Shepherd’s success is two-fold. First, he deals directly with oyster farmers all over the world, making several trips a year to Hong Kong, China, Japan and other pearl farming areas. Compared to pearl jewelry available at retail stores, Shepherd said he “can offer a pearl necklace at 85 percent savings and exceed the quality available as well.” These savings result from dealing directly with pearl farms. Shepherd said forging strong relationships with the farmers has enabled him to get first pick at harvest time.
Also saving his customers money is the fact that an online business such as The Pearl Outlet has low overhead compared to a “brick and mortar” jewelry store. The Pearl Outlet is becoming widely known; Shepherd reported that 12 percent of his customers are overseas, and he sells to retail stores as well.
Second, he focuses on not just selling pearls, but selling a customer experience – from teaching people about the wide variety of pearls available to teaching them how to care for their new jewelry so it will last for generations.
The Pearl Outlet offers an unconditional 60-day money-back guarantee. In addition, they make sure customers get a personal touch.
“We answer the phone personally – you can speak with the owner of the company,” said Shepherd. He also pointed out that his staff is trained specifically in pearls through the Gemological Institute of America.
The variety of pearls and jewelry offered by The Pearl Outlet has grown significantly from that first set of freshwater pearls in 1998, with something for every budget. Shepherd says a very popular item is the freshwater three-pearl drop pendant, which he sells for around $35. Slightly more rare and exotic, an Akoya saltwater pearl necklace runs about $145. Recently, Shepherd has added some high-end collections to his selection, pieces in the Lustére Collection, for example, starting at $2,350.
Every piece offered by The Pearl Outlet is custom-designed. In particular, many of their offerings are designed by Andi Warrington, from Vancouver.
