Diamonds are forever...Part II

Front of Packouz Jewelers on Broadway, Portland, OR
photo credit:  Brooke Van Roekel

Last week, we met Rick Mahler, the owner of Packouz Jewelers in Portland, OR.  Packouz is one of the city’s last, high-end independent jewelry stores.  As we have seen from other people’s journeys with twists and turns, Rick didn’t set out to be a jeweler.  He just happened to be in a store wearing a   suit.  Yes, he feels it’s as simple as that.  How did he get there?

Zell Bros. back in the day in Portland, OR
photo credit: Meredith L. Clausen

“It was the suit”

At Mt. Hood Community College, Rick was a broadcasting major.  It was while he was interning at a radio station that he learned that only the on-air talent made a decent living.  Everyone behind the scenes barely made minimum wage.  It was recommended to him that he look into sales.  That was where there he could earn a living.  Rick started interning in the sales department to learn the ropes.

One day, he found himself in a store in Clackamas Town Center, a shopping mall in Oregon, wearing his suit, looking for a job.  In the store was the Store Manager from Zell Brothers, and he and Rick got to talking.  Zell Bros. had just let 2 people go from their store, and they needed someone fast.  Normally, Zell Bros. required extensive experience in the jewelry business to be considered for a position.  Rick had sales experience, and he was in a suit.  Facing a staffing shortage, this was enough, and Rick went to work for them.

“A rising star”

Within two years, Rick became one of the youngest store managers within the Zell Bros. organization.  He did this for a year in Northern California when he was brought back to the Portland store as Zell Bros. went through Chapter 11.  Rick felt that if he worked hard, was honest, and learned the ropes, he could eventually run the company.  To get to that position, however, he was going to have to move to manage bigger territories and stores.  In his personal life, Rick was going through a divorce, and there was no way he was going to leave his son to pursue his career.  After 6 years at Zell Bros., Rick realized that without moving, he wasn’t going to be able to climb any higher at the company and was going to have to leave to develop and grow.  This is when Larry Packouz entered the scene.

“Getting my management feet”

Larry Packouz snagged Rick and brought him to Packouz Jewelers to manage the business.  As a bit of a youngster, this transition wasn’t an easy one.  Packouz was small and staffed by people who had been there for many years.  It took Rick a few years to get his footing as most of the staff were used to just going to Larry for everything.

After six years with Larry, Rick hit a bit of a ceiling in his development.  He was ambitious and wanted to grow.  Ironically, Zell Bros. kept knocking on his door, trying to get him back.  It was at this point, that Rick did return to Zell Brothers; however, it ended up being under false pretenses.

“Out of town”

Rick re-joined Zell Brothers in Portland as General Sales Manager.  The company understood that he wasn’t going to be able to move due to his family commitments.  Within his first week back at Zell Bros., however, Rick got the indication that Zell Bros. was considering him for a move.  A few weeks later, he became aware that they were interested in transferring him to a bigger region on the other side of the country, which was not what both Zell Bros. and Rick had agreed upon his return to the company. 

During this time, Larry paid Rick a visit.  He asked if he was happy.  Rick wasn’t.  Rick asked Larry if he was happy.  Larry wasn’t happy.  Three months after Rick left Packouz, he returned.   He refers to this period as when he was “out of town.”

“It was the right thing to do”

After working for Larry for a total of 12 years, Rick and Larry began discussing Rick’s buying the business.  No one in Larry’s family was interested in running it, but Rick was.  That was 2007.  In 2008, Rick secured the financing, and in 2009, it finally happened.  We all remember what major economic events took place in 2008.  For Rick to buy a high-end jewelry store at the height of the economic crisis was extraordinary, maybe even a little crazy, to say the least.   This is where his complete faith in knowing that it was the right thing to do really took hold.  He knew that it was the right thing for him and his new wife, for his kids, and even for Larry.  What also made the transaction possible and a success were three factors, according to Rick: 

• The history of the store.  It has such a long-standing history in the city and is very well established in the community.
• Larry Packouz’s reputation.  Larry defines service, honesty, and quality.  It is because of him, that so many generations of Portlanders continued to shop at the store.  Rick learned from the best.
• Rick’s management experience.  Not only did he learn about service from Larry, he honed his business and management skills at Zell Bros. 

Even in the middle of the economic crisis, Rick wasn’t worried about taking over the business.  He knew that it was just a matter of making the sales and THAT was something he knew how to do.

The Five Questions:

As is part of my “day in the life” with each person, there are five questions that I like to ask.  Here are Rick’s responses:

1.  What have been your most defining moments?

• Being hired by Zell Bros was a fluke, but joining the best jewelry store in the US was life changing.
• Getting hired by Larry.  It was the only high-end independent store I would have worked for.
• Returning to Larry.  I knew I was legit and what I wanted to do.  It was an emotional commitment to one another.
• Being considered for ownership was extraordinarily flattering especially when you’re following the most popular person. 







• Finally, securing the financing and realizing the goal of making it happen was very defining.

2.  Who has supported you along the way?

• My dad.  He taught me work ethics and honesty.
• Kerry Kincaid of Zell Bros.  He was a wonderful teacher, and I learned the bulk of my industry knowledge from him.
• Larry Packouz.  Larry knows how to conduct himself with people.  I learned all of my people skills from him and how to be a nice person – honest, thorough & agreeable.
• My financiers.  They went to bat for me.  Without them, none of this would have happened.

3.  Where do you find inspiration?

I believe in God.  I believe in my wife and kids.  For outside interests and inspiration, I love fast cars.

4.   What are you most proud of?

My kids and the fact that I am making this business successful make me proud.  I like feeling successful, that I’m doing a good job, and I can take care of my family.  That’s very important to me.

5.  What is your sense for what is next?

In the short term, it’s having a strong 4^th quarter and completing the renovation in the 1^st quarter      next year.  When that is done, we’ll be able to get the new website and ads up and running.  In the next 2 years, it will be managing the day-to-day and see about my own son coming into the business.  I hope to own the business free an clear in 8-9 years and be able to move away from the day-to-day operations.  Then, Tanya and I can make decisions about what we WANT to do and not what we HAVE to do.

Pay-it-forward question:  What is one piece of advice you would give someone on his or her own journey?

Effort and honesty are essential.  Any break you might get will come from your own effort and the work you put in.  Also, try to get experience from the best place possible.  That’s where great learning can happen.

                                                 ----------------------------------------------------

Next up:  We'll get to see some of the incredible pieces of jewelry as each of the staff picks those items that best represent Packouz jewelers.  It's time for a little sparkle!

Diamonds are forever....

So much sparkle and a twinkle of the eye...

Rick Mahler, the owner of Packouz Jewelers, is a businessman at heart and a master multi-tasker.  The twinkle in his eye hints at the wheels turning in his head.  It was extraordinary to watch him and an exercise in energy-management because he is either going from one thing to the next or thinking about the next thing.  I was exhausted by 11am.

Rick where he loves to be - at the counter
photo credit:  Brooke Van Roekel

Packouz Jewelers is one of the last, high-end, independent jewelry stores in Portland.  It was established in 1917 and passed through three generations of Packouz’s.  For many Portlanders, particularly some of the more established families of the city, Packouz Jewelers represents family and long-standing Portland tradition.  What is Portland tradition?  It’s the kind of service where you are ALWAYS greeted with a smile and treated like the most important customer regardless of who you are or what you’re wearing.  (I’ve been known to enter in my running gear without anyone in the store batting an eye.)  It is also the kind of place where people come in just for a chat, which is what I witnessed several times the day I was there.  And because this is Portland, dogs are always welcome.  No matter what the weather may be outside, this little treasure (pun intended) of jewelry store is always a warm, bright oasis on Broadway.

So, what does a day look like for a jewelry storeowner?  One word:  BUSY.  There may not be one customer in the store, but there is quite a bit happening.  I realized that the customer interaction at the counter represents 1/3 of the time spent on the transaction, while 2/3 of the work actually happens behind the scenes.

Here is a snapshot of Rick’s day:

7.30-8.30am: Rick typically gets to the store between 7.30 - 8.30am.  From the time he enters until his first staff member arrives around 9.15am, he gets a hold on all of the administrative parts of the job which includes things like:  payroll, insurance, contacting vendors, following up on repairs, orders, reviewing sponsorship proposals, and paying bills.  It’s a flurry of administrative work.

Rick on the phone with a watch broker
searching for a particular watch for a customer
photo credit:  Brooke Van Roekel

Around 9.30am:  The staff starts getting the jewelry out of the safes and merchandising the cases.  Rick dons a pair of white gloves as he shines and places many of their Swiss-made watches.  Heidi, one of his staff, works on displaying all of the jewelry with gemstones.  The store starts to sparkle.  Also, at this time, a cleaner enters the store to wipe and clean all of the surfaces.  Rick’s wife, Tonya, vacuums and another staff member, Jennifer, begins going through all of the emails.  Everyone is bustling.  The phone is ringing off the hook, but this is the time that they can get the store ready, so it goes to voicemail until calls are returned at 10am, the official opening time of the store.

10am:  The store opens.  It’s quiet up front, so Rick continues with making phone calls, following up on orders, returning phone calls, checking on the new phone system that is to be installed and discussing the final price he’s willing to pay to advertise in Portland Monthly.  Literally, he is crossing one thing after another off his list in what feels like split seconds.

Around 10.45am:  Rick’s landlord enters the store.  He’s an old friend of Larry Packouz and is interested in getting a new watch while also checking about the water in the corner of the basement floor.  Rick and he spend a bit of time chatting.

Rick doing what he loves: helping customers
photo credit:  Brooke Van Roekel

11:10am-2pm:  Rick chases the insurance lady, helps a few more customers who have entered the store, returns a call about a speaking engagement request, reviews a few emails, and tries to get the phone company to confirm the installation of their new phone system.

2pm:  Lunch time.  We head to nearby Imperial, where Rick has become a regular and is well known by the whole staff.  It’s like walking in with the mayor.

3.15pm:  It’s back to work where Rick spends the afternoon in the front of the store helping customers along with the rest of the staff. 

4.00pm:  A couple of vendors enter the store and ask to speak with Rick.  They don’t have an appointment, which doesn’t thrill Rick.  One is a veteran rep, who is currently a rep for a pearl dealer.  The other represents a German designer and manufacturer.  Rick’s in the middle of helping a customer, and they both hover in the corner of the store.  As Rick knows, “good selling is proper buying.”  He is courteous and emphasizes the need for them to schedule an appointment.  For the pearl rep, Rick explains that he’s good on inventory and doesn’t need anything from the guy.  The German designer rep leaves a catalog, which piques the interest of all of the staff in the store.  The designs are beautiful and innovative.  Everyone likes what they see.  This rep will be welcomed back.

4.20pm:  Three generations of one of Portland’s well known families enters the store.  They are in pursuit of a Bat Mitzvah gift for the young girl.  The mother and daughter peer into the cases and discuss, at length with Rick, different ideas.  The grandmother circles the store, stopping periodically at various cases.  (I get the distinct impression that she’s pretty familiar with their contents.)  She has been a regular customer of Larry’s and feels that the store is in VERY capable hands now that Rick owns it.

4.45pm:  A woman who is in Portland on business from SF enters the store to look at some high-end Swiss-made watches.  She has a certain model in mind and tries on a few others as well.  She’ll be leaving shortly but will return to Portland in a couple of weeks.  Getting the watch at Packouz is appealing because Oregon doesn’t have sales tax.  I suspect she will indeed purchase her watch from Packouz.

6pm:  It’s time to close up shop.  The jewelry is gathered from the cases and stowed in the safes.  In a matter of minutes, the cases are emptied.  This is a routine that the staff has down pat.

6.15pm:  The store is locked tight, and Rick heads for home only to get ready to do it all tomorrow.

Because of the extraordinary service, Rick has customers from all over the West – from British Columbia, SF, LA, Seattle, and beyond.  In fact, one customer from Medford, OR called to purchase a brand of watch that Rick doesn’t carry.  Because this customer could go anywhere, Rick contacts a broker to get the watch for this customer, even though the margin on the sale will be quite small.  Being a business owner, Rick knows, “selling is the single most important thing because you have to sell to keep the doors open.”  If selling is fundamental, service is paramount for Rick and the whole staff at Packouz – something that comes from the Packouz family tradition.

How did Rick come to be the next owner of Packouz Jewelers?  Next week, we’ll explore his journey.