by Clare Appleyard, founder of Katannuta Diamonds
Figures flew before my eyes as my fingers tapped away busily on the calculator. Exchange rate. Tap tap tap. VAT. Tap tap. Supplier costs. Tap tap tap. A number settled on the screen and I looked at it with confusion. “That can’t be right”, I thought, as a mild sense of unease washed over me. Picking up the calculator, I ran the numbers again, more slowly this time. The same number came up. “Third time lucky” I whispered to myself as I hit the keys with deliberate intent. No change!
I felt a hot flush of panic as I grabbed my client notebook and scrutinized my cost calculations. My mistake leapt off the page, taunting me. I’d forgotten to add in a profit margin and had just sold a diamond at cost. Not only was I facing the possibility of no profit on the biggest diamond we’d ever sold, there was a very real chance that we’d lose money once we took credit card processing fees into account. Slumping over my desk, I swore profusely. How did this happen?
One week earlier, I’d been on the phone to an American client who had found Katannuta Diamonds online. A lover of Johannesburg, he was in South Africa to sort out some property and he wanted to buy a diamond engagement ring and matching wedding bands for himself and his girlfriend. He was keen to support local business and wanted to see our workshop and meet our goldsmiths. I’d quoted him in advance, and then, on the day of his visit to our workshop, charged his credit card for the magnificent diamond he’d selected.
I walked out of the meeting on an absolute high. Not only was this the biggest single diamond we’d ever sold, but the total sale value was keeping us on track for our best sales month ever. The feeling was incredible, things were going our way and business was looking better than ever before. Yet, 24 hours after the sale I was banging my head on the desk in frustration at my mistake. It was an agonizing conclusion to what should have been a land-mark moment for us. But, that’s what the entrepreneurial journey is about. The ups and the downs. The highs and the lows. The peaks and the troughs.
Sometimes you win, sometimes you learn.
In business, mistakes are bound to happen. If you’re lucky, they won’t cost you anything (be it financially, emotionally, physically or otherwise). Often, they will cost something, but if you acknowledge your mistakes, understand where you went wrong, and put the appropriate measures in place to prevent those mistakes being repeated, the cost may have been worth it.
As it transpired, all was not lost regarding our sale. Our supplier was very understanding and we came to an arrangement that still allowed us to make a small profit. Not as much profit as we’d normally make, but at least we didn’t lose money. So, although it was an expensive mistake, it wasn’t as expensive as it could have been, and for that we are truly grateful.
At the end of the day, we must acknowledge that our chosen path is a roller-coaster ride and that just a deep low may follow a magnificent high journey, the next high will not be far behind. All you have to do is stay on the roller coaster.
Clare Appleyard is the co-founder of Katannuta Diamonds, a bespoke jewellery manufacture company based in Johannesburg, South Africa. Formed in 2007, Katannuta Diamonds has established itself as one of South Africa’s leading independent jewellers, with a strong reputation for excellent service, quality workmanship and competitive prices. Graduating from UCT with a Master’s degree in geology, Clare gained valuable diamond experience working for global giant De Beers, before expanding and developing her interest, knowledge and skills into the world of polished diamonds and gemstones. Passionate about diamonds, gems and consumer education, Clare is building a strong, proudly South African brand and is committed to helping fellow female entrepreneurs do the same.
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