Our labs make the grade

By Anthony Bates

Retailers are often encouraged to source product from local manufacturers, but supporting the trade doesn't stop there. As ANTHONY BATES argues, the industry should support Australian grading labs, too.

I once received a phone call from a well-established retailer who wanted to discuss my grading lab. The retailer's perception was quite peculiar. He said, "I've been told all Australian certificates are inferior to overseas ones."

I asked why he thought this.

"I don't know - they just are."

I disputed his claim by questioning him as to why we were inferior and asked him to further explain his argument. After all, did we not have the same scientific equipment or certified master stones as overseas labs? Were our staff any less qualified? "So how are we inferior?" I asked.

"I was just told none of the Australian labs were any good compared to overseas labs."

As flimsy as this argument was, the perception that Australian labs are second-rate to those overseas appears to be shared by some retailers and their consumers. It's a perception that's changing, but more needs to be done to erase it completely. Australian grading labs need to be the first choice for diamond sellers and buyers.

Before moving to Australia, I worked in Canada. At that time, every stone had to be certified. If you sold a diamond, the customer wanted a guarantee that what they were getting was what they were being sold. The US was the same.

But when I moved here in 2003, I discovered there was little or no certification whatsoever.

Consumers did not ask for a certificate, because the awareness of certification was not there. That's where I saw a gap in market when we started-off.

Grading laboratories like GIA and HRD have been around for many decades, and have built their reputation and brand recognition over time. The first credible grading lab in Australia was established in the late 70s by Bill Sechos and Rod Brightman with my current business partner, Monica Crofts.

It wasn't until 2000 that DCLA introduced a standardised diamond certification business model.

Over time, several other labs including Auscert have opened around the country - providing reputable and reliable services and certificates to Australian clients - the same calibre of service and certificate that one would get from a well-reputed overseas lab.

Today, potential diamond consumers will go searching on the net, where they'll see a bevy of advertisements for overseas labs.

Heavy promotion by these labs means attention is being turned away from Australian companies. So when it comes to choosing a certificate, customers will want the one they've been most exposed to.

Large overseas labs are very good at promoting themselves, and Australian labs need to be the same. Not only do we have to build industry trust, but local labs need to brand the hell out of their business at a consumer level, so that a flick through consumer magazines will show Australian labs heavily.

Trust and reputation takes time to build, but it is happening. We are increasingly being requested to check or recertify overseas certificates, as the consumers themselves are requesting a secondary Australian certificate. This is a very good sign.

There are many benefits from choosing a local lab. Lower prices and faster turnaround aside, backing the local industry means a stronger, more profitable trade and more jobs for Australians.

Moreover, local labs are much more accountable for the job they do. An Australian lab has to face its clientele repeatedly. It is therefore essential that our job is carried out properly and consistently.

It is paramount to look after our customer and we've got to have integrity in our product. What happens when there is a dispute with an overseas certificate?

When using Australian labs, one can talk with the graders and owner directly. We encourage our clients to phone in for advice and ask us questions.

How reassuring must it be for customers to know they can contact the lab directly if they need to? Local labs are not a faceless conglomerate churning out diamond certificates only for profit. We care about consumer confidence and our reputations.

Australian grading certificates are becoming more and more accepted, but the one thing that still hinders this progress is the attitude that for some reason, an Aussie product is inferior to an overseas one. It is not. Choose a local lab and keep business in the country. We have a proud and world-class diamond grading industry in Australia - we just need more industry members and their customers to be aware of it, trust in it and promote it.