He is right. Sightholders have a far more effective way to deliver a message – the applications for the first sight ever in Gaborone, ostensibly an enormous festive event – were down by 40%. This may be mostly symbolic (and partly seasonal because of Diwali) as clients will pick it up at the next sight. But it says something. To “lock clients in” Mellier has instituted a novel way to secure sight sales: in any new sales year, the level of allocations will be based on the level of actual purchases of the previous year. So when you leave “goods on the table” – you are jeopardising next year’s allocations.
DTC brokers expect that there will be several, maybe many, clients who will just forego the pleasure. Just a few days ago, Philippe and Varda received an e-mail from a major Israeli DTC sightholder from which we quote just a few lines: “I write to inform you of my decision to relinquish my position as a De Beers sightholder as from next sight. My decision was finalised after lengthy consideration and careful reflection. The diamond business has been the foundation of my family’s profession for nearly 70 years….”During a visit in New York some time ago, the respected dean of the Big Apple’s diamond community, mentioned that he was losing on his boxes. Mellier replied: “Then don’t be a sightholder. For every client that leaves, there are three others eager to join.” That might have been true just a few months ago; today, this isn’t so simple. In any way, in the old days, no CEO of De Beers would give such a haughty reply. They would want to find out what the problem is. There would be no pride in causing hardships to one of the DTC’s oldest and most loyal clients.
