PASSING THE DIAMOND STUDDED BATON

David Nygaard will be thrilled if it snows in Times Square on New Year's Eve. If at least three inches of snow falls at that site, the customers who make holiday purchases at his jewelry store will receive refunds through a weather insurance policy.

"I hope it snows," said Nygaard, owner of David Nygaard Fine Jewelers at Hilltop East in Virginia Beach. "We've already purchased the policy and we'd love to put it to use."

If several inches accumulate, the hundreds of people who will likely make purchases in December will be happy. And there is nothing Nygaard likes better than making customers happy. Not even the glow of a fine diamond brings him as much satisfaction as the glow of a smile on a customer's face.

"I enjoy working with people," said Nygaard, 34. "Diamonds are my vehicle for working with people. If I don't know diamonds then I'm no good to people."

No doubt about it, Nygaard knows diamonds. He is a graduate gemologist from the Gemological Institute of America in California. He has been designated a master gemologist appraiser by the American Society of Appraisers, a certified gemologist appraiser by the American Gem Society.

Nygaard has been learning about jewelry since he was a boy helping his mother collect stones in California's Death Valley, near where the family then lived. As a hobby, Sandy Nygaard used the stones to make jewelry for friends. In 1978, she began selling her work at art shows. Son David was her helper.

In 1983, the year after David graduated from Kempsville High School, his mother opened Sandy's Touch of Gold, a jewelry store, at Norfolk's Waterside mall. In 1986, the year that David graduated from the College of William and Mary with a degree in business management, Sandy opened the Hilltop store. David worked at the Waterside store for two years and became the general manager of both stores in 1988.

At business, he was a natural.

"The entrepreneurial spirit is characteristic of our family," said Nygaard, who is currently pursuing a CPA. "My first business was in fifth grade -- supplying pencils and erasers to the other kids."

In 1990, the family decided to close the Waterside store.

"Waterside had changed in concept and we really didn't make a good fit anymore," said Nygaard. "The Waterside store catered to a T-shirt crowd looking for costume jewelry. This was just not our type, although we sold some out of necessity."

The Hilltop store, also known as Sandy's Touch of Gold, concentrated on diamonds, especially large diamonds, the specialty of the house to this day. In 1995, Nygaard bought his mother out. Today both of their names are displayed on the storefront but the title Sandy's Touch of Gold will be phased out soon.

Nygaard relies on a business plan that guided him through the recession of 1990, when 20 to 25 percent of jewelry stores went out of business. The plan still serves him well: Business has tripled in the last three years. According to the plan, he organizes the business in the areas of expertise, inventory and promotion.

"A lot of people who sell diamonds don't know what they're selling," he said. "Part of our plan was to get everyone knowledgeable in our specialty. Out of the eight people who work here, six are certified gemologists and the others are working toward that goal."

On the store's inventory: "It took a lot of our resources to develop one of the most comprehensive inventories in the area. If a customer wants to see a four-carat diamond, a lot of jewelers would say come back in a couple of days and then they'd have to borrow one to show. A lot of local people in the market for a large diamond have flown to New York to buy one. We have what people want right here."

As far as promotion goes, Nygaard, who has doubled his advertising budget in the last few years, aims to be memorable and consumer-friendly. The best example is his clever New Year's Eve promotion. On a day-to-day basis, he guarantees customers that if they are not satisfied, they will be invited to resort to one of the three R's: refund, replace, repair.

Nygaard loves his work. "I think a small business should be an extension of your life. It has to be consistent with your character."

He calls his job "wonderfully diverse. One day I'll be working with customers, the next day I'll be analyzing our financial statement, the next day I'll be appraising $60,000 diamonds."

His favorite part of the business is the people. "The heart of our business is our repeat customers," he said. "Many of our customers are good friends and I enjoy the fact that our lives touch one another. It is hard for me to stay behind the scenes when old friends come in."

His customers tend to fall into three groups: young men getting engaged; mature, professional women; older couples who are celebrating an anniversary or getting married for the second time. Nygaard often serves as a consultant to customers who are purchasing a large diamond. Like his mother before him, he designs some jewelry himself.

Nygaard works 45- to 50-hour weeks, bending his schedule to fit the needs of his family -- Jan, his wife of six years, and the couple's three sons, ages 3, 18 months and 3 months. Managing a business and raising a young family at the same time is extremely difficult, but Nygaard is determined to be there for his children.

He is also determined to be there for his community. He sits on the board of Virginia Musical Theater and has worked with the Cystic Fibrosis Foundation. He and his wife were youth group directors before their children were born. Now they conduct Bible studies in their home.

"If someone in the community needs something for a charity, our store will always be there for them," he said. "My goal is to have a career that enables me to be a blessing to my family, my community and my church."

Copyright 1998 © Inside Businsess^TM

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