a 501(c)3 Non-Profit Education Organization
12 October 2017
Editorial: If RapNet® Sold Milk...the Movie
A look at the milk market if it was controlled by RapNet
Editor's Note: This is a hypothetical look at what the milk market would look like if it was run by RapNet using the same structure currently operating in the diamond industry. It is our good faith belief that RapNet does not, in fact, sell milk. However, what if they did.......
FADE IN
INT. RAPNET MILK STORE - NIGHT
A RAPNET milk store late at night. The RAPNET CLERK is behind the counter playing games on a cell phone. A woman, around 35 with dark hair wearing a frumpy robe over flannel pajamas rushes through the front door and approaches the RAPNET CLERK.
CUSTOMER
I need a gallon of skim milk.
The RAPNET CLERK slowly looks up from his phone
RAPNET CLERK
Sure, lady, which lab do you want your
milk certified by for quality?
CUSTOMER
Certified? I just need a gallon of skim milk
for my kids in the morning for breakfast.
RAPNET CLERK
Well, I can sell you a gallon of skim milk
not certified, but you won't know for sure of the quality.
CUSTOMER
Well, just give me a gallon of skim milk certified
by which ever lab the FDA says is the best.
RAPNET CLERK
No, the milk labs aren't certified by anyone. Anybody can
grade milk. There is no oversight or controls on the milk labs.
These are just guys that opened a lab to grade milk on their
own. They just do it for the money.
CUSTOMER
(looking perplexed)
Then why do I need my milk certified?
RAPNET CLERK
To make sure you are getting properly graded skim milk,
and not some other grade of milk.
CUSTOMER
But if these labs are not government certified....oh never mind...
Just give me the milk certified by the lab your company recommends.
RAPNET CLERK
That will be a gallon of skim milk certified by the GIA, then.
(starts to write a receipt)
CUSTOMER
(getting impatient)
As long as that is the most trustworthy lab, I
don't care.
RAPNET CLERK
(looking up)
Oh, no mam, they are not the most trustworthy, they are
are just the lab I am told to recommend because they
are our partners. The GIA has been caught certifying 1% Low Fat Milk
as being 2% Low Fat Milk. And they even had over 1000
Milk Grading Reports in India hacked by dealers to get better milk reports.
CUSTOMER
(now really getting frustrated)
Then why do you recommend them?
RAPNET CLERK
(somewhat lackadaisical, shrugging his shoulders)
Because they are our partners. We don't think
they are the most trustworthy, we are just in partnership
with them so we recommend them.
CUSTOMER
(in a low tone)
This is nuts. OK, just give me the GIA certified gallon
of skim milk so I can get out of here.
(reaches into her purse)
How much is it?
RAPNET CLERK
(writing sales receipt without looking up)
20 Back
CUSTOMER
20 Back? 20 back of what?
RAPNET CLERK
(still writing and not looking up)
The Rap Sheet
CUSTOMER
What's a Rap Sheet?
RAPNET CLERK
Our price list.
CUSTOMER
(getting really frustrated)
Look, just tell me the price of the gallon of milk
so I can get out of here.
RAPNET CLERK
(finally looking up)
I just did, lady. It's 20 back. Do you want it or not?
CUSTOMER
(raising her voice now)
I have no idea what you are talking about! I don't
care about your Rap Sheet just let me know how much
so I can buy the stupid gallon of milk and get out of here!
RAPNET CLERK
No problem, the price is 20 back like I told you.
CUSTOMER
So how the hell am I supposed to know what "20 back" means?
RAPNET CLERK
You buy our price list.
CUSTOMER
(now totally incredulous)
WHAT! I have to buy your price list to know
your price of a gallon of milk? Are you kidding me?
RAPNET CLERK
Nope, that is how its been done for years. You want
to buy milk, you have to buy our price list to know the
price, then you will know what 20 back
is and pay me that price. That's how it works.
CUSTOMER
So I have to buy your price list in order to
know the price of milk, before I can buy
a gallon of milk from you? How much is the price list?
RAPNET CLERK
$60 per month.
CUSTOMER
Just to know the price of milk? Why don't you just tell me
the price of the milk and we can forget the price list?
RAPNET CLERK
Can't do that.
CUSTOMER
Why not?
RAPNET CLERK
We make a lot of money selling the price list..
CUSTOMER
OK, just sign me up for your price list.
I buy a lot of milk every month and if I
need this price list to buy milk just sign me up.
RAPNET CLERK
OK, here is your price list, and the price is 20 back.
CUSTOMER looks over the price list to find the column for Skim Milk. Gets her phone calculator and does the math, and finally figures the final price of the gallon of milk at 20 back of the Rap Sheet list.
CUSTOMER
OK, but $7.00 for a gallon of milk is very expensive!
RAPNET CLERK
That's because its certified by the GIA. You can get
cheaper milk that is not certified but....
(customer interrupts)
CUSTOMER
Yeah, yeah I know, you have to buy certified
to know what you're getting. I got that. Just give me the milk.
RAPNET CLERK
Oh, we don't actually stock milk here, mam. We just have an
inventory list. Your milk will be shipped to you tomorrow
by one of our trusted milk dealers.
CUSTOMER
(now getting angry)
ARE YOU NUTS! I need the milk NOW! You
put me through all of this and you don't even stock
milk in this store?
RAPNET CLERK
No mam, there is no way we could stock that much
milk here. We have the database from the milk
producers and sell for them, but they ship to you
after you make your order. I'm sure you will be very
happy as we only work with the most trusted milk dealers.
(hands the customer a sheet of paper)
But here is your certificate for your milk. You can go online
and confirm the authenticity of your milk purchase.
CUSTOMER
(putting the money back into her purse in frustration)
Never mind! This is kafka. I will give my kids orange
juice in the morning.
Customer storms out the door. The RapNet Clerk shrugs his shoulders and goes back to his cell phone games.
FADE OUT
OK, this may sound a little extreme. Not for the milk story, you understand, but for the fact that this is how the diamond industry operates. In the diamond industry, this is reality.
For all of you diamond dealers, wholesalers and manufacturers in New York, Antwerp, Tel Aviv, Hong Kong, India and around the world having major difficulties with increasingly tortuous diamond markets, you should remember that you allowed RapNet to create this problem for you. YOU gave the Rap Sheet the power to take over the marketing and selling of diamonds. For decades the diamond industry had a highly efficient marketing structure that worked well for everyone. However, you folks abdicated your responsibilities. Simply stated:
* You folks put your diamond inventories online that allowed anyone with a computer to sit in their back bedroom in their underwear and become a retail diamond seller, breaking the established distribution chain that worked so well for over 100 years.
* You folks used the Rap Sheet to communicate prices to the point that it is now required to pay Rapaport a subscription fee to do business with you.
* You folks are the one's who stopped doing diamond grading and allowed the uncontrolled and unregulated gem labs to do your diamond grading for you, causing you to lose all control of quality grading of the products you sell.
That closing door you hear in your empty sales office is your customer deciding not to buy milk...and deciding instead to buy orange juice.
The current structure of the diamond industry is not sustainable. It is only a matter of how big a crash has to occur before you folks go back to being diamond professionals, and stop allowing RapNet, the GIA and others do your thinking for you.
Your future, the future of diamonds, is in your hands.
Well, right now it's in Martin Rapaport's and the GIA's hands but whether it stays there is up to you.
Robert James FGA, GG
President, International School of Gemology
a 501(c)3 Non-Profit Education Organization dedicated to the future of this industry
This editorial is available in the World Gem Society Archives, a part of the International School of Gemology Inc.
Visit the ISG to learn more about our world-class gemology and appraisal education programs where ethics and success go hand-in-hand. http://www.schoolofgemology.com
©2017 International School of Gemology Inc. ALL RIGHTS RESERVED. We encourage sharing and caring throughout the industry as long as all copyrights are left intact.
ISG
International School of Gemology
PO Box 1727
Helotes, TX 78023
