The million-dollar idea: a diamond ring for single women
"Some things were just meant to be," says Ruta Fox, the proud owner of a boutique business that was jumpstarted by Oprah Winfrey. Here is her story of turning a novel idea into a viable business and, yes, getting lots of help along the way.
As sole proprietor of New York-based Divine Diamonds, Fox markets the first known diamond ring made for single women. She calls it the "Ah Ring," standing for "Available" and "happy." Worn on the pinkie and priced to sell at $295, the ring is a 14-karat, white gold band of 11 round, full-cut diamonds (about a quarter-karat altogether), with "Ah" engraved inside.
"Engaged women have their engagement rings and married women have their wedding bands. But there was nothing on the market specifically designed for single women," Fox says.
Ruta Fox
In the United States alone, there are about 55 million single women today, many of whom are "available," "happy" or both.
Opportunity rings; she answers
Fox meandered into being an entrepreneur, basically as her own best customer. In the summer of 2000, Fox, an advertising copywriter, left her job at a New York branding agency. Freelance work slowed and jobs turned scarce. "It was like a door closing," she says.
In the fall, she bought herself a diamond pinkie ring. "I've always bought jewelry for myself and I've always loved diamonds. This ring was fresh looking. I liked the look," she says.
A friend liked it too, and asked Fox to get her one. Then a few more friends had to have one. All of the sudden, Fox began toying with the idea of becoming a marketer and supplier. "My friends are all single, happy, great women," says Fox, who grew up in Los Angeles and has lived in New York since 1994. "They all wanted the ring. I figured maybe I could write part time and try this cottage industry. The ring was cute and the quality and value was there. The price was right. Maybe it would build into something."
After years of working in the fashion industry, at menswear designer Ermenegildo Zegna, Saks Fifth Avenue.com and Bloomingdale's, Fox knew people all over town in the style business. She also had a connection in New York's wholesale jewelry district.
She began adding a bit to the price of each ring to make it worth her while. Then she hand-delivered the bands, making sure of a perfect fit. After selling a half-dozen or so, a friend reminded Fox that she was a branding pro. The ring needed an identity.
"I sat down one day and cooked up the hook of the Ah Ring," Fox says. "I knew it was a big idea right away."
Getting Oprah's endorsement
By November, Fox had cashed in $3,000 in savings to buy more rings. She created a press kit, with a folder and a press release. She began packaging the rings in velvet red pouches. Editor friends at fashion magazines invited her to their offices to present the rings for sale to staffs. One of those was "O," Oprah Winfrey's magazine.
Suddenly, plans for a business were pushed into high gear. An editor sent off a ring to Oprah, who loved not only the jewelry but also the idea of women celebrating being single and buying diamonds for themselves — no need to wait for men to get rewards.
Oprah included the Ah Ring in her "O List," a popular column that features Oprah's fave raves each month.
"I got the call that said Oprah loves the ring and it would be in the March issue," Fox says. "The editor asked for my 800-number and my Web site and I said, 'Oh, I have another call. Let me call you back.'" Fox had neither.
A fast start and a slight stumble
Monthly magazines hit newsstands about three weeks before the cover date. Fox had roughly six weeks to put a business into place that could respond to who-knew-how-many orders.
"I kept thinking this is my shot, the brass ring," she says. "And this was Oprah's own recommendation! I started dialing everyone I could think of to ask questions about merchant bank accounts and fulfillment houses. I kept a notebook by the phone and logged in everyone's advice."
Then Fox swung into action. She set up Divine Diamonds as an S corporation, trademarked the Ah Ring name, hired a fulfillment house to maintain phone lines and take orders and created a Web site (www.divinediamonds.com). She also opened a UPS shipping account, ordered velvet pouches, and planned to process orders herself.
When the issue of "O" appeared, she was ready. "My phone rang off the wall because of Oprah. I got hundreds of orders."
A month later, she hit the entrepreneurial wall. She had orders aplenty but no cash for inventory. On the advice of her accountant — who said she'd go under otherwise — Fox borrowed $30,000 from her mother. She paid it back, with interest, in a month.
Some customers waited six weeks for delivery, but at the end of the rush, she honored every order.
Getting to the next level
Fox had a lucky strike, built on well-honed marketing instincts. But she faces the same decisions and obstacles encountered by all baby businesses. Now, she's at a gratifying crossroads.
Divine Diamonds reeled in an amazing $1 million in sales in its first 12 months and, as of early 2005, Fox had sold 5,100 rings, ringing up $1.5 million.
To build on the "O" buzz, she hired a publicist for a while ($3,000 a month), which yielded nationwide press from more than 100 media outlets. Fox has appeared on TV's "Extra," netted online promotional deals with Sony Pictures ("Mona Lisa Smile" and "Christmas with the Kranks") and benefited from sightings of high-profile celebs wearing Ah Rings. She's currently planning to write a pocket-size companion book, "How to Be Available and Happy," to market with her ring. "That monthly PR contract was a huge nut, but it was well worth it," says Fox, who handles routine publicity on her own nowadays.
Since the Ah Ring debut, Fox has expanded her "lifestyle jewelry" concept. In 2002, too busy for a planned vacation to Greece, she created the Tranquility Cross. "It reminded me of the Greek blue sky and sea. It's very peaceful. She's also produced the Snowflake Necklace ("no two are alike") and plans to soon offer diamond earrings shaped like daisy petals. "I don't have a name yet but it will have something to do with, 'He loves me; he loves me not.' "
Technology does matter
So far, working out of her home with desktop electronic tools and a trusted accountant, Fox has managed her own, tapping temporary skills when she needs them. She's convinced that personal, hands-on service is a key to her success. "I e-mail every customer to tell her when to expect delivery. I also talk to many of them personally."
But she has begun to leverage technology. The Web site, originally only a placeholder, has recently been upgraded to a fully functioning e-commerce site. In addition, Fox got help to transform her customer lists into an efficient and up-to-speed database. "I should have more customer contact and I'm planning to send out an e-mail newsletter," she says.
Her continuing challenge is to draft a business plan that charts a course for further growth. "I need to speak to someone who can help me take the business to the next level, whether that's an opportunity for licensing, a partnership or a capital investment, I'm just not sure."
One thing is for sure: Fox has the business and marketing savvy to take her business a long way. "My dream is to have every one of the 55 million single women in America wearing an Ah Ring," she says, adding that there's no reason to stop at the border. "Single women around the world would want an Ah Ring. This brand has international potential."