Skeie's Jewelers stays small, develops trust.

Byline: Sherri Buri McDonald The Register-Guard

Back in 1974, the owners of Eugene-based Skeie's Jewelers were considering selling to the Zales Corp. when the younger generation swooped in and rescued the family business.

Cousins Rick Skeie, then age 26, and Steve Hamaker, 36 - both grandsons of Ole Skeie, the store's founder - bought the business.

Skeie said he couldn't fathom the idea of Skeie's becoming just another link in a corporate chain.

"It really bothered me," he said. "It just wouldn't be the same place."

The business that Skeie's has built over the past 83 years cannot be replicated, Skeie said.

Its 21 employees are experienced and knowledgable. The store has four gemologists certified by the American Gem Society - a quarter of the 16 gemologists with that certification in Oregon, Skeie said.

Suppliers value Skeie's for its high volume and financial security.

"There's a red book of all the jewelers in the United States," Skeie said. "It lists a store's volume and how well it pays its bills; we do well in both."

Suppliers also respect the store's work. Skeie's watchmaker, Ted Fleming, for example, is one of only 300 watchmakers in the United States that can buy parts directly from Rolex.

"That's how Rolex controls who works on its watches," Skeie said.

Over the decades, the busi- ness has learned from its mistakes and is gradually eliminating them, Skeie said.

It has overcome a mountain of challenges, from the threat of low-cost cubic zirconia eroding diamond sales to the menace of big box stores undercutting prices.

"There's always a challenge and a reason to do business with us," Skeie said.

The biggest reason, customers say, is because they trust Skeie's.

"They've been around so long, you know you can trust them," longtime customer Ruth Harris said.

Harris said her husband started "buying the bling bling" for her from Skeie's more than 15 years ago.

She readily admits that she can't tell solid gold from gold plate, let alone tell the quality of diamonds or sapphires.

"You've got to trust your jeweler," she said. "I feel comfortable with Skeie's. I feel that I can totally trust their judgment about what I'm getting."

Skeie's enjoys a loyal customer base and a reputation for honesty and quality crafts- manship.

"The bedrock of this business is honesty and integrity," Skeie said.

He said that he takes pride in the large number of customers who left Eugene as long as 10 or 15 years ago, but who still do business with Skeie's.

The biggest money makers at Skeie's store in Eugene's Oakway Center are diamond rings and watches. But it also has a busy repair and custom work shop at the back of the store.

"These old-line stores, what they call guild stores, have disappeared in a lot of towns," Skeie said. "They didn't disappear because nobody wants them," he said. "They disappeared because the family retired."

That's another big challenge looming in the distance. Skeie, 53, and Hamaker, 63, wonder who will take the reins when they're ready to retire.

Hamaker's children are grown and living in Portland and Seattle, and Skeie's children are still young - ages 13 and 16.

Skeie and Hamaker would like to pass the business on to the next generation, Skeie said, but it might not necessarily be to family members.

"What's most important to us is that the store maintain its same standards," Skeie said.

He said if it came down to selling the store to owners who didn't share his family's values, or closing the store, he would close it.

"I'd rather close it than sell to someone who schlocked it up," Skeie said.

Skeie's grandfather Ole Skeie, who had trained as a watchmaker in the family's jewelry business in Norway, brought those values to the United States.

In the early 1900s, he set up the first Skeie's Jewelers in Roundup, Mont., north of Billings.

When a jewelry shop in Eugene came up for sale in 1922, Skeie bought it and moved his business, eager to be part of a rapidly growing, vibrant community.

His store was at 927 Willamette St. until 1947 when it moved farther south to 1027 Willamette St. The shop has been "a pretty good barometer of where Main Street is," in Eugene, Skeie said.

Skeie's operated a second store at Valley River Center when the mall opened in 1969.

In 2002, Skeie's closed the downtown and Valley River Center stores and moved to Oakway Center, where it has a sleek, modern shop.

Skeie said he likes operating just one location. There are no delays shuttling jewelry between a store and a repair shop at a different site. "With everybody working together, the fabric of the organization is so much tighter," he said.

Skeie's has been asked to be at Washington Square, Clackamas Town Center, Beaverton Town Square and downtown Portland, Skeie said. "I have absolutely no desire to put up another store; this is plenty," he said.

The store carries a mix of traditional and modern jewelry, from a $25 silver necklace to 3- or 4-carat diamonds. "As far as you want to go, we'll take care of you," Skeie said. "But if you have $25 to spend, I want to have something for you."

The store also has a small gift department selling a range of items, from Baccarat crystal vases to fabric clutch purses.

Skeie's attitude makes the store more accessible than many high-end jewelry stores that seem to thrive on their snob appeal. "I hate the snobbishness of some jewelry stores," Skeie said.

Skeie's avoids that by hiring nice employees, he said.

"Everybody deserves to be treated with respect," Skeie said. "If you look in here, people are comfortable and it's busy all the time."

SKEIE'S JEWELERS

Owners: Steve Hamaker and Rick Skeie

Family members involved: Cousins Rick Skeie, Steve Hamaker and Mike McNutt

Employees: 21

Sales: Not disclosed

Founded: 1922

Web site: www.skeies.com