Building a Legacy in Diamonds ft. Gabe & Danny Arik | Coffeez for Closers with Joe Shalaby

20 Jun 2025 · 48 min

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Coffeez for Closers - Episode Summary

Episode Title

Building a Legacy in Diamonds ft. Gabe & Danny Arik

Podcast Host

  • Joseph Shalaby, Broker and CEO of E Mortgage Capital Inc.

Guest Speakers

  • Gabe and Danny Arik, Founders of Happy Jewelers
  • Brothers and entrepreneurs from a family with a legacy in the jewelry business.

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Episode Overview

In this episode, Joseph Shalaby engages in a conversation with Gabe and Danny Arik, who have transformed their family's jewelry business into a respected national brand. The brothers discuss their journey from humble beginnings in Istanbul to becoming prominent figures in the luxury jewelry market in Los Angeles.

Key Themes Discussed

  • Family Legacy and Origins
  • The Arik brothers inherited a legacy from their father, who started a manufacturing business in Turkey.
  • Established Happy Jewelers in Los Angeles to transition into retail.
  • Business Growth and Strategy
  • The brothers emphasize the importance of reputation, customer service, and social media presence in scaling their business.
  • They took calculated risks with inventory and embraced social media early on, which set them apart from competitors.
  • Customer Experience
  • Happy Jewelers focuses on creating a unique shopping experience, treating every customer with respect regardless of their purchase value.
  • They highlight the importance of being present in their business and maintaining authentic relationships with customers.
  • Market Dynamics
  • Discussion on high-ticket items like luxury watches and the risks involved in trading and selling such products.
  • Insights into market fluctuations during COVID-19 and how they adapted to economic changes.
  • Challenges and Lessons Learned
  • The brothers share experiences of taking financial hits on certain purchases and how they managed losses.
  • Importance of maintaining integrity and family values in business.
  • Future and Technology
  • Discussion on the potential impact of AI in the jewelry industry versus the irreplaceable value of human craftsmanship.
  • Plans for expanding their business while remaining authentic to their family's legacy.

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Key Takeaways

  • The Importance of Reputation
  • In the jewelry business, reputation is key to trust and success. Happy Jewelers has built a strong brand based on authenticity and quality service.
  • Innovative Marketing Strategies
  • Early adoption of social media and influencer marketing played a crucial role in their growth.
  • Navigating Market Changes
  • Understanding market dynamics and being able to adapt quickly is essential for sustaining a luxury business.
  • Family Values in Business
  • The Arik brothers emphasize the importance of family values, honesty, and hard work passed down from their father.
  • Future Aspirations
  • They aim for continued growth while ensuring their business remains true to its roots and values.

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Final Remarks

Joseph Shalaby closes the episode by encouraging listeners to follow Happy Jewelers on social media and their website. He emphasizes the unique experience of buying jewelry from a family business that prioritizes customer relationships and maintains a high level of integrity in their dealings.

Connect with Happy Jewelers

  • Website: [Happy Jewelers](http://www.happyjewelers.com)
  • YouTube: Happy Jewelers
  • Social Media: TikTok, Instagram, and other platforms under the name Happy Jewelers.

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This episode provides valuable insights into the dynamic jewelry industry and the importance of blending tradition with innovation to create a lasting legacy.

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Transcript

Automatic transcript. May contain errors.

0:00In this business, it's common to inherit a store. but Gabe and Danny Eric, they inherited a legacy. And you can buy a million dollars with a product on a signature. You walk out with the product and you do terms afterwards. Built on their father's vision from Istanbul to LA, Happy Jewelers is now one of the most respected names in the business. Not just because of what they sell, but because of how they treat people. Our store is different again. People like to come into the store to shop for the experience. We talk inventory, immigration, legacy, risk, family, and what it means to stay grounded in a business obsessed with flash.

0:40From Rolex to Richard Mill, from third world hustle to worldwide luxury, welcome to Coffees. Thank you for having us, Joe. Thank you guys for being on the show. I appreciate you guys both jumping on. Today we're going to just jump right into it. I like to start every show off the same way with every single owner. Guys, what's your morning routine? You probably have different ones, so four kids each. Yeah, four kids each. I mean, obviously, when it's during school time, every morning I drop off all my kids, come home, hang out with the wife, go to the gym for a little bit, and then head into work.

1:16And you got to get here early. You get here at 8 o 'clock every day. No, me and Danny get here a little bit later. I mean, after, like, you know, we've been doing this for so many years, dude. so like after 25 years being in the business um uh i get here at like 9 30 ashley but our day starts you know our day starts at like 6 a.m phone calls emails yeah text messages setting the whole crew up and everything like that but yeah i wake up take the kids to school i know it doesn't show but i actually do work out we all have to man we're we're entrepreneurs you know yeah we got you got to take care of your health it's it's good for mental health too yeah i mean not even for physical so you guys have been doing this for 25 years now 25 years yeah but our family's been in the business for over 50 years so we we come from a manufacturing background so my dad um owned and operated a large manufacturer and started in turkey and then came to downtown la and then about 25 years ago he founded happy jewelers because he wanted to get into the retail space and that's when uh gabe started that nice uh now gabe you guys have always been here right right here yeah we've Always been in Fullerton.

2:23My uncles had a couple of stores here in Fullerton and they started their business in 1990. And then I and I worked for my uncles in Fullerton and for my dad. And then in 2000, when I was 18 years old, I decided to open up my own shop, Happy Jewelers. that's when it got established but me I've been you know growing up since I was like six seven years old I've been around jewelry and the business all my life both grew up in the business now how do you know you're not just carrying the torch but you're kind of like rewriting the rules of jewelry you know we're very blessed me and Danny both we work very hard so a lot of people in the industry has they have a lot of respect for me and Danny and our family because you know reputation in the jewelry business is everything and um people like other jewelers uh around the world will always ask us like hey you know how do we like that been in business for longer and that are older than me and my brother they're like hey like they'll ask us for advice and we always give them the best advice and uh number one thing i always tell them like hey the success of happy jewelers is very importantly people say like you know definitely customer service and you know being presence on social media and having good inventory that's very important you guys are dominating the space when it comes to social media in comparison to your competitors who is it that like which one of you is the one who had the foresight to really just take social media by storm it was me but now like danny is the face on social media um eight years ago it was like eight years ago that's funny because you're like you know we started doing like you know social media posts like on instagram and stuff like that i'm like dude what is this you know and like this guy got excited because you know one two leads came from it he sold a couple engagement rings he's like oh my god this is amazing went and hired a whole crew started like blasting it but that's what makes us different we're aggressive yeah you know when we see something happen, we're willing to take that risk.

4:32And that's what kind of sets us aside from other jewelers and other people in the space, you know, because in our business, inventory is key, right? You have to have inventory, but to have inventory, you got to spend the money. You know, we're not a, it's kind of hard to explain. It's not like any other business. You want inventory, you know, a small little tray of goods can cost you, you know, a hundred grand, 200 grand to fill up the store. You need a few million dollars. And that's what kind of sets me and Gabe apart since we were young. We were always willing to take that risk, but we also worked hard behind it to kind of fulfill it and minimize that risk, essentially.

5:10So what is it that gave you that foresight to take those big risks? Like, you showed me a tranche of watches. Like, how do you know that that's going to pencil out? We have confidence, you know? And we know what we're capable of. Confidence and also we... I mean, we're smart, obviously. I don't want to say we're smart. I shouldn't say that. I mean, we understand after being in the business for so long, we understand the space. We know what sells. We know at what price we have to buy the goods at. And we know the outlet to put it into because we have the outlet for it. We have the customer base.

5:45I mean, I think we have a great sales team. I mean, we have a sales team of like 20. We have 20 people that are selling our product in store all day. And we ship worldwide. Even though we have one store, but we really reach out to the whole country. We ship out about 150 to 200 boxes a day. Just people will call us from New York, Florida, Iowa. Hey, I saw you on Instagram or I saw you. I watch you on YouTube. I'm looking for this watch. I mean, some watches from$3 ,000 to$1 million watches we're selling just over the phone. How can you do that? it's because of our credibility when when you know I don't know like for me if I was to buy a really really high-end piece just like without even seeing it you got to really trust that person or that establishment that you're buying it from I mean it's crazy like I would have never thought I could be selling like you know a$300 ,000 watches to a guy in Idaho that's a big watch collector.

6:52He's looking for a paddock Nautilus. I mean, I'm not saying anything about the state of Idaho. It's just like you can't really, who's going to have that paddock? Yeah. So he has to do his research. He has to buy it from a reputable place, either from, you know, Southern California or, you know, New York or Florida. And people always choose us because of our presence online and because of our reviews online. And they just trust the name. happy jewelers if it comes from happy you know the watch is going to be in perfect condition and the paperwork paperwork is going to be legit it's you know it's a big deal when you're wiring three hundred thousand dollars and then you're getting the watch in two days this is a business of not just jewelry this is like art you know people look at this like art so what's like the biggest myth about this business that people don't really know because it seems like everyone wants wants to be a part of this but what's you know what's the biggest myth you think that people should know yeah everybody wants to be a jeweler right like they just like they all see all these the glitz the glamour yeah exactly celebrities yeah big chains and like everybody wants to become a part of it it just it takes a lot of money you know we've been in business for 50 years i mean we you know we've been in fullerton for 30 years but we've been in the business for 50 years you We're very, very blessed.

8:15We have money to back it up. You can't just open up a jewelry store with a couple hundred thousand dollars. It's very, very hard. Obviously, you have money. I mean, you need the funds to be able to do it. But the jewelry and diamond business is one of the probably only businesses left that you can walk in and you can buy a million dollars worth of product on a signature. And you walk out with the product and you do terms afterwards. whether you paid in two months, three months, four months. So within the jewelry business, you have to have the backing of your suppliers, whether it's site holders, whether it's this guy or that guy.

8:52If you don't have that, like today, let's say you said, Danny, I'm looking for a ring. I need a half a million dollar stone, and I want two to three to pick from. Not any jewelry store is able to just bring in three, four stones for you in that size of that caliber just for you to view. You have to have the name. You have to have the reputation. and you have to have the trust of the supplier to be able to send you that item on memo or consignment just for your client to see. That reputation and that brand authority you guys have established over decades. Decades. Decades. It didn't just happen overnight.

9:25No, not at all. I mean, sometimes it's like, you know, you have a client, he wants a million-dollar stone or he wants a half-million-dollar watch, but the guy wants to see it, right? Obviously, like, he doesn't want to spend a million dollars or he wants, like, we have the ability to bring that in because of our name, but that's because of, yeah, you said decades of keeping your word. One thing I'm intrigued about is how the transition of COVID, I mean, COVID, we saw watches double, triple in value. Now they're coming back down. How did that impact your business? Was it positive? Was it negative?

9:58Did it allow you guys to see a boom? It was a positive, of course. Yeah, I mean, it was a positive when watches went up, but what a lot of people don't realize is within us dealers that we were also paying big money to get that product in. So it's not like, you know, yeah, okay, we had the watch at 20 grand. We bought it at 20 grand and we were selling it at whatever, $22 ,000,$23 ,000 before COVID. And then that watch went up to 35, 40 grand within a year, year and a half. We didn't hold that inventory. We were selling that inventory and we were rebuying it. So it got to a point where sometimes it was a little frustrating because you would have a watch that you'd buy for$25 ,000.

10:31You sell it for$28 ,000 and then to replace it, it cost you$30 ,000. You know, like. The prices were moving like housing, you know. Yeah, they were just going up. It was crazy. I mean, it got to the point where sometimes, like, you would, like, my brother was like, you need to turn the inventory faster. You need to turn the inventory faster. I'm like, I don't really want to because by the time it sits there for a couple days, by the time I bring it out, it went up$10 ,000. So I'm like, what's the rush, you know? I mean, with us, that's, like, the thing about, like, me and my brother and our team.

11:00We have a huge team, production team, watch team. You know, you buy an item. It doesn't matter. you buy it for 10 bucks and you sell it for 12 bucks. Our margins are very, very small, but we just move it. You know, I don't, we don't buy something for it to sit in the safe. You got to buy it and sell it. And COVID prices were going up like every day. You know, you buy something for 10 bucks, you sell it for 12. You know, a month later, you were replacing it for 14. It was nuts. But our motto is to buy and sell and that's it. But also what we did after COVID, you know, prices were like, I don't know.

11:36Let's give a good example on a 5980 rose gold on a bracelet at the height 450 ,000. We had a few that we were stuck, not stuck with. They were like, you know, that we owned. So we took a lot of big losses. a lot of the people in the industry you know they have money to back it up but they didn't move it fast enough you know we took the loss if something costs us$400 ,000 and it went down to$300 ,000 we're like alright we're going to reprice it $300 ,000 take the loss and just move it bring the money in just turn it and burn it that's just the way it is I didn't know that they collapsed like that oh huge I think that's like one of the biggest ones how much is it right now?

12:21$160 ,000? There's an AP perpetual black ceramic skeleton that I have right now that we're selling for about around$330 ,000 or$335 ,000. At the top of the market, that watch was$850 ,000. And people were buying it. And people were buying it. And people were stocking it. If I had that watch and let's say I paid$700 ,000, a dealer would pay me$800 ,000 for that watch. And what is it right now? Right now it's in the$330 ,000,$335 ,000 mark. What do you think was the – why did that happen? There was so much money. There was so much wealth built. Yeah. And also like crypto too. The crypto space really, I mean, made overnight millionaires.

12:59I mean, some guys made tens of millions. Some guys made hundreds of millions, but also within businesses, right? I'm sure you guys saw it too within your business. Yeah. We were surging like crazy. Yeah. I mean, COVID created wealth, right? Before COVID to now, that$100 is not the same$100. No. Right? And$100 is like 30 now. Yeah. So I think that's what created it. It's just the money wasn't the same. You know, before COVID, it's like you sold a$40 ,000 watch. You're like, wow, like, hell yeah. Like, give yourself a pat on the back. You know what I mean? Like, that was a good sale or like a$30 ,000 ring.

13:34Where during COVID, it was just like, it was daily. You know, multiple times a day, 40, 50, 80, 90. It was like, almost like money wasn't real. Money lost its value during COVID. Money lost its value. Yeah. Right? I mean, did you guys? Well, Morgan Institute, we all know. boom the rates went down two and a half percent yeah yeah exactly money was free yeah so with your dad starting the business he started in istanbul so you know he's what what is it from your dad's legacy that you guys kept sacred and what is it that you guys moved away from me and my dad and danny what my dad taught us is like you know uh to be very appreciative be respectful don't cheat anyone treat your employees like you would treat your family members take care of your employees and take care of your business be there every day in our industry if you just open up a shop and you're not at the store taking care of it it's not going to work you've got to go to work and me and Danny come to work every single day and deal with customers and deal with employees if you're not there and you're not taking care of your business nothing is going to succeed and my dad used to always tell us that.

14:50You know, you want something to succeed, you have to be there, you have to put the effort into it because we've seen a lot of kids take over empires that now today aren't worth anything because they weren't there, they didn't take care of the business, it was just given to them and, you know, they ate all the money and all the money's gone. So, I mean, I think that's for any business. You know, you just gotta take care of it and it goes back to grade school, right? You treat others the way you wanna be treated, there's no secret recipe to business you know what I mean yeah it takes a little bit of brains it takes a little bit of being strategic but at the end of the day if you take care of people that word is going to spread like wildfire right you have a customer come in you know the other day a guy came in yesterday and he bought a watch from LA he came in for me to authenticate it and I knew the person he bought it from I took him in the back I authenticated it for him I sized his watch the guy was so appreciative and he asked me a question he goes why were you so nice to me I didn't buy the watch from you.

15:49You didn't profit. You came in, you had a smile on your face. You're the business owner. I could see you have like 70 employees and you're sitting here, you're talking to me and you did all that stuff for free for me. I said, because, you know, when you walk out of here, you have that feeling. You're probably going to tell 20 of your friends or whoever you talk to today, tomorrow, the next day, you're probably going to be like, man, Happy Jewelers is the best. Happy Jewelers is the best. And I said, that's probably going to bring me 15, 20 customers. Yeah. And over time that builds. And from those 15, 20 customers, when they come and you take care of them, you have a smile on your face, eventually you're gonna become successful and that's any business and that's what we took from my dad.

16:24Tradition is one thing, what have you guys changed from your dad's legacy? Definitely yeah, so like you know me and dad, I feel like me and my brother took take bigger risks than my dad. I would hate to say it yeah yeah yeah. I mean sometimes like he would come into the store because we still have the factory when he used to walk in and like he was just always very proud of us and when Whenever he used to see everybody, he's like, you know, because he's a Middle Eastern dad. You know what I mean? I'm sure, Joe, you have Middle Eastern dad. He's like, wow, so many employees. You know, you got to like, you know, too much.

16:59Right? Like, he's like, with these boys, you never know. If I don't keep them grounded, they'll come home with a helicopter one day and they'll park in front of the house and tell me, dad, it was a good deal. Don't worry. We're going to make money. So now we've entered the A of AI and now there's AI design in jewelry. Now, are you guys leveraging AI design? Are you guys still doing like handcrafted craftsmanship? So, and how is AI changing the landscape of your business? Look, I know there are some jewelry companies out there that are using AI. For us, we do all of our designs by CAD, but it is by a person behind the camera doing it Because, I don't know, like, AI for the jewelry business and the watch business, like, even like, you know, we have a website, a watch listed online, right?

17:47And a customer reaches out. We take that conversation off the web and we put it to one of our salespeople because it's a personal experience. Yeah. I don't see a computer being able to sell, you know, an engagement ring to somebody, which I'm sure it can. I'm sure it can. But I just. we haven't you know honestly we haven't like used a lot of ai in our industry yet definitely it's going to take over a lot of the industry but it's going to be very difficult for the jewelry industry and the watch business i i just don't see how it could take it over the value is in the hand making of the product right and the craftsmanship of it so in the watch business i don't see ai affecting it because a person is not going to want to buy a half a million dollar watch by a person that made it from a robot they want the history behind it yeah right and for the diamond business i mean ai i could see it probably doing stuff for a diamond setting and maybe like yeah for sure diamond setting and making the designs but i just again like you know crafting the piece it has to be done by a human you know what i mean like just i i just don't i don't know I mean, there's no way all these, you know, setters and jewelers that we have.

19:01I don't think it. Look, I know a machine could set the stones inside the piece. But in making it, there has to be. Why? I just don't. I don't see it. I don't want to believe in it because I don't know. You're like, we don't want to be taken over by robots. Exactly. By robots. Yeah, exactly. I mean look, I think AI has incredible, I mean I don't think we realize the power of it and what it can do. But do I think... What are the conferences saying that you guys are going to? They don't talk about it. No, I mean JCK was there, were they... They had a few conferences, they don't even know yet. I just don't like, they don't even know what it could bring to the jewelry industry and the watch business.

19:44You know, there's no like really big confidence. maybe like you know ai could create you a design that you want but i i don't think you could craft it you know what i mean like to sit and make it into a piece of jewelry i don't want ai to take over for sure because like i don't know every customer that comes in to buy a wedding ring or an engage ring i think they just want that special touch to be done by a human right you don't want something to be mass produced by a machine then it doesn't make it special anymore yeah right i I mean, I just, again, like, I'm not crazy. Like, I have the, we spend a lot of money on technology, on, like, you know, on our, like, programming, on everything.

20:24We do, but I just don't like AI. I don't like AI. One thing for sure, early adoption is crucial, whatever industry. You know, for us, we're adopting AI, anything I hear about. Yeah. No, I mean, early adoption is good. Early adoption of, like, when we started doing social media, when like Instagram was nothing, we started like doing Instagram right away. Like not many, even not, not many jewelers had Instagram. We were doing it and we were like one of the first jewelers to work with influencers and collabing with like social media influencers. We were, we were one of the first actually, but you're right.

21:02I mean, yeah, just, even though I hate AI in the jewelry industry, we have to adopt to it immediately. But again, like, I just, I don't know. You can use like for you right a paddock fleet watch. How can you watch you can't do it? Yeah, the watch business. I don't think AI will affect it at all Maybe for these like smaller brands that are mass producing watches prefer high-end Swiss watch I have no worry with AI. I don't think anything's gonna they all they're always gonna be handcrafted They're always gonna be handcrafted because that's that's what you're paying for right? You're paying for somebody to sit there and handcraft the item but for a jewelry piece I mean, I'm looking at my staff over here, and they're setting them.

21:39I just don't see robots there. Setting them, you know what I mean? Can you imagine? I don't know. Take it back to my brother's point in the jewelry business. I think it's the meaning of somebody sitting there and hand-setting your piece and making a special for you. Now, with you guys taking Happy Jewelers National but the brand still feels like it's a personal brand, what are the behind-the-scenes tensions in growing fast while staying authentic? I mean, look, growing fast is not easy, right? You're going to have a lot of hiccups. You're going to have a lot of road bumps. You're going to have to do a lot of changes within your business to accommodate to the growing.

22:21But the family side of the business, the authentic side of the business with us will never change. I mean, we only hire, I mean, even to our employees become like family, right? It's not like a name on a piece of paper. You know, when we hire somebody, we bring them in and we make sure they have the same values as us because walking into a jewelry store is very intimidating right so you always want to be able to walk in with a smile on your face and um yeah that that part will never change i'm never worried about that you know me and danny are here every day at the store talking to every customer it doesn't matter if you come in here for like a you know 20 dollar hey fix my uh rope chain or you're here spending a million dollars we literally treat everybody the same uh we take care of everybody and um you know every customer that walks through the door we treat him the same it doesn't matter you know who you are and that's what makes us who Happy Jewelers is because we treat everybody the same and we always talk about like a lot of private equity companies will approach Happy Jewelers they want to buy the name they want to be partners with us but I just I can't let it go I won't let it go because it's my family business it's my dad's legacy but wouldn't that help you scale your business?

23:36It would, but I just, they would take too much control. They would take too much control. I think they would like, you know, get rid of half the people that work here. A lot of people ask that like, oh, well, why wouldn't you guys sell a portion of the company and scale? But what makes Happy Jewelers special is the fact that we're here, right? 30, 40 % of the deals wouldn't be able to get done unless me and my brother are actually here doing the transaction because we're different, right guy will come in he'll buy a two hundred thousand dollar diamond we'll take a watch and trade we'll take gold and trade we'll take diamonds and trade i mean we make the deal happen if you go open up a store and you know we pay sales tax in multiple states because we do so much business out of state right we do the the volume we do we probably do it for 30 retail stores out of one location but if you open up a store let's say in las vegas we're very famous We have a lot of customer base in Vegas.

24:30If our customer walks into Vegas, I guarantee they'll walk in one time to Happy Jewelers over there, and they'll make the three-and-a-half-hour drive over here because it's not the same feeling. It'll be completely different, very corporate run, and we don't like that. So what's it like running a business together with your brother? Well, when we were younger, we used to butt heads a lot. We were at each other's throats. But as the years went by, because we used to both run everything together, right? diamonds jewelry watches we kept it all the same but as the years went on he kind of took over the the diamond jewelry manufacturing space and I kind of took over the watches and I mean it's good along he stays in his lane I stay exactly I stay my lane like you're the face of the brand now and now on social media yeah on social media yeah I would say I'm more of the face on it but within the store, I would say Gabus.

25:24Even though I'm the better looking brother, I should be the face on social media too. He's not good on the camera is a problem. Yeah, I'm a better talker. Yeah, for sure. You immigrated at what age? You came from Turkey? Yeah, Turkey. I was born in Turkey at 13. Okay. 13 years old. And Danny was four. Yeah, yeah, we came at the same age. You were four? Yeah. Yeah. Now, what do you think the biggest mistake is that you guys made with Happy Jewelers, and how did you guys recover from it together? Mistakes in a sense of, like, within the business, we didn't really make too many mistakes, but mistakes within, like, you know, sometimes you make a mistake on a purchase, right?

26:07I mean, you just got to learn from it. Yeah. Yeah, like, you know. Definitely, we do a lot of that. It still happens, like, you know. What's the biggest loss you guys took on a purchase? I would say like maybe$150 ,000 on a watch. But we take it. We take it like a man and take the loss. Don't tell dad. Yeah, exactly. Don't tell dad. Like$150 ,000 to him back in the day, how he's processing that$150 ,000. It's like bankrupt them. It's part of business, right? We learn from it. So like sometimes, you know, I still make mistakes till today. Sometimes I take risks. Like, you know, I was showing you the watch in the back, the tourbillon.

26:42Yeah. Right? you know there's very few percentage of jewelers or watch dealers that will actually buy that watch and stock it and put the money up for it but there's certain watches where it's not like a rolex right there's no value to it it's just kind of like you're what you think it's worth right because there's very there's micro bands out there there's independent watchmakers where you know the retails will say 30 grand but the watch is worth 200 grand right and when you're buying it you're kind of gauging the market like at that time like all right i mean i guess i'll pay 80 grand for it and I think I might be able to get 110 120 whereas you buy it and they're like oh man yeah that one's not a good model you know the the industry didn't really react to it well it's worth 50 grand you know but then there's times where you buy it for 80 based on your gut and it's worth 150 it can happen but those are risks that you have to take and you get the reward or you don't get the reward which we mitigate our losses obviously we're you know we're sharp enough to it's a tough business because I when I was talking to watch resellers they told me like oh like a company like Jacob and Co has no resale value.

27:42No. And why is that? Like he's able to sell his watches, you know, at jewelry stores, brand new 200 grand, but the resale market's like 10. Yeah. I mean, look, so the resale value on Jacob's is, you're going to lose probably half the value when you walk out with it, when you buy a brand new. But if you look at Jacob's marketing, the guy's a genius. Yeah. Right. You look at every celebrity, you know, you go to these like Instagram pages, like, you know, celeb watch spotter and all these Instagram, and when they're showing these celebrities wearing the watches, if you really look at it, out of the 10 posts they do, three of the celebrities are wearing Jacob and companies.

28:16The guy is very smart. It's like Richard Mill, right? Why did Richard Mill explode recently? And it's not one of the even oldest watch companies because they're marketing geniuses. They know exactly how to put the watch on and they know exactly how to do it. And that watch is no different than the Hublot you said you're not impressed with. I know exactly. And Hublot has been in business for way longer than Richard Mill. I think Richard Mill has been around for 20 years. And, you know, Richard Mill and Jacob and Company, their marketing is incredible. No brand in the world has done what Richard Mill and Jacob and Company has done.

28:51It's incredible. I mean, they did an amazing, amazing job. Yeah, they just blew up like during COVID. Well, yeah, he's been in business for a very long time, you know, but his watch brand just exploded, exploded. And I actually love his watches. I really, really do. They're very unique and one-of-a-kind with everything he does. He does do one-of-a-kind pieces. Oh, he does, yeah. Do you guys carry Richard Mill, Jacob & Co? We have literally every brand you could think of at Happy Jewelers. That's why people come see us from all over the world. People will fly in from England, Kuwait, Dubai, Germany, India, China, Singapore, Malaysia, just to come to Happy Jewelers, just to see the inventory that we have.

29:40Because you can't just walk into a watch store and try on a watch. It's crazy, right? Unbelievable. But it's unbelievable. Yeah. Go ahead, Nane. Yeah, I mean within the watch space people will fly all over the world because you know We have the Richard Mills for half a million in stock 400 ,000 in stock 200 ,000 in stock. I mean we've had Richard Mills for 1.5 million 2 million You guys have those here Richard Mills. Yeah, we have them in the back in the safe I mean we keep them in the vault. I just don't see the value in those I Just don't understand. I don't know how people I don't understand how people do it.

30:13I mean look Richard Mill is how can I say it? It's almost like a symbol of wealth. You just got to wear the watch and it just shows money. Now you guys are selling status symbols in a world obsessed with image, right? That's what we sell. How do you guys stay grounded in authenticity when everything around you is screaming like flash? How do you remain authentic? You know, it's funny. People ask that. They go, well, how do you feel? You have one of the most successful jewelry. I don't really think about it. You know, like I don't really think about like when I sell a watch for 100 grand, I don't think like, oh, my God, I just made, you know, 40 grand or 50 grand.

30:49I don't look at, you know, my profit at the end of the month and say, oh, my God, I made this much money for us. It's just it's a business. It's a thrive. It's the high of it. You know, me and Danny, we both come from very humble beginnings. And we're told to this day, we just, you know, take care of our family, go home every every night, wake up in the morning, come to work and go back. And, you know, we're just humble. And I think we'll never, that's one thing about me and Danny. Everyone will tell you, it doesn't matter what we do and who we are or how much we have. We'll never change. Yeah.

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31:22That's our third world mentality. Yeah, exactly. You know, it's like. No, yeah, exactly. I mean, to be, you know, even thinking about it, like, you know, I see these people like out every night leaving their kids like home, like, you know, from this gala to another gala and to this and that. I'm like, dude, it's crazy. I mean, we do, at Happy Jewelers, we do a lot of fundraisers. Like, you know, we donate to a lot of very good charities in Orange County and L.A. County. But, you know, we're part of it, for sure. We do everything we can to donate, but we never show up to any of it. We send our employees, actually.

32:03It's funner that way, in my opinion. Yeah. That's why we got a lot of kids. Yeah, exactly. Yeah, for sure. Yeah, right. So big luxury brands have unlimited budgets. What's the one thing you two do differently than the big giant companies? In the industry, because we're here every day, you could walk in here with, you know, let's say your Panerai watch. Like, hey, Gabe, I'm tired of this. I want something else. I want to buy something for my kids or my girlfriend or my wife. You could trade that in and pick up a necklace and walk out with some cash like under like five minutes. Very, very easy.

32:42Nobody will do anything like that. You walk into a jewelry store, any jewelry store, you walk in with your watch. Nobody's going to trade you for some cash and some jewelry. It's incredible. Like you could walk in here. I would say like what makes us different is we make deals happen here every day. You could walk in here with like, you know, your 10 carat diamond and walk out of here with three watches and some cash and, you know. Yeah. I mean, from that aspect, yeah. And also from a marketing aspect, I mean, we do a lot of YouTube. We do a lot of IG. But our main thing is we work a lot with a lot of influencers and we work with a lot of organizations like, you know, the MLB Housewives.

33:26You know, we have anytime they're over here playing the Angels or the Dodgers, you know, we'll invite a bunch of the Housewives. from the major league baseball to come over here do a sip and shop you know we have champagne hors d 'oeuvres they'll come in you just won the championship buy me a ring yeah we actually did the the championship ring for the wives and the staff right yeah for the 2024 world series um they won the dodgers won the championship obviously that's my team you guys did the rings no we didn't do the men's rings we did the the ladies rings so we we custom designed it with all the wives and uh we literally uh custom made it we'll show you a picture of it so you could put it up too so all the wives got a uh real serious rings and they got it before their husbands or their boyfriends they're really cool rings that's cool yeah let's fast forward 10 years how are you guys grooming the next generation that's a really good question i um i'm like you know me and danny both we bring our kids to work like just like the way me and danny were going to work with my dad when we were you know seven eight nine ten year old I'm bringing my daughters my 17 year old 13 year old and my boys are coming to like they're ten and seven they're coming to work so they could see what we do and take it over you know Danny brings his daughters I do yeah I mean they'll walk around with the ring trying to sell it to customers you know they count the money they look at the product you know we explain to them what it is you know whether it's a round diamond, princess cut diamond, whether it's prong or channel.

34:59I mean, look, my kids can do whatever they want. If they want to take over the business, I mean, I would love for that. If they want to go be a doctor or lawyer or whatever it is they want to do, as long as they're happy, it's going to make me happy. But for grooming the next generation, I mean, our business is here to stay and it's not going anywhere and it's always going to be a family business. And I think we've already disrupted the jewelry and the watch industry. We want everyone to succeed in the business and we help a lot of jewelers that are a mile away from us. They'll definitely call us and be like, hey Gabe, what do you think about this?

35:32Because we've been around for so long. They know we're very approachable people, so we help the people in the industry to be successful. I give them advice all the time. Do this, do that. Happy Jewelers customers are going to come to me. Their customers are going to go to them. Everyone needs to eat, and we want everyone to eat. So that's really important. Now I've got a couple questions pivoting a little bit towards family because we all have kids and one thing you guys were blessed with is a dad came you guys are both third world immigrants as am i and we we've maintained that third world mentality to this day how are you guys instilling that same level of grit and tenacity and grind into your children my kids always get mad at me because i lecture him a lot you know what i mean because, you know, we're...

36:21He's a lecturer. Yeah, I lecture his kids too. I don't know, like, again, like I came here when I was 13 years old. I saw a lot. I want my kids to be very humble, to work, you know, just to be good people and be good to other people. That's really important. You know what I mean? Respect and be appreciative. That's why I put it, like I tell my kids that every single day so they get tired of me, I think. Like that, every time you talk to us, you lecture us. I mean, look, we teach our kids the value of money. You know, we go to church every Sunday. So we distill that big time into them, which I think, you know, if they grow up within the church, God willing, they'll be, you know, good people.

37:08You know, that's the main thing. For us, it's just like be good people, treat others well, and be respectful. I mean, it's really the key. Yeah, I mean, we try to do the best we can. But one thing we struggle, you know, like I grew up poor, you know, like my kids did not. So, you know, my kids get to play football games with people that won, you know, NFL quarterbacks. It's like you want to give them the best. They're being coached by like the bus, right? Yeah, like I never had once a private coach. Yeah, you want to give them everything. You want to give them the best. and sometimes, you know, my wife gets mad at that, me too, because she'll, like, you know, we'll go to Barnes & Nobles, you know, and they'll pick out toys.

37:51And at Barnes & Nobles, the toys are really expensive. My wife's like, why would you get it at Barnes & Nobles when we can go somewhere else? Or why would you get them eight books when you could get them four? Why would you do this? And I'm like, I don't know. She's right. Yeah. But, you know, I'm there once a week. Yeah. You know, so it's like. Yeah, me and Danny definitely, we're very, like, we like to spoil our kids, and our wives definitely keep us grounded. me and Danny are both married to two sisters and we're very blessed with her two brothers married two sisters exactly we're very blessed with our wives they're very really really amazing women also Assyrian also Assyrian yeah man you guys kept the bloodline yeah yeah yeah Ashley for me too for his kids too my kids we definitely want to marry within the community it's not an arranged marriage it's like you know keeping it in the community now let's pivot a little bit to goals what's a personal goal that you guys have for yourself a business goal that you have for the business and a family goal you go first you're gonna steal mine or what let me see what you're gonna say i want to make it better uh personal goal of mine is to you know continue to be healthy continue to work out continue to be good to my family raise my kids raise them right a business goal of mine would be to you know continue to grow it continue to you know my my section is the watch section it's to continue the watch section grow it get more customers give more knowledge to the space within watch brands that don't have much content and knowledge out there is my vision for it you know to focus on the micro brands to focus on other brands that people don't necessarily understand fully and to kind of educate that customer on what they are and the meaning behind what these watchmakers are making.

39:42Because some of these guys are making four or five watches a year. Some of them make ten watches a year. What was the other goal? Family goal. Family goal. Raising my kids right. I mean, in reality, it's like raising my kids right, keeping them within the church and keeping them within that straight line would be a blessing for me. I mean, honestly, aside from business, aside from personal growth, forget all that. As long as I'm at an older age, God willing, if I'm 70, 70, 8580 if I live that long to see my kids grow up correct Family successful and happy everything else doesn't matter. That's right.

40:18Yeah, like and then a business school business school would be to continue to you know grow the watch and grow the watch business with unhappy jewelers and Get into different avenues of the watch space because you know, it's like Rolex paddock Richard Mill AP Cartier Panerai We kind of have those dominated. I don't wanna say dominate. That sounds very That sounds very conceited. Conceded? I want to say we kind of have that market On lockdown. On lockdown. Focusing on the microbrands and really getting into those independent watchmaking. Who are some of the microbrands that you guys have your eyes on?

40:50You know, there's companies like Debithoon. There's companies like MB &F. You know, those kind of companies where they're making very few. You know, FP Jorn, those kind of companies where they make very, very limited watches. So it's kind of like, it's not like a Rolex Submariner or AP Royal Oak where, you know, you have a watch and you're competing with, you know, 200 other retailers that have the same exact watch as you. You know, you have a Debe Thune and you have an FP Jorn. And if the client wants it, they're going to have to come to you because you're going to be the only person with that watch in the world.

41:27The business goal is for us to expand more within our area, though. Like I'm just trying to like when we started was 2000 square foot. Then we took next door. It became 4000 square foot. So we're trying to like expand the store to make it bigger. And we have a huge online presence and we have we do really good business on like online, just like people, you know, going on our website and just clicking to buy the item. We do really well in store, but I want that the Internet online business to be bigger. So I'm working on that where we're both working on that. So maybe within the next two years It will be like, you know, it will be a lot bigger, but in order for me to do that I need more space.

42:16Do you need more space because I know jewelers now are just all purely online a lot of them, right? Yeah, they are but our store is different again People like to come into the store to shop for the experience, but there's you know So, again, we have a huge website. It's great, but it needs to be, I want, like, people to just click it and buy it right there. You know, so I want that to be, I want that part of the business to grow more. Family goal is, like Danny said, you know, we're big family people. You know, I want, like, my kids to, you know, again, I'm not very pushy, but hopefully my kids will, you know, take over the business, you know, they'll come here more and hang out with me more.

43:04That's all we want. Yeah, exactly. That's why I became an influencer, just to hang out with my kids more. Like, they think I'm cool. Their friends think I'm cool. No, dude, yeah, exactly. Like, people, like, my daughters, they're like, oh, my God, you know, their friends always, like, you know, they follow Happy Jewelers. We get all these celebrities, like, country singers and, like, you know, Like guys like freaking Morgan Wallen comes and hangs out with us. Morgan Whalen? We do all this stuff, right? Like because, you know, every girl, like everybody loves Morgan Wallen. Yeah. You know what I mean?

43:34I would love to meet Morgan Whalen. You have his haircut. You kind of look like him. So, yeah. So we do a lot of stuff like that. I mean, like that's, I mean, we literally have like every country singer. I can't think of everybody's name, but we have. So they're like, you know, I want my girls to be like, oh, my God, dad. You're like, but their friends are like, oh, my God, like your dad is so cool. Morgan, he's hanging out with Morgan Wallen. But you know what I mean? Like, they don't think you're cool. Yeah, they don't think you're cool. But is that the way it is? Yeah, for me, too. I hang out with all the YouTube.

44:03I do content. I'm like, you know, I'm a YouTuber. And all the kids are like, oh, he's so cool. Yeah, dad. It's like, yeah. Like, no, dad, get away. So it's like that at everybody's house. It's not only at our house, too. Okay. That's cool. That's too funny. So that's kids, family. And then your goal, your personal goal. My personal goal. I mean, my personal goal is like, you know, I would say I think I do everything I want in my life. You know what I mean? So like maybe work out more. Actually, when I go to the gym, I like to go to the sauna. I need to start working out. Just get a sauna at home.

44:42He calls me. He goes, I'm like, what are you doing? He goes, I'm at the gym. I'm like, are you at the gym or are you in the sauna? I'm in the sauna. I'm like, dude, that's not the gym. Like, no, I did a couple workouts. He'll go like three, four minutes and do a couple weights. And then he goes straight into the sauna. You're right. You should get a sauna at home. Yeah, yeah. It's a thousand bucks at Costco. Yeah. Last question, guys. When you're in front of the pearly gates, what do you think God's going to tell you? He's going to say, I mean, I hope, right? I hope he says, you know, God willing.

45:10I hope he says, you know, Danny, you helped a lot of people in your life. You never cheated anybody. You're always a good person. And, you know, I'm not perfect. Obviously, you know, I sin. But I hope my goodness is better than my failures. But I always strive to be a good person. And I'm an honest person. And, you know, I hope God sees that as well. Because, you know, the gates are narrow. And my goal in life is to make it through them. You know, that's everybody's goal to, you know, to make it to heaven. so for me too like you know i'm a sinful person just like everybody else for sure i just hope like all the i i do more good deeds and good stuff than more than i sense so i you know that's it yeah that's a good question that's like shit i'm like shedding bricks up here that's that that's like when someone asked me that question i was on a podcast and he asked me like what's the question you ask everybody at the end of your podcast and i told that question then he asked me that question i'm like oh man let me ask you that question joe now you tell us you put us on the spot yeah and and i i broke down i started like because your life flashes yeah in front of you you're like think about everything what do you and then you know and i answered the same like i i you know i i exist my whole existence is just to do god's work yeah like everything i do is like god I'm here.

46:38You gave me all these talents. Like, I don't know why you let me get through all this other stuff and just use me in whatever way you can use me. And like, whatever I could do to do your work, like, I don't care about money. You gave me more. I came from dirt. I, you know, I just released a book, Rising from the Sand. Like I came from the poorest part of Cairo. So you, and now I'm in Newport beach, you know, like I get, I got, you gave me more than I ever wanted. So, you know, let me do whatever you got, need me to do. I'm going to go ahead and I'll tell other CEOs and I'll tell other people like I'm just God's servant like I do God's work first he does my work first so I'm a Coptic Christian like I preach it just like they do because I'm allowed to yeah you can't do anything to me you gotta be proud of it yeah are you kidding me I mean you gotta you gotta scream it on the top of the building all right thank you guys thanks for being on the show and if people want to connect with you how do they find you on social media um you know Happy Jewelers they can check us out on YouTube at Happy Jewelers as well on our website Fullerton, California five minutes away from Disneyland and on our website www.happyjewelers.com but we're pretty much everywhere to be honest TikTok Happy Jewelers just type in Happy Jewelers you'll find us love it love it guys Happy Jewelers the legends of the jewelry space make sure to connect especially if you're looking for your next jewelry piece thank you guys thanks for watching

48:00Thank you.

From the publisher

In this episode of Coffeez for Closers, we sit down with Gabe and Danny Arik—brothers, entrepreneurs, and the power behind Happy Jewelers, one of the most respected names in the jewelry world.

Born into a family legacy that began in Istanbul and continued in L.A.’s diamond district, Gabe and Danny turned a humble manufacturing background into a nationwide brand trusted by celebrities, collectors, and everyday customers alike. From taking risks on inventory most jewelers wouldn’t touch to becoming early adopters of social media and influencer marketing, they’ve redefined what it means to run a luxury jewelry business with authenticity and heart.

We talk about:

- How they scaled from Fullerton to worldwide recognition

- Why reputation in the jewelry game means everything

- The truth behind million-dollar watch trades and the real risks no one talks about

- Raising kids with grit, balancing family legacy, and why they’ll never sell out to private equity

If you’ve ever wondered what it takes to make it in a high-stakes, high-trust business—or how to keep your values intact while building an empire—this one’s for you.

Top producers at E Mortgage Capital are earning more per deal—with faster closings, better tech, and no junk fees.

👉 Learn more: https://join.emortgagecapital.com

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