Milton Pedraza, founder and CEO of the Luxury Institute, believes trust is the most valuable currency in business, especially in the fine jewelry industry. He emphasizes the need for retailers to engage with clients in ways that go beyond transactions, focusing on authenticity and value.
Trust as a Game-Changer
“If you don’t build the elements of trust when providing value, you’re lost,” Pedraza asserts. He coauthored the book High Trust Worth: The New Currency of Business Is Not Money, It’s Trust with Erica Wertheim Zohar to explore how trust drives success.
Pedraza outlines two essential questions for professionals:
- Who can I trust to achieve my business objectives?
- Whose trust do I need to earn?
The book is backed by extensive research and provides actionable insights into cultivating trust. “Trust is foundational for human beings and business—it determines your success or failure,” Pedraza says.
The Five Elements of Trust
Based on interviews with wealthy consumers and luxury professionals, the book identifies five key attributes of trust:
- Authenticity: Do your words and actions align?
- Expertise: Are you knowledgeable in your field?
- Empathy: Do you understand and connect with others?
- Kindness: Are you generous and humane?
- Creativity: Can you deliver a unique and tailored experience?
Readers can evaluate themselves or their brand on a scale of 1 to 5 for each attribute and use the book’s system to enhance their trustworthiness.
Building Relationships That Last
Pedraza draws parallels to Simon Sinek’s approach to building Navy Seals teams, where high performance and high trust are paramount. “Clients need to know they can trust you. They’re looking for genuine interactions, kindness, and creativity,” Pedraza explains.
The Jewelry Industry’s Trust Advantage
While economic challenges persist, Pedraza believes the fine jewelry industry has a solid outlook for 2025. He notes that brands like Cartier, Tiffany, and Bulgari thrive because they are trusted for their materials and enduring value. However, smaller jewelers play an equally critical role by fostering long-term relationships.
“Even the wealthiest consumers are asking, ‘Am I getting value for money?’ Smaller jewelers excel in building that trust and connection, which keeps them at the heart of the industry,” Pedraza says.
A Bright Light in a Challenging Market
In an era where trust determines success, Milton Pedraza’s insights offer a roadmap for jewelers to stand out. By prioritizing trust and meaningful relationships, businesses can thrive in a competitive landscape.