Milton Pedraza Is on a Mission to Promote the Power of Trust

By Victoria Gomelsky | December 09, 2024

What’s one thing a fine jewelry retailer can do in the new year to improve their business? That’s easy, says Milton Pedraza, founder and CEO of the Luxury Institute: “Reach out to consumers and clients in ways that are not just mercenary or transactional,” he tells JCK. “If you don’t build the elements of trust when you’re trying to provide value, you’re lost.”

Pedraza believes so strongly in the importance of cultivating trust, especially in the fine jewelry world, that he recently coauthored a book with Erica Wertheim Zohar called High Trust Worth: The New Currency of Business Is Not Money, It’s Trust.

“The two questions we as professionals ask ourselves throughout the day are: Who can I trust to achieve my business objectives, and Whose trust do I need to earn? Basically, who can I trust and who can I get to trust me?” Pedraza says. “We’ve always felt trust is so foundational for human beings and in business it determines your success or your failure. It’s what people told us is the most important element. So we did a ton of research on it.”

The result is a book that includes research findings, stories, and advice on measuring and building trust. “It is for everyone, but it’s focused on sales because sales move the organization,” Pedraza says.

The book illuminates the five elements of trust that Pedraza and Zohar pinpointed by asking wealthy consumers what they seek in a trusted adviser as well as interviews with luxury professionals across dozens of categories focused on what they do to build trusted relationships.

“The attributes are authenticity, expertise, empathy, kindness, and creativity,” Pedraza says. “You can measure yourself or a brand on a scale from 1 to 5. Am I genuine? Do my words and actions match? Am I an expert in my field? Do I demonstrate empathy? Was I kind? And am I being creative in the way I create an experience for you? Then we give you a whole system for building up your trustworthiness. And from those elements, you’ll know how to trust others or not.”

Royal Touch two diamond ring — *Toi et Moi ring in platinum with a 1.08 ct. fancy brownish pink diamond, 1 ct. fancy vivid yellow diamond, and 0.3 ct. t.w. round brilliants, $65,000; Royal Touch*

At heart, the book is aimed at helping readers become relationship builders. “Author Simon Sinek talks about how they build Navy Seals teams: They look for high performance and high trust,” Pedraza says. “You want a leader like that. And the same applies to a sales associate. Clients are looking for that. ‘I need to know I can trust you, but I need to know you’re genuine, that you get me; that you have kindness and generosity, just human to human; and that you’re creative about finding that perfect product for me and in how you deliver it. Then I trust you.’”

Pedraza believes for jewelry businesses that understand how to build their trustworthiness, “the outlook in 2025 remains solid,” he says. “I don’t want to say ‘strong’ because consumers are challenged. There’s been a pullback. Price increases, lack of newness—even the wealthiest consumers are asking, ‘Am I getting value for money?’

Royal Touch necklace — *Platinum necklace with emerald, spinel, diamonds, and pink, orange, yellow, and blue sapphires, $200,000;* *Royal Touch*

“Brands like Cartier, Tiffany, Bulgari—the stalwarts—are trusted in the materials they use, in the value that’s retained in those products. However, smaller jewelers are still at the heart of the industry because they’re good at building long-term relationships. While other categories like automotive, apparel, and accessories may suffer in the new year, I think jewelry has a pretty good shot of being a bright light in a sea of gray.”

Top: The cover of High Trust Worth: The New Currency of Business Is Not Money, It’s Trust