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Diamond Prices


researcher
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I've been monitoring the online diamond price list for some time now and I have found that the exact same diamond is listed at different prices for different online retailers. A couple of hundred dollars is understandable, but I have found some prices to differ by more than $1000. My question is, are some companies just settling for less profit or do some companies get better deals. What I have been told is that the diamond comes from a supplier where a retailer can obtain the diamond on memo until they sell it. How can a retailer afford to sell a diamond for so much cheaper.

 

Should the online retail prices be comparable to local stores? A local store is asking for approximately $500 more than UD. Does this sound fair or would you recommend buying from the online jeweler? I have seen the diamond already and like it. Also, two less known online dealers are asking less for the same diamond. Are all the retailers listed on the diamond price list reputable? Any information regarding this post is greatly appreciated.

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You’re correct that often the same diamond will often offered by several dealers for a different price. There may be a slight variation in their costs based on their own history with the supplier, their shipping location and similar logistical details but most of the difference you are seeing has to do with the costs of additional things they add to the deal and the amount of profit they are willing to work for. 30 day returns, ‘free’ tradeup privileges, convenient displays, friendly payment terms, access to certain designers and setters are all examples of things that make one store better than another, even when selling the same stone. There are others. These are not separately billed but they aren’t free either.

 

The bundle of benefits that you want may not be the same as the next guy and whether it’s worth it to you will depend on your own shopping style and what you consider to be valuable. Ask the dealers what makes THEM better than their competition and then listen carefully to the answer. If all they have to say is ‘low prices’, take a hike. If what they tell you isn’t of interest to you, or you don’t think it’s worth what they’re charging for it, shop elsewhere. As you've noticed, this is a very competitive business.

 

Neil

Edited by denverappraiser
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You’re correct that often the same diamond will often offered by several dealers for a different price. There may be a slight variation in their costs based on their own history with the supplier, their shipping location and similar logistical details but most of the difference you are seeing has to do with the costs of additional things they add to the deal and the amount of profit they are willing to work for. 30 day returns, ‘free’ tradeup privileges, convenient displays, friendly payment terms, access to certain designers and setters are all examples of things that make one store better than another, even when selling the same stone. There are others. These are not separately billed but they aren’t free either.

 

The bundle of benefits that you want may not be the same as the next guy and whether it’s worth it to you will depend on your own shopping style and what you consider to be valuable. Ask the dealers what makes THEM better than their competition and then listen carefully to the answer. If all they have to say is ‘low prices’, take a hike. If what they tell you isn’t of interest to you, or you don’t think it’s worth what they’re charging for it, shop elsewhere. As you've noticed, this is a very competitive business.

 

Neil

 

Wait, so you're saying some retailers will offer free trade-up privileges? Which website companies offer such a service, if you don't mind my asking? I suppose this would be yet another reason to go with an extremely reputable company which is going to be around for a long time.

 

Thanks

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I didn't say it was free but yes, several will offer trade-in services, including some of the online only dealers. Check the 'find online jeweler' link at the top of the page or look at some of the dealers who participate in this forum. They tend to be a knotch above the rest. It would be a conflict of interest for me to recommend a particular dealer but the ones with trade-in deals tend to be pretty proud of them and they post it prominently on their websites.

 

Neil

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Hi Researcher!

 

You've stumbled across the myriad of companies using "information technology" to sell diamonds.

 

Although it's quite efficient for the cutters, I feel that it does not serve the consumer well at all.

Cutters LOVE the idea of being able to sell diamonds "sight unseen"

This allows them to move stones no dealer with sight would buy.

 

The consumer is totally in the dark, because it's not really made clear that the "IT" sellers have absolutely NO idea what the diamond looks like.

Generally speaking, the best, most desirable diamonds are purchased by "stocking dealers" when the cutter finishes them.

The ones dealers don't want to buy end up on lists.

 

It would be impossible for an "IT" ( internet technology) company to offer a service like "Trade up"

To allow clients such privileges, a company must stock diamonds- to be able to buy them back on trade ups.

 

 

We charge ZERO for trade up privileges- as I suspect my "stocking" competition does for free as well.

 

 

Pricing: you will find the same diamond listed by many companies- at differing prices.

If a consumer was able to purchase the same diamond in a walk in store, say within 15% - I'd say buy from the store.

The reason is that a store- or a website that owns a lot of diamonds- is generally a more stable business.

This aspect is very important to buyers of high dollar diamonds.

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