jewelrer profit..how much?

[freddy2005]

let say an online vendor sells me $5k stone, how much did he make profit? not looking for an exact figure..just a ball park or range?

do online vendors have less markup than a store vendor?

 

[belle]

there are sooooo many variables that come into play here. too many vendors..too many variables. it is true that internet vendors work on very very slim margins. of course they are different than b&m stores. they don't have the overhead of primo location, no armed guards at the doors, no cases and cases of assets...the list goes on. entirely different and the prices will reflect this.

 

[jasper]

Freddy,

This might give you an idea of the markup of one jeweller:

http://www.niceice.com/trade_in_policy.htm

I do not know how closely Nice Ice''s trade-in policy matches its markup, but I assume that there is some relationship between the two policies. Other companies have different trade-in and markup policies.

You might also be pleasantly surprised by the quality and prices of local bricks-and-mortar jewellers. Some are very competitive on price; others compete on other features. For example, I posted my experiences with some Seattle area jewellers.

-- Jasper

www.folds.net/diamond

 

[gemmy1]

You would be surprised how little markup there is on certified diamonds among the professional online diamond merchants. With today''s technology it is possible for merchants to aggregate huge inventories of availbable diamonds with only a fraction of the overhead costs of the traditional B&M business model.

In addition to the reduced cost structure, the internet marketplace makes it possible for consumers to merely click from company to company, creating fierce competition among sellers.

Let''s say the online merchant uses a 15% markup (and they don''t in all cases)- after paying credit card fees (2.5%), shipping, setting the stone, appraisal, gemprint, and general overhead costs of running even a cost efficient business, there is very, very little (if anything) left in the way of net profit.

Most leading online companies don''t expect to make money with a certified diamond. They seek to make a customer and hope to make other sales (custom ring, bridesmaids gifts, fashion jewelry) down the line that will yeild a little profit.

Having said that, there are thousands of companies with websites offerring diamonds that are significantly overpriced relative to the professional online sellers. (There are also many showing low prices that can''t deliver) So you have to do business with a good company.

Today only about 5% of consumers are willing to purchase a diamond on the internet. Those that have the courage and take the time to shop around, are the beneficiaries of tremendous savings. In most cases they save sales tax too.

In the world of online certified diamonds it''s definitely a buyers market!