What is reasonable in this odd situation?

[Zoomie]

I am looking to buy an E-ring. I have searched numerous vendors both online and B&M, but I could never find the right diamond. So, I decided to take my searching a bit further and directly contacted some diamond cutters to see what they had listed in inventory. I found one cutter who has a diamond I am very interested in. I was elated to finally have the end of my diamond search in sight, when I was dropped the bomb that the cutter would not sell the diamond direct to me as I am a consumer without a diamond broker license. I offered to pay for the diamond in cash and travel to pick the diamond up in person to no avail. The cutter is, however, willing to sell me the diamond through any licensed broker I choose.

The diamond is an ideal cut 2.06 ct, E SI1.

So here is my dilemma, I know the price the diamond cutter is charging for the diamond. I have done all the "leg work" in researching what type of diamond I want (thanks Pricescope!!!), and then finding this exact diamond I want to purchase. What should I consider a fair profit margin for which ever company I decide to purchase the diamond through? I understand brokers have fixed and variable costs to consider in their pricing. From my perspective I am willing to pay cash upfront for the diamond, so in my mind virtually ever dollar I pay above the whole sale price is pure profit (ie I will not "cost" the broker much at all to sell this diamond).

Any and all thoughts are appreciated!

 

[strmrdr]

Around 8% is average lowest internet markup.
I dont think anyone would want too mess with it for much less than that.

 

[denverappraiser]

What country are you in? In the US, diamond brokers don’t require a license other than the basic business license that has to do with sales taxes and that pretty much every business has to have. That, of course, doesn’t mean that he will sell to you and it’s a good sign that the cutter is supporting his distribution partners but something about this story doesn’t ring quite right here. If he’s not willing to sell to you, how did you get access to his inventory and prices?

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

 

[Zoomie]

The diamond cutter is called Hope. They have various offices around the globe, but their NYC office is the one I have been in contact. I simpley called/emailed them to get information on their inventory. They have several very quality diamonds. I do not understand entirely why they will not ship the diamond directly to me, but there company policy is they will only ship businesses not directly to consumers. I know they do business with at least three reputable dealers on pricescope. So, given that I am trying to find someone to broker the deal. I live in the US.

 

[Garry H (Cut Nut)]

1. They will not sell to their customers customers because you will not buy $10,000,000 worth each year.

2. Who ever you buy from has the right to set their own margin. You don''t. But you do not have to deal with anyone who charges more than you are prepared to pay.

3. You should choose a vendor who agrees to do this for you, and choose or not to negociate if you want a vendors value added services.

There are 2 Hope companies that I know of - both are top cutters.

 

[stebbo]

I''m surprised you got as far as to see their inventory.

Date: 10/26/2007 12:33:52 AM
Author: Garry H (Cut Nut)
There are 2 Hope companies that I know of - both are top cutters.

Not a very confidence-instilling name for a cutting company...

 

[diagem]

Date: 10/23/2007 9:24:45 PM
Author: denverappraiser
What country are you in? In the US, diamond brokers don’t require a license other than the basic business license that has to do with sales taxes and that pretty much every business has to have. That, of course, doesn’t mean that he will sell to you and it’s a good sign that the cutter is supporting his distribution partners but something about this story doesn’t ring quite right here. If he’s not willing to sell to you, how did you get access to his inventory and prices?

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

I agree...

If this cutter "was" supporting "his" distribution partners..., I would expect him to give you a list from whom you can purchase directly....

 

[Sharon101]

Date: 10/25/2007 10:13:59 PM
Author: Zoomie
The diamond cutter is called Hope. They have various offices around the globe, but their NYC office is the one I have been in contact. I simpley called/emailed them to get information on their inventory. They have several very quality diamonds. I do not understand entirely why they will not ship the diamond directly to me, but there company policy is they will only ship businesses not directly to consumers. I know they do business with at least three reputable dealers on pricescope. So, given that I am trying to find someone to broker the deal. I live in the US.

One of the things you may be over looking is that the diamond is not yours. The fact is you are not in a position to be allowing a seller to make his margin on you. Diamond sellers would be able to sell this diamond to any one. If the diamond is good, they do not need to sell it to you at a discount when they could sell it to anyone. Its a small industry, the main sellers would be aware of the diamonds being cut without you pointing this one out.

So, I dont think you are in the drivers seat here...unless you have a friend who is a diamond seller who would do it as a favour. imo

 

[denverappraiser]

Giving you the price list that they will charge their dealers for particular stones was a serious mistake because it undermines the integrity of their own distribution channels but everyone screws up from time to time and since they’ve refused to sell directly it seems unlikely that this was some deliberate scheme to stick it to either you or their dealers. You mentioned that several of the PS vendors work with them. This seems like a good place to start. Call up your favorite one and ask about the particular stone you''re interested in.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver