Brand Names and Appraisal

[thor]

How are brand names such as Tiffany, Cartier, etc. dealt with in an appraisal? Do appraisers know of a specific markup for these brand names?

When I got my non-branded H&A appraised at one of the most reputable appraisers in my area (who is mentioned frequently here at pricescope), all he did to calculate the value was to take the wholesale value for an ideal cut stone (he did not consider the H&A at all) with my specs and apply a retail markup percentage to it. So do appraisers apply a different markup percentage to branded stones? What about ones like HOF, 8*, A Cut Above, etc.?

 

[thor]

bump

 

[denverappraiser]

Thor,

The appraiser should be describing a particular item and it's relationship to a particular market on a specific date. For branded items, this means that the value of the brand must be considered. For most insurance type appraisals, the market being described is replacement-new-local-retail. Using your example of Tiffany, the only place to buy new Tiffany items at retail is directly from Tiffany. Therefore the appropriate valuation would be whatever Tiffany is charging for items of that description.

If a different market is being described, other variables may be involved. It's also important that the appraiser was aware of the brand in question. "A Cut Above", for example, will not be identifiable from an inspection of the stone. If you don't tell them that this branding is important to you, they will assume that you would be satisfied with a replacement using a 'generic' excellently cut stone. Some brands charge a pretty good premium for attributes that are not apparent in a visual inspection of the diamond. These can be important value elements.

Neil Beaty, GG ISA
Independent Appraisals in Denver

 

[Richard Sherwood]

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"A Cut Above", for example, will not be identifiable from an
inspection of the stone.
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Other than the laser inscription, which identifies the "A Cut Above" line.

 

[Garry H (Cut Nut)]

Say I take a Cartier ring all its stamps, with a .30ct stone, whip it out and put a 2ct stone in.
Assume I can do this so you can not tell.

What would you appriase it for?

 

[valeria101]

Wait a second... isn't the brand name just good to tell apart the best merchandise anyway? So that the same quality has the same recognizable value when the brand marks (if any) are removed ?

So why would anyone need a record of the branded models to recognize them? It is quality and beauty that shines through

 

[denverappraiser]

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On 9/20/2004 2:29:21 AM valeria101 wrote:


Wait a second... isn't the brand name just good to tell apart the best merchandise anyway? So that the same quality has the same recognizable value when the brand marks (if any) are removed ?

So why would anyone need a record of the branded models to recognize them? It is quality and beauty that shines through

----------------

Not necessarily. 'Best' is a difficult judgment call. If a customer buys a designer piece by Joe Blow jewelers because she really likes Mr. Blow's work, the customer has clearly agreed that she feels that the work justifies the price. The appraiser may or may not agree with this. They may think that Joe is a terrible goldsmith and that only a fool would buy his work. Be that as it may, Blow’s designs are apparently popular and the world is apparently full of fools who are willing to pay his asking price. What I might call a crooked stone, he’s calling a design element. A relative statement of the quality of Blow’s work is not the question usually being asked of the appraiser.

If the client has a loss, and the insurance company is obligated to replace the piece with one of ‘like kind and quality’. They can only do this by replacing it with a genuine Blow piece. A knockoff, even if I personally think it’s as good or better than the original, is simply not the same thing. This may also get into a sticky situation of violating Blow’s copyrights. The question becomes “What should we expect it to cost the company to replace this item with another one like it.?”

Saying that a Picasso is comparable to another painting that’s a much better representation of a naked lady is missing the point entirely.

Neil Beaty, GG ISA
Independent Appraisals in Denver

 

[blitz]

"Say I take a Cartier ring all its stamps, with a .30ct stone, whip it out and put a 2ct stone in.
Assume I can do this so you can not tell.

What would you appriase it for?"

Ihave these rings come by my desk. There always seems to be an indication of alteration. Solder flow marks at the head, the "stone" is not balanced to the ring, the "stone" is commercial quality.

I appraise the band as to Cartier, and clearly state within my report that the head and "stone" are aftermarket.

 

[oldminer]

Hi there Blitz;




I know we can count on you to be aware of all the details. Appraising designer, fine store, assembled, or counterfeit items is a difficult area and many appraisers will have problems doing the right thing frequently or on occasion. It depends on experience, how your appraiser radar is working that day and if you do a diligrent or sloppy job.




Not every designer is a automatically a recognized or world class "designer". Not every design is even especially a good one. The same applies to retail stores. They are not all alike or equally recognized. Just because one says they are a famous designer or a guild store does not make it so. A lot of trademarked stamped items are counterfeit, phoney or re-assembled.




Research of the true value may be what the appraiser needs to do. Sometimes the best evidence of all is the price recently paid for an item. I know appraisers don't like to ask that question, but what was actually paid, if relatively recent, may have a huge impact on the final, most accurate appraisal result. You can fool an appraiser by misleading them, but what is accomplished? The consumer will overpay for insurance coverage? A future buyer may be duped if they believe a careless appraisal report. A girlfriend or spouse may be tricked thinking you paid a lot more than you did.




One thing is certain. A high appraisal does not make the item worth more. A low appraisal does not make it worth less. It is easy enough to trick an individual who wants to assist you. Nothing is proven by fooling anyone other than making an inflated ego even more full of gas.




When it comes to the super fine stores with world class reputations, appraisers have a pretty good handle on what mark-ups to use. People who want identical replacements from the same stores can buy adequate insurance to cover this situation. Some consumers might prefer less costly replacements. I don't see appraiser flexibility as much of a problem as the frequency of fraudulent goods that are offered for sale.

 

[oldminer]

oops! can't delete