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Consumer Diamond Prices vs Dealer Diamond Prices

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tthach2

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What's the typcial markup between some of the lower priced online retailers like:

www.tradshop.com
www.abazias.com
www.adiamor.com
www.bluenile.com

as compared to industry trade networks or dealer networks where the above sites most likely source diamonds from:

www.diamonds.net
www.polygon.net
www.idexonline.com
www.jckmarketplace.com
www.diamondfloor.com
www.nyddc.com
 

Iceman

Brilliant_Rock
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That is a hard one to figure out , even being in the business for 25 years.


I can show you a list of the same diamonds ~ 100 of them and they all would have different prices attached to them.

How close to the source are the cutters buying
How good of a deal do the cutters get and what is their over head and markup ?

From there they sell to us and if you buy a lot you get a break or if ask for a memo its a different price.

Its not what they are making that matters its what you can buy a diamond for that matters. Some places pass on the discount to you others dont.

Its an impossible question to answer. I could tell you but it would compair on the level Im buying at. You would get a totally different answer from somebody that is new to the business and buying on another level.

Getting to certain levels takes time building relationships, selling lots and lots of diamonds so they know when you call that your a player.

Good question to ask only a person in the trade could have answered that one :)
 

diagem

Ideal_Rock
Trade
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Are you asking basically what''s the mark-up between the Manufacturers and Wholesalers???
Am i reading it correct?
 

Iceman

Brilliant_Rock
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Thats how I read the question.

a good question but impossible to answer.
 

diagem

Ideal_Rock
Trade
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The range is tremendous...

You have miners vertically intergrading to the consumer level... (you can imagine the rest)
You have retailers marketing diamonds after the 4th or 5th hand (including memo''s)....(thats another story!!!

I dont imagine you being able to get an answer on this one...
 

tthach2

Rough_Rock
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Messages
4
Maybe I can rephrase a little bit....

If I walk into a local jewelry store and give them the specs I''m looking for in a stone, they will tell me that they can get a diamond within 1-2 days for me to look at. I''m assuming they access the industry trade networks or dealer networks to secure the diamond. Jewelry store price or online retailer price:

Carat 1.50 Asscher
Color G
Clarity SI1
Depth 61.3
Table 64
Cut Grade Good
Report GIA
Price $8,473

What would this diamond go for on something like diamonds.net?
 

strmrdr

Super_Ideal_Rock
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online markup varies between 10% and 40% depending on the goods and the services offered.
more services == more markup.
Blue Nile runs around 30%-38% markup for reference.
Average is likely somewhere around %30 for full service and somewhat less for drop shipping.
But the price that vendors can get a diamond for varies also on the wholesale level, someone doing 25 diamonds a week is going to get better pricing than someone doing 25 diamonds a year.
 

Dancing Fire

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Date: 5/30/2006 12:50:25 PM
Author: strmrdr
online markup varies between 10% and 40% depending on the goods and the services offered.
more services == more markup.
Blue Nile runs around 30%-38% markup for reference.
Average is likely somewhere around %30 for full service and somewhat less for drop shipping.
But the price that vendors can get a diamond for varies also on the wholesale level, someone doing 25 diamonds a week is going to get better pricing than someone doing 25 diamonds a year.
strm
i''m surprise markup is that high for internet stones.i think melees are more profitable than large stones.
 

pricescope

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Date: 5/30/2006 12:50:25 PM
Author: strmrdr
...
Blue Nile runs around 30%-38% markup for reference.
...
Storm, I''m afraid you are mistaken... From Blue Nile ANNUAL REPORT: Gross profit margin: 22.2%.

My guess, for loose diamonds it''s probably even less than that (depending on the ticket price of course).
 

strmrdr

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Date: 5/30/2006 2:30:26 PM
Author: Pricescope
Date: 5/30/2006 12:50:25 PM

Author: strmrdr

...

Blue Nile runs around 30%-38% markup for reference.

...

Storm, I''m afraid you are mistaken... From Blue Nile ANNUAL REPORT: Gross profit margin: 22.2%.


My guess, for loose diamonds it''s probably even less than that (depending on the ticket price of course).

apples and oranges he was asking about small table spready asschers.
crap rounds have a much lower margin.
 

strmrdr

Super_Ideal_Rock
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Date: 5/30/2006 1:49:34 PM
Author: Dancing Fire
Date: 5/30/2006 12:50:25 PM

Author: strmrdr

online markup varies between 10% and 40% depending on the goods and the services offered.

more services == more markup.

Blue Nile runs around 30%-38% markup for reference.

Average is likely somewhere around %30 for full service and somewhat less for drop shipping.

But the price that vendors can get a diamond for varies also on the wholesale level, someone doing 25 diamonds a week is going to get better pricing than someone doing 25 diamonds a year.
strm

i''m surprise markup is that high for internet stones.i think melees are more profitable than large stones.


they arent, melee are low margin which is why Wink is the only one willing to sell em lose at $10-$15 each profit.
WF might be making a little better margins on theirs cuz of the insane price on them but on average there isnt any margin on melee.
 

Dancing Fire

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Date: 5/30/2006 4:51:46 PM
Author: strmrdr

Date: 5/30/2006 1:49:34 PM
Author: Dancing Fire

Date: 5/30/2006 12:50:25 PM

Author: strmrdr

online markup varies between 10% and 40% depending on the goods and the services offered.

more services == more markup.

Blue Nile runs around 30%-38% markup for reference.

Average is likely somewhere around %30 for full service and somewhat less for drop shipping.

But the price that vendors can get a diamond for varies also on the wholesale level, someone doing 25 diamonds a week is going to get better pricing than someone doing 25 diamonds a year.
strm

i''m surprise markup is that high for internet stones.i think melees are more profitable than large stones.


they arent, melee are low margin which is why Wink is the only one willing to sell em lose at $10-$15 each profit.
WF might be making a little better margins on theirs cuz of the insane price on them but on average there isnt any margin on melee.
the buyer should expect to pay more $$''s if they''re looking at ACA.
 

strmrdr

Super_Ideal_Rock
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Date: 5/30/2006 7:43:16 PM
Author: Dancing Fire
Date: 5/30/2006 4:51:46 PM

Author: strmrdr


Date: 5/30/2006 1:49:34 PM

Author: Dancing Fire


Date: 5/30/2006 12:50:25 PM


Author: strmrdr


online markup varies between 10% and 40% depending on the goods and the services offered.


more services == more markup.


Blue Nile runs around 30%-38% markup for reference.


Average is likely somewhere around %30 for full service and somewhat less for drop shipping.


But the price that vendors can get a diamond for varies also on the wholesale level, someone doing 25 diamonds a week is going to get better pricing than someone doing 25 diamonds a year.
strm


i''m surprise markup is that high for internet stones.i think melees are more profitable than large stones.



they arent, melee are low margin which is why Wink is the only one willing to sell em lose at $10-$15 each profit.

WF might be making a little better margins on theirs cuz of the insane price on them but on average there isnt any margin on melee.
the buyer should expect to pay more $$''s if they''re looking at ACA.


as long as people believe that its kewl.
I didnt say it was wrong.
 

pricescope

Ideal_Rock
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Date: 5/30/2006 4:48:04 PM
Author: strmrdr


apples and oranges he was asking about small table spready asschers.
crap rounds have a much lower margin.
Could you please point to a stone in the Blue Nile inventory? I''m just curious about that 30% m-up...
 

diamondseeker2006

Super_Ideal_Rock
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Okay then, question for Storm.

If you have compared prices, who do you think offers the best deal on super ideal diamonds?
 

strmrdr

Super_Ideal_Rock
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strmrdr

Super_Ideal_Rock
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Date: 5/30/2006 10:51:39 PM
Author: diamondseeker2006
Okay then, question for Storm.


If you have compared prices, who do you think offers the best deal on super ideal diamonds?

depends on services offered and where you want to draw the line on super-ideal.
At the high end they are close.
At the low end of the super-ideal range its likely jamesallen.com that would win.
 

strmrdr

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Date: 5/30/2006 11:27:29 PM
Author: Wink
Date: 5/30/2006 11:09:59 PM

Author: strmrdr

At the low end of the super-ideal range its likely jamesallen.com that would win.


I that sort of an oxymoron?


Low end of super ideal?

sorta I guess.
Some of your PGS graded stones would also be in the running.

would stones at the edges of super-ideal at great prices be better wording?
 

strmrdr

Super_Ideal_Rock
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Date: 5/30/2006 11:50:00 PM
Author: diamondseeker2006
I''m sorry to ask so many questions, but what is PGS?
small gem lab in Chicago that does diamond grading and appraisals.
 

pricescope

Ideal_Rock
Joined
Dec 31, 1999
Messages
8,266
this is Blue Nile signature collection... If I understood correctly, Tthach2 was asking about marking up stones from the trading networks...

What about markups for these Asshers?
1.42 F SI2 63.5% 60% GIA med sm vg ex ft 6.59x6.47x4.11 $7,399 ($7,288.02 - bank wire)
1.70 I IF 63% 59% GIA med sm ex ex no 7.01x6.89x4.34 $10,461 ($10,304.09 - bank wire)

I do not know what the exact markaps are for these diamonds but would gess it is less than 30%...
 

strmrdr

Super_Ideal_Rock
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Date: 5/31/2006 8:17:59 AM
Author: Pricescope

this is Blue Nile signature collection... If I understood correctly, Tthach2 was asking about marking up stones from the trading networks...


What about markups for these Asshers?

1.42 F SI2 63.5% 60% GIA med sm vg ex ft 6.59x6.47x4.11 $7,399 ($7,288.02 - bank wire)

1.70 I IF 63% 59% GIA med sm ex ex no 7.01x6.89x4.34 $10,461 ($10,304.09 - bank wire)


I do not know what the exact markaps are for these diamonds but would gess it is less than 30%...


I dont have access to the list to see what wholesale in on those at this time.
 

diamondseeker2006

Super_Ideal_Rock
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Date: 5/30/2006 11:54:35 PM
Author: strmrdr

Date: 5/30/2006 11:50:00 PM
Author: diamondseeker2006
I''m sorry to ask so many questions, but what is PGS?
small gem lab in Chicago that does diamond grading and appraisals.
Thanks, Storm!
 

Dancing Fire

Super_Ideal_Rock
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Date: 5/30/2006 11:09:59 PM
Author: strmrdr

Date: 5/30/2006 10:51:39 PM
Author: diamondseeker2006
Okay then, question for Storm.


If you have compared prices, who do you think offers the best deal on super ideal diamonds?

depends on services offered and where you want to draw the line on super-ideal.
At the high end they are close.
At the low end of the super-ideal range its likely jamesallen.com that would win.
strm
where do you draw the line between low/high end super ideals ? all high end stones must have true H&A ?
 
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