Price decrease

[Owies Nana]

At what point would a consumer expect to see the cost decrease in polished diamonds (shown in the graph on the home page) reflected in PS vendors' pricing?

 

[diamondseeker2006]

Just wanted to say hi!!! Hope all is well with you!

(I think there are more factors involved in retail pricing, such as the price at which the vendor bought the stone. But obviously a trade person needs to answer your question!)

 

[kenny]

... (I think there are more factors involved in retail pricing, such as the price at which the vendor bought the stone. But obviously a trade person needs to answer your question!)

When prices are falling it's, "I can't lower the price; I paid so much for that stone ..."
When prices are rising it's, "I have to raise the price even though I bought it long ago; I have to replace the stone at today's higher prices."

They can spin it whichever benefits them.

 

[diamondseeker2006]

... (I think there are more factors involved in retail pricing, such as the price at which the vendor bought the stone. But obviously a trade person needs to answer your question!)

When prices are falling it's, "I can't lower the price; I paid so much for that stone ..."
When prices are rising it's, "I have to raise the price even though I bought it long ago; I have to replace the stone at today's higher prices."

They can spin it whichever benefits them.

Both of those are true and valid reasons for pricing, in my opinion.

That said, I have seen diamonds I was watching online decrease in price before. I just don't think there is a formula as to when. I think it has to do when competition lowers theirs, at least partially.

 

[dawnxcui]

... (I think there are more factors involved in retail pricing, such as the price at which the vendor bought the stone. But obviously a trade person needs to answer your question!)

When prices are falling it's, "I can't lower the price; I paid so much for that stone ..."
When prices are rising it's, "I have to raise the price even though I bought it long ago; I have to replace the stone at today's higher prices."

They can spin it whichever benefits them.

Both of those are true and valid reasons for pricing, in my opinion.

That said, I have seen diamonds I was watching online decrease in price before. I just don't think there is a formula as to when. I think it has to do when competition lowers theirs, at least partially.

when i visited GOG to checkout a few diamonds there were two that were very similar in specs but the price difference was pretty significant.
and i asked Sarah about it and she told me that it was purely based on when the diamond was bought and how much it cost them back then. so the stone that was bought earlier was cheaper even tho it was very similar to the other stone.

 

[Dancing Fire]

... (I think there are more factors involved in retail pricing, such as the price at which the vendor bought the stone. But obviously a trade person needs to answer your question!)

When prices are falling it's, "I can't lower the price; I paid so much for that stone ..."
When prices are rising it's, "I have to raise the price even though I bought it long ago; I have to replace the stone at today's higher prices."

They can spin it whichever benefits them.

Kenny
that's not true...if diamond prices falls all vendors will drop their prices to stay comparative or else they will be looking at their inventory for a long long time.

 

[Texas Leaguer]

... (I think there are more factors involved in retail pricing, such as the price at which the vendor bought the stone. But obviously a trade person needs to answer your question!)

When prices are falling it's, "I can't lower the price; I paid so much for that stone ..."
When prices are rising it's, "I have to raise the price even though I bought it long ago; I have to replace the stone at today's higher prices."

They can spin it whichever benefits them.

Kenny
that's not true...if diamond prices falls all vendors will drop their prices to stay comparative or else they will be looking at their inventory for a long long time.

Would it be too PC for me to say that you are both correct? It is a balancing act and one that causes you to tear your hair out at times. Like most businesses, we like more predictability/stability in pricing.

For many years Debeers controlled the majority of the world's supply of rough. By selectively releasing the supply of diamonds to the market they could exert great control over market pricing. And they aimed for steady, moderate appreciation which everyone tended to benefit from.

Today, there is more competition and more entities supplying the pipeline and market forces and macro economic conditions are driving prices to a much greater extent. And we have seen the results over the past several years in the form of price fluctuations. So for the first time businesses are having to cope with aligning themselves properly in a changing market. Like Kenny says, you have to be conscious of replacement costs if you want to stay in business long term. And as DF says, you have to remain competitive or you will not sell anything.

The difficulty in striking this balance is one reason you do see discrepancies in pricing of like goods. This presents opportunities to consumers to sometimes buy at fortuitous prices. At the same time it can be confusing to consumers and make it difficult for them to pull the trigger on anything!

And this is why the trade would prefer a more stable predictable market. But, we live in a different world today. We seem to have traded a stroll up the hill for a ride on a roller coaster