Found Online Stone in Local Shop

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"Insanity: doing the same thing over and over again and expecting different results."

-Albert Einstein

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Piece of cake and a candle.
**ng gift**

Jim Schultz

www.JamesAllen.com

MBA,

I disagree with James here.  Print the Abazias ad, show it to the jeweler and discuss the problem with them.  They are already aware of the issue although not with this specific stone, and you are doing them no favors to pretend it doesn’t exist. Their livelihood depends on it.  Don’t discount the possibility that the Abazias advertisement is simply an error by the way.  I suspect your numbers are probably legitimate offers but because of the way the ‘virtual’ lists work, it’s not all that unusual for undetected errors to creep into these advertisements.

Obviously you feel that this jeweler has done something to earn your business and that your purchase will be ‘worth’ more if you buy it from them.  This is a compliment and what’s going on now is a haggling over the price of that extra something that they are bringing to the deal.  They undoubtedly won’t be happy about discussing precisely what their personal contribution is worth but it’s really the heart of the issue. Bet on it that they’re going to be PO’d at their supplier over this and it’s not out of the question that this will be the end of that relationship, but this is the reason you should be upfront with them.  Once again, their livelihood depends on it.

There is a growing schism going on in the wholesale world because some jewelers want their suppliers to refuse to offer goods to certain clients because they will then be offered for sale in the form of the ‘virtual’ lists. They correctly feel that consumers generally vastly underestimate how expensive all of those ‘free’ services are and, since they can get most of them for free by ducking out right before the payment comes due, they don’t really care. The jeweler gets stuck with the bills and Abazias (or someone else) gets the money. This is the curse of the retail diamond dealer.  ‘Why should I buy from you and your supply chain instead of from Abazias and theirs?’  It’s really a pretty good question and they should be prepared to answer it.

Will they buy it for inventory just to spite Abazias? Possibly. It’s even possible that they, or some middleman, already has. What’s wrong with that?  If they do, I would surely expect them to offer it to you for a good price given the current set of events, perhaps even matching the Abazias offer, assuming it’s not an error.

Is there an invisible middleman who is raising the prices to them without adding any value?  Maybe. If so, you’re doing them a favor to bring it to light and you’re jeweler may need to be seeking different sources in the future.  If they can’t get it for less than Abazias is charging, THEY can always buy from Abazias. 

If the jeweler can’t make you a better total deal than their competitors when all the facts are known by everyone, they should get out of the business.  The best deal isn’t always the one with the lowest prices and the value of the whole package is exactly what you’re negotiating.  What do they offer, and what does it cost? They have already given you quite a lot of value for ‘free’.  They have established contacts and searched on your behalf, they have allowed you to use their viewing environment, they have shipped the stone, they have provided you good council, they have put their reputation on the line.  They have done all of this in the hopes of being paid at the end.  Their supplier has empowered a competitor to undercut them at the last step, after incurred the majority of their expenses but before they get paid.  They see this as a betrayal by the supplier and it's the reason why they might take steps to prevent it from happening again.  They may be right. It depends on the relationship they have with the supplier. What can they do about it?  Plenty. Work with suppliers who don’t do this.  Offer fewer add-on services so that they can lower their prices. Make their package so good that people don’t mind the price. Make their profits on something else. Stop selling diamonds. Sell to customers who like their value added elements and are willing to pay for them, even when they know the price.  Charge a fee for those ‘free’ services. 

Neil Beaty
GG(GIA) ISA NAJA
Professional Appraisals in Denver

<edited for grammar and spelling, which are probably still terrible but are at least slightly improved>

There's never a crowd when you go that extra mile.

~~~ When in doubt...don't.~~~

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Piece of cake and a candle.
**ng gift**

........... Karl has joined the diamond trade and is now posting as Karl_K

________________________________

"Insanity: doing the same thing over and over again and expecting different results."

-Albert Einstein

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Opinions are like belly buttons. Everyone has one, but some are more appealing than others.

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Opinions are like belly buttons. Everyone has one, but some are more appealing than others.