Clearly, The Economy Has Made a Complete Recovery

[VapidLapid]

Did anyone else notice the sub carat mahenges on finewater just doubled in price?

 

[ooo~Shiney!]

Ooooo You're Right!
I had actually been following those stones, too......
C'est la vie!

 

[Aoife]

Oh my.
Interesting marketing philosophy there. If something hasn't sold in several weeks you usually decrease the price rather than increase it. Did all other pink spinels suddenly spontaneously destruct, and these are the only ones left in the world?

 

[ooo~Shiney!]

Oh my.
Interesting marketing philosophy there. If something hasn't sold in several weeks you usually decrease the price rather than increase it. Did all other pink spinels suddenly spontaneously destruct, and these are the only ones left in the world?

Too True!
Thing is, I was actually trying to talk myself out of one of them,
not so tough to do, now

 

[baby nurse]

Wow !

 

[VapidLapid]

I guess he felt they were under priced, and maybe undervalued when they didn't sell right away. I'm not really making any conclusions based on this, just noting it. I do see the price of mahenge varies crazy-like all over the place. The main reason I was so surprised is because they are under a carat. Could be all sorts of factors I wouldnt know about like news of there being no more found at this time to there being none of the little found that is leaving the country...many things could be influencing this

 

[iLander]

I guess he felt they were under priced, and maybe undervalued when they didn't sell right away. I'm not really making any conclusions based on this, just noting it. I do see the price of mahenge varies crazy-like all over the place. The main reason I was so surprised is because they are under a carat. Could be all sorts of factors I wouldnt know about like news of there being no more found at this time to there being none of the little found that is leaving the country...many things could be influencing this

I don't even go to that site anymore, it's frustrating to see everything sold, and you have to look through every category to find that out.

 

[VapidLapid]

I guess he felt they were under priced, and maybe undervalued when they didn't sell right away. I'm not really making any conclusions based on this, just noting it. I do see the price of mahenge varies crazy-like all over the place. The main reason I was so surprised is because they are under a carat. Could be all sorts of factors I wouldnt know about like news of there being no more found at this time to there being none of the little found that is leaving the country...many things could be influencing this

I don't even go to that site anymore, it's frustrating to see everything sold, and you have to look through every category to find that out.

Oh that is unfortunate. I go there regularly because I have three stones from him and like them so much I'd gladly have more. At least he takes down the sold stones instead of leaving them right where they were with all the still available ones. That drives me crazy. I dont mind them staying on the site just not mixed in with available inventory.

 

[Roger Dery]

I guess he felt they were under priced, and maybe undervalued when they didn't sell right away. I'm not really making any conclusions based on this, just noting it. I do see the price of mahenge varies crazy-like all over the place. The main reason I was so surprised is because they are under a carat. Could be all sorts of factors I wouldnt know about like news of there being no more found at this time to there being none of the little found that is leaving the country...many things could be influencing this

VapidLapid and others,
I can't account for what Gary charges for his finished work (and it is very fine work indeed!). What I do know, is that I was just in east Africa less than two weeks ago re-stocking particular roughs. And fine, clean, pink to pinkish red Spinels were not in abundance. I did end up with some, but it was much less than I had hoped for. Only saw a few over 2 grams and they weren't clean enough for me. Knowing Gary, they probably wouldn't be clean enough for him either.

The expanse known as Mahenge Tanzania that produces that rich pink Spinel is not mined year-round as there are some periods of time where there is too much rain, making mining (other than Alluvial mining) a bit of a nightmare. This, in and of itself, may account for elevated prices on some fronts. As most custom cutters are not buying 3 or 4 kilos of one species of rough at a time.

I hope someone finds this useful.

 

[klewis]

The first thing I thought of was that perhaps the rough had doubled in price. Maybe I'm being naive.

 

[chrono]

I only know that it is the rainy season right now in Tanzania, so most mining have come to a halt.

 

[Lady_Disdain]

Oh my.
Interesting marketing philosophy there. If something hasn't sold in several weeks you usually decrease the price rather than increase it. Did all other pink spinels suddenly spontaneously destruct, and these are the only ones left in the world?

Actually, for luxury goods and artistic creations, increasing prices often increases sales as well. Customers will value a high priced item more, while looking at less expensive but similar items as trinkets.

I have seen this many times with jewelry makers.

 

[FinewaterGems]

Pricing is a funny thing, and probably one of the most difficult aspects of running a business. I used to own a small software company, and there was always a fine balance between pricing it too high and too low. If it was priced too high, there were no buyers; if it was too low, buyers thought it had no value (and again there were no buyers!)

Gemstones are much the same. The easy way is to take the rough cost and add X amount for cutting, but that almost always overprices low-value stones and underprices high-value stones, and doesn’t take into account any value increases in rough inventory over the years. My technique is simple – if it’s a stunning stone I’ll charge more, if not I’ll charge less. In some cases I’ve sold stones for less than I paid for the rough (although I try not to do that very often), and I’ve even given away finished stones that I feel are not up to my usual standards. If a stone get posted on my website and doesn’t sell in the first few days, I reason that the price/value point is incorrect and needs adjustment. Most of the time I’ll reduce the price to maintain sales and cash flow, but I did raise prices on these spinels for a number of reasons:

1) I love their color and I’m in no hurry to sell them,
2) Fine spinels (and especially fine Mahenge spinels) are rare and aren’t going to be around forever,
3) my Mahenge stock is running low and may be difficult to replenish,
4) Gem Shopping Network was offering virtually the same sub-carat stone for 5 times the price, and finally
5) my wife says I should charge more! I’ve been married nearly 20 years so I’ve learned never to doubt my wife’s judgment.

 

[Aoife]

Pricing is a funny thing, and probably one of the most difficult aspects of running a business. I used to own a small software company, and there was always a fine balance between pricing it too high and too low. If it was priced too high, there were no buyers; if it was too low, buyers thought it had no value (and again there were no buyers!)

Gemstones are much the same. The easy way is to take the rough cost and add X amount for cutting, but that almost always overprices low-value stones and underprices high-value stones, and doesn’t take into account any value increases in rough inventory over the years. My technique is simple – if it’s a stunning stone I’ll charge more, if not I’ll charge less. In some cases I’ve sold stones for less than I paid for the rough (although I try not to do that very often), and I’ve even given away finished stones that I feel are not up to my usual standards. If a stone get posted on my website and doesn’t sell in the first few days, I reason that the price/value point is incorrect and needs adjustment. Most of the time I’ll reduce the price to maintain sales and cash flow, but I did raise prices on these spinels for a number of reasons:

1) I love their color and I’m in no hurry to sell them,
2) Fine spinels (and especially fine Mahenge spinels) are rare and aren’t going to be around forever,
3) my Mahenge stock is running low and may be difficult to replenish,
4) Gem Shopping Network was offering virtually the same sub-carat stone for 5 times the price, and finally
5) my wife says I should charge more! I’ve been married nearly 20 years so I’ve learned never to doubt my wife’s judgment.

Thank you for taking the time to explain the rationale for the pricing change. Personally, I was only surprised because the change was a significant one, and occurred after the spinels had been listed for a while, not because they aren't worth the higher price in terms of cut and color. I always appreciate when a vendor explains these things.

And always, always listen to your wife!

 

[VapidLapid]

Oh my.
Interesting marketing philosophy there. If something hasn't sold in several weeks you usually decrease the price rather than increase it. Did all other pink spinels suddenly spontaneously destruct, and these are the only ones left in the world?

Actually, for luxury goods and artistic creations, increasing prices often increases sales as well. Customers will value a high priced item more, while looking at less expensive but similar items as trinkets.

I have seen this many times with jewelry makers.

I see this too, in the Art world. Prices get raised which creates buzz and interest and then the collectors who passed on the works at the lower prices come out and buy - and want a discount!

As I expected there are many mining and market factors going into this price increase. I remember being shocked when they didn't all get snatched up when they were first added.

 

[T L]

4) Gem Shopping Network was offering virtually the same sub-carat stone for 5 times the price, and finally

I wouldn't compare much to GSN, they charge a fortune.

However, as a vendor of gemstones, you have every right to charge what you want, and as consumers, we have every right to choose to pay those prices or not. It's what the market demands.

 

[Aoife]

Oh my.
Interesting marketing philosophy there. If something hasn't sold in several weeks you usually decrease the price rather than increase it. Did all other pink spinels suddenly spontaneously destruct, and these are the only ones left in the world?

Actually, for luxury goods and artistic creations, increasing prices often increases sales as well. Customers will value a high priced item more, while looking at less expensive but similar items as trinkets.

I have seen this many times with jewelry makers.

I see this too, in the Art world. Prices get raised which creates buzz and interest and then the collectors who passed on the works at the lower prices come out and buy - and want a discount!

As I expected there are many mining and market factors going into this price increase. I remember being shocked when they didn't all get snatched up when they were first added.

This is completely aside from the Finewater situation, but regarding art, the efficacy of this strategy may depend on where you are, and the general state of the economy. I live in an area with an extremely vibrant and diverse artistic community, and know quite a few artists on a personal basis, and now is not the time to be arbitrarily raising prices. The buzz that generates hasn't done anything to increase sales. What it has done is push collectors to try out new, and more affordable artists. All that will no doubt change as the economy improves, but where I live the usual rules don't seem to be applying.

 

[Burberrygirl]

The first thing I thought of was that perhaps the rough had doubled in price. Maybe I'm being naive.

Me too.

 

[lelser]

Oh my.
Interesting marketing philosophy there. If something hasn't sold in several weeks you usually decrease the price rather than increase it. Did all other pink spinels suddenly spontaneously destruct, and these are the only ones left in the world?

Actually, for luxury goods and artistic creations, increasing prices often increases sales as well. Customers will value a high priced item more, while looking at less expensive but similar items as trinkets.

I have seen this many times with jewelry makers.

I see this too, in the Art world. Prices get raised which creates buzz and interest and then the collectors who passed on the works at the lower prices come out and buy - and want a discount!

As I expected there are many mining and market factors going into this price increase. I remember being shocked when they didn't all get snatched up when they were first added.

This is completely aside from the Finewater situation, but regarding art, the efficacy of this strategy may depend on where you are, and the general state of the economy. I live in an area with an extremely vibrant and diverse artistic community, and know quite a few artists on a personal basis, and now is not the time to be arbitrarily raising prices. The buzz that generates hasn't done anything to increase sales. What it has done is push collectors to try out new, and more affordable artists. All that will no doubt change as the economy improves, but where I live the usual rules don't seem to be applying.

With gems, though, it isn't really an arbitrary price rise. I set a price when the stone is first cut, but periodically re-visit those prices for things that stick around. If I cannot replace the rough anymore or if prices have gone up dramatically then I have to increase the stone price. Likewise I've lowered prices when material has hit the market from a new source and prices have gone down.

Unless I'm cutting on commission, where I do price the rough and my time, the stone is only worth what it's worth. Sometimes I lose money if the finished gem doesn't go as planned (hey, it happens.)

What I have been seeing is customers moving to less expensive material in this economy. Someone who wants an Aqua blue will opt for a Topaz, for example. My mileage may vary because I sell primarily to goldsmiths and not on-line but I suspect it's fairly common.

 

[y2kitty]

If only I had bought it when I wanted to! Such pretty stones.