Diamond Source Question

[reena]

Forgive me for not knowing how this works, but do the major online vendors all use the same pool of diamonds when calling stones in for customers?

That is, say for example that I asked both GOG and another vendor--say engagementringsdirect or whiteflash--to search for stones of a particular type for me. Does each of those vendors search the same database and draw from the same pool of stones, such that there would be no point in going through multiple vendors?

Thanks.

 

[strmrdr]

Yes and no.
Yes they draw from mostly the same sources but no they might hit different sources while looking.
Each vendor likely has there favorite supplier that they will hit first which might not be the same for the different vendors.
It is worth it asking 2 to look but tell them who else you have looking.

 

[randyred]

Mmmmm. Glad you asked that question. I was wondering the same thing!

 

[denverappraiser]

Diamond dealers, both traditional and online, have to buy their goods from somewhere. In general, these sources would like to sell to as many customers as possible so, yes, the dealers often share the same suppliers. If they are listing stones that they don't own, then the stone is also available for other dealers to buy. This can result in many differenet people offering the same stone at the same time. It's worth shopping around because the various dealers don't all share exactly the same sources so they will have a different mix of stones available. Most also have a selection of stones that are in their own inventory and are available only through them. Certain stores may also have access to suppliers that others aren't using.

There are two basic reasons for a dealer to agree to shell out the money and take a stone into inventory. It results in them being able to offer better stones or it results in better prices. Maybe both. This is why the stock stones tend to be the premium ones. When they spot a stone that they feel will be of interest to their customers and that they can get for an appropriate price, they buy it into inventory. This is the only way assure that they can still get it next week and it prevents their competitors from offering the same stone. They can't stock everything so they have to either offer a limited selection or offer their customers both 'virtual' inventory and physical inventory. This happens both online and at the storefronts. The division between these two is a strategy decision that the dealers make and it's not a simple matter. Most are usually quite forthcoming about what they are offering.

Neil Beaty, GG ISA
Independent Appraisals in Denver
www.gemlab.us

 

[reena]

Thanks so much. That helps me out a lot!