Diamonds in Stock

[Superidealist]

For those vendors here who run bricks and mortar businesses: How many diamonds do B&Ms usually keep on hand?

 

[Garry H (Cut Nut)]

My insurance agent would kill me!
But we hold between 1 and 2M if you removed the mount and other gem costs between 2 stores. Most is made up, not loose.

Retailers usually have lower stock turns, therefore need higher margins.

Did you know milk and bread are the highest net profit lines in most supermarkets, yet they have the lowest margin.

Most B&M stores make less than 1 stock turns a year, and it is lower on high priced goods, higher on less costly goods, like gold earrings etc.

B&M's stores can not match drop ship prices and stay in buisness

 

[Superidealist]

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On 5/22/2004 9:56:46 PM Garry H (Cut Nut) wrote:

But we hold between 1 and 2M if you removed the mount and other gem costs between 2 stores.
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As a follow-up: What is the combination of your safe?

 

[Garry H (Cut Nut)]

52:24:34
what else?
52 is the top number

 

[Superidealist]

I followed up on this by checking the inventories of some online dealers who are known to stock their own goods. In order to compare inventories, I chose values that were common to all sites' search engines. The numbers listed below are for round diamonds 0.25ct and above, D-J color, IF-SI2 clarity.

Diamond Brokers of Florida: 32 in stock
Good Old Gold (H&A Rounds): 127 in stock
Nice Ice: 67 in stock
SuperbCert (SuperbCert Rounds): 125 in stock
Whiteflash (A Cut Above Rounds): 234 in stock

I would expect numbers for traditional Bricks and Mortar stores to be somewhat less.

 

[Garry H (Cut Nut)]

Visa vee the stock turn ratio. Whenever the sales rate is higher there is an need for higher inventory, and if you get credit from your suppliers it is possible to have a negative inventory value (ie money in the bank).

It works like this:
Say $1million stock on hand.
If you get 90 days to pay your bill's and you sell your stock 6 times a year (60 days) then you have $500,000 of your suppliers money in the bank

But then again in USA it is very common for retailers (and maybe some Internet vendors) to have goods on Memo - i.e. loan.

I could do that too in australia, but prefer to get a better cost price

 

[valeria101]

Superidealist... why does is knowing the respective info bit matter ?

 

[strmrdr]

gog for one does not have all the diamonds he carries online and im sure the others that are also b&ms are the same.
He has some lines he isnt allowed to list online.

Most of them dont list the melee online so even for the online dealers it is impossible to get an accurate number.

As far as b&m's go it varies a ton with the time of year and the volume they deal in.
Some months some may have as few as 20 of the non-melee diamonds and other months 100s.
One of the larger ones here gets in 1M dollars worth of stock each time they go to isreal or elsewhere which is aprox every 2 months and around Christmas time it is 2-3 million.
Comsidering it is almost all h/i/j-i1-i2 stock and under 1ct.
thats a lot of diamonds.

Another one wont have more than 20 diamonds total at any given time because he operates more as a broker than a stocking dealer.
He is more or less like an internet drop shipper selling off lists but doesnt send them strait to the customer and gets near full b&m markup hmmmmmm good way to go isnt it?

 

[Superidealist]

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On 5/23/2004 2:06:01 AM valeria101 wrote:

Superidealist... why does is knowing the respective info bit matter ?
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We all have different interests. I ignore almost every thread asking if X, Y, or Z diamond has the best numbers. Frankly, I don't know and I don't care.

Not all information in every post is of interest or helpful to all people. Feel free to ignore it if you like.

 

[fire&ice]

This is a rather interesting question. And, the numbers are quite telling.

Funny that Garry quanify's with $ amount. Interesting approach.

From my perpective, I think I would try to fill the holes and stock what sells best for *me*. One could do this approach looking at the big monetary picture.

 

[Superidealist]

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On 5/22/2004 11:41:21 PM I wrote:

Diamond Brokers of Florida: 32 in stock
Good Old Gold (H&A Rounds): 127 in stock
Nice Ice: 67 in stock
SuperbCert (SuperbCert Rounds): 125 in stock
Whiteflash (A Cut Above Rounds): 234 in stock
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Brad offers the following correction:

To set the record straight I have over 120 diamonds in stock and only listing currently 54 of them on line. We have a full service jewelry store with millions invested in product.

 

[Hest88]

Interesting stats. I do wonder what average, local, purely B&M stores have in stock.

 

[WinkHPD]

The average mom and pop has far less than you would imagine, and even some of the "biggies" do not stock that much.

Then there are those who do stock millions of dollars worth, some of them making a lot of money by turning it quick, and some of it loosing tremendous amounts of opportunity costs by not having their money doing something better for them than sitting in the vault for years at a time.

With Fedex your inventory holes can be filled in a day, and special requests can be cut in Antwerp and delivered in a couple of weeks plus the time for a cert from one of the labs. The biggest advantage to inventory is being able to buy well, many % below what you would pay on memo.

Wink