Do PS vendors really have a real inventory?

[kevinraja]

All PS vendors here post that they have a real+virtual inventory. Real meaning the stones they carry in-house and virtual meaning listing the stones which they don''t have.

My question is the following. Do PS vendors really have their own inventory (stones in-house). If they do, I want to know which vendors really do, and which other vendors don''t. I have heard that most PS vendors or 1 or 2 room businesses with computers hooked up to the virtual inventory, with 2-6 sales (supposedly with GG certificate) working on the phones.

PS consumers deserve to know the truth. For example, when I search for diamonds on WF, almost all of the stones I see on their list are listed everywhere else.

Vendors, tells us what percentage of stones you list on your website or in-house. I suspect no will reveal this, because most of them carry less than 5% of their listed stones in-house.

 

[Regular Guy]

Sorry, just a Regular Guy, whose gotten stuck her for awhile.

But, having bought one diamond last summer for my wife, I can tell you I saw DCD''s box (when they took visitors) representing a non-virtual inventory, and I read here where WF has about 500 diamonds rotating in & out of inventory. Also, though quite a big outfit, I think it''s been reported here that even Blue Nile may work effectively out of a phone booth, wherever they are, with a certain in-house inventory, but most "virtual." When you go to DCD and others, it''s represented that they have access to an 50,000 + database. Based on that number, having 5% on hand would be huge, and frankly not even expected.

Based on the these practical elements as I understand them, I put this piece together here in the diamond book, essentially suggesting that Pricescope''s databases represented the dichotomy you''re pointing to, with the "search by cut" database largely pointing to diamonds held by the vendor, and the other Quick search being the virtual diamonds, for which less data is known.

Hope this is appropriately responsive.

 

[perry]

Good Old Gold and NiceIce only list real inventory on their sites. Good Old Gold does also offer a search engine for something (elsewhere) if you do not find what you are looking for on their site.

Whiteflash "A Cut Above" and "Expert Selection" is real inventory.

A few of the Bricks & Mortor (B&M) stores that pop up have real inventories.

As best as I know, most of the rest largly operate from Virtual Inventories except for a small selection of other diamonds. For example "Superbcert" diamonds are real inventory, and even Blue Nile has a "Signature Line" (or somehting like that) that is real inventory. Many of the vendors do have a small assortment of such selections.

Bottom line, if you see more than several hundred diamonds listed as some sort of "Select" or Namebrand, you are looking at virtual inventories - of which the vendors have never seen (and will probably never see as their supplier will drop ship it to you).

It is my understanding that there are several vendors who have no diamonds in house and only operate from virtual inventories.

Hope this helps.

Perry

 

[strmrdr]

Wink and Gary also have diamonds in house.
winkjones.com
diamondexpert.com

 

[Superidealist]

For those who are interested, inventories now as compared to seven months ago. (Bear in mind we've just finished the Christmas shopping season.)

Excel Diamonds (SUPERBcert Rounds): 87 (down 30.4%)

Good Old Gold (Hearts and Arrows Rounds): 79 (down 37.8%)

Nice Ice: 54 (down 19.4%)

Whiteflash (A Cut Above Rounds): 244 (up 4.3%)

Results are for diamonds 0.25ct and above, D-J color, IF-SI2 clarity.

 

[windowshopper]

Date: 1/16/2005 10:56:59 AM
Author: Feydakin
Kevin, why does it matter?? It''s not like diamonds have a ''best if used by'' date on them..

Seriously, the virtual inventory has actually been a good thing for both sides of the industry.. It allows customers to compare more diamonds than ever without visiting hundreds of stores, it allows retailers and wholesalers an opportunity to list all of their goods to the largest possible audience, and it allows for a whole variety of marketing approaches from we list everything to all of our stones we own, and everything in between..

If these diamonds were not listed as a part of a virtual inventory, they would not be listed at all and you would never get to see them.. Wholesalers own a lot, if not most, of the stones and they are not in a position to compete against their retail customers directly.. So they allow their lists to be sold by as many vendors as possible in an effort ot make some money themselves..

YES I AGREE I DONT GIVE A HOOT IF THEY ARE OWNED BY THE VENDOR-- I JUST WANT THE INFORMATION TO BE 100% ACCURATE

 

[kevinraja]

I don''t care about whether they own it or not. But they should mention it. They do, only if you are one of those PS customer who already know the ins and outs of the trade. When you call in the vendor to express your interest in a stone you saw on their website, they never reveal that it is not in-house. Only when you ask too many questions, they ultimately reveal that the stone looks great or good from the numbers and that they will have to bring in the stone from the whole-saler.

That brings us to this question. How many of you have called in a PS vendor regradring an out-of-house stone, shipped it in to the vendor to learn of its characteristics, and have your hear a PS vendor say "Oh, we got the shipment today, I look at the stone, Sorry to tell you that the stone doesn''t look good or great."

 

[YoungPapa]

kevinraja,

Your suggestion seems to be that the vendors are trying to pull a fast one and/or misrepresent the facts. I don''t think that is the case. While I can''t speak for every vendor, I know that we are very open with our clients and just about always tell them that the diamond is NOT in-house. It just naturally comes out in the conversation. The only exception is our Signature line, which we DO own and DO have on premise.

As to calling in a diamond for a client and then telling the customer not to buy - happens all the time. We regularly bring in diamonds to inspect prior to closing a sale. Sometimes the client wants us to run a sarin (which the vendor couldn''t supply) or just check the quality of the inclusions. If the stone is a dud we HAVE to tell them! Otherwise we''re just wasting everyones time.

The vendors, consumers and appraisers on this board are all on the SAME TEAM. We all have the same goals and being upfront and honest is the only way to acheive those goals.

 

[elmo]

Date: 1/16/2005 9:59:52 AM
Author: perry
Good Old Gold ... only list real inventory on their sites.
Perry

Strm, you gonna let that one go?

 

[perry]

Elmo:

Please do not select a only a portion of a post to try to make a false point.

My positing above says: "Good Old Gold and NiceIce only list real inventory on their sites. Good Old Gold does also offer a search engine for something (elsewhere) if you do not find what you are looking for on their site."

If you go to the GOG site, everything listed there is in house diamonds, except when you specifically use the search engine provided to find something not listed on the site that GOG would be willing to bring in house to check out. I believe that I had adequately explained that.


Perry

 

[strmrdr]

Date: 1/16/2005 12

8:30 PM
Author: elmo

Date: 1/16/2005 9:59:52 AM

Author: perry

Good Old Gold ... only list real inventory on their sites.

Perry

Strm, you gonna let that one go?

Yes,
He fixed the problem.

 

[fire&ice]

Am I the only one who wants to stop the madness?

O.K. I don''t own my stone which was misgraded by a lab because of fluorescene; but I wear it anyway even though my appraiser said my stone was bad.

This reminds me of the guy that wanted the diamond trade to measure *not* in the industry standard of MM but instead surface area.

 

[elmo]

Date: 1/16/2005 12:23:16 PM
Author: perry
Please do not select a only a portion of a post to try to make a false point.

This is not a false point at all. GOG had some asschers on their site that they didn't own with no mention of that fact, Strm tried to send a friend there to see them, and Jon wanted to charge his friend to bring them in. Strm was pretty POed. Surprised both of us that Jon was listing things with bscopes and reports that he didn't own. Surprised both of us even more about charging to bring them in. Good to see this has been addressed in the last week or two.

Interesting how urban legends like this get started.

Also interesting that until the last week or so yours was the false point.

 

[Richard Sherwood]

recanted...

 

[perry]

Elmo:

I try to deal with the truth of the situation as it exist now. we all have made mistakes in the past. Few of us have to ever deal with them once they are fixed.

Claiming that your point was valid sevearl weeks or more ago does not change the fact of today.

Perry

 

[Mara]

kevin if you don't want a stone that is a virtual pick, then just ask that Q up front when you call a vendor. i don't see the point for a vendor to list whether or not the stone is virtual or in-house, as long as if you ask them the question, they are up-front with the correct answer. no shadiness there--i think PS customers DO know the truth...unless there is something i'm missing here?

in your original post you noted that you heard that "most PS vendors or 1 or 2 room businesses with computers hooked up to the virtual inventory, with 2-6 sales"...that end part i assume means salespeople. I'm curious as to where you heard this though I am sure i know. the bottom line is that most ONLINE vendors, if you take a poll of everyone who sells diamonds online, are probably going to be a small business or someone in PJ's working from a virtual inventory. and if you are considering a 'PS vendor' to be anyone who lists stones virtually in the search system, then yes i guess that works out to your comment.

However, from my perspective, a *real* PS vendor is someone like a NiceIce, GOG, WF, DCD, DI, etc etc who is well-known on the forum with a good reputation for quality and customer service. I don't really consider other randoms who come up in the search system selling a virtual stone because from my experience, if WF is selling that same virtual stone that 6 others are, I'm going to call them because I have worked with them in the past. a company such a a WF who offers both brokered stones and in-house selection is the best of all words IMO.

bottom line is that if you pidgeonhole yourself into only looking at non-brokered stones, you really limit your selection. i wouldn't entirely rule out a brokered stone if you find one that has good #'s and the vendor will call it in at no cost to you. work with a reputable vendor and that puts alot of fears at ease as well.

 

[strmrdr]

perry,
elmo didnt know it had been fixed.

I 100% agree with your point that everyone makes mistakes how they deal with them separates the good from the bad.
Once its settled and its not likely to happen again its over.
I debated making a big announcement that the problem was fixed but figured it would just dredge up the issue after it had been settled and make things worse.
So im not surprised at elmo's question and didnt elaborate when I answered it to keep the issue from becoming a huge deal again.

Its over and done with and wont happen again so please lets just drop it :}

 

[aljdewey]

Date: 1/16/2005 11:29:36 PM
Author: strmrdr

I debated making a big announcement that the problem was fixed but figured it would just dredge up the issue after it had been settled and make things worse.

Honestly, Storm, you know I love ya.....but this is a cop-out.

You didn''t seem to have any problem making a "HUGE" deal out of it when it happened.....in fact, I think you made an inordinately massive hoopla about something that wasn''t proportionally serious.

Even though I think your response was overblown, I''d have more respect for it if you were as quick/LOUD/equally overreactive with the praise as you are with the criticism. You can''t have your cake and eat it too.......either dispense criticism AND praise with equal volume, or zip it.

And somehow, I highly suspect this won''t keep you from running amok VERY LOUDLY again the next time someone doesn''t meet your every expectation.

 

[strmrdr]

al,
Maybe your right and it was a mistake not to make a big deal about it being corrected.
I dunno.

Will I raise a fuss next time I find a large problem?
Yes if it isnt settled first in other ways.
The vast majority of problems I find are settled by a pm/email with no hassle.
Usualy the vendor isnt even aware there was a problem and fixes it right away.

 

[elmo]

Given Strm's description earlier I gotta agree with him on this one, how he handled it both then and now. Good to let this one drop now, I agree.

FYI until the pointed response from Perry my post had nothing to do with the vendor in question, I was gently ribbing Strm

.