Exclusivity with vendors

[MieleMelograno]

I really appreciate Lisa Elser's post.

She sells primarily to jewelers.
I have only been in the gem business for 2 years now. I have learned that many jewelers turn you down if you publish your prices online.

I have retail prices and a password protected wholesale page. Honestly since we are buying the rough from the source country and not a broker in Antwerp our prices will fluctuate with the current market prices. Much like gold the rough prices fluctuate according to the supply and demand.

Being discerning buyers, PS'ers have a sense that something is wrong with the low grade / cheap stones marketed everywhere. The nuances of the pricing for high grade stones is difficult to always put well this stone is $$ while this stone is $$$$.

The factors include:
Source of gem rough: Fair Trade, Personally Sourced, Brokerage in Source Country, Brokerage outside Source Country, Stateside Source, Privately owned mine, Mining Co-operative, Corporately owned Mine, Street Peddler, etc

The Quality/Type of Rough: Premium Grade rough, Included rough, Cabochon grade rough, fish tank gravel, rare location, rare color, new source, treated, untreated, synthetic/simulant

Who is Faceting: Yourself, by a well known Faceter, by a lesser known Faceter, by an Award winning Faceter, by a crafts-person in the source country, by a gem mill overseas, by a European Faceting house

Certification: Gia, Gubelin, AGS, ISG, etc, no cert

There are a few guide available to the trade only. Those are trying to create a standard pricing structure but retailers are reluctant to use them. The jewelry trade is, in general, used to the secrecy and shenanigans approach. There are plenty of trust worthy jewelers, brokers and faceters out there but many of them would get run out of town by their peers for exposing their actual prices.

Everyone needs to make a living I agree that secret pricing is unfair to the public but industry in it's very core is resistant to change but when it takes place it's sweeping until the next change to buck comes along

 

[ruffysdad]

I'm not sure that I'd call it "secret" pricing. I buy and sell rough primarily. If I sell a single stone that's hand picked for it's quality, it sells for one price. If I sell a parcel of the same stone, it sells for a lower price. If I do high-grading, for single stones or parcels, of course it's going to cost more. I've got my time into it. The rough stones in that bag all cost me the same, including the ones that wind up in my driveway.

Cut stones are a different matter somewhat. If I've got 1 stone that I'm listing for $50, I've still got the time into it plus the amount that went down the drain when cutting. I use this basic formula: Cost of the rough (lets say 10/ct) X 5 (assuming a 20% yield) + Time into cutting. So if I have a 10 ct stone that yields a 2ct cut stone and it cost me 5/ct in the rough then that cut stone will have cost me $50. Time is something I play with and usually flat rate so let's just say I'll put $30 on it for cutting. That means the stone will sell for $80 in the end.

Now if someone wants to buy that stone by itself, I'm not too inclined to dicker since it's just that one stone and I really don't care if they own a jewelry store or not. It's just one stone. But if someone wants to buy say, 10 seperate stones for a total of 2K, yes, I'll be more inclined to give them a break. It won't be much since it come out of the time end of things. That, to me is wholesale. A single stone purchase isn't whether you're a jewelry store, collector or a fan of a certain cut or gemstone.

I don't see that as "secret" pricing.

Pete

 

[LD]

I will buy from anywhere that has a stone I want. I occasionally return to vendors because they have (a) great prices and (b) fabulous and well represented gemstones. However, I would NEVER buy from one or two vendors exclusively because I would miss out on some superb purchases!

Over the years I have built up good relationships with a number of vendors and "trust" their eye. So I will occasionally enquire about a stone and they'll know if it's something that I will like. Honesty from vendors is a huge incentive for me.

I agree with Kenny about pricing. If a gem doesn't have a price by it, I assume I can't afford the stone OR it's over-priced in the first place - which I realise is an assumption and may not be accurate. I also believe that some vendors (none who have posted on this thread) will price according to the person making the request and that makes me natural distrustful. I understand Lisa's point though and the logic behind it - it's just for me, it doesn't work.