Help on UnionDiamond VS Bluenile

[likexx]

I searched a lot and found 2 diamonds on Bluenile.com and Uniondiamond.com.
Bluenile.com: F color,VS1,Ideal Cut,thin to medium,0.46carat
Uniondiamond.com: F color,VVS2,Ideal Cut,thin to slightly thick, 0.50carat
Both are excellent symmetry&polish,No culet,with GIA and similar price.
It seems the uniondiamond.com has a better diamond.
However......
The box that uniondiamond offers is too ugly!!!!

Any idea? thanks!!!

 

[Rook]

I have not dealt with Union, and I have not bought from Bluenile, but I have been talking with bluenile about diamonds.

I have just looked over Union's site and would just say that Bluenile offers a much better return policy of 30 days! I personally feel this is important buying a diamond from a internet vendor site unseen, and I wonder why more vendors don't offer comparable or even better return policies.

 

[sturkiej]

I RECENTLY PURCHASED A .75 PEAR FROM BLUE NILE AND I AM VERY SATISFIED WITH EVERYTHING THAT WENT INTO THE PROCESS. THEY WERE VERY QUICK TO ANSWER ANY QUESTIONS AND I AGREE THAT YOU MUST LOOK AT THE LITTLE DIFFERENCES SUCH AS RETURN POLICY AND THE SUCH. I HAVE NOT YET HAD THE STONE APPRAISED (I HAVE ONLY HAD IT A WEEK) BUT THE SERVICE AND SUCH WAS VERY GOOD I ORDERED IT AROUND 10:00 IN THE AM AND IT ARRIVED TO MY OFFICE AROUND 9:30 THE NEXT WHICH IS REALLY COOL!!! FROM SEATTLE TO SOUTH CAROLINA IN LESS THAN 24 HOURS!!

HAPPY SHOPPING
JASON

 

[Carlos]

Hey, a question I can opine on, as it's not really diamond-related! Not everyone will offer a 30 day or longer return policy because that's a real drain on working capital. If you have a 30 no questions asked return policy either you can't book the sale until 30 days past or, more likely, you have to hold a reserve against potential returns. Either way you crush your return on capital. The reason the whole internet dealer thing works to begin with is that it's extremely "capital light" -- no expensive store and little or no inventory (literally no inventory in the dirtcheapdiamonds case). If you tie up capital in contingent sales, you ruin the model.

 

[Rook]

Carlos,

While I agree that part of the reason internet vendors are able to sell diamonds at a lower price is due to low capital and secure cash flows, I think they could still offer better guarantees.

Diamonds are a highly liquid commodity (at least the good and untreated ones.) Thus even if a retailer has to honor a guar. and take back a diamond, they should be able to quickly resell it, (as long is it is as good as they say it is.) There are a lot of small b&m stores that will offer lifetime buybacks on their diamonds.

How, they sit down with the client, find out exactly what they are looking for, and find the one that will make them so happy that they know it is not going to be returned. Of course some of these places charge a small premium for this, but it is a good gimmick. Charge for a guarantee, you don't ever expect to have anyone want to use!

If some internet vendors took more time to find out what you are looking for, and were more open with information about it, and could honestly say, "I know you will love this diamond" then they could offer 30+days of warranties without having any increase in returns.

Just my thoughts


This is just a generalized statement not directed towards any particular vendors.

 

[UnionDiamond]

likexx,

This is Scott from Union Diamond and I just noticed your post and thought it may be good idea to respond to your concerns.

Firstly, thank you for at least giving us the opportunity. We work hard for the consumer and try to offer the best possible diamond for the money!

We have used our signature blue box for quite some time and really have not had any problems, but your point is well taken. Some consumers will not like the packaging we offer. That said, as of Monday, we will offer three alternate boxes for a customer to choose from. You can drop me an email [email protected] and I will see to it immediately!

As for the issue of our "Money Back Guarantee", we offer a seven day guarantee from the time you receive the diamond to the day it should be postmarked to return to us. This generally gives a customer ample time to have the diamond checked out by an independent appraiser. If a customer needs more time, I'm happy to work with them on an individual basis. We try to work hard with our customers to give them exactly what they are searching for and the time they need to be comfortable with the purchase.

If you search through Blue Nile's site you will find that the prices are higher than ours for comparable diamonds. That's one of the effects of having a 30 day guarantee.

I hope this helps a little.

Best Regards,

Scott.

 

[Carlos]

Rook,

Liquidity of diamonds has nothing to do with it.

Working capital = inventory plus accounts receivable minus accounts payable.

If you can't book the sale due to the return guarantee (or can only partially book it due to reserves against returns), your working capital goes up, and your return on capital goes down.

Cheers,
C

 

[Rook]

Carlos,

I know that this "working capital" theme is not quite what most care about, but I find it intriging and sort of entertaining. I am not highly educated on the subject but here are some other thoughts for you.

When I think of a corp. being concerned about working capital, their main concern is the ability to have funds available to conduct business?? Either through working capital and inventory lines of credit, or actual use of the cash flow.

If a corp sells a diamond, money up front of course, and offers say a 30 day return policy, how is this a drain on wc? They will still be able to book the sale, increase the cash account, and decrease inventory if there is one. Even if they play safe and have a reserve acct. in the event that the sale is returned, the reserve is still an asset that can be used in calculating a line of credit.

Also if in the event they do take a return, yes their cash acct is decreased, but inventory is increase just as if purchasing inventory originally. This may decrease potential wc but will increase inventory and corp assets!

I am not sure if that is so well thought out, it late.

Also, It must work. Look at corps like Blue Nile (not praising them or knocking others.) They charge higher prices for the same quality as others and yet people buy from them like crazy. I recently read that they increased their market share 50 percent this past year! That's huge. The only real difference is their 30 day return policy. Obviously it is importanct to a great deal of people.

Just some random thoughts

 

[kopper]

I recently purchased a diamond from Union Diamond, about a week and a half ago. I'd highly recommend them. Scott and Tony are both very helpful and professional. I found them to be very patient and willing to answer any questions posed to them. They pride themselves on customer service and I believe they delivered.

I also had some concerns about the 7 day return policy, however, after dealing with Scott and Tony I didn't think this was much of an issue. Seven days is plenty of time to get an appraisal and, with Union Diamond's focus on customer service, I'm sure you could come to an agreement if this isn't enough time. I let them know that I was getting it appraised by a third party and Tony commented that they would not send a diamond to a customer that they felt may be returned. Again, they delivered. The diamond was beautiful. I had two GG's look at it and both said I did very well. I'd recommend at least talking with them.

Kopper

 

[likexx]

I finally bought the diamond from uniondiamond.com.
In fact, they have several different boxes to choose. At last, I chose the red wooden box, and it's very similar to the one in bluenile.
The people in uniondiamond are also very nice.