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How do upgrades work for the vendor?

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Ideal_Rock
Joined
Mar 15, 2004
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Question. For the *****NON-STOCKING******** vendor that offers an upgrade, is he/she stuck with the stone being turned in, or can they return it to the supplier for a credit. How much is that credit- what they paid for it??

I would assume they are not stuck with it bc they wouldn't offer upgrades in that case.

(I understand the other financial elements of a trade in with STOCKING vendors...they had it in stock anyway when they sold it to you and they give you back yesterday's price and sell for today's price...I just have this specific question...thanks)
 
That''s a great question. I would like to know that myself.
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Why do *you* want to know. I know why *I* want to know.
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I want to know because I find it interesting. I like to find out how things work for the vendor. I can guess why you want to know,
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It has been mentioned here that at least some vendors restock the item....after whatever repolishing , etc. is needed, at today''s prices.............
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Ha! Just thinking about it Kaleigh!

I understand the whole give you back yesterdays price and resell for today's price...

********************But what about non-stocking vendors who go out and find you the stone? They didn't have the stone to begin with... If he had to take it back and sit on it, that would be a HUGE loss until he found a buyer at today's prices..

So I'm wondering...they have to be able to return it too, no?

Come on Gary...I see you out there
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So, MMM, are you buying, selling or BOTH?????? I''m going to "stay tuned" to this one!!!!
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moremoremore,
Yup I was right!!!! The thing is we traded in our first stone and got an upgrade and I always wondered what the dealor did with that stone??? Think little blue box????
 
I am curious myself...I am in the beginning process of getting an upgraded ring and stone...not all jewelers are willing to do a trade in I have found...
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LOL..Kal, .No, little brown bag b/c that's all I can afford!


What if they have no stock? Then what? Let's say I buy a 20000 stone and I get a 90% trade in. Even AFTER the 10%, what is the non=stocker supposed to do? Wait for someone to buy it. It just CAN'T work that way.

Deanna- congrats on the upgrade. By trade in I mean back the original vendor! Does your guy not do it? I specifically went with Mark b/c of his upgrade and low prices. He did not have my stone in stock. When I bring it back what happens to it?
 
I think *I* know why you want to know, too, MMM....hehehehehe.

I''m just speculating, but my guess is: I think they are stuck with it and likely have to find another buyer, whether it''s an end-customer or another dealer.

I was talking to Mark and had asked him about a given stone. He told me that particular stone was in India....and he''d have to buy it in order to bring it in.
He mentioned that the vendors in India get some stipend from the bank for exports, and it would be too much of hassle if those vendors had to pay the bank back for imports. To me, that sounds like "no returns" to that supplier. This vendor in India also didn''t have access to Sarin equipment, so in my case, that eliminated the stone for me.

It would be nice if a few non-stocking vendors could chime in, though! LOL
 
and just why were YOU speaking with him? :) Are you in the market? hey- were you looking into that J Si1 that mara mentioned? I too am/was/might be looking for a nice stone for a pendant and asked him about that stone! Yes, no refunds indeed.

Well then, I think that upgraders would be a non-stocking vendor's worst nightmare maybe...depending on how fast the stone could be resold.

Although I just saw my husband's face and he looked like a non-stocking vendor
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Have you talked to Mark about this, or are you wanting to find out the info and then have a chat?? Little brown bag was funny.
 
Was just wondering kaleigh! don''t want to freak mark out YET LOL
 
Shhhhhh, we won''t tell anyone.
 
Hi Ladies,

Very very few suppliers will take stones back after a "mazal" has been given on the deal. Once the vendor makes the deal with the supplier that''s it. That is why most online only websites do not offer upgrades or have limited upgrade policies. As most of you know we both stock an inventory and offer to find whatever shape/quality a person is interested in but only offer tradeup policies on diamonds we regularly stock. No vendor wants to get stuck with a multi-thousand dollar item that has very low demand.

Hope that helps give a little more insight behind the scenes.

Regards,
 
Thanks J. That's what I thought. It would be business suicide....So basically, a non-stocking vendor who offers upgrading eats it, for the most part unless he deals with a supplier who will take a stone back (possibly in exchange for another)! Kind of makes you feel bad for taking advantage of the policy. Not THAT bad, but bad.
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Date: 6/14/2005 10:13:06 PM
Author: moremoremore
Thanks J. So basically, a non-stocking vendor who offers upgrading eats it, for the most part! Kind of makes you feel bad for taking advantage of the policy. Not THAT bad, but bad.
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LMAO...
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for the most part yes mmm. I would imagine that *busy* online only sites can afford to let the item sit in their inventory to appease the client. btw i caught the other thread where you were looking to get a pendant and the stone looked like it rocked. Good for you girl. Enjoy. :)

Peace,
 
Upgrades

Well, here''s my two cents.

Most of the written trade up "guarantees" say they will give you what you paid for it, but you have to buy a stone that costs twice as much.

Generally the stone is put back in stock and resold to another person, and the difference between what they determine the current cost to be is sort of built into the profit on the "new stone". This was more common in the chain type store where the mark up was 100%.

Now that the mark ups are far less, I would imagine there are fewer people offering this. I''ve seen posts where people want to trade up for a stone that isn''t going to cost too much more, and I think if a merchant would do that he is certainly trying to serve the customer.

But we seem to be facing a shortage of certain types of stones, so if the supply thins out and prices increase, it might be favorable to do a trade up for the seller, if the price originally charged was sold at a low mark up. If the seller sold the stone and made 10% originally, he would probably have to pay at least that much to a supplier for the same one in the very near future.

But secondly it depends on cash flow.... the dealer has to be able to put the old diamond back in stock, and take his cash to pay for the new stone ( unless he already owns it). Not everyone is in that position all the time. For example let''s say a stone was sold for $ 5000.00 that cost $ 4500.00. The seller made $ 500 on it. Now let''s say the customer wants a stone that would sell for $ 7000.00 and would make $ 700.00. Unless you have customers who you could sell the trade in to quickly, a seller can''t do this too much. He has an item that cost $ 6300. that he has to pay for, and $2000.00 in cash, and a $ 4500.00 stone. Total that up and the profit on the second stone would only be $ 200.00.

As far as trading it in to your supplier, Jon is right. Once you bought it as a reseller - chances are the manufacturer doesn''t want to take it back, UNLESS he is going to pay less. How much less? That would vary based on the relationship that existed between the reseller, and his supplier. In cases where the seller would consistently buy from a particular supplier, they might work something out. But generally speaking the seller would have to put the trade in back into his inventory.


Rockdoc
 
Date: 6/14/2005 9:25:47 PM
Author: moremoremore

Well then, I think that upgraders would be a non-stocking vendor''s worst nightmare maybe...depending on how fast the stone could be resold.

Although I just saw my husband''s face and he looked like a non-stocking vendor
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not in todays market. say you bought a stone for 20k 2 yrs ago,today that same stone is selling for 25k and if the vendor gives you 90% of 20k which is 18k,he would be making a killing. he can offer to sell the stone for 23k to another customer and still make 5k. right now isn''t a good time to do a upgrade.if you find the right stone ,just buy it.
 
Thanks all!

And DF...he''s not making a killing UNTIL he sells the stone! What if he never does? Big risk, huh?
And just BUY a new one? Come back down to earth my friend. Let me reach in my wallet for 25K and just keep my stone
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Date: 6/15/2005 7:30:28 AM
Author: moremoremore
Thanks all!

And DF...he''s not making a killing UNTIL he sells the stone! What if he never does? Big risk, huh?
And just BUY a new one? Come back down to earth my friend. Let me reach in my wallet for 25K and just keep my stone
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he just paid 18k for a stone that every vendor is selling for 25k.if he can''t sell this stone for 22-23k,there is something wrong.now if ......the stone is only selling for 16k in todays market,then he''s in trouble.
 

Y’all are making this to difficult.



You’re forgetting the wholesale market that underlies all of this. It’s where all of these non-stocking dealers get the stones that they’re selling. Accepting a diamond as a trade-in is identical to buying that diamond. A non-stocking dealer, or a dealer who takes in a stone that isn’t appropriate for their product mix has the opportunity to sell to other dealers who might find it more suitable. At the right price, every stone will move quickly. It only becomes a matter of setting the price properly and finding the right buyer. Most professional diamond dealers are fairly well connected and finding someone who is willing to take the risks associated with owning a diamond in exchange for some profit isn’t all that difficult. Whether the dealer is willing to give up that much profit is another question entirely and it will depend on what they are offered for the stone, what they paid the consumer, how skilled they are at selling stones of this type, how much they think they can get if they hang onto it, how much they think they could get something similar for when the opportunity arises to sell one like it and what they might otherwise do with their money instead of buying this stone. There are a lot of variables but, in the end, it’s pretty straightforward arithmetic.



Neil Beaty
GG(GIA) ISA NAJA
Independent Appraisals in Denver
 
Thanks Denver!
p.s. I''m sure my beauty would fly off of the shelf LOL
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You know mmm. it''s quite likely someone around here would give 90% of what you paid in cash.
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After all you did all the work in picking it.
 
ANYBODY WANT IT ??? j/k leonid :)
 
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