IDEX: The Diamond Pricing Play

[pricescope]

IDEX May 2005 issue, "The Diamond Pricing Play", contains many interesting articles related to the diamond pricing, pipeline, retail, etc.

Kudos to IDEX for trying to make the industry more open, which must help in improving the consumer confidence.

Featured articles:

The Diamond Pricing Play
Warning: Price Lists Will Impact Your Business!
The 2004 Diamond Pipeline
Vox Populi The Consumer’s Voice
Industry Voices
The Sparkle Is Back, But Will It Last?

I'd need a bit more time to read and them

 

[Paul-Antwerp]

IDEX is indeed a great source of information for the industry.

What I like most of them, is their tongue-in-cheek-comments.

Live long,

 

[strmrdr]

Jeff Fischer clearly underestimates consumers.
http://www.idexonline.com/portal_FullMazalUbracha.asp?id=24006

"I will be the last one to advocate consumers buying diamonds over the Internet."

"Certainly, without having a truly professional understanding of the product, it is difficult for a consumer to appreciate subtle differences in actual beauty and value."

Its the consumer that decides if subtle differences in a diamonds apearance apeals to them more than another diamond.
That is the only opinion that counts in the end is that of the person buying it and the person wearing it.
Since when did one need to be a professional to say that one diamond looks better than another to them?

As far as value goes if someone was truely looking for value for their money they wouldnt be buying diamonds but that is a whole different rant :}

The scary part of it is this guys title:
"President of the International Diamond Manufacturers Association (IDMA)"
If that is the type of leadership they have, its no wonder a lot of them dont get it.

It is however refreshing to see that others in the industry truely do get it based on what they say there.
..
edited for clarity.

 

[Garry H (Cut Nut)]

This is an excerpt fom the article about price lists on leonids intro links.
Obviously Pricescope is the main source of this web based info:


He wants access to price lists. In the age of the internet we cannot maintain the “myth” that there is no “retail price” for diamonds, but only a wholesale price. The facts speak for them-selves. Depending on the type of jewelry store, between 5%-25% of retail sales in the United States is in loose diamonds. The store owner’s margins on loose goods is lower than on set diamond jewelry, so he will generally try to sell jewelry and not loose diamonds. But adding these loose diamond sales to Internet sales, we see a growing market in loose diamonds directly to consumers. The feedback from the retailers and from the internet suppliers will become part of the complex set of parameters used to create polished price lists. In a demand driven environment, these lists will become tools for diamond manufacturers who will use accurate price information in the decision on what cuts and brands to manufacture.

These lists will provide feedback to rough producers who will discover, over time, that in a demand driven environment, there may be limitations on their ability to raise prices at will. A new generation of price lists is needed as the industry has passed the point of no return in moving towards a demand driven business.

Lists as Marketing or Management Tools?
Suddenly “how much” a consumer is willing to pay is becoming relevant – and the industry as a whole, not just the retailer, must get a better understanding of transaction prices at intermediate and final phases of the diamond pipeline. With huge discounting taking place in the jewelry sector, the producers must also get a better understanding on the final pipeline price - and not the wholesale price. That is a new development. In the past four to five years we have seen fluctuations in the price of rough and in the past two years we have witnessed steep increases. On the other side of the pipeline we have seen a different process: retailers are not able to secure a better selling price for diamonds.

 

[valeria101]

Date: 5/16/2005 10:11:07 PM
Author: Garry H (Cut Nut)

[...] the industry has passed the point of no return in moving towards a demand driven business.

Crazy ?