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Is 10% above wholesale fair or considered low?

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diamondheart

Rough_Rock
Joined
Jul 24, 2006
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65
Hello,
I am looking for a engagement ring. My boss''s wife is in the diamond business here in San Francisco. He told me that I should go to her to look for a ring. My boss said that his wife would get me a good deal. I was wondering what a good deal is? I asked him and he said 10% above wholesale. I know my boss pretty well and don''t feel he would cheat me but I am new to this and don''t know what is what with diamonds. I can look and then judge them against online diamonds vendors.

What do you think is the avg markup for online vendors like bluenile and other vendors on teh site?

Also has anyone in the SF Bay Area gone to the Jewelery Mart? I told my boss I went there because my brother has a jeweler there. He told me his wife''s diamonds would be better and they are from Jacoby/???? Anyone know what that means?

Anyone have good vendors in SF area?
 
Date: 7/24/2006 7:21:59 PM
Author:diamondheart
Hello,
I am looking for a engagement ring. My boss''s wife is in the diamond business here in San Francisco. He told me that I should go to her to look for a ring. My boss said that his wife would get me a good deal. I was wondering what a good deal is? I asked him and he said 10% above wholesale. I know my boss pretty well and don''t feel he would cheat me but I am new to this and don''t know what is what with diamonds. I can look and then judge them against online diamonds vendors.
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if he meant 10% over Rap
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it better be one hell of a diamond. get all the infor and post the specs here.
 
Oh boy, you are entering dangerous territory!!! Your bosses wife??? So she tries to sell you a not-so-good diamond and you''re going to be stuck!!! Please tell your boss you think it is best not to mix business and personal life. Then look at Good Old Gold and WhiteFlash and get a truly outstanding diamond for a fair price. They have lifetime upgrade policies, etc. Lots of people come on here saying they are buying at or around wholesale, and it is almost NEVER a good deal!
 
A dealer willing to work on a 10% margin is decidedly on the low side. The more complicated question is deciding on what ''wholesale'' means. This can vary wildly. Even if it''s the dealers cost, this doesn''t mean that it''s the right stone or that the dealer is buying in a sensible way. In many cases, dealers wish to use numbers off of price sheets that have little or no relationship to the selling prices to dealers and describe them as ''wholesale''. Read the section of the tutorial about ''Rapaport'' pricing. Buy the stone, not the price.

Neil Beaty
GG(GIA) CGA(AGS) NAJA
Professional Appraisals in Denver
 
Diamondheart,

You will never know for sure what the "wholesale" price of your diamond was--even if you saw an invoice. That''s not a problem. The question is, what is the price to YOU for a diamond of this quality.

You''ll have a hard time finding anyone to meet, let along beat, the Pricescope vendor''s prices at a B&M store, but some are able to come very close after negotiation. Places that sell based on "wholesale to the public" prices usually specialize in stones that look good on paper but not so good in person. And by definition, any sale to the public, no matter how low, is not "wholesale".

Neil is right: buy the diamond and not the price. Only belive the certs from the major labs, and puchase from a vendor who has a firm understanding of cut--especially if you are purchasing an ideal, super-ideal, or specialty cut diamond.

In any event, I don''t think you want to be in a commercial transaction with your boss''s wife, even if she is an angel!
 
Date: 7/24/2006 8:21:42 PM
Author: diamondseeker2006
Oh boy, you are entering dangerous territory!!! Your bosses wife??? So she tries to sell you a not-so-good diamond and you''re going to be stuck!!! Please tell your boss you think it is best not to mix business and personal life. Then look at Good Old Gold and WhiteFlash and get a truly outstanding diamond for a fair price. They have lifetime upgrade policies, etc. Lots of people come on here saying they are buying at or around wholesale, and it is almost NEVER a good deal!
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Ditto.

There''s an old saying: Never do business with friends or family. There''s a reason for that...
 
By definition, wholesalers sell to retailers and retailers sell to the public.

Technically, there really is no such thing as "wholesale to the public."
It''s a tired, overworked phrase that means very little.

Shop, compare the 4''C''s, prices, warranties, trade-in privileges, and service after the sale.

www.metrojewelryappraisers.com

 
I think I will have to see what wholesale means. Does anyone know who Jacoby is? My boss says that he supplies alot of diamonds in the SF Bay Area.

Also, I looked today at SF jewlery mart. Looked at a 1.31 RB, F, VS2, VG/VG at he quoted me 9150 w/o tax.

Another diamond was 1.26 RB, E, VS2, VG/VG and that one for 9450.

The 1.26 had clearer color but had inclusions and cloudiness near the middle of table. The 1.31 was a bit better because the inclusions were off to the side. I am still looking and was considering to look at what the boss wife could show.

He told me that she doesn''t have the diamonds, I go with her to the Jacoby place, and then there is a markup of 10%. I don''t know 10% markup from what though. I just read about the Rap sheet and that was what the jewler was using today.

ANy inputs?
 
Date: 7/24/2006 11:12:55 PM
Author: diamondheart
I think I will have to see what wholesale means. Does anyone know who Jacoby is? My boss says that he supplies alot of diamonds in the SF Bay Area.

Also, I looked today at SF jewlery mart. Looked at a 1.31 RB, F, VS2, VG/VG at he quoted me 9150 w/o tax.

Another diamond was 1.26 RB, E, VS2, VG/VG and that one for 9450.

The 1.26 had clearer color but had inclusions and cloudiness near the middle of table. The 1.31 was a bit better because the inclusions were off to the side. I am still looking and was considering to look at what the boss wife could show.

He told me that she doesn''t have the diamonds, I go with her to the Jacoby place, and then there is a markup of 10%. I don''t know 10% markup from what though. I just read about the Rap sheet and that was what the jewler was using today.

ANy inputs?
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Buyer beware. if it sounds to good to be true it usually is. If I were you, I''d skip the bosses wife and buy from a PS vendor who''s prices are extremely reasonable and you know exactly what you are getting. WF, GOG and JA would be my picks. Think about it, if the stone ends up being a dog, it''s your bosses wife you have to deal with. I would say thanks, but no thanks. But that''s just me. Good luck and let us know what you decide.
 
You probably mean L.A. Giacobbi & Co. They are a diamond supplier to jewelers across the Bay Area, and are located in the heart of Union Square on Maiden Lane (cute alley) in an office upstairs, not a storefront. You can have them find you a great diamond from the "virtual list" at competitive prices, however online vendors here can do the same. I believe they specialize in the trendier fancy cuts at the moment like cushions and asschers since that is what the market wants. The advantage of going with Giacobbi of course is that you can see the diamonds firsthand before the purchase since they''re local, and you could talk it over with them and let your eyes call the shots. They are also an Isee2 dealer as well.

-Peerless
 
I guess no one will ever tell what the product markup is in the industry. From cutter - to wholesaler - to vendor - to public???

Is there a basic rule of thumb formula, that is applied without taking the rap report into consideration. At that point you are talking suggested retail. What is the industry standard before all that??
 
Date: 7/25/2006 3:49:04 PM
Author: Eva17
I guess no one will ever tell what the product markup is in the industry. From cutter - to wholesaler - to vendor - to public???

Is there a basic rule of thumb formula, that is applied without taking the rap report into consideration. At that point you are talking suggested retail. What is the industry standard before all that??
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In general, no--which is the explanation for your first lament. Buying diamonds is not like buying cars. Sorry, but that''s reality.

This is a big business with a lot of different elements, and they don''t all work the same way. "Retail" at the mall is a very different thing from "retail" at a jewelry mart or online, not just in price but in what you''re getting.
 
Thanks for the information about L.A. Giacobbi. That is the place because my boss told me its a small place near Union Square. So would you guys say that she is just a dealer or would she be able to get a better price from Giacobbi? Is there any difference if I went to Giacobbi by myself? When you say virtual dealer, would the get the diamonds from the same place as the online vendors on these sites?

What is Isee2 dealer?

If it is I think I will stay with the Internet.
 
I don't think this has recipe for disaster written all over it AT ALL. See what she can do for you as long as you are upfront w/ no strings attached. Make sure you can walk away from the deal. The biggest caveat here is to MAKE SURE YOU KNOW WHAT YOU WANT BEFORE you go. Narrow it down to color,clarity,size & cut parameters (i.e. table, depth, etc.).

This is precisely how I bought my stone; though, mine was a matter of professional courtesy.

Basically, depending on how much influence she has with the supplier determines "her price". You may be able to get a better deal going with an internet vendor who has more buying down power - but it's certainly a sane way of diamond shopping IF YOU DO YOUR HOMEWORK & make the deal conditioned upon an independent appraisal.
 
Date: 7/25/2006 3:49:04 PM
Author: Eva17

I guess no one will ever tell what the product markup is in the industry. From cutter - to wholesaler - to vendor - to public???
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Eva,


There are plenty of people who will tell you that.

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The problem is that they’re wrong.
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There is no bottom line that everything traces back to. You’re correct that Rap serves approximately the same purpose as MSRP on many other products. The price a dealer pays depends on the source and the dealers relationship to them, the availability of particular stones, the way the dealer buys (cash, credit, fast, slow etc.), branding and many other variables that are not consistent from stone to stone, from deal to deal or from grade to grade. On round stones alone Rap lists 1485 categories which people here will eagerly point out is entirely inadequate to properly describe a stone. Even when accurately graded this will vary by a factor of 2 or more depending on these other attributes. What you’re asking for, a bottom line price that doesn’t include ‘dealer markup’ is simply not a realistic objective. The bottom line ‘wholesale price’ is a phantom but there are plenty of people who will supply you with it.


Neil Beaty
GG(GIA) CGA(AGS) NAJA
Professional Appraisals in Denver
 
Neil, that was a great clean answer!
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So nice to have such great people on this forum....

Thanks for the response.
 
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