JCK: Internet sites may be undercutting retailers

[pricescope]

Article in JCK-Jewelers Circular Keystone -- 5/9/2004: Internet sites may be undercutting retailers

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Brad Roshto of Diamond Brokers in West Melbourne, Fla., has sent 100 fellow jewelers a letter warning that they may inadvertently be patronizing companies who are selling to their competitors.

Roshto is upset about pricescope.com, a site that compares diamond prices for consumers on sites like dirtcheapdiamonds.com and jewelryzone.com......

"Sometimes you try and sell a stone to a customer and the customer comes in two weeks later with the exact same stone for 2% over cost," he says. "There is no way a retailer can survive on that kind of margin. A lot of business is flying out the door because of it."

.......

In the meantime, many suppliers are unhappy about being named in his letter, Roshto plans to send it to more retailers in the future.
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[oldminer]

And there is a rumor that the sky is falling, too.

I do feel badly for traditional retailers who see their way of selling undergoing tremendous changes. However, the trick in business is to survive and prosper, not wish for the good old days. They are not coming back. I have been through many changes that were not especially welcome ones, but I re-worked my business plans to make the best of it.

 

[elmo]

If I'm reading the JCK article correctly one of the main complaints is that some diamond suppliers are drop shipping directly to consumers allowing some sellers to take a razor thin 2% margin. I guess that's no big news though. I've thought that the general consensus of the regulars in the discussion group here is to buy from a stocking retailer or from one who will do the additional analysis where the margins are somewhat higher.

 

[fire&ice]

Wine with the same old Whine?

Whine, Whine, Whine. ...and don't do anything constructive to tailor your business in today's world.

With all this vendetta energies, how does DBOF have time to service their clients. Clearly, the crusade has no benefits to the consumer. Why does the expression "If you build it, they will come." come to mind? - a no brainer for retailers.

 

[pricescope]

Elmo, the purpose of the letter is to pressure diamond wholesalers to forbid listing their diamonds in the Internet.

Funny enough, JCK page with the article serves Google' ads at the bottom - internet diamonds.

 

[luvmysparklies]

I guess I'm a little confused. Doesn't Diamond Brokers of Florida have an internet site/business as well as a BM? Don't they sell stones to folks over the net too?

If they do, aren't they robbing some BM retailer somewhere?
Luv

 

[fire&ice]

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On 5/10/2004 10:34:55 AM luvmysparklies wrote:

I guess I'm a little confused. Doesn't Diamond Brokers of Florida have an internet site/business as well as a BM? Don't they sell stones to folks over the net too?

If they do, aren't they robbing some BM retailer somewhere?
Luv----------------

They sell only diamonds listed by dealers that do not participate in the "listing" of stones available to multiple vendors (& PS). Since the consumer has no access to these diamonds & *their competitive pricing structure*, DBOF can charge whatever profit they see fit. Doesn't sound like it jives w/ our Nation's free market economy.

Personally, I would put my energies into setting myself apart. Most consumers are looking for value (service included in the equation) & not the rock bottom price. As noted by Elmo, most PS posters recommend working with a vendor who sees the diamond.

 

[Hest88]

Fascinating, considering that many of know that DBOF got a considerable amount of business and publicity through their Internet connections. They are far from a traditional B&M.

 

[openhelix]

If you've been over to "the other board" lately (with the same initials as Deloitte & Touch), you'll find it's become Brad and Jan's personal soapbox for selling their diamonds and pushing their opinions as fact above all else. It's really sickening. Everyone else, consumers and vendors alike, have pretty much been run off.