Looking for a reliable and good supplier

[abdul_far]

Hi

I am a small retailer currently looking for a honest and reliable supplier, if you think you can meet my requirments let me know asap.

Thanks

AF

 

[denverappraiser]

AF,

Although this is primarily a consumer forum and therefore not really the place to ask this question, I think people might find it intresting to hear some of the concerns from the other side of the counter. As I''m sure you know, there are zillions of suppliers who would like to work with you, all of whom would describe themselves as reliable and honest. Every trade show is packed with hundreds or even thousands of them. What are your requirements? Put another way, what does a supplier need to do to earn your business and what are you going to do to make it worth their trouble?

Neil Beaty
GG(GIA) ISA NAJA
Independent Appraisals in Denver

 

[abdul_far]

Thnks for your respnse

My ideal needs are of a supplier who offers certificated quality at cheap prices on diamond products, my requirements are that they are reliable and certified. in return i can offer regular trade and demand for their products

Thanks agian

AF

 

[denverappraiser]

AF,

Depending on what you mean by cheap prices, this is easy and almost any diamond dealer will be able to help you out. Commodity type diamonds with lab grading reports are easy to find and there is a built in margin of several percent for moving them from the inbox to the outbox. Most jewelers find that this margin isn’t sufficient and long for the ‘good old days’ when it was higher. This is what causes the pressure. It’s a competitive world out there. Read through the discussions on the forum and you’ll see an interesting trend. Almost everyone would like to work with a local jeweler but find that they can’t find one that meets their requirements. It’s very much like the relationship between you and your suppliers. You would like to support your local wholesalers if they could meet your requirements but you need to attend to your business too. Compromises must be made. This is why I thought people would find it interesting to hear what a small retailer has to say.

The customary places that a wholesaler can compromise are:

1) Use labs that will report inflated grades. This enables them to sell VS2 stones for VS1 prices. Obviously they can give a better discount on this kind of ‘certificated’ goods.
2) Sell off makes. Super premium cutting sells for a premium and there are dealers and consumers out there that are willing to pay to get it. The cutters, quite reasonably, are selling those stones through those markets and sell different merchandise to the ones who demand cheap prices and discounts from Rap.
3) Memo and payment terms are not free services, no matter what they tell you. This is obvious if you think about it. You will find your prices and selection will both improve if you pay immediately and carry an inventory. This is a huge problem for the cash flow of most small jewelers, which is why they continue to be willing to pay extra for this kind of service despite the shrinking margins. This is a reasonable business decision but it’s helpful to understand that you are paying a premium for it.

The wholesalers, especially the local and regional ones are dying over this. Their customers, meaning retailers, are becoming less and less willing to pay for the services they offer because they can’t pass these costs through to the consumer and their margins are shrinking as a result. I suspect that this is why you''re here. It’s just like what’s happening at retail. If your question is “Are there wholesalers out there who can offer me the kind of margins and services that I enjoyed 10 or 20 years ago?”, no, there aren’t. If your question is “Are there wholesalers who can work with me to make a living running a retail jewelry store?”, yes, many of them. I would encourage you to be more specific about what you expect from your wholesaler and what value you are adding for your customers. The business is changing rapidly and both the wholesalers and the retailers need to adapt. It’s not all about the prices. It''s about value.

Neil Beaty
GG(GIA) ISA NAJA
Independent Appraisals in Denver

 

[strmrdr]

WOW
Neil thats one of the best summaries of what is happening in the industry at that level of the market that Iv seen.
Thank you!

 

[diamondsbylauren]

Storm!!!! WE AGREE!!!!!! YAY!!!!

Thank you neil- extremely on point and timely.