Needing some pricing help

[recklessbacon]

Looking for some advice as I''m just starting the process of selling an engagement ring. Seems like the local jewelers are coming in low with their offers and I didn''t have much luck advertising in the paper. I spent a lot of time and energy into getting this special piece put together, so maybe I''m being overly picky when it comes to selling it

.

Here are the details:

Center stone is 1.51 ct Princess Cut (beautiful stone)
Color: I (near colorless)
Clariy: SI(1)
Mounting: 14K White Gold with 12 individually set side stones. Net is 2.02 ct.
EGL Certified
Appraised at $13,100

I''ve attached a picture that looks very similar to the ring I own. Can anyone offer any suggestions on what I should be asking, and any other ideas for places I should look to sell? This is my first shot at the internet approach.

Thanks everyone.

 

[phoenixgirl]

If you search for "selling a diamond ring," many threads will come up. There are also some in the FAQ section including this one.

Keep in mind that the appraisal value is well over the retail value (I would be very surprised if you paid anything near that), let alone the wholesale value. You have a figure in your head of what you paid, so to you that's what your ring is worth, but in reality, just like with a house or a car, it's worth what the market will bear.

For a jeweler to buy it from you, it's got to be less or about the same as what he would pay for it from his suppliers. Otherwise he'll just go and buy a 1.5 princess for less somewhere else. 1.50 to 1.52 EGL certed I SI1 princess are selling for between $4526 and $6261 on PriceScope's search engine right now (to the public, the jewelers are obviously getting them for less). Settings similar to what you have with 0.5 ctw and in white gold are selling for about $1k on BlueNile.com right now. So remember that you have to offer people an incentive to buy the ring from you (who might be a con artist or might have bought something misrepresented) instead of from a store with a customer service department and return policy. (In case I didn't make it clear already, that incentive is a discount they couldn't find elsewhere).

You might try your luck with eBay, but when I searched for rings with princess cuts, nobody seemed to be bidding more than $3500. There are all these stones listed at much higher prices, but no one is biting. You need to start bidding and/or set the reserve low to encourage people to bid.

Good luck!

 

[phoenixgirl]

To make things easy, here are the meatiest parts of that post I linked to:

From Richard Sherwood:
1. RESALE TO THE PUBLIC (through the classifieds):
Wholesale to wholesale plus 10-25%
2. RESALE TO FAMILY & FRIENDS (through word of mouth):
Wholesale to wholesale plus 10-25%
3. RESALE THROUGH A MAJOR AUCTION HOUSE (on short term consignment):
Wholesale neighborhood
4. RESALE THROUGH A LOCAL AUCTION HOUSE (on short term consigment):
Wholesale neighborhood
5. RESALE THROUGH A LOCAL JEWELER (on mid term consignment):
Wholesale neighborhood
6. RESALE THROUGH INTERNET AUCTION (through short term listings; Ebay):
Wholesale to wholesale minus 10 to 25%
7. RESALE TO A KNOWLEDGEABLE ESTATE DEALER (for cash outright):
Wholesale minus 35 to 60% (usually 40-50%)
8. RESALE TO A PAWN SHOP (for cash outright):
Wholesale minus 70-80%

The above figures are for a guide only, and are not set in concrete. Many factors will enter into how much you get. Top among these is proper documentation (major lab reports, professional appraisals) and patience. Desirability of the piece is a big factor. A "primo" Art Deco piece or "in demand" diamond will sell quicker and for greater value than a "out of style" or "poorly made" clunker.

If you''re interested in another jewelry item, you also have the option of trading in your piece on another. Jewelers vary widely on how much they offer for trade in value, but many will offer in the wholesale neighborhood for pieces which they like.
Rich, Independent GG Appraiser
Sarasota Gemological Laboratory
www.sarasotagemlab.com



From DenverAppraiser:
Where and under what circumstances you buy your diamonds (and anything else) is part of the value of what you are buying. It’s easy to assume that money spent on the dealer is money wasted but I flatly disagree. There are quite a few things that can be included by the dealer that will increase the value of a purchase.
1)Assurance that the item is not stolen or otherwise from dubious sources
2)Someone to take recourse against if item #1 turns out to be false.
3)Financing and other special terms.
4)Return privileges and trade up programs
5)Warrantees
6)Prestigious packaging
7)The opportunity to examine the stone and compare it to others in a convenient and well designed environment.
Speed
9)Buyer education
10)Assistance in making the selection.
11)Ease of access
12)“New” merchandise

The list is long and this is just a drop in the bucket. Economists call these sorts of thing “value-added” and people get MBA’s in this topic.

Diamond selling is a wickedly competitive business and it gets more so every day. There are dealers all over the world who are anxious to sell to you and each has assembled what they consider a good bundle of benefits in order to attract customers. In general, the more value-added elements included, the higher the prices. Some of these things are rather expensive to deliver while others are relatively cheap and not every customer wants the same bundle after all. It’s the reason that Costco and Tiffany’s can happily share the same planet while selling superficially similar merchandise for vastly different prices.

All of this is important to you as a seller because this is your competition. A stone sold by a dealer is probably worth more than that same stone when sold by an individual. It’s not a grand conspiracy to pay you less than your stone is worth, nor is it a clip job by the jewelers who are charging more.

Many customers put a fairly high value on this sort of thing. For example, it’s likely that you, as an individual, will find it difficult to sell to customers who place a high value on financing. Other customers are more concerned about getting the best possible price. This is likely to be your target market. Design your own bundle of benefits (independent grading reports, consignment to a fancy store, good photographs, slick ebay advertisements, selling through escrow, easy access through friends, etc.) that makes your stone attractive to customers that you’re going to try to sell to. Ebay and flea market customers will expect a different set of benefits when they buy, than the owner of a fancy consignment shop will want. Pawn shops expect very little but they tend to pay fairly little as well. It’s important to properly match what you are offering with the market you offer it into. Unfortunately, we can’t give you an easy answer about what bundle is ‘best’ because it depends on your circumstances, available time, skills, market access and a whole litany of other variables. Only you can make that decision.

I hope this helps. I wish you the best of luck with your sale.

Regards, Neil Beaty, G.G.
www.gemlab.us

 

[recklessbacon]

Thanks for the information. Hopefully I''ll be able to locate someone in the market for a nice engagement ring. I appreciate the links to supplemental information. Definitely gets me heading in the right direction.

RB