Negotiating with jewelers

[Lookingforring]

I''ve noticed that when ever the question of negotiating with jewelers comes up people on this board seem to think you should just go to a "pricescope" friendly vendor and not negotiate. Actually most threads that ask this question get slammed pretty hard with this response.

So please only respond if you have constructive advice to give on the topics below:

1) What is a resonable percentage to try to get knocked off what a reputable retailer says a setting and diamond cost. ie total ring cost 10,000 do I offer 90% 85% 75%. Does this differ online vs. in store?

2) Has anyone been able to sucessfully negoitate with an online retailer beyond the cash wire price that they list?

 

[mrssalvo]

Hi lookingforring,

I don''t think it impossible to negotiate with local jewelers. The reason most people suggest going online is because most of the time, online vendors 1)provide more info on the stones that a lot of local jewelers cannot, i.e run a sarin etc..2) the overhead to run a local store is a lot higher so they just don''t have a lot of room to negotiate and the online prices are better. Online vendors are alreay very low and i haven''t heard of any of them negotiating off the price beyond the wire price. I''d suggest researching and learning how much your stone would cost if you purchased through someone online. then you have that # to negotiate with the local jeweler. however, I do think it''s worth some extra $ for the convenience of the local guy. Easy maintainace, cleanings and easy repair process if something goes wrong. When you purchase online there can be lots of shipping charges if the ring is problematic so going local would be warrant a higher price. Keep in mind that many of our Pricescope vendors do have local stores in the city they are located.

 

[denverappraiser]

There’s not really going to be a straight answer to your question. The problem is in deciding what the discount is FROM. They can put anything they want on price tags and some stores make it a matter of strategy to put large numbers so they can offer a big discount and make you feel like you got a ‘deal’ while others pride themselves is quoting their rock bottom prices to everyone, right from the beginning. The result is that the price becomes meaningless when you take it out of context. Shop the store against others in the area and you’ll get a feel how their prices generally stack up. If it’s the right sort of item, shop it against the PS dealers who are pretty upfront about their real prices. If you find the store to be way out of line, they are probably planning on negotiating. If it looks like they are already pretty competitive, they probably have less room to work. In the end, it never hurts to ask.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

 

[Tacori E-ring]

I agree with mrssalvo. For my e-ring and wedding band I really wanted to get them from a local B&M. I have already lost a melee in my e-ring and it seems like a PITA to send the ring back and forth. The extra peace of mind is worth the extra money. For studs, or other jewelry I would be comfortable with buying from a PS vender. About negotiating I guess you could try. The worse thing that would happen is they will say no. Good luck!

 

[Beacon]

Why not run the parameters of the stone you want thru Blue Nile or one of the other internet dealers with a big inventory and see what they charge and compare to what your local B&M has.

BN is useful cause they state they run on 20% margins, so you can *estimate* what their cost is for a stone.

If your jeweler is much higher than internet retailer, print the stone price and specs out for him and give him a chance to match.

If they won''t match, then I personally would not buy cause you can get it cheaper on line. OK, maybe you don''t like on line, but it will give you a place to start negotiating.

 

[Regular Guy]

try this!

(eta) or what Beacon said, but I said first.

 

[gemmy1]

1) What is a resonable percentage to try to get knocked off what a reputable retailer says a setting and diamond cost. ie total ring cost 10,000 do I offer 90% 85% 75%. Does this differ online vs. in store?

2) Has anyone been able to sucessfully negoitate with an online retailer beyond the cash wire price that they list?

As others have stated, it is too simplistic to arbitrarily set a discount to "offer" based upon a quoted price. You could easily end up paying too much on one hand, or lose your credibility with someone really trying to cut you a deal on the other hand. Do some research and get as good a feel for the market as you can. Don''t be afraid to ask for a discount if the market warrants it. That applies to both online and offline. Playing the "online card" with the local jeweler is a common strategy. Give them the opportunity to compete or explain to you their value proposition so that you can justify paying more.

Having said that, certified diamonds are perhaps the easiest thing in the world of jewelry to do this with. When it comes to design oriented merchandise with colored stones and pearls and non-cert diamonds, it becomes a much fuzzier proposition.

Bottom line is to learn enough about the materials and the market so that you can assess the knowlegeability and professionalism of the jewelers you are considering. Then do business with the one you feel is most interested in a mutually beneficial relationship.

 

[denverappraiser]

Date: 8/2/2006 4:20:29 PM
Author: Beacon

BN is useful cause they state they run on 20% margins, so you can *estimate* what their cost is for a stone.

I don’t think this is valid.

BN publishes their average gross margins on sales but certain items have considerably better markups than others. Big beautiful diamonds are among the least profitable things they sell. Applying a blanket discount to their selling prices as a way of estimating dealer costs would not be reliable although I agree that using their advertising and listed prices as a negotiating point with the retailers is effective.
Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver