arabiangoggles
Rough_Rock
- Joined
- Oct 30, 2007
- Messages
- 17
Date: 11/8/2007 8:39:13 PM
Author: strmrdr
A lot of vendors who do a lot of custom work will buy in volume so very short term market jumps may not tell the story.
Lets say they bought several onces 2 months ago then used up that batch at the price they paid + markup.
The next batch of several onces that your ring is coming out off may cost a lot more than the short term jumps may indicate compared too the last batch.
With the way prices are going up it is not impossible that $100 more is fair but seems like a lot with the small amount in a ring to me.
It’s entirely possible that their costs are up $100. Is it reasonable that they pass this on to you? Possibly. It depends no the nature of the negotiation. If they’ve already committed to a particular price and you had already agreed to pay it, I think they should stick with their quote. If you still have the opportunity to back out, I think it’s fair that they do to. Last weeks price was last weeks price and they are under no obligation to leave that offer open. You, of course, are under no obligation to accept the new offer.
There is no reason to price plat on a rotating stock basis.Date: 11/9/2007 7:43:05 AM
Author: denverappraiser
One of the key problems for manufacturers is that they must base materials cost on what it will cost them to replace their stock, not what it cost them to buy in the first place. A manufacturing or custom jeweler will have an inventory of platinum and this is effectively a bank account. This is different from more ‘typical’ retail environments and even slightly different from the way records are required for tax compliance. This is true of diamonds as well. When a jeweler buys a diamond for stock they obviously will buy it as inexpensively as they can and then will start hunting for a customer. The price they paid is known as a ‘sunk cost’, meaning that that deal is already done and can’t be changed. The numbers that are unknown is the transaction price when it finally sells and the purchase price of the new one that will replace it in the inventory so that they can remain in the business of selling diamonds while extracting a little money for themselves and their other expenses. If the replacement cost goes up, they HAVE to raise their selling prices or they quickly find themselves out of business. The opposite is also true. If the replacement prices drop, they need to drop their asking prices even if they paid too much for the ones in stock or they will quickly find themselves without buying customers. Asking for the big money is not the same as getting it after all.
It’s entirely possible that their costs are up $100. Is it reasonable that they pass this on to you? Possibly. It depends no the nature of the negotiation. If they’ve already committed to a particular price and you had already agreed to pay it, I think they should stick with their quote. If you still have the opportunity to back out, I think it’s fair that they do to. Last weeks price was last weeks price and they are under no obligation to leave that offer open. You, of course, are under no obligation to accept the new offer.
Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver
baloney, anything over what the price he paid is pure profit.Date: 11/10/2007 6:50:42 PM
Author: arabiangoggles
but i understand that he may have bought the platinum for this ring 2 years ago when it was only $1000/oz but given that he has to replace it at current market prices, that is what he has to go off of.