Questionable Business Practice of an Online Vendor

[dww777]

Hi everyone,

I''d like to see what your reaction is on this business practice that I''ve encountered:

I''ve been talking to an online vendor for 2 or 3 weeks while I was researching and trying to find a diamond. The sales agent helped me quite a bit and helped me pull up quite a few GIA/AGS reports. For that I was thankful.

When it came time to order the stone, I did a price search using pricescope. I found the exact same stone being offered at $400 less. However, because I was grateful for the service that the first vendor gave me, I wanted to give them my business instead. So I called the first vendor and asked if they would price match, and... I told them the stock # of the stone that I was interested in.

Before giving me a definite answer on whether they would price match or not, they ordered the diamond from the warehouse, and thus became the physical holder of the diamond. In doing so, they basically eliminated the other vendor from the competition (Since now the second vendor could no longer order the diamond).

Is this a common practice? Was I too naive in telling them the stone # when I asked about a price match? Any suggestions as to what I can do?

 

[dww777]

The result: the first vendor is now saying that they won''t price match, and now I have no alternative but to go through them if I still want that diamond.

I could of course just cough up $300 (essentially to pay for their service), but... the principal of it all now just irks me...

 

[neatfreak]

I think it depends on *why* they ordered the stone. If they decided that they wanted it for their inventory, then that is normal business. If they ordered it because they were pretty sure you wanted it, then that is standard business. If they ONLY ordered it so that you would have to buy from them, it's sketchy. But you'd have to prove to me that the last scenario is what happened...otherwise I'm not sure I could be convinced they meant to be shady about it regardless of who it is. But then again I do like to believe that people are good...so I might be naive in that sense.

That being said, there are small differences in prices between vendors, often because some vendors provide more assistance/photos/idealscopes, etc. than others and charge a bit of a premium for it. So you need to decide if it was worth it.

 

[jellycat]

Date: 9/15/2008 7:29:08 PM
Author: dww777
The result: the first vendor is now saying that they won''t price match, and now I have no alternative but to go through them if I still want that diamond.


I could of course just cough up $300 (essentially to pay for their service), but... the principal of it all now just irks me...

wow, that would really irk me too and i find that a bit shady. you told them the specific stone you were interested in, asked if they would price match, then they pull the stone off the market? I don''t think that''s right and they should honor the lower price you found it for. you should let us know who this vendor is b/c that''s just wrong and i would not want to do business with them.

 

[angeline]

If they didn''t order it for their inventory you could say you don''t want it then wait for it to be sent back and let the other vendor know you want it and to get it asap.

 

[dww777]

I won''t color the facts to my favor; I''m just recounting things as it happened. In terms of dates, this is how things occurred:

Friday, Sept 12: I wanted to make the purchase that day, but I called Vendor #1 to see if they''d price-match before I go with Vendor #2 (I didn''t even ask for them to beat Vendor #1''s price; I just asked for a match, so that I can give them my business).

I told Vendor #1 the exact stone that I wanted to buy. The Sales agent said they could knock of $150, but said that the manager would have to be asked in order to price-match.

I said ok, so I waited until today (Monday, Sept 15).

Note: Friday was when I finally made my decision to go with that stone. No one knew before then, and on Friday the stone was available at 4 other online vendor''s websites as well.

Monday, Sept 15: I got an email today from Vendor #1 saying that they can''t price-match, and that the stone is on its way to their facility (it will arrive tomorrow, Sept 16).


So that''s everything that transpired. Of course, it could be that they wanted to get the stone on hand since they saw that I was very close to making a purchase. However, at the same time, they also knew that I was asking them to price-match, which implies that I might want to go with the other vendor if they won''t price-match...


Although I don''t absolutely have to have that particular stone, but I did do quite a bit of research to arrive on it, so I would still like to get it if i can. Any thoughts?

 

[Ellen]

Date: 9/15/2008 7:23:38 PM
Author:dww777
Hi everyone,

I''d like to see what your reaction is on this business practice that I''ve encountered:

I''ve been talking to an online vendor for 2 or 3 weeks while I was researching and trying to find a diamond. The sales agent helped me quite a bit and helped me pull up quite a few GIA/AGS reports. For that I was thankful.

When it came time to order the stone, I did a price search using pricescope. I found the exact same stone being offered at $400 less. However, because I was grateful for the service that the first vendor gave me, I wanted to give them my business instead. So I called the first vendor and asked if they would price match, and... I told them the stock # of the stone that I was interested in.

Before giving me a definite answer on whether they would price match or not, they ordered the diamond from the warehouse, and thus became the physical holder of the diamond. In doing so, they basically eliminated the other vendor from the competition (Since now the second vendor could no longer order the diamond).

Is this a common practice? Was I too naive in telling them the stone # when I asked about a price match? Any suggestions as to what I can do?

This is where I get confused. Diamonds from the virtual inventory can change hands several times, for potential buyers. But the way I understood it, just because someone ordered it in, it didn''t mean they owned it, just that they were temporarily holding it. So unless I''m missing something (and that''s quite possible), I don''t know why you couldn''t still buy it from the second vendor.....

Can someone clarify?

 

[dww777]

Basically, Vendor #1 has a physical hold on the diamond currently. So, eventually, they might have to return it to the warehouse if no one buys it. But, for a period of weeks or months, they''ll have possession of it, since they have basically put it on-hold for a potential sale (i.e. me). So until they release it back to the warehouse, other vendors can''t order it...

 

[Ellen]

Date: 9/15/2008 7:52:14 PM
Author: dww777
Basically, Vendor #1 has a physical hold on the diamond currently. So, eventually, they might have to return it to the warehouse if no one buys it. But, for a period of weeks or months, they'll have possession of it, since they have basically put it on-hold for a potential sale (i.e. me). So until they release it back to the warehouse, other vendors can't order it...

Are you absolutely positive about that? I don't mean to be grilling you, just want to make sure you're not "assuming" something that maybe isn't actually so.

 

[Garry H (Cut Nut)]

Date: 9/15/2008 7:45:19 PM
Author: dww777

Although I don''t absolutely have to have that particular stone, but I did do quite a bit of research to arrive on it, so I would still like to get it if i can. Any thoughts?

And how is your dilema different to the vendors?
You waste your time, they waste their money?


If you choose that vendor for some resaon or other, then it probably was in someway influenced by a trust or service factor. Some of those factors are rather costly to establish and are generally thought of as "value adding".

 

[anangel]

Date: 9/15/2008 7:23:38 PM
Author:dww777

I''ve been talking to an online vendor for 2 or 3 weeks while I was researching and trying to find a diamond. The sales agent helped me quite a bit and helped me pull up quite a few GIA/AGS reports. For that I was thankful.

You spent two to three weeks looking for that stone, and I''d like to just chalk it up to them assuming they had the sale.
Is $150 worth those two to three weeks, the help you got, etc?
Not to discount the issue, but for a diamond purchase, $150 is splitting hairs

Best of luck though!!

 

[neatfreak]

Well, you DIDN'T tell them that you were going to buy the stone from another vendor. You said to them that you wanted it, but also wanted them to price match, no? And they were going to check with the mgr to see if they could? So to me, that would signal to the vendor to call the stone in for you...

but I could be misunderstanding things.

And as Ellen has noted, I am pretty sure that you could still get it through another vendor if you bought it. The "warehouse" would just call it back from the vendor who has it out on memo.

 

[diamondseeker2006]

If you have taken time working with someone at this vendor, I don''t think a couple hundred dollars on a $12,000 diamond would stop me from buying it. I don''t see anything unusual about them calling in the stone since you expressed interest in it. They''ll likely send it back if you back out of the sale. I''d wait a few days before requesting it through someone else, though.

 

[Ellen]

Date: 9/15/2008 8:42:49 PM
Author: neatfreak
Well, you DIDN''T tell them that you were going to buy the stone from another vendor. You said to them that you wanted it, but also wanted them to price match, no? And they were going to check with the mgr to see if they could? So to me, that would signal to the vendor to call the stone in for you...

but I could be misunderstanding things.

And as Ellen has noted, I am pretty sure that you could still get it through another vendor if you bought it. The ''warehouse'' would just call it back from the vendor who has it out on memo.

See, to me, if I were the vendor, I would have asked about pricematching with the boss, and if it was a no, I would tell the customer first, instead of calling it in. It does seem a bit, "tricky" to me.

And thanks for the clarification!

 

[strmrdr]

Date: 9/15/2008 7:45:19 PM
Author: dww777


Note: Friday was when I finally made my decision to go with that stone. No one knew before then, and on Friday the stone was available at 4 other online vendor''s websites as well.

Just because it is on other websites does not mean it wasn''t ordered in already.
It will be on there until it is removed from memo most likely.
Even if vendor 1 bought it it might stay on the list for months.
An asscher that someone bought on PS 3 months ago just went off the lists about a week ago.

 

[Sharon101]

First, I would probably jump to the conclusion that the helpful vendor was being abit sneaky......

but, it is possible that they ordered it well before your discussion of price matching because afterall, why would they want a potential sale to be out and about!!!! Perhaps it got called in previous to your request, but it just appeared to happen after????


And, just to play devils advicate.......some onlinr jewellers advertise diamonds very cheaply because they know that its no skin off their nose if they dont actually have it to sell. These types of vendors attract customers who might stick around to get a very low price, if not on one diamond then another. So these vendors deliberately put in some very sweet prices to look good and establish a general trust that all their prices are good.

Im quoting a jeweller that in response to this very situation said `Well I too could afford to sell everything for half price so long as its not in stock!!!!!`.


Personally, in this case I would take the $150 discount rather than miss out. Although as a business operator myself, I couldnt imagine not matching in this circumstance. Personally I would give you the $300 but insist that you pay in a way that wasnt expensive to me either.

 

[Garry H (Cut Nut)]

It is also possible the vendor after doing some work simply decided it was a nice stone to buy. In that case they might feel that they could sell it for more

 

[dww777]

Thanks for all the responses. I fully understand that the vendor deserves some reward for its sales efforts, but I feel that giving them the business in itself was an ample reward (and not paying the extra $300 for the sales efforts...). I also realize that $300 might be a small percentage of $12k stone, but.. $300 is still quite a bit of money that I could really use.

To clarify, there is no doubt in my mind that the vendor only called in the stone after I contacted them and asked them about a price match. Like I said, I told them on Friday, and it is currently being shipped from the warehouse to their office. Before Friday, they didn''t even know I was interested in this particular stone.

I completely understand where the vendor is coming from: it put forth the efforts and it wants to reap the rewards. I agree. That''s why I wanted to give them the business. I also wouldn''t discount the fact that other vendors might be priced too low to be practicable.

What irks me the fact that Vendor #1 called the stone in when they were still checking to see whether they could price match it. They would have had my business if they price-matched, but instead they chose eliminated their competition to charge a higher price. Sure, I think they deserve to be rewarded for their service, but no this way and not $300-much. The value-add of providing AGS/GIA reports simply wasn''t worth that much to me.

It feels very different to *choose* to pay the additional $300 vs. be forced into the purchase.

 

[dww777]

Date: 9/15/2008 7:57:51 PM
Author: Ellen

Date: 9/15/2008 7:52:14 PM

Author: dww777

Basically, Vendor #1 has a physical hold on the diamond currently. So, eventually, they might have to return it to the warehouse if no one buys it. But, for a period of weeks or months, they''ll have possession of it, since they have basically put it on-hold for a potential sale (i.e. me). So until they release it back to the warehouse, other vendors can''t order it...

Are you absolutely positive about that? I don''t mean to be grilling you, just want to make sure you''re not ''assuming'' something that maybe isn''t actually so.

I understand what you''re saying/suggesting, but I''m 100% positive the stone was called in just for me. I have been checking on this stone for quite some time, and for weeks it had been available to all the online vendors that appeared on Pricescope''s price tool. But, just the day immediately following my disclosure of this stone to Vendor #1, they ordered it in.

Also, when I talked to Vendor #1 today, they said that if I dont'' buy it, they''ll "find someone else who would buy it."

I have no doubt that they called it in for no one else but me.

 

[Sharon101]

As I said before, if were my business I would have given you the extra $150!!! Especially because you had seen it at that price elsewhere....and for the sake of good pr.


if you are spending $12000 there will always be something beautiful to buy!!!!!

 

[bruceb916]

Which vendor?

$300 on 12k is water under the bridge.

$300 on $4000 is another story.

If you don't want to buy from them: Don't. There are too many stones out there with similar grades and similar pricing to be bitch slapped by some idiot vendor.

 

[arjunajane]

Personally, I would be interested to know who the vendor is - I can see both sides of this discussion, and I can sympathize that you feel you are being "forced" into paying the $300.
They could''ve had more tact, said to you "We can''t discount, but would you still like us to order the stone?" - to me , at least, it seems like you would''ve still said yes..

 

[Ellen]

Date: 9/16/2008 1:35:17 AM
Author: dww777

Date: 9/15/2008 7:57:51 PM
Author: Ellen

Date: 9/15/2008 7:52:14 PM

Author: dww777

Basically, Vendor #1 has a physical hold on the diamond currently. So, eventually, they might have to return it to the warehouse if no one buys it. But, for a period of weeks or months, they''ll have possession of it, since they have basically put it on-hold for a potential sale (i.e. me). So until they release it back to the warehouse, other vendors can''t order it...

Are you absolutely positive about that? I don''t mean to be grilling you, just want to make sure you''re not ''assuming'' something that maybe isn''t actually so.

I understand what you''re saying/suggesting, but I''m 100% positive the stone was called in just for me. I have been checking on this stone for quite some time, and for weeks it had been available to all the online vendors that appeared on Pricescope''s price tool. But, just the day immediately following my disclosure of this stone to Vendor #1, they ordered it in.

Also, when I talked to Vendor #1 today, they said that if I dont'' buy it, they''ll ''find someone else who would buy it.''

I have no doubt that they called it in for no one else but me.

Oh, I totally believe the stone was called in just for you. What I was wondering was if in fact the stone was still on the virtual listing and could be called in by another vendor.


And to those mentioning the 300 dollars not being much money, sometimes it isn''t the price, but the principal.

 

[purrfectpear]

I ordered my stone online and mentioned to the vendor that I wanted to deal with that another vendor listed it for about $200 less. The vendor I dealt with took a little more off (about half if I remember correctly). I didn''t expect them to price match and I was pleased that they offered the additional discount as they clearly did not have to.

 

[denverappraiser]

I’m largely with the vendor here in that they can charge whatever they want for their goods, they never promised you a discount, and a competitive offer from someone who can’t get the stone is a largely academic question at this point. I don''t think they''ve done anything unethical. That said, you’re still in the power seat. You’re the guy with the money.

If you say no to the deal, call up the other vendor and tell them you want to buy it, what will happen is that #2 will ring up the owner and express their interest. The owner will say, in effect, ‘It’s not currently unavailable because it’s out for a showing. We’ll check on it for you and let you know if and when you can have it.’ They will then ring up #1 and say, in effect, ‘buy it or give it back please’. #1 then has a choice to make: They can buy it themselves for inventory if it’s a great stone for a great deal, they can return it and pay the freight, they can make a deal with you, or they can quickly round up someone else who is willing to pay more than you. This puts the screws to them to take action. It’s definitely playing hardball. It may or may not result in what you want but it WILL come to a resolution and it won’t take months to do.

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

 

[Regular Guy]

Not sure if I entirely follow Neil''s reasoning on this...

Date: 9/16/2008 9:10:52 AM
Author: denverappraiser
I’m largely with the vendor here in that they can ................... It’s definitely playing hardball.

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

Like the qualifications he makes...no one''s been illegal, but no one''s accused them of such.

To an extent...if there''s an ethical question to be raised...your vendor who has the stone has answered it for you, but doing what they''ve done. Maybe you could have asked the question a different way from, would you price match...but it''s only reasonable to do something to note the difference, giving them the chance to respond any way they like.

Following out the scenario as Neil shows, though...you should look for your Batna. You ARE in the driver''s seat now. Your vendor number one has removed your ethical dilemma for you, and you would be...to my mind...in your right to go to vendor number 2. But...call them. See how you would like them. You may find that, all said and done, there are things about vendor number 1 you would at least now value the $300 premium for.

Alternately, maybe you''ll like #2 swell, and odds are higher that for future purchases...they''ll still be the lower price point vendor, giving you less reason to have to shop around.

 

[denverappraiser]

Date: 9/16/2008 9:10:52 AM
Author: denverappraiser

It's definitely playing hardball.

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

This strategy has the feel of extortion to it. 'Give me a discount or both lose the deal and pay to send the stone back.' That's hardball. Although I'm sympathetic to the dealer here, this is a problem largely of their own making. They should have agreed upon a price before they ordered in the stone and committed themselves to covering the return freight if the deal doesn't happen. Personally, I think they should match the price with a smile and then resolve to not make the same mistake again.

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

 

[goobear78]

Honestly, I don''t think you''ll be happy purchasing the stone from vendor #1. Even if they didn''t act sneaky, which to me it sounds very plausible that they could have. The fact remains, you will never know, but you''ll be unhappy about it. I''d let vendor #1 know how unhappy you are and wait for another stone. You will find another one you like, I''m sure, but if you get the stone you like now with this history, from vendor #1, I think you will be unhappy. But that''s just my 2cents. Good luck!

 

[Ellen]

Date: 9/16/2008 9:44:18 AM
Author: denverappraiser

Date: 9/16/2008 9:10:52 AM
Author: denverappraiser

It''s definitely playing hardball.

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

This strategy has the feel of extortion to it. ''Give me a discount or both lose the deal and pay to send the stone back.'' That''s hardball. Although I''m sympathetic to the dealer here, this is a problem largely of their own making. They should have agreed upon a price before they ordered in the stone and committed themselves to covering the return freight if the deal doesn''t happen. Personally, I think they should match the price with a smile and then don''t make the same mistake again.

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

Exactly.

 

[anthony187]

I am really shocked at some of the people on here who are saying that $300 is not a lot of money???? Even if you are spending 12,000. That extra 300 can pay a car payment of a light bill or put gas in your car. I understand that all vendors are trying to make a profit, but it is the nature of the consumer to price shop.