Rapaport Price Question

[greatballsofire]

This is my first post, and I would first like to say that I have never seen such a helpful site. You all are saints for all the advice you give and time you take to answer everyone's questions. I have combed over so many posts and it has helped me a ton!

I have just begun the search for an engagement ring for my girlfriend, and I am sure I will have a couple posts to come. However, before I get into specifics on actually what I am looking for, I had a question about Rapaport prices. I have a business partner who is close friends with the family who owns Rosy Blue (one of the largest diamond polishers and distributors in the world). He recently went to meet with them, and knowing I was starting to look for a ring, he asked them if they could give me a deal on a diamond. He came back to me and said that they could give me 25% off Rapaport list price, delivered to New York City.

Don't worry about the details of what kind of information I can get on the diamonds before purchasing (certification, IS, etc) These are all questions I will ask eventually. However, before I do that, I am still not sure if 25% off Rapaport is even an amazing deal. I have read some stuff on the web saying most online dealers sell below Rapaport as it is. Therefore, before I go back asking all sorts of questions, does anyone know if this is an insanely cheap offer that I should take advantage of? He is going to send me the Rapaport list for this month and should arrive sometime soon.

Thanks for any help!

 

[ChunkyCushionLover]

Rap list is a general guide for trade(not consumers) and not very useful on specific stone pricing, my suggestion is to forget about using it as it will not help you evaluate an individual diamond deal which has to take into account many other properties of diamonds.

In the forum if you post the GIA or other lab grading report and price of a potential stone we can help you find comparables and check prices, that is what this forum is all about.

However, you should know when comparing apples to apples (and for most consumers they don't know a red apple from a green one) most vendors of colorless diamonds on here work on thin margins 3 - 20% so the chances of finding a "bargain" over the prices we see here are quite rare.

In any case with any deal you end up taking make sure you get a good in writing return policy and have whatever you purchase checked out by an independant appraisor to ensure you got what you think you paid for.

I wish you luck in your search but I strongly suggest caution when considering "friend of a friend" in the diamond business deals, more often than not those deals turn out worse than if you purchased online from a trusted retailor.

 

[Dancing Fire]

Don't worry about the details of what kind of information I can get on the diamonds before purchasing (certification, IS, etc) These are all questions I will ask eventually. However, before I do that, I am still not sure if 25% off Rapaport is even an amazing deal. I have read some stuff on the web saying most online dealers sell below Rapaport as it is. Therefore, before I go back asking all sorts of questions, does anyone know if this is an insanely cheap offer that I should take advantage of? He is going to send me the Rapaport list for this month and should arrive sometime soon.

Thanks for any help!

yes it is IF the stone is a well cut RB H&A with AGS or GIA report.

 

[denverappraiser]

Several red flags here:

First, a friend of a friend in the diamond business is hardly a unique connection. Even if it’s true that he gets better deals from Rosy than their other customers (unlikely), there’s no reason to believe that these will be passed on to you. Dropping a name like that is almost always a sign of trouble. Rosy probably has 10,000 customers, all of whom get offered the same stones at the same prices. That’s how they got so big. There’s no way that they’re going to make a special offer for a ‘family friend’ of one of the owners, even if that turns out to be true.

Second, Rap is a pricing grid based on shape/weight/clarity/color and size range. Nothing else. Specifically missing is any discussion of cutting and of grading reliability. 25% MAY be a great deal and it may be a terrible ripoff. The difference has to do with the reliability of your source, not Rapaport. Apparently he’s not prepared to discuss THAT and wants you to look at the Rap sheet instead. Don’t take the bait. Shop it against solid offers of similar merchandise from competitive vendors. There are thousands to choose from and most are just a click away. It doesn’t make a bit of difference what Rap thinks or who is friends with whom. What makes a difference is exactly what he's offering, what he's charging, and what he is or is not including in the deal in terms of intangables like warranties, tradeup offers, financing, settings, etc.

 

[greatballsofire]

Thanks for all of your comments and help! I think those are very insightful points. My business partner isnt getting anything out of it, so I'm not worried about trusting him. I am just more worried that he doesnt know what he's talking about, because he isnt a diamond expert. I just didn't want to go to him with a million questions when all he was trying to do was help me out.

I think overall this helped me confirm what my original feelings were. Its not worth trying to get some great deal from a giant outletter when there is so little information (especially when it might not even be an amazing deal in the first place!) I think I will keep the idea on the backburner in case the opportunity becomes more clear (and keep in mind everything you all said), but proceed with looking at more reputable and established dealers mentioned on this site.

Thanks again!!

 

[Modified Brilliant]

Like Neil said..the RAP sheet doesn't disclose critical information that so many consumers want today, especially "CUT' grade.

It's not a wise decision for a consumer or diamond novice to base a decision on the RAP sheet alone. Too many variables.

Good luck in your search, take your time.