Someone Should scoop these Costco $629 1CTW I VS2

[ForteKitty]

Ohh okay gotcha! That makes sense then! So why are you returning then? Are they not nice?

I remembered how much i dislike princess cuts when I opened the box and refuse to give them as gifts. There's a reason I never looked back from old cut diamonds

 

[Forgiven888]

I'm glad I canceled my order. I feel bad trying to exploit somebody's type-o. I feel bad that I thought I was entitled to capitalize on someone's mistake, knowing it was one. I feel like I'm finally having some better days because I'm reaping what I've sown. I'd probably be the one who's earrings would disappear in transit to or from me and the new headache wouldn't be worth the $629 plus tax. Then I'd cry more than usual and would need that amount or more for botox touch up.

See how my brain goes? It just headed to vanity in a hot second. I work very hard to direct my focus towards more ends bahahaha.

I hear you. I am thinking the same thing. We swept in like vultures. Is it ethical to take Costco up on this offer? I am psyched about it, but also unsure whether this is moral.

The thing is with the markup on jewelry, Costco most likely won't actually be losing any money. Also since Costco is such a large purchases of jewelry the goodwill they gain from not canceling orders will most then benefit them in the long run. If they canceled all the orders they would end up with a big headache and many customer support hours dedicated to fixing everything.

 

[southernicetea]

You can help offset their loss by buying more jewelry!

 

[Shinybaubles]

You can help offset their loss by buying more jewelry!

Lol. My husband loves to buy me presents from Costco because it is so easy for him. No way is he going to take the time to order something I cant return from BGD or WF. Not going to happen. I can’t even shame him into it by telling him about the men on this forum who agonize for weeks over the details of their special gifts. And I have talked him out of Tiffany for most items because the value is not there. So he walks into Costco, looks for something shiny, and is out in five. Sometimes I wonder if I should be offended. Lol.

(We just bought a sweet diamond bolo bracelet that makes the perfect layering piece because it fits anywhere on the wrist (high, low, etc.). Not super ideal quality, but Soooo girly. )

 

[Natylad]

I didn't order those earrings, because I live in Europe but I have been following this thread with great interest and excitement!
From what I understand, Costco will benefit a lot and i mean A LOT from the positive advertisement that they got from this ...happy accident!
Already so many PSers in this thread are saying that they wish to become Costco customers in the future and we will all share the information of this amazing customer service with everybody we know and who's interested in jewelry. So in fact, what happened here is that Costco, which was almost never considered for any serious jewelry purchase from the PS people, all of a sudden seems appealing and attractive to them and they will be getting a lot of business.
I believe that all this will bring back to them a lot of profits in the future and again, it was the best possible advertisement for the company.
I advise the people who will be getting to earrings to be happy and enjoy their purchase and not allow any second thoughts to shade this experience for them. And if in the future they wish to buy any new jewelry, they can always consider buying from them and bringing back their business and more profit for Costco.
In the end, everybody has benefited from this.
Needless to say that I will be waiting for lots of photos when these babies are delivered to all of you

 

[Blingloverbyday]

I thought I would quickly share, for those that voluntarily canceled, there is no going back. That might have been shared already, but just in case. This has been interesting, lol.

 

[nala]

Why do I have the feeling we're about to see bay, loupe troop, etc. flooded with 1 CTW princess studs?!

I seriously doubt this. eBay shoppers are all cheap and will not really leave sellers with much of a profit, especially after fees.

I was following this thread from the start and while I love a good bargain, I just couldn’t pull the trigger, even though I thought about repurposing them as sides stones. But then I realized that I prefer rounds and i didn’t want to be stuck with a princess cut ring after i repurposed, lol. In the past, I’ve had a hard time selling a bracelet and then later, a few rings that were princess cut.
All this to say that I think most PSer’s really bought them with the intention of wearing them.

 

[HDer]

I for one am glad Costco is honoring the deal because I bought them for my wife's birthday and then she found out about it when looking at the credit card statement.

 

[kmoro]

The only reason Costco would not have to honour the deal is because of their disclaimer.

Otherwise, the offer is 1 ctw for $629. If you accept and pay, that would be the contract.

Is it immoral to take advantage of such a mistake? I don’t think so. One could even argue that it was not a mistake but a scam ... and I think that is why Costco is going to honour the contract even if the fine print technically lets them off.

Or maybe I think too much.

 

[Blingloverbyday]

While clearly a first world problem, I have to admit I am pretty gutted with how it turned out for us who voluntarily canceled. I guess the loophole they are utilizing. With how the events transpired, if they are willing to "make it right" - higher moral arguments aside, I think it would have been nice to have been informed up front that the issue was being researched versus updating our order summaries without notice. That coupled with my chat experience, ugh, yeah I might not renew my membership. I could go on, but yep - I need to move on, lol.

I would have thoroughly enjoyed owning these earrings, plus I had ordered a pair for my mother... Maybe I will look for some pocket friendly alternatives... The hunt continues, lol.

 

[bling_dream19]

While clearly a first world problem, I have to admit I am pretty gutted with how it turned out for us who voluntarily canceled. I guess the loophole they are utilizing. With how the events transpired, if they are willing to "make it right" - higher moral arguments aside, I think it would have been nice to have been informed up front that the issue was being researched versus updating our order summaries without notice. That coupled with my chat experience, ugh, yeah I might not renew my membership. I could go on, but yep - I need to move on, lol.

I would have thoroughly enjoyed owning these earrings, plus I had ordered a pair for my mother... Maybe I will look for some pocket friendly alternatives... The hunt continues, lol.

I do agree and I'm really sorry. I think all who ordered should get the 1 ctw, whether they cancelled or not. I think you have a case and perhaps a letter stating this would really help or call them. This has really been a roller coaster.

 

[MamaBee]

I feel so bad for the people that canceled...I had a chat with a rep hours before they decided to honor their price. I’m now feeling like they were trying to limit the amount of people that would get the earrings...by not telling us that this letter was in the works. I also think that having the earrings diverted back to them was another way to limit the amount of people getting the one carat. The earrings that they are sending in 14k white gold has never been on their website before to my knowledge...and I go there a lot. Also, why did they put it back up on their site again a few times after knowing that there was a mistake. Clearly something else was happening at their end...I would have been fine with a phone call or email at the beginning saying they made a mistake but not after going through this. This has been a huge headache...I don’t think they are going to lose money giving us the 1 ctw earrings. They will probably break even on them...They get everything super wholesale...We are most likely getting their markup. I don’t think this was handled well from their end at the beginning..and they know it. This is a way to get back their good karma.

 

[bling_dream19]

Maybe 1ct per side...

 

[MamaBee]

I

The only reason Costco would not have to honour the deal is because of their disclaimer.

Otherwise, the offer is 1 ctw for $629. If you accept and pay, that would be the contract.

Is it immoral to take advantage of such a mistake? I don’t think so. One could even argue that it was not a mistake but a scam ... and I think that is why Costco is going to honour the contract even if the fine print technically lets them off.

Or maybe I think too much.

I think too much too...I’m thinking they could could send us the deadest looking diamond earrings...and being PS’ers we would have to return them!

 

[GlitterInMyHair]

I just want to chime in because quite a few comments talked about the "wholesale cost" and "super marked up" price.

Costco absolutely will be losing money on the earrings. The markup on their merchandises average about 12%, as their goal is to make most of their profits through membership fees. (Obviously Costco is a profitable company, so they can absorb the loss).



I really applaud Costco for honoring the price. I honestly can't think of another retailer that would do the same.

 

[MamaBee]

I just want to chime in because quite a few comments talked about the "wholesale cost" and "super marked up" price.

Costco absolutely will be losing money on the earrings. The markup on their merchandises average about 12%, as their goal is to make most of their profits through membership fees. (Obviously Costco is a profitable company, so they can absorb the loss).



I really applaud Costco for honoring the price. I honestly can't think of another retailer that would do the same.

I do too and I told them so this morning.

 

[GlitterInMyHair]

@Mamabean

I hope you get yours! I know you've looking for a pair of princess cut earrings for a while.

 

[MollyMalone]

* * * Is it immoral to take advantage of such a mistake? I don’t think so. One could even argue that it was not a mistake but a scam ... and I think that is why Costco is going to honour the contract even if the fine print technically lets them off.
Or maybe I think too much.

I'm baffled by the hypothesis that this was a scam.

Amongst all the thousands of diamonds in the PS database, there are no, zip, zero, nada princess-cut stones -- weighing between 0.48 - 0.50 ct, color I, VS2 -SI1 in clarity -- selling for less than $640. And only 2 listed for less than $700; those have been graded by GIA as SI1. Even in the J princess cuts, there are only 2 listed between $629-650, and those too are SI1.

No vendor in the PS database is marking up diamonds to twice their wholesale cost (or anywhere close to that kind of profit margin).

 

[Und1234]

I just want to chime in because quite a few comments talked about the "wholesale cost" and "super marked up" price.

Costco absolutely will be losing money on the earrings. The markup on their merchandises average about 12%, as their goal is to make most of their profits through membership fees. (Obviously Costco is a profitable company, so they can absorb the loss).



I really applaud Costco for honoring the price. I honestly can't think of another retailer that would do the same.

Correct, my company sells the Kirkland Signature hearing aids, and they only mark them up ~15% to cover admin costs.

Costco makes their $ on memberships, the rest is just handling volume.

 

[MamaBee]

@Mamabean

I hope you get yours! I know you've looking for a pair of princess cut earrings for a while.

Thank you @GlitterInMyHair..That’s so sweet...

 

[smitcompton]

Hi,

Ok Mamabean, what did they tell you this morning on diverting and cancelling the earrings. Does getting the e-mail from them insure that we will get the 1 ctw earrings?

I think that only if your earrings were shipped will you qualify.

Molly- Costco changed the description of what was ordered without notifying the customer. They ought to have notified the customer of the change before sending them out. Someone could say "fraud".

I applaud Costco for doing this. I do not see anything immoral or unethical about this whole episode. Yes, I did think it was a pricing mistake, but I also thought that Costco could have gotten such a great deal and decided t pass it along, especially as they were princess cuts which are not so popular.
It was neither of the above, but was a description error. And Forte-Kitty, how is it you notified your brother so quickly to get in on the deal if you expected .50 pointers. You can buy those at anytime.

Don't let others take away your joy. Seems like utter nonsense to me. Costco was not forced to do this.
Enjoy you new earrings.

Annette

 

[ForteKitty]

Hi,

And Forte-Kitty, how is it you notified your brother so quickly to get in on the deal if you expected .50 pointers. You can buy those at anytime.


Enjoy you new earrings.

Annette

Because it was $70 off! $629 vs $699. Did you not read my followup? I felt like $70 off a pair of $699 earrings is a pretty good deal, and he's proposing with a princess cut so earrings would have been nice.

 

[MamaBee]

Hi,

Ok Mamabean, what did they tell you this morning on diverting and cancelling the earrings. Does getting the e-mail from them insure that we will get the 1 ctw earrings?

I think that only if your earrings were shipped will you qualify.

Molly- Costco changed the description of what was ordered without notifying the customer. They ought to have notified the customer of the change before sending them out. Someone could say "fraud".

I applaud Costco for doing this. I do not see anything immoral or unethical about this whole episode. Yes, I did think it was a pricing mistake, but I also thought that Costco could have gotten such a great deal and decided t pass it along, especially as they were princess cuts which are not so popular.
It was neither of the above, but was a description error. And Forte-Kitty, how is it you notified your brother so quickly to get in on the deal if you expected .50 pointers. You can buy those at anytime.

Don't let others take away your joy. Seems like utter nonsense to me. Costco was not forced to do this.
Enjoy you new earrings.

Annette

@smitcompton I spent an hour and fifteen minutes in chat trying to explain what happened. They weren’t informed. The rep
told me my one carat earrings were on my way to me. I had to explain that they were, in fact, .50ctw....and that they were being intercepted which I guess never went through because they are on the ups truck heading to my house...TG.. My 93 year old mom is sitting next to the door so she can hear the bell.. The rep then told me my refund will be refunded in a few days. I had to explain again about the letter that the money will be applied to the 1 carat earrings and I wouldn’t have to pay any additional money after I return the .50ctw.. I told her not to refund my money..After an hour I asked for a supervisor..twice... who then knew about it and said that I should just use my ups label to return it and it will be coded as an exchange for my 1 carat earrings. She said that the supervisor told her they have a special team set up to handle this. I told them that I knew they were a good company and happy they were trying to make us happy. After this I plan on buying more than usual there even though I do buy a lot there.
I would call them to make sure if you had them diverted and they went back to them though..

 

[Forgiven888]

I just want to chime in because quite a few comments talked about the "wholesale cost" and "super marked up" price.

Costco absolutely will be losing money on the earrings. The markup on their merchandises average about 12%, as their goal is to make most of their profits through membership fees. (Obviously Costco is a profitable company, so they can absorb the loss).



I really applaud Costco for honoring the price. I honestly can't think of another retailer that would do the same.

Averaging 12% is just that, an average. A lot of their jewelry items have much higher market up than that. Their mark up for the item is in question is most likely around 50% which would still lose them money, but the amount they saved in goodwill and less returns and dealing with sending out the wrong orders, they will most likely won't be losing too much.

I suspect their out of pocket cost for these actual earrings is around $1000. About $400 for each diamond and about $200 for all the other stuff. These are 2 - 0.5 carat non GIA graded commodity diamonds ordered in bulk. You cannot compare them to the $700 price scope vendor diamonds.

 

[snowballs mom]

Mine were delivered to the store a little while ago. I will be picking them up on my way home from work, and waiting for the UPS mailing "sticker " to send them back. I am assuming they are using a special RMA to keep track of it all.

 

[anon34985]

I'm having an issue because no one will be home to sign for the earrings in the 3 attempts, and UPS isn't giving the option to have held at the UPS store for pickup (they are telling me this is a sender decision, not theirs). If i have them returned to sender, will my deal still hold? As a PP noted, this is essentially just skipping the step of them sending a return notice

 

[kmoro]

I'm baffled by the hypothesis that this was a scam.

Amongst all the thousands of diamonds in the PS database, there are no, zip, zero, nada princess-cut stones -- weighing between 0.48 - 0.50 ct, color I, VS2 -SI1 in clarity -- selling for less than $640. And only 2 listed for less than $700; those have been graded by GIA as SI1. Even in the J princess cuts, there are only 2 listed between $629-650, and those too are SI1.

No vendor in the PS database is marking up diamonds to twice their wholesale cost (or anywhere close to that kind of profit margin).

I’m not saying that it was a scam, but it could have been perceived as such - if Costco did not take the action that they did in the end. What happened when they placed the ad? They got a whole lot of attention and orders ... then ... ooops ... ad is wrong, here are your .5 ctw earrings ...

Does that make sense?

I would like to say again that I do not think it was actually a scam ... errors certainly happen ... but someone could definitely accuse them of doing it on purpose if they wanted to take that angle ... if they only shipped .5 ctw after people believed they purchased 1 ctw.

The fact that Costco is honouring the erroneous ad when they have a disclaimer is incredibly impressive! So no, it was not a scam.

 

[MamaBee]

I just received my package. I won’t even take it out of the bag...I’ll put the UPS label on it when I get it and send it back.

 

[Wewechew]

I've been following this thread... very impressed with Costco for honoring the price.

I work in corporate finance and this entire thing has made me cringe from a P&L perspective. Hopefully the person who made the mistake did not lose their job over it.

 

[Slickk]

I just received my package. I won’t even take it out of the bag...I’ll put the UPS label on it when I get it and send it back.

I have been jealously following along, but @Mamabean You’re not even going to open them to check?!