There may be hope for the future of the diamond industry

[Texas Leaguer]

I’m not sure stores that you can walk into at any time they’re open and spend as much time as you want getting advice for free is the future of retail, but yes, I think merchants who actually add value are going to have a place at the table. Possibly even a big place. “Buy for a dollar, sell for two” is gone for good.

Part of the reason that so many doors have closed is the reluctance of many to give up both the "keystone" mentality and the veil of secrecy maintained around many aspects of the business. Modern consumers will not tolerate it.

 

[Rockdiamond]

The problem is getting a seat at that table.
It's true that there were plenty of places that got quite rich based on triple keystone and the lack of information......those days were gone before Covid......
So, if you don't have a physical location where people can hang around, how can they find you?
This all goes to the discussion at hand. Bryan and Neil's point that adding value is the way to stay profitable- I totally agree, from a theoretical standpoint.....if you're outspent by $100,000 per month on Google... you're under a rock...
It's crucial to understand how Google works- and it's clearly not to benefit consumers.

 

[Texas Leaguer]

The problem is getting a seat at that table.
It's true that there were plenty of places that got quite rich based on triple keystone and the lack of information......those days were gone before Covid......
So, if you don't have a physical location where people can hang around, how can they find you?
This all goes to the discussion at hand. Bryan and Neil's point that adding value is the way to stay profitable- I totally agree, from a theoretical standpoint.....if you're outspent by $100,000 per month on Google... you're under a rock...
It's crucial to understand how Google works- and it's clearly not to benefit consumers.

It's true that if you are not on page one of google search results for the keywords that are important to your business, your visibility is significantly diminished. But only a handful of companies manage to be there (and stay there), yet many others are still doing business. Following the crowd is not necessarily a good business strategy. Especially in this age of specialization.

 

[Rockdiamond]

I think we're all pretty much in agreement in theory. Value-added services- intelligent, crafty marketing- it may be possible even now to start up a business.....

But the downward slide in info/service to consumers in the diamond biz seems obvious to me......but there is no question prices are much lower to the end user.

 

[Garry H (Cut Nut)]

Ever heard of Google Facebook or Amazon?

David what I meant was each of these companies is a Goliath in their industries and the world still turns at 24 = 1 day

 

[Garry H (Cut Nut)]

Value-added services- intelligent, crafty marketing- it may be possible even now to start up a business..... YES! But the downward slide in info/service to consumers in the diamond biz seems obvious to me......prices are much lower to the end user.

nOT SO dAVID, OTHER THAN MAYBE SOME CLOSING DOWN SALES

 

[Rockdiamond]

Hey Mate!!!
Top of the Morning to you!!
When I said prices to the consumer are lower, I was speaking as an old timer.
ie- compared to last century..... the days of triple keystone.
If we're considering the past 12 years, I agree, prices will rise.
As the largest companies tighten their hold on the market, what's to stop them from raising prices- it's clearly part of the business model for the behemoths.
eBay used to charge 2%....now it's about 10%. And they are pushing PayPal out. So now, they're charging about 3% to run the credit cards.
Who wants to bet that goes up.....

David what I meant was each of these companies is a Goliath in their industries and the world still turns at 24 = 1 day

Yes, the world still spins.
But Google has a stranglehold on the search engine business. They're free to use it for as much profit as possible. Say it's more profitable to tailor search results, not on the truth, but on which is more profitable.
A guy who's 10 miles away is paying google more than the guy 2 miles away- so even if the consumer searches for the closest place, they get directed 10 miles away.
My analogy was just that- I know google maps seems to be able to find any nearby business- I use it all the time.
But Google does slant the results to their own advantage. And there's many cases where things are buried when one person asks, versus another searcher. Google can tailor results by location, or demographics of the person searching. From where I sit, this puts smaller businesses in an even more difficult position compared to the big boys.
Understanding Google is part of business 101 nowadays.

Thank goodness there are ways to step around the pitfalls and take advantage of the possibilities....it's just getting harder and harder.

We're all truly lucky - all of us here on PS.
We're not part of the 90%+ people who shop for, and or buy diamonds, yet never reach the level of analysis and appreciation of the details we commonly discuss here.
The round diamond business, other than Super Ideal Stones- round diamonds has largely become nothing more than a commodity market. Consumers can buy "regular" RBC's easily and effectively to the point a dealer is almost obsolete.
There's even this genius tool called "HCA" to make it even more of a no brainer for RBC's...(love ya buddy!!)
Thank goodness for Fancy Shapes