Tiffany''s sales good - Blue Nile biggest on-line jeweler

[lisa1.01fvs1]

According to Rap-report:

Tiffany reported net sales rose 9.8 percent to $1.05 billion in thefourth quarter of fiscal 2007, boosted by performances at its newstores and at its international operations.

Internet Jewelers Become Man''s Best Friend:

With revenues of $319 million in 2007, 70 percent of which were fromsales of engagement rings, Blue Nile is now the biggest onlinespecialist jeweler, and has a 4 percent share of the engagement-ringmarket in the United States. It is also gaining sales momentum inBritain and Canada, where it has operated for a few years, and inFebruary it opened in 12 countries including Singapore and Japan. BlueNile adopted a virtual model, in which it provides a shop window forsuppliers yet does not put any of its own capital at risk. It carrieslittle inventory and simply takes a cut when a transaction occurs.This model has enables Blue Nile to sell at 30 to 40 percent below theprice of traditional jewelry stores, and 50 percent below premiumretailers.

 

[oldminer]

It is a powerful business model which Blue Nile uses. The company seems well managed and we hear few complaints, if any, from consumers. This is all good.

On the other hand, I can purchase a fine steak from a quality butcher and cook it at home for $25 or get the same steak with a whole lot of really pleasant attention and service from a superb steak house and pay $65. For some reason, the higher cost dinner often leaves a better degree of satisfaction with me than when I save the $40 and eat on my own. Discovering the "VALUE" of personal attention and service is an enlightening experience. Some folks don't want it, others refuse to pay for it and some people can't justify the added cost eventhough they sort of like it. A few people find the middle ground where they appreciate the added value on occasion and according to their budget.

The direct purchase model works well with some things and a lot less well with others within the jewelry business. It is good to make a personal relationship with a good, local jeweler, as well as to keep them on their toes with a sharp pencil on prices, by keeping your Internet connections hooked up, too.

 

[lisa1.01fvs1]

Om,

You always have this distinctive way of walking the fine line between agreeing and disagreeing with B&M and on-line models.

I like it! I''ve read a lot of your other posts regarding this.

Well articulated analogies.

So where do you really stand? That is the question.

Or would you rather have a large cutlet after purchasing a small culet, on-line, at a fine restaurant?

Perhaps food is your weakspot!

 

[rocku]

Date: 3/28/2008 12:00:50 PM
Author: oldminer
It is a powerful business model which Blue Nile uses. The company seems well managed and we hear few complaints, if any, from consumers. This is all good.

On the other hand, I can purchase a fine steak from a quality butcher and cook it at home for $25 or get the same steak with a whole lot of really pleasant attention and service from a superb steak house and pay $65. For some reason, the higher cost dinner often leaves a better degree of satisfaction with me than when I save the $40 and eat on my own. Discovering the ''VALUE'' of personal attention and service is an enlightening experience. Some folks don''t want it, others refuse to pay for it and some people can''t justify the added cost eventhough they sort of like it. A few people find the middle ground where they appreciate the added value on occasion and according to their budget.

The direct purchase model works well with some things and a lot less well with others within the jewelry business. It is good to make a personal relationship with a good, local jeweler, as well as to keep them on their toes with a sharp pencil on prices, by keeping your Internet connections hooked up, too.

Oldminer, thank you for your wisdom.

 

[Jenn5504]

Date: 3/28/2008 12:00:50 PM
Author: oldminer
It is a powerful business model which Blue Nile uses. The company seems well managed and we hear few complaints, if any, from consumers. This is all good.

On the other hand, I can purchase a fine steak from a quality butcher and cook it at home for $25 or get the same steak with a whole lot of really pleasant attention and service from a superb steak house and pay $65. For some reason, the higher cost dinner often leaves a better degree of satisfaction with me than when I save the $40 and eat on my own. Discovering the ''VALUE'' of personal attention and service is an enlightening experience. Some folks don''t want it, others refuse to pay for it and some people can''t justify the added cost eventhough they sort of like it. A few people find the middle ground where they appreciate the added value on occasion and according to their budget.

The direct purchase model works well with some things and a lot less well with others within the jewelry business. It is good to make a personal relationship with a good, local jeweler, as well as to keep them on their toes with a sharp pencil on prices, by keeping your Internet connections hooked up, too.

As always, well said, Oldminer!

 

[Pandora II]

Personally, I''m not into spending extortion amounts of money for a glass of champagne, 20 minutes of being complimented on my fabulous taste and a fancy box.

I''d put that extra into the rock - or a pair of matching earrings!

So, it''s a steak at home for me everytime!

 

[MichelleCarmen]

I''ve been eyeing Blue Nile stock. It went down quite a bit after being up over $100 a share, but now is rising again.

 

[MichelleCarmen]

Date: 3/28/2008 4:51:43 PM
Author: Pandora II
So, it''s a steak at home for me everytime!

Or top ramen! lol

 

[ayala_jessica]

Date: 3/28/2008 4:51:43 PM
Author: Pandora II
Personally, I''m not into spending extortion amounts of money for a glass of champagne, 20 minutes of being complimented on my fabulous taste and a fancy box.

I''d put that extra into the rock - or a pair of matching earrings!

So, it''s a steak at home for me everytime!

When it comes to diamonds, I agree 100%