Tips on working though a jeweler when buying a stone

[erinl]

Hi all,

I am beginning a ring project for a milestone birthday at the end of the year (let's leave it at that ) and I am looking specifically at spinels--probably mehenge.

One of the options is to buy the stone on a site that only sells to tradespeople (such as pala) and have a jeweler do this for me. I am new to this whole game, the last major purchase made for me was my engagement ring diamond, which my husband took care of, and while he used a nice jeweler, I'm not sure going through them again would be the best option--its in downtown Chicago on Oak street and I cannot imagine that he got the best price he could get.

I know absolutely nothing about this process! Does the jeweler's "commission" on the stone vary widely? I don't even have ANY idea what their percentage is-- 5%? 20%? or more? Do you negotiate on that? I am just in the dark since I assume the jeweler works with the vendor and I then gives you a price for the stone Then who knows what the vendor price is, how much is markup, etc etc. I live in Chicago, so any suggestions on jewelers people have worked with and loved would be great! I am also open to any other suggestions!

 

[whatmeworry]

Well I would go to the AGTA website and look for members in your area. You might even find a colored stone dealer who would sell directly to you. Congratulations on your milestone.

 

[Michael_E]

Does the jeweler's "commission" on the stone vary widely?

Yes.

I don't even have ANY idea what their percentage is-- 5%? 20%? or more?

It depends on the jeweler. Some attempt to get margins of 100% plus, (rare anymore), but most are in the 30% to 50% markup from wholesale. This also depends on the starting costs, since more expensive stones can receive lower mark-ups in order to entice a buyer to commit to a project. Lower margins can also be obtained if you are having that jeweler make the setting, since there is some margin involved there as well.

Do you negotiate on that?

It's very hard to negotiate when you don't know the starting cost and you will have problems finding out what that is since it varies for each jeweler and no one is going to tell what their costs are. You can try asking several jewelers about the same stone/setting combo in order to get "competitive bids", but you also want to make sure that you're approaching the right people who can get your project accomplished to your satisfaction. In other words, don't ask a low end place for competitive bids and then think that you're really sitting pretty when their bid comes back a lot lower than a higher quality place. Quality always costs, (the jeweler), more in creating jewelry, while BS always costs you more. Avoiding the BS and finding a quality jeweler saves you a lot more than money, (such as time, frustration and post sales service), so I would make sure that your focus is on finding the right jeweler and not getting too tied up in trying to squeeze it down to closely on the savings part.

I am just in the dark since I assume the jeweler works with the vendor and I then gives you a price for the stone Then who knows what the vendor price is, how much is markup, etc etc.

You will never know what the pricing is to the jeweler, there are just too many variables. Even if you knew the numbers it wouldn't do anything for you, since any competent business person knows what their costs and margins needs to be and only prices their goods dramatically above their required level when they thing they have something intangible to offer, (like prestige, perceived higher quality, etc.). I wouldn't worry about it. Being in Chicago you probably have access to numerous jewelers. I'd make a field trip day out of it and just walk through different places and size them up. They will all have things that they've made on the shelf and books full of pictures of prior projects. If you find a place that strikes a chord with you, then bring up your plans with them and see what they can do for you. Try this with several places and you'll eventually get a really good idea of what's going on and what price levels are considered "reasonable". Who knows, you may end up back at the first jeweler your husband used.

Oh, I wouldn't get too hung up on just getting stones from places that have a magnificent internet presence. There are a number of places that have no public internet presence which sell really nice stones. These places often have better pricing than their more flamboyant cousins as well as better personal relationships with jewelers who use them a lot. There are a lot more quality stones out there than those which can be shown here, so keep your mind and eyes open when looking around.

 

[erinl]

Thanks WMW and Michael E! I have some time to work on this but I need all the help I can get!

 

[Largosmom]

Definitely don't judge just on the prices...a good bench person with a gentle hand for colored stones is not easy to find. My local goldsmith is wonderful and yet not great with computers so the website could use help.

Laura

 

[chrono]

Correct, every time there is an additional middle person involved, there will be a markup included although how high it is depends on varying factors. Sometimes, this markup is negotiable and again, it depends on how badly the jeweler wants your business, how much he is able to get it for, and if you are a repeat customer.