What to do?

[python55]

I have got my ring made and it is ready to be picked up. I have not paid for it yet and dont know wat to do. I live in Canada, we agreed on aprice, however, the exchange rate is now in my favour and it is a differecne of about $400. Do i ask him to drop the price or am i required to pay the negotiated price? $400 is a lot of money but i really respect this jeweller and wouldnt want to ruin the relationship. Is it wrong if i ask him to drop the price to wat he would currently sell the same diamond for?

 

[denverappraiser]

Assuming that the dealer is in the US, you should negotiate the price in US dollars and the burden of dealing with the exchange is your issue, not the jewelers.

If you agreed upon a particular price and had them make a ring, then the transaction occured on the date that you agreed to buy and they agreed to sell. The fact that you didn''t pay the bill and they didn''t deliver the merchandise until later should not change anything. If you agreed upon a price in Candadian dollars for a particular ring then I think that''s what you should pay.

Neil Beaty, GG ISA
Independent Appraisals in Denver

 

[python55]

he is a local jeweller in my area. i could get a bigger rock for the same price right now. would it be wrong for me to ask him or would that be insulring him?

 

[denverappraiser]

It’s fairly likely that the jeweler didn’t own the stone before you agreed to buy it. The day that you made your deal is the day that he rang up his supplier and agreed to buy it. This means that if you back out, he will end up owning a stone that he really doesn’t want for reasons that are completely out of his control. It’s also possible that he still hasn’t bought the stone yet and can still return it to his supplier. This means that he would be able to find you a different stone without doing harm to himself and perhaps even make some more money. Lastly, it’s possible that he already owns the stone and that he would be just as happy to sell you a bigger one. The difference between these scenarios depends on who owns the stone and the relationship he has with his suppliers. It doesn’t hurt to ask but don’t YOU be insulted if he refuses.

If he agrees to trade the stone up on a bigger one, you should also be aware of the possibility that the ring will require modification to accept the new stone. Usually this isn’t too difficult but it will depend on the design of the ring.

Neil Beaty, GG ISA
Independent Appraisals in Denver

 

[Richard Sherwood]

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we agreed on a price,

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There''s your answer. You made a deal, even though money didn''t exchange hands at the time. Dealers tend to put quite an emphasis on this, looking distastefully at individuals who don''t understand the term "your word is your bond".

 

[zoobiedo]

I agree with Rich. A deal is a deal, sometimes it works to your favor and sometimes not but if you made a deal then you need to honor it as such.

 

[Hest88]

If you agreed on a price you're obligated to pay it, regardless of what happens on the back end.

Plus, think of it this way: it's not as though you lost any money. You're getting the same stone for the same price. There will always be cheaper or more expensive items out there. Sometimes the market works with you and sometimes against you, but in this case you've come out exactly as expected.

 

[fortheloveofdiamonds]

If you agreed to a price, it is a verbal contract. You can try to renegotiate. But the jeweler agreed to make you the ring for a certain fee and that is the fee that you agreed on.

 

[rosy]

I agree, you should pay what you agreed on regardless of what the exchange rate is now. What would have happened if the exchange rate moved the other way, out of your favor & your jeweler asked you to pay the higher price, you''d be upset right?

 

[python55]

I see your point rosy, but wat if he did charge me more?....dont most online vendors state that the rate changes daily and that they reserve the right to not sell a diamond at the price if that happens?....I am more than willing to pay the negotiated price but am wondering how it would be dealt with if the situation was reversed....

 

[fortheloveofdiamonds]

However, this situation is different. It is not the diamond market that has fluctuated, it is the exchange rate that has fluctuated. The thing is that when the dealers say that their price is subject to change, it is subject to change on a daily basis and they reserve the right to sell you something at the higher price if the diamond market has changed. So if the diamond was listed at $6,200 and then the diamond market fluctuates and the next day the diamond is worth $6500, the dealer does not have to sell you the diamond at $6200.

The difference between this situation and yours is that in the jeweler-diamond-market fluctuation scenario, the buyer doesn''t have to buy the diamond. However, in this case, you have *agreed* to a price and have a verbal contract with the jeweler to pay a certain amount for your piece. The jeweler would not increase his price of the diamond regardless of its value on the market four weeks later, after the ring is completed, because you agreed at that point to buy the diamond for said price.

Again, you can ask. But your verbal contract is probably binding.