What would account for >$1K difference in designer setting between PS vendor and retail chain?

[Kim N]

I have inquired into the price of a designer wedding band. For the same metal and similar color and clarity of melee, the price at a well-known retail chain was more than $1K less than the price at a PS vendor whose prices are generally competitive. What could account for the difference? The retail chain was also offering a discount that made the difference even greater than $1K.

 

[mrssalvo]

Date: 5/1/2007 5:11:41 PM
Author:Kim N
I have inquired into the price of a designer wedding band. For the same metal and similar color and clarity of melee, the price at a well-known retail chain was more than $1K less than the price at a PS vendor whose prices are generally competitive. What could account for the difference? The retail chain was also offering a discount that made the difference even greater than $1K.

lots of things go into determining pricing and business's each have there own places where they can discount. Hard to say why a retail chain was so much less b/c normally the PS vendors are fairly competitive. Many will price match if you ask and if they can.

 

[neatfreak]

Well for example, the prices of various metals have SKYROCKETED over the past year or few years. It''s possible that the local store has had the setting/WB in stock since before this and so they can sell it for less because they paid a lot less a few years ago. Many stores have policies where they don''t change their prices upwards even if the price of the piece changes.

Also, could be that they have had it in stock and are taking a slight loss/selling it at cost just to move the inventory.

Otherwise no idea why there would be that big of a discrepancy.

 

[Kim N]

Thanks, mrssalvo and neatfreak. Those are definitely reasonable explanations. If others have insight, please share as well.

 

[Richard Sherwood]

Date: 5/1/2007 5:11:41 PM
Author:Kim N
I have inquired into the price of a designer wedding band. For the same metal and similar color and clarity of melee, the price at a well-known retail chain was more than $1K less than the price at a PS vendor whose prices are generally competitive. What could account for the difference? The retail chain was also offering a discount that made the difference even greater than $1K.

Was the retail chain''s wedding band the original designer''s ring, or a knock-off? Knock-off''s sell for considerably less than the original designer''s piece.

 

[Kim N]

Date: 5/1/2007 10:14:33 PM
Author: Richard Sherwood

Date: 5/1/2007 5:11:41 PM
Author:Kim N
I have inquired into the price of a designer wedding band. For the same metal and similar color and clarity of melee, the price at a well-known retail chain was more than $1K less than the price at a PS vendor whose prices are generally competitive. What could account for the difference? The retail chain was also offering a discount that made the difference even greater than $1K.

Was the retail chain''s wedding band the original designer''s ring, or a knock-off? Knock-off''s sell for considerably less than the original designer''s piece.

Rich, it was the original piece. I knew a knock-off would be understandably less.

 

[denverappraiser]

Dealers don’t all markup the same for every item in their stores. This is just good business practice. They often are making their money on something else, like diamonds or service and are using the mountings or this particular mounting as an incentive to get you into the store in the hopes that you will buy something else. Dealers of everything from milk to automobiles do this and it works pretty well so it shouldn’t come as a surprise to see it with jewelers. Diamonds have become very competitive, especially with the big internet diamond houses and it’s not really a very profitable deal to sell them as a stand alone deal. It’s hard to think of a $5k diamond as a loss leader in the hope of selling you a $1k mounting but, in effect, that’s what tends to happen.

Most of the big designers and manufacturers have a fairly broad distribution network and you have the opportunity to check with several of their dealers to see what a particular design will typically cost. If someone is out of line and you want to shop there for other reasons, point it out to them and they may be willing to adjust their pricing. If someone is offering a particularly attractive deal, you might consider adjusting your loyalties and shopping at that store. Maybe they deserve your business.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

 

[Kim N]

Thanks, Neil. That''s very helpful to know.