What's your diamond upgrade policy?

[subculture]

Hello!
I am new here
I've recently been looking at some diamonds to propose in the near future but have seen some differences in upgrade policies within the companies that come up in the PS diamond search. For example, Whiteflash seems to have an upgrade/buy back policy which sometimes even includes diamonds that weren't originally purchased there.
Companies like Adiamor, Blue Nile, and a few others (I can't remember off the top of my head) seem to have free upgrades as long as the stone is in good shape and the new purchase is double the original value.
One of the vendors I've found through PS and a friend of mine mentioned that B2C has an upgrade policy that states the stone can be upgraded as many times as I want without a limit on price but there is a 20% "restocking fee"...What the heck? So if I purchase a stone for $5,000, the fee for an upgrade in the future would be $1000!!!!!

Is this normal or am I overreacting? I'm relatively new to shopping for diamonds so I can't be too sure but it seems a bit excessive. I've considered B2C for my stone purchase because their prices on SOME stones seem to be significantly lower than lets say, BlueNile etc. I'm not positive if there will ever be an upgrade but still, i'd like the option without such a huge penalty especially when i'd be going back to them to purchase.
I'm torn between a great deal on a stone that is +/-300 cheaper on B2C than another site and having to take a chance on getting screwed later or spending more money on a stone now even though I might not even upgrade in the future.

Any insite or thoughts from experience is much appreciated!

 

[cflutist]

My CBI diamond purchased from High Performance Diamonds has a 100% trade up credit towards a more expensive CBI diamond. There is also a 80% buyback policy if you should want to sell it back for any reason. More information can be found here:

http://highperformancediamonds.com/company/trade-up-buyback/

 

[MollyMalone]

Well, I don't consider a policy that requires me to spend at least twice as much as the price of my original purchase a "free" upgrade policy.

Think of B2C's policy as a variation of a buy-back policy, i.e., they pledge to buy back -- at any time -- the AGS or GIA stone for 80% of your original purchase price, assuming the diamond is in its original condition (B2C doesn't require you to purchase another diamond; you can use the credit towards the purchase of anything they offer). James Allen will give you 70%, but only during the first 2 years following the purchase of an AGS or GIA stone. A guaranteed 70-80% is better than you could count on, were you to try to sell the stone yourself in order to help bankroll an upgrade.

(Whiteflash's 100% Lifetime Trade-up Policy is terrific, although it doesn't extend to diamonds sourced for a customer from elsewhere. And yes, they will consider crediting you for a GIA or AGS stone purchased elsewhere, but they determine how much of a trade-in credit to offer you, contingent upon your purchase of an in-house diamond costing at least 150% of what they are willing to buy your stone for. So, tough to predict in advance how much your stone would be worth in this scenario.)

 

[subculture]

What I mean by free upgrade as opposed to not-free upgrade is the fact that B2C is penalizing me for wanting to put money back into B2C when I don't have to. If I decide to fork over double the original price of a stone at lets say Bluenile, that's my choice and I shouldn't be charged for it. If diamonds don't depreciate as the companies love to preach, why wouldn't they be happy to take the stone back and resell the diamond that is now supposedly worth more?


As for James Allen and the other, i'm sure there are few internet diamond vendors that don't honor the no-penalty upgrade fee but it just seems like the most of the front runners do. B2C being one of the vendors on PS seemed to me to be one of the bigger ones that would have the same if not very similar policy. I was wrong to assume this and is precisely why i'm in a curious position of having purchase or not. Seems like there's a downside to both. I just wanted insight on how people felt about the restocking fee when some companies don't charge it at all. If I decide to spend double at B2C at some point, the %20 restocking fee still holds.

 

[MollyMalone]

James Allen's trade-up policy (not its buy-back policy, which I described above) is the same as e.g., Blue Nile and most (I think) of the chain store jewelers like Jared: full credit of the price paid for the original diamond if purchasing a diamond now selling for twice as much.

Whiteflash, Good Old Gold, Brian Gavin, and High Performance Diamonds are the Internet vendors I know of who offer 100% trade-up policies without requiring you to spend twice as much. But the covered inventories are their signature lines, may be priced higher than you care to pay at this juncture.

What I mean by free upgrade as opposed to not-free upgrade is the fact that B2C is penalizing me for wanting to put money back into B2C when I don't have to. If I decide to fork over double the original price of a stone at lets say Bluenile, that's my choice and I shouldn't be charged for it. If diamonds don't depreciate as the companies love to preach, why wouldn't they be happy to take the stone back and resell the diamond that is now supposedly worth more? ***

Under this analysis (altho' I don't remember B2C or any other PS sponsor ever exhorting us consumers to buy diamonds because they don't depreciate), why is Blue Nile et al. not happy to give you a 100% return without requiring your new diamond to be priced at least 200% more?

I value having options, so wouldn't want to be "forced" to spend another $5000 or more on an upgrade, to use the purchase price in your initial post's hypothetical. I also would figure, if I were a B2C customer looking to upgrade say 3 years later, that I'd gotten $1000 worth of pleasure (on a daily basis, less the cost of a cup of Dunkin Donuts coffee) from my initial purchase. But given what appears to be your level of resentment towards B2C's policy, doesn't seem like it's a good fit for you.

ETA: my former father-in-law was "in the trade" here in NYC & passionate about diamonds. Although he would give opinions on diamonds being considered by friends & neighbors, he would decline to be the actual source of e-ring diamonds for them. Instead, he would suggest some retail merchants & counsel against going to some others. fwiw to you, B2C was among his recommendations.

 

[AdaBeta27]

What I mean by free upgrade as opposed to not-free upgrade is the fact that B2C is penalizing me for wanting to put money back into B2C when I don't have to. If I decide to fork over double the original price of a stone at lets say Bluenile, that's my choice and I shouldn't be charged for it. ...

If you don't like their policy, then just don't buy there. Generally, the full-service dealers like Good Old Gold, whom I have purchased from twice, build fees and costs into the original purchase price. People complain that GOG diamonds cost more. Yes, but look at the generous upgrade policy, and the diamond buyback policy (which not all vendors offer.) B2C probably strives to work on a lower profit margin from the start. You can't have it all. If you want to buy on cost, and get the biggest bargain, then you have to make tradeoffs elsewhere. Maybe to give you "free" upgrades, B2C would have to raise their prices. Repeat: You can't have it all. These diamond sellers have to make a profit somewhere to stay in business.

Look at the "penalty" this way: IF you were to consign your diamond, you'd probably lose 20% to consignment fees, and you may or may not sell it at a purchase price the same or higher than what you originally paid for it, depending on specs of the diamond, how fast the buyer(s) are needing to make a purchase vs. can they wait around for a better deal to possibly turn up, and lots of other variables in the the diamond markets and the overall economy. Diamonds are bought and sold in a global marketplace now. Maybe that puts downward pressure on some diamonds and boosts the prices of others, vs. just looking at what USA buyers want. B2C is buying your diamond back at 20% less than you paid for it, and you don't have to wait around for a buyer, you don't have to send you diamond out of sight for it to sit on consignment somewhere, and they are not charging more than a typical consignment fee. You are paying 20% for the convenience of selling your current diamond fast, with no hassles or risks.

If you go back to my old old posts, I think the first one I made was regarding how I lost an inheritance of 2 x 1ct diamond solitaire earrings because my aunt had placed them on consignment at a jeweler who stole the diamonds and put czs in the mountings! My aunt got in insurance p'mt for that loss. But, when she passed away 4 years later, the estate learned that he had also taken her large diamonds out of 2 rings and replaced them with diamonds of much lesser quality. There a lot of hassles involved when trying to resell diamonds. People are suspicious of any "used" diamond. Diamonds are millions of years old, and yet some people think "used" diamonds are inferior and have a stigma. lol

 

[chrono]

What I mean by free upgrade as opposed to not-free upgrade is the fact that B2C is penalizing me for wanting to put money back into B2C when I don't have to. If I decide to fork over double the original price of a stone at lets say Bluenile, that's my choice and I shouldn't be charged for it. ...

If you don't like their policy, then just don't buy there. Generally, the full-service dealers like Good Old Gold, whom I have purchased from twice, build fees and costs into the original purchase price. People complain that GOG diamonds cost more. Yes, but look at the generous upgrade policy, and the diamond buyback policy (which not all vendors offer.) B2C probably strives to work on a lower profit margin from the start. You can't have it all. If you want to buy on cost, and get the biggest bargain, then you have to make tradeoffs elsewhere. Maybe to give you "free" upgrades, B2C would have to raise their prices. Repeat: You can't have it all. These diamond sellers have to make a profit somewhere to stay in business.

Look at the "penalty" this way: IF you were to consign your diamond, you'd probably lose 20% to consignment fees, and you may or may not sell it at a purchase price the same or higher than what you originally paid for it, depending on specs of the diamond, how fast the buyer(s) are needing to make a purchase vs. can they wait around for a better deal to possibly turn up, and lots of other variables in the the diamond markets and the overall economy. Diamonds are bought and sold in a global marketplace now. Maybe that puts downward pressure on some diamonds and boosts the prices of others, vs. just looking at what USA buyers want. B2C is buying your diamond back at 20% less than you paid for it, and you don't have to wait around for a buyer, you don't have to send you diamond out of sight for it to sit on consignment somewhere, and they are not charging more than a typical consignment fee. You are paying 20% for the convenience of selling your current diamond fast, with no hassles or risks.

If you go back to mu old old posts, I think the first one I made was regarding how I lost an inheritance of 2 x 1ct diamond solitaire earrings because my aunt had placed them on consignment at a jeweler who stole the diamonds and put czs in the mountings! My aunt got in insurance p'mt for that loss. But, when she passed away 4 years later, the estate learned that he had also taken her large diamonds out of 2 rings and replaced them with diamonds of much lesser quality. There a lot of hassles involved when trying to resell diamonds. People are suspicious of any "used" diamond. Diamonds are millions of years old, and yet some people think "used" diamonds are inferior and have a stigma. lol

+1.

 

[AdaBeta27]

Two more points:
You can always try to sell your diamond via the "Sell Your Diamonds" form that is linked here under the Resources tab. From what I skimmed briefly, recently, people were not happy with the offers they got because they were offered wholesale on their diamonds. It's long been said that Internet diamond merchants operate on maybe 15% - 20% markups or less, vs. much higher for B&M stones.

Some people are just not interested in upgrading, and they buy on price and don't care whether there's an upgrade policy or not. Out here in the flyovers, people get a diamond e-ring when they get engaged, and if they are lucky and affluent, they might get a larger one for a major anniversary like somewhere in 25-40 year range. But "upgrades" would be considered vain extravagances and normally do not happen here like they do on PS. My sister got a .35ct e-ring 32 years ago. And it's still the only diamond ring she's ever gotten. My mother got a .25ct, and never received an "upgrade" until her sister willed her one of her numerous diamond rings.

 

[subculture]

Thanks Adabeta, for helping me see the 'penalty' in a more realistic and understandable way. I guess I don't really see it as being screwed as much.

Looks like I'm going with Eternity by Yoni. They have a 70% buy back and a 100% towards double the carat size. Best of both worlds and this was what I needed from b2c

 

[WinkHPD]

Thanks Adabeta, for helping me see the 'penalty' in a more realistic and understandable way. I guess I don't really see it as being screwed as much.

Looks like I'm going with Eternity by Yoni. They have a 70% buy back and a 100% towards double the carat size. Best of both worlds and this was what I needed from b2c

Just curious, did you mean double the original cost or double the carat size? Double the carat size could cost 4 times the original cost or more depending on the size as the price per carat will be much more and you will be buying twice the carats.

Wink

 

[JDDN]

I was curious about the same thing. This is what it says on the website. Hopefully it's okay to post this.

So yes, it's double the carat size. Yikes! If you bought a 1.2 carat diamond you would be obligated to buy a 2.4 carat diamond as an up-grade!!! That doesn't seem like a liberal up-grade policy to me.


LIFETIME TRADE UP

At Eternity by Yoni we have a lifetime trade up policy, where at any point after your purchase you can trade in your diamond for one of greater value.

If you would like a larger diamond, we offer 70% of your original diamond purchase price towards the diamond of your choice. We offer 100% of your original diamond purchase price, towards a diamond of double the carat size.

Our lifetime policy applies to all GIA certified diamonds bought from Eternity by Yoni. Diamonds need to be in its original undamaged condition and accompanied by its original certification. Setting and applicable charges may apply.