Why are prices so much higher in UK?

[yellowsparkles]

I was in Bury St. Edmunds yesterday just walking around. In a jewelery store front there was a GIA certified .40, D, VVS1 diamond ring (The setting was very simple solitaire in gold). It must have been something special since it was the center of their display and it was advertised as "GIA certified". Anyway - the price was 2600 pounds sterling. That is about $5200. I know that inludes VAT and the exchange rate is 2 to 1 at the moment. Still, that is really expensive. Why?

Is it the case if I were to go in an express interest in the ring - the vendor would offer it to me for a much lower price - "giving me a deal". I have had that happen at B&Ms before - a sales tactic like they are giving me a speicial deal if I were to buy it (inflated mark up value to begin with).

 

[diagem]

Date: 5/31/2007 4:12:17 AM
Author:yellowsparkles
I was in Bury St. Edmunds yesterday just walking around. In a jewelery store front there was a GIA certified .40, D, VVS1 diamond ring (The setting was very simple solitaire in gold). It must have been something special since it was the center of their display and it was advertised as ''GIA certified''. Anyway - the price was 2600 pounds sterling. That is about $5200. I know that inludes VAT and the exchange rate is 2 to 1 at the moment. Still, that is really expensive. Why?

Is it the case if I were to go in an express interest in the ring - the vendor would offer it to me for a much lower price - ''giving me a deal''. I have had that happen at B&Ms before - a sales tactic like they are giving me a speicial deal if I were to buy it (inflated mark up value to begin with).

I noticed a common practice in (London) the UK.
For example: English Companies which market identical products as in the US... (except for one minor issue!!!)

They change the Symbol in front of the price from $ to Pounds... (The number stays the exact same thing!!!!)

 

[bee*]

Its the same in Ireland-the prices are rediculous compared to the US. Hence we''re getting ours over there

 

[denverappraiser]

There are expensive and discount jewelers everywhere and it’s hard to comment on why a particular store charges what they do but the general reason that diamonds cost more in the UK and Ireland than the US is easy. Taxes.

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

 

[Hammurabi]

funny the B&M i went to here in Australia is the same... then again, i went to the ones in the city and more ''famous'' B&Ms (just normal stores not brand name ones though)

before i got my earrings from WF, i went to one B&M in the city, showed me a pair of 0.5 GIA RB, came back on H&A with a score way over 3 for both, they tried to sell it to me ''heavily discounted'' in a 4 prong 18k wg setting for $6500 AUD (that equates to about $5300 USD at the current exchange rate)

so i guess its just US is cheaper in buying diamonds?

 

[neatfreak]

Crappy US jewelers do the "discount" thing too, it''s not just in the UK.

And I would assume prices are so much higher there because the US has super low (or maybe none?) import taxes on diamonds. Other countries have much much higher tax rates for them, plus add on the VAT and other things, and you get a really high price.

 

[Pandora II]

Sales tax here is 17.5%

add on another 4% import duty and general high prices and ker-ching... £££££

I also have a suspicion that UK women buy less bling. Certainly I am the only bling-obsessed female I know in my social circles (most of whom are very high earners) and I mainly window shop!

 

[Maisie]

I work in a jewellers and the prices are ridiculous. I'm not kidding, they really are so over the top. And the quality of the stones are at best average.

I had to call a supplier the other day to get a price for a Platinum wedding band. The band costs us £345 but we are going to sell it for £1150. Talk about a huge mark up!

I had lady from the US in today asking about a vintage style engagement ring. We don't sell anything like that so I couldn't help her. She commented on my ring so I told her I bought it online (which is what I have been told to say if anyone asks). She said she is going to have a look at Whiteflash's website. I hope she finds something there because there is nothing of similar quality in the shops here. The frustrating thing for me is that I know how poor the diamonds are in our store but I still have to try and sell them.

 

[yellowsparkles]

Thanks for the posts everyone. Yes, I know taxes are high here, but even so that can''t make up for the huge price differences. Maisie, in your store, do you have certified stones? Perhaps this one was so expensive because it was "gia certified"....another cost to factor in, right? I know the retail stores have a lot more overhead and like pandora said, there are not a lot of bling crazy Brits. So, the stores don''t have a heavy turn over of their inventory and they need to make more money off the sale.

I live in a small town and there is a "bespoke" jeweler. I often go in just to look. The jewelers wife sits in the front and I have asked her if the stone is certified. She gave me a blank stare... I don''t think she knew what I was talking about. Anyway it is fun to look, but I could never buy a diamond priced in pounds sterling. crazy.

Diagem. you are right about the pricing. I noticed the same thing! Whenever I go home to the States, I end up shipping stuff since everything seems so cheap. The prices are definately the same - it is just the little "$" is changed to pound sterling.

 

[Maisie]

The only diamonds we have which are certificated are the Canadia diamonds.

http://www.canadia.com/latest/index.htm

We don''t seem to get much interest in them as they are much more expensive than our normal selection.

 

[Maisie]

Date: 5/31/2007 4:12:17 AM
Author:yellowsparkles
I was in Bury St. Edmunds yesterday just walking around. In a jewelery store front there was a GIA certified .40, D, VVS1 diamond ring (The setting was very simple solitaire in gold). It must have been something special since it was the center of their display and it was advertised as ''GIA certified''. Anyway - the price was 2600 pounds sterling. That is about $5200. I know that inludes VAT and the exchange rate is 2 to 1 at the moment. Still, that is really expensive. Why?

Is it the case if I were to go in an express interest in the ring - the vendor would offer it to me for a much lower price - ''giving me a deal''. I have had that happen at B&Ms before - a sales tactic like they are giving me a speicial deal if I were to buy it (inflated mark up value to begin with).

I meant to say - in our shop we wouldn''t offer anything more than a 10-15% discount depending on the cost of the ring. And we are only supposed to do that if it will get the sale.

 

[Pandora II]

Very few people here seem to care unless they are obsessed like Masie and I! As long as it says diamond on the label that''s fine with them.

A friend of mine got engaged recently and has a very pretty 3 stone ring with a 1.14ct centre stone. I asked her the specs and she had no idea. It''s very white - but minimal sparkle even in bright sunlight. What research did they do? An hour walking round Hatton Garden.

I am wondering whether there is a niche market for decent stones without a mega-markup. I am testing the idea out with some of my friends. I have a reputation for being knowledgeable on rocks (and I consider myself a total beginner - but hey I lown my own loupe!) and a bargain hunter, and as a former designer people are starting to ask me for help with their bling.

I''m thinking of charging a small percentage for helping them spend their $$ with PS vendors - they still get a great bargain as long as the exchange rate holds up. If not I''ll just have to go to Antwerp!

I really feel for you Maisie - I hate having to sell people things I don''t believe in especially when I know it''s a big purchase for them.