General question about trade worker vs. consumer costs ...

[Amethyste]

SO... I KNOW THAT MANY JEWELERS, IF THEY HAVE TO SUPPLY SIDESTONES FOR A PIECE THEY ARE WORKING ON THEY SUPPLY THEM AT "COST" TO THEM AS A CURTESY TO THE PIECE THAT THEY ARE MAKING.

IT HAS BEEN MENTIONNED THAT LEON MEGE DOES THAT TO HIS CUSTOMERS ... SO LET''S STAY HYPOTHETICAL HERE...

IF I WERE TO PAY ON AN ONLINE STORE $5,000 FOR A STONE... AND LEON OR WHOMEVER IN THE TRADE WAS GOING TO GET THE SAME ONE, HOW MUCH DO YOU THINK THEY WOULD PAY FOR IT? ON AN AVERAGE, HOW MUCH % LESS DO THEY PAY THAN THE PUBLIC CONSUMER?


Ps: ugh, i did it again, i am at work and we use CAPS for our worksheets, i am not yelling at anyone... please think puppies and daisies.

 

[Karl_K]

apples to oranges

Matched sets cost more and there are few to none consumer direct sources.

Internet markup is the neighborhood of 12%-25%

 

[oldminer]

I think it is realistic to think of manufacturers supplying some small diamonds or side stones "near" cost, but not "at cost". They are making a fairly large mark-up on the mountings, so it all becomes rather a blended overall cost operation.

 

[y2kitty]

Leon has an inventory of his stones on his website listed at his cost.

 

[denverappraiser]

‘Cost’ is a funny word in the diamond business. Does it include shipping? Security? How about commissions for the salespeople involved? For dealers these and more are all important parts of doing business that consumers rarely consider as part of the deal but you can bet they’re represented in their books and that they, as well as the IRS, consider them as ‘costs’. If it costs less for a dealer to buy a stone for inventory rather than to consign it on a special deal (and it does), which price do you use? If they get a smoking good deal on a particular item, who gets to the be the beneficiary of that deal? What if they overpay, who loses out?

The sensible solution is to ignore the whole cost question and pay attention to the deal that’s being presented. What they paid is irrelevant, it’s what they’re charging, and what they’re delivering, that matters. In the case of side stones, often it's not really a choice. They may not allow you to supply them at all and/or they may have a charge to deal with stones that you supply. Be sure to ask.

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

 

[ChunkyCushionLover]

Date: 2/9/2010 5:09:30 PM
Author: y2kitty
Leon has an inventory of his stones on his website listed at his cost.

Leon is purchasing through another dealer who is already marking up the stones even before he gets them. Considering he isn't getting the best price to begin and not going directly to the source for the stones I am not surprised if Leon's prices at his cost are comparable or worse as compared to purchasing from other PS vendors.