How much roughly does a jeweller give you for a trade in?

[pyramid]

If a jeweller inspects your diamond ring bought elsewhere and says he will give you some money towards your new ring which your are buying from him in return for the old ring and diamond, how much would you expect him to give in percentage to the new purchase?

Has anyone done this or does anyone know?

I expect the vendors online do not do this but just wondering if anyone has run into this with a B&M?

 

[dazedland]

I can''t really give you a percentage, but I bought my diamond from WF and they will buy your diamond back for the price you paid for it for life.

Just looking at your post again, did you mean that the online vendors won''t buy back the diamonds they sold you or that they wouldn''t buy back your diamond that you currently have?

 

[FireGoddess]

What Dazedland said refers to WF buying back a WF stone. Not buying a "trade in" bought elsewhere.

As far as buying a stone bought elsewhere as part of a tradeup, different vendors are going to have different policies. Not being a vendor, I can''t give you specifics, but here are a few things you must consider:

A. they (the vendor) have to actually WANT your stone, on some level. If it''s something they feel they won''t sell in a timely manner, or don''t have a market for, they likely won''t want to buy it from you.
B. you are going to be getting back far less than what you paid for the stone. That''s pretty much a given. The can acquire a stone like yours for probably far less than you paid for it...so they''re not going to pay you anywhere near what you paid.


My original e-ring stone was bought at a BM store, before I joined PS. They only offered back 85% of what I paid towards a tradeup. I traded up to a stone I love, and now I''m done with them. Now I''d buy a stone from one of the vendors here, with a 100% tradeup policy. I know that''s not your situation right now...but best of luck...you will take a beating trying to tradeup with a separate vendor. It''s the nature of the beast.

 

[denverappraiser]

Pyramid.

You’ve presented a false dilemma. Variations on this question get ask fairly regularly so I’ll try to posts some general thoughts on the subject. Obviously, the specific question of how much should you expect for YOUR ring is impossible to answer.

‘Trade-in’ is functionally identical to ‘buy off the street’. There is a contingent sale on which, presumably the jeweler is going to make a profit but it is in the best interest of both you and the jeweler to view the two halves of the deal separately. Increasing the selling price in order to increase the offering price is a shell game that is occasionally played but it doesn’t really change the nature of the two transactions. You’re selling a ring and you’re buying a ring. Let’s talk about the one you’re selling.

Most jewelers don’t buy from their customers unless it’s part of some program that they offered in order to make the original sale. This means trade-in of things you bought there and under a policy that was in place when you bought. This is primarily for PR reasons. If the customer has an inflated impression of what their jewelry is ‘worth’, and the jeweler makes what they see as a lowball offer then the customer walks away thinking the jeweler tried to cheat them. This is a lose-lose deal. They don’t get the buy, they don’t get the sale and they trashed their reputation. All for nothing. It’s much safer to just say no and let them sell to a secondhand dealer somewhere else. The potential lost profit is usually not worth the trouble.

When a jeweler or similar dealer DOES decide to buy, they are going to go consider several variables:

1) What is it? They see it as a used ring, made up of an assortment of materials. Since the diamond is normally the major issue I’ll concentrate on that. They will look at similar issues that most of the people here look for. Does it have a lab report? Is it accurate? Is it damaged? Is there anything important that isn’t included in the report (like icky cuts)? The buyer may not agree with what the customer is telling them or what the previous paperwork says. They will bid based on what they see as the important facts. The ring is usually just considered scrap gold because most jewelry stores don’t sell used rings unless they are extremely special pieces and can go into the ‘estate’ section of the store. Expect $5/gram or so.

2) Do they sell those? Some dealers do better with super-ideal type goods while others are great at selling ‘bargain’ type stones. Very few are good at both. If the stone is something that they can sell well then they are likely to offer more. If they anticipate holding it in inventory for a while before just the right buyer comes along, they will pay less. Exotic things, like a diamond cut in the shape of the state of Texas, are especially difficult to sell.

3) How much would it cost for them to buy something similar elsewhere? Dealers have alternative sources from which they regularly buy their diamonds. They have a relationship with their suppliers and prefer to buy from them. Why? They may get credit terms. They may get return privileges. The supplier may agree to consign merchandise to them. If they’re a good customer to their supplier it becomes easier to make special orders. They offer reports that are ‘new’. All of this is a competitive advantage for the alternative supplier. Your advantage is price.

4) What will they otherwise to with their money? If they simply don’t have the money, or there’s another deal on the table that is even better than yours, they will adjust the offer accordingly.

5) Chain of title. This means that they have good reason to believe that the merchandise isn’t stolen or otherwise a future headache in disguise. Original receipts and such help a great deal with this issue but the dealer always has to have this in the back of their mind when a stranger offers to sell a diamond. Buying from a wholesaler or cutting house doesn’t guarantee no problems with this but it does reduce them and it sure gives someone to point a finger at if something comes up.

Notice that none of this has anything to do with what you paid. That’s why it’s impossible to give a straight answer to your question about the ratio of selling price to purchase price. If you paid too much, that’s a shame but don’t assume that the dealer is going to want to buy a share of that mistake. The same is true with the grading. If you bought an I-1 that was sold as an SI-1, this was a problem but don’t be surprised if the dealer you are selling to wants to buy it as an I-1 despite any paperwork you may have to the contrary.

I realize that I didn't answer your question but, hopefully, I gave some useful information anyway.

Neil Beaty
GG(GIA) ISA NAJA
Independent Appraisals in Denver

 

[pyramid]

Thank you everyone for your replies.

Dazedland, I meant that vendors would not buy and stone not bought from them I thought.

FireGoddess, Your reply is just what I was thinking and I would not be trading up with the same jeweller the diamond was bought from so it would have been even less than you manged to get from your same jeweller.


Denverappraiser, You did answer my question and made my mind up for me. This was a very thorough answer and I can see the point about treating it as two separate purchases, the diamond I have is best kept for the pleasure it gives me and then I will have even more money to go towards my new diamond when I buy online which will be an ideal cut rather than buying a halfway diamond.

 

[Jennifer5973]

100% for life. Local B&M jeweler.

 

[pyramid]

Jennifer5973

Are you saying you are 100% for life with a local B&M as I know you have a wonderful one or are you saying local B&M jewellers will keep people from buying elsewhere as they are too indebted to the one jeweller. Maybe you are saying you get 100% back on trade-ins for life.

 

[solange]

When I was looking in the Diamond District for a new stone, I was curious to know how much they would give me for my old ring. One jeweler offered me a great price on the condition that I buy a particular stone from him. It was very overpriced and poorly cut. When I posted the specs on Pricescope, I was strongly advised not to buy it. I realized after this experience that it was best to find out the price of the new stone and then ask about a trade-in.

Once I did this, the other jewelers I went to offered me such a low price for my ring that it was not worth trading it in. As one jeweler explained, my original ring is pear shaped and he does not have much demand for that shape. Furthermore, he can get stones on consignment and not tie up his money so unless it is a real bargain, he willl not take it.

I decided to keep the ring and I wound up buying from Whiteflash where they have a 100% upgrade policy and in addition, I wound up paying far less for a better stone than I would have gotten with a trade-in in the Diamond District.

There may be some exceptions where the stone is very desirable and the dealer knows he has a customer for it but, in general, I do not think you get a good deal with a trade-in unless it is from the original vendor who has already made a profit and wants to keep you as a customer.

 

[FireGoddess]

Date: 6/28/2005 2:44:08 PM
Author: Pyramid
Maybe you are saying you get 100% back on trade-ins for life.

I believe that''s what Jenn was saying. She''s got a great B&M jeweler.