New Company - To sell Diamonds...What you Think?

[Ideal Diamond Search]

Hello

I am in Vancouver, BC.

I was looking for a diamond and the best prices and the best quality diamonds could only be found on the net.

I was thinking of opening my own company here in Vancouver, BC, Canada, where i could order/receive diamonds off the net and then sell them to customers, customers who want the quality and great price but who are hesitant to buy over the net.

Are there any diamond cutters/retailers that would be interested in being a supplier?

Does anyone know how I can get a list of Diamond Cutters where I could buy directly from the cutter himself?

Thanks,
Sonny
[email protected]

 

[valeria101]

If you dig deep enough among PS posts, you will find that at least sometimes the diamodns listed are taken from the cyberspace at a jewelr or appraiser intead of being delivered directly to the customer. Why? well... some shoppers would have appraisals anyway and take a shortcut or, less often, a couple (really two) of stones are delivered like this for the undecided buyer to choose from: however, the second option involves rather complicated arrangements between buyer, seller and the actual receiver of the stone - with lots of trust involved.

I am not sure you would like the type of contracts one can get from cutters.

and... I am not aware of any list of diamond cutting factories online. Most don't seem to bother get on the Net in the first place!

Less than 0.2, I am affraid.

 

[Richard Sherwood]

What you're essentially talking about is going into the retail diamond business.

It's a cinch. All you've got to do is get a sales tax license, print up some business cards, and go from there.

Down the road, you'll find that in order to get the credibility necessary for the public to buy from you, you'll need an office, or an internet site, or both. You'll probably want to throw in a fax machine and business phone line as well.

Then the city, state and federal government will probably hear about you, and you'll need to get a myriad of city, state and federal operating licenses. Then they'll hit you up for tangible taxes, etc.

It's no problem buying from diamond wholesalers, cutters or manufacturers if you have the cash. They'll all perk up and pay attention when you tell them you have a half a million dollars for an intial investment.

A half a million upfront is a problem for many individuals though. In that case you've got to be able to convince them to work with you on credit. Then you run into that same credibility problem I mentioned before, except this time it's with the dealers, a much tougher crowd to persuade than the public. You'll find out when they make a quick test of handing you a cubic zirconia and asking you for your gut instinct of the stone's quality and value.

You can't blame them. They've seen thousands of "here today, gone tommorow" dealers who thought the diamond business was a no-brainer.

In actuality, it is the farthest thing from a no-brainer. It requires education, money, credibility, history, reputation, perseverance and panache.

A very rewarding field though, which I would highly recommend to anyone willing to do the groundwork. Just realize it is infinitely more complicated than getting a list of diamond cutters.

 

[Brian Knox]

Hi,

I would second all of the caveats in the previous posts.

If you are aware of these obstacles and are a enterprising type and are still considering this concept in a month, GO FOR IT !

Nothing ventured nothing gained

 

[Richard Sherwood]

Heh heh heh... "To baldly go where no man has gone before..."

Furthermore, you're a trip. An experienced trip though, I'll give you that. You've tasted all the intricate ins and outs of the diamond trade, at it's most raw level.

Further up the line the intricacies are not so raw, but just as deadly.

-----------
the only way an e-tailer will allow you to hold stock is if you have
premises - secure premises - in a highly populated area
-----------

Another aspect to the whole scenario. Nobody is going to trust you with their money (ie diamonds), unless they know you are going to stock it in secure premises. They're going to want to know you have a secure vault, security system and insurance.

But above all that, they're going to want to know you can be trusted with their money (ie diamonds). Insurance doesn't cover theft by the insured, either outright theft or white collar crime. The supplier is going to want to know beyond a shadow of a doubt that you are trustworthy. That kind of rep has to be built over a period of time, and verified by people who know you.

I hate to discourage anyone, but the diamond business is definitely not for amateurs. What usually happens to amateurs is that they get eaten by the sharks, of which there are plenty in the gemstone world. The sharks can smell inexperience, and close in to exploit it.

 

[strmrdr]

if your serious this is my recommendations:
1> get educated a GG or equivalent is a good start.
2> start saving every penny you can.
3> work in a retail environment while you get your education.
4> see if there are programs in your area that team up experienced business people with you in a mentoring relationship.
5> put a very good lawyer on retainer.
6> expect to be broke for 7 to 10 years.
7> There is money out there for this kind of stuff but you will get eaten alive
by the VC's if you don’t get eaten by the suppliers and the con artists.
The way it works in the VC world is that as soon as you start making money the VC's take over and you get shoved out and they make millions and you get the very small leftovers if anything at all.
They will act like your best buddies and friends but they are only after one thing any money you can make them nothing else matters.
They also love to make you jump thru a ton of hoops spending hundreds of hours getting things ready then pull the plug one hour before you think your going to sign the paperwork to get it going.

I call this strmrdr's seven steps to an early heart attact.


There is an 8th point that is rather delicate but the truth in the states.
Put the business in your wifes name as the majority owner and all the better if she is a minority.
That will open more pocketbooks than any of the above 7 steps......

 

[strmrdr]

The computer industry is just as intersting and just as pitfall laden as the diamond industry.
Even during the dot bomb craze it was never easy.
Iv seen enough to know that the only way Id want a business is if I had the cash to be the VC and even that isnt easy.
A few of our clients are into it and they average 15 proposals a day anyone requesting under 500k is usualy automaticaly dumped in the round file.
These days you just cant start a company that can generate the kind of returns they want on less.
They demand the potentual for 300%-500% return after 3-5 years min. for a long term invenstment and 200% after 1 year for what they see as a short term investment.
If the plan cant generate those numbers forget it.
It is actualy easier to get funding in the $5 million range than in the under $1 million range and in the $100k-$250k range forget it its not worth their time.
They dont even want to look at it.

When swimming with sharks your either a shark or you get eaten by them.

 

[Rank Amateur]

I wonder how Jim Schultz got started.