Shane company markup

[newbie11]

I started another thread about this, but the responses are not too relevant and/or vague, so let me simplify the question.

What is the typical markup at the Brick & mortar retailer, Shane company?

 

[diamondseeker2006]

I doubt anyone here really knows the answer to that as most of us have figured out that there are much less expensive places to buy diamonds than chain jewelry stores. Settings may not be that much different, but selection of quality diamonds at a better price will be online.

I'd do a search checking reviews of stores before considering one, too.

 

[newbie11]

I doubt anyone here really knows the answer to that as most of us have figured out that there are much less expensive places to buy diamonds than chain jewelry stores. Settings may not be that much different, but selection of quality diamonds at a better price will be online.

Appreciate the reply, but I've got to imagine there's a number of retail employees (disgruntled or not) that could offer insider info.
After all, this site has been around over a decade, so there's got to be data.

In terms of buying online, I would NEVER consider that, given my level of knowledge. I can't even fathom how anyone would buy a diamond online, but that's a topic for another thread.

 

[Niel]

I doubt anyone here really knows the answer to that as most of us have figured out that there are much less expensive places to buy diamonds than chain jewelry stores. Settings may not be that much different, but selection of quality diamonds at a better price will be online.

Appreciate the reply, but I've got to imagine there's a number of retail employees (disgruntled or not) that could offer insider info.
After all, this site has been around over a decade, so there's got to be data.

In terms of buying online, I would NEVER consider that, given my level of knowledge. I can't even fathom how anyone would buy a diamond online, but that's a topic for another thread.

My head read this as negative sorry lol.
Dont feel intimidated about buying online. We will get you super informed and help you as much as we can. Its really the best way to make sure you are getting a quality product

Sorry I've been getting yelled at all day at work by customers, everything I read now has a twinge of rude in my head

 

[Niel]

If you mean your lack of knowledge on the subject I wouldn't let that disuade you. We do not get money from anyone for helping you and just like to see someone get the best ring for their budget. We would be more than willing to find you something so you don't have to worry youre paying too much

 

[swingirl]

I doubt anyone here really knows the answer to that as most of us have figured out that there are much less expensive places to buy diamonds than chain jewelry stores. Settings may not be that much different, but selection of quality diamonds at a better price will be online.

Appreciate the reply, but I've got to imagine there's a number of retail employees (disgruntled or not) that could offer insider info.
After all, this site has been around over a decade, so there's got to be data.

In terms of buying online, I would NEVER consider that, given my level of knowledge. I can't even fathom how anyone would buy a diamond online, but that's a topic for another thread.

Please share with us what you know? I have made multiple diamond purchases online and have always been pleased with the personal service that I received from the sales associates, gemologists, jewelers and owners. I visited one of my favorite vendors, got to meet everyone in person, and see their location.

So what do you know about the process that I have missed?

 

[denverappraiser]

I’m not going to really answer your question in this thread either, but the problem isn’t a vast conspiracy, it’s that there is no straight answer. Jewelers (ie Shane) don’t ‘markup’ everything in the store the same amount. It varies a LOT. Add to this that there is not a ‘wholesale’ that things get marked up FROM. Costs will vary both on what they are buying, where they buy them, and what the terms of the deal were. The lowest gross margin I would expect them to put up with is about 10-15% unless we’re talking about closeouts or loss leaders and the most expensive they can get is about 500% on watch batteries and earring backs. That’s the answer but it doesn’t tell you much that’s useful.

May I ask why it matters? Markup is a function of their costs and, frankly, who cares? The key issue is YOUR cost isn’t it? For that you need to compare what they’re selling with what the competitors you’re considering are charging for similar goods. THEIR costs don’t matter either. Do they? Put another way, just because they might have overpaid for something doesn’t mean that YOU should and, similarly, if they found a bargain doesn’t mean they’ll pass it on to you.

 

[SMC]

I started another thread about this, but the responses are not too relevant and/or vague, so let me simplify the question.

What is the typical markup at the Brick & mortar retailer, Shane company?

It looks like Denver Appraiser has posted a great answer to your question. I'm going to offer an example:

Shane Company has a diamond with the following specs online:
Stone Price $21,755
Item Number 30000126
Carat Weight 1.71
Certificate Lab AGS
Certificate http://www.agslab.com/reportTypes/pdqdf.php?StoneID=104051153070&Weight=1.71&D=1
Clarity VS2
Color H
Stone Shape Shane Classic (this means round)

James Allen has a diamond with the following specs
Color H
Clarity VS2
Carat Weight 1.75
Cert Lab AGS
View the diamond here: http://www.jamesallen.com/#!/loose-diamonds/round-cut/1.75-carat-H-color-VS2-clarity-sku-133761
Price $17,490

Both these stones are AGS 000. They are virtually identical on paper. I would say that the JA stone is better because it hits the quarter carat increment in size (1.75 sounds better than 1.71).

The difference in price is almost 25%.

I'm not saying that you shouldn't trust your eyes but James Allen has such a flexible return policy that you can order the diamond, bring it with you to Shane Company, compare it with their in-house "Shane Classic" diamond, and see for yourself if the Shane Co diamond is worth $4265 (plus sales tax - which is almost 9% in CA).

Alternatively, you can see if you can knock down the price of Shane Company's gem by $4000.

I read the full text of the article you posted (http://www.theplunge.com/ringbuyingguide/what-is-the-best-place-to-buy-diamond-ring) on the other thread and it doesn't necessarily knock buying diamonds online. It mentions how you can use online knowledge to your advantage. The best way is to try to get your brick & mortar retailer to come down to the Internet price.

 

[diamondseeker2006]

It is absolutely fine if you prefer paying $4000 more for virtually the same diamond! Most of us here would rather save the $4000 or put it toward the larger diamond. But since you prefer buying there, now you know about the percentage you potentially will overpay.

 

[MichelleCarmen]

I doubt anyone here really knows the answer to that as most of us have figured out that there are much less expensive places to buy diamonds than chain jewelry stores. Settings may not be that much different, but selection of quality diamonds at a better price will be online.

Appreciate the reply, but I've got to imagine there's a number of retail employees (disgruntled or not) that could offer insider info.
After all, this site has been around over a decade, so there's got to be data.

In terms of buying online, I would NEVER consider that, given my level of knowledge. I can't even fathom how anyone would buy a diamond online, but that's a topic for another thread.

Please share with us what you know? I have made multiple diamond purchases online and have always been pleased with the personal service that I received from the sales associates, gemologists, jewelers and owners. I visited one of my favorite vendors, got to meet everyone in person, and see their location.

So what do you know about the process that I have missed?

This person posted in his other thread that he knows nothing at all about diamonds! That was posted today. He learned IT ALL in one day.

 

[bunnycat]

FWIW- In your other thread you were very concerned with online because you can't guarantee information on a stone or that you're getting a stone with the right specs. I hate to point it out, but you aren't going to get any better information and probably a lot less from a retailer. They are not generally (in my experience) terribly interested in informing you of what "the right specs" are.

A lab report is a lab report, and if the stone comes from online or a B/M and has a lab report with a laser inscription, you can certainly verify it regardless of where you buy the stone. A quick look under the microscope and you're done.

The concentration on cut quality if a relatively new idea in the diamond world, only a few decades old I think. Before that, all it was was color and clarity. And from my experience when we shopped for my ring, the jewelry stores are behind the times for the most part, unless you go high end most places all you will hear is cut/clarity and you'll get very confused looks if you ask about ideal cut.

The jeweler I got my setting from was the first place I heard of and saw Hearts and Arrows stones and I was lucky to find someone like this, I think. One other place (also high end) was about as sleazy as they come in their tactics and lack of information and I didn't go back. They were probably marked up about 25-30% from what I recall at both places. More searching brought more knowledge and Pricescope.


Mostly what you have here is a collection of jewelry lovers, no conspriacy....

 

[maccers]

I think what you should fathom is you're posting in an online community where probably the majority have either bought a diamond, a coloured gem and/or setting online.

I'm very curious to know your insights about buying online.

Eta: just saw his other thread. Disregard my post -hopeless cause methinks.

 

[denverappraiser]

I'm a fan of supporting your local stores, including ShaneCo, but it's worth noting that most of the online jewelers are no more or less than a local jeweler in someone else's neighborhood. They are trying to get customers who aren't within easy driving distance and the ONLY way to do this is online. They charge what they want. They have whatever policies and conditions they want. They sell whatever sorts of goods they want. Just like your local store. 'The Internet' isn't a location, it's an advertising method. It's not their address that makes them good or bad, it's the character of the people behind the keyboard/counter that makes the difference.

There are some definite advantages to buying from a nearby store, and if there's a store that suits your style, by all means shop there but the rules for shopping safely are remarkably similar no matter where you shop. Only buy lab graded stones and only rely on credible labs. Only buy from someone with a return policy and use the return period to get it checked out by your friends, neighbors and your own appraiser. Use a credit card if you're not 100% confident in the dealer. Research the dealer, not just the stone. Learn the language and understand what clarity, color, cut and other diamond specific terms mean. It's not rocket science but it's more than you'll get from a 4 c's brochure. Vet your information sources. There are sharks out there.