When it comes to diamond pricing, factors like carat, color and clarity pop up in the mind, and people are quick to the decision that these are the sole characteristics that determine the price of a diamond. As true as that is, it’s not entirely so. There are tons of other factors in play, not the least of which are sellers’ markups and policies. Of all the secondary elements that balloon up or shrink down the price of a diamond, the policy of a seller and their markup are the two most important. Yet they are also the least known elements about diamond pricing.
Here is what you didn’t know made a considerable impact on diamond pricing.
Of the two factors, what affects the price most is the markups reserved by the sellers. Sellers like Harry Winston and Tiffany charge high premiums for their products, on the strength of their signature designs, flawless craftsmanship, top-notch quality, but also for their brand value. The brand value balloons up the price by a significant margin. Leaving out the flagship brands, even the mall stores keep a pretty high markup, which weighs in to make the price bigger. So, customers end up paying for both product and the prestige of the brand.
Another reason that bumps the price up pretty high is the overhead cost of running a swanky store. The physical stores have the polish and veneer of up class brands which cost the companies pretty high. That cost, in parts are recovered through the product pricing. So, in some ways, the cost of the business gets passed on to the customers who unknowingly pay for the building and upkeep of the premise. This is where online buying gets the much-need advantage. They do not have overheads this big and that supports moderate pricing.
Another thing that makes diamond prices a little too much is the respective policies of the jewelers, all of whom have their own set. Terms like buybacks, resizing, warranty, return, etc. add to make the price heavier. The seller, when pricing a product include all the costs involved in offering these facilities thereby making the seller price bigger than it needs to be. So, when you see some generous policies, remember to factor that into the pricing of the seller.
While there is no way avoiding these altogether, you can always shop online and gain some cost advantage that is otherwise unavailable.