Hi All;
Well, I did manage to beat Blue Nile out on the 1.25 carat diamond
sale I was posting about. Here’s the story, as it might be
informative for some on how to compete with situations like this.
First, the customer got a book on diamond buying and learned just
enough about diamonds to be dangerous. My usual sources couldn’t
come up with anything for me along the lines of what he wanted, which
was VS1, E color. In 1.25-1.3 carat range and above, this kind of
clarity and color gets picked off pretty early, so there’s not a lot
on the market and what’s there isn’t going cheap. I found I could
match BN’s price, but after collecting 8.25% sales tax, I’d be
turning a $10,000 stone for around $200 profit. I guess it’s money,
right? But it’s insulting. Meanwhile, he gets a GIA certed stone
from Blue Nile, sends it to me for review, since I’m still going to
make the platinum mounting, which will pay me for my time. BN sells
him a VS1, F color, Ideal Cut, for $10,255. When I see it, in my
opinion it’s a VS2, G color. And in that carat size, the ideal cut
looks a little lumpy. This cert is very generous to Blue Nile’s
diamond, and I’m beginning to lose respect for GIA. Fortunately,
Nile has a returen policy, so there’s a chance I can do better.
I go deep into the “favor bank” with my connections and come up with
a 1.27 carat, VS2, E color, but it’s a very stringent VS2-E, and if
that BN stone is a VS1, then this one should be, since it’s cleaner,
and at E color, it’s noticeably whiter even to the untrained eye.
Problem is, the pedigree isn’t really as good. It’s got a 60% table
and medium blue florescence. Problem? Not in reality. 60% table is
better looking, in my opinion, in a larger stone, and the
fluorescence, believe it or not, is so slight it actually flatters
the stone somewhat even in strong daylight. Under a black light, I’m
having to point out to my guys which one’s fluorescing. But here’s
the plain fact of it all. The stone I have is cleaner, prettier,
whiter, all around better looking, but going by the cert alone, it’s
not as good. But I can sell it for $1,000 less than Blue Nile and
still put $1,000 in my pocket, and more money later for the mounting.
But I can only accomplish this because he’s now gone back home to
Indiana and I don’t have to collect that taxes. But now I’m selling
a diamond long distance. I have carefully built this customer’s
trust in me, and he should trust me too, because now I’m working hard
for him. This guy has an MBA from Perdue, so he’s the epitome of the
savvy shopper. He’s caught between some idea of an "investment"
value for the stone while needing to make sure his fianc=E9e has
something really beautiful (I know, some of you don’t think diamonds
are beautiful). I have to show him that, while I respect his
research and desire his input in this buying experience, I want to
bring him my experience with the overall aesthetics of diamonds.
He’s going to really wow his fianc=E9e with this diamond, I’m happy, m=
y
supplier is happy. And I know I’ve done right by my customer.
Luckily, he’s in another state, so there’s no sales tax, or I’d only
make half as much and he’d only get a slightly better deal.
Moral of the story; there are certs and there are certs, and while
they’re becoming more important to the online shopper they should be
more irrelevant to those of us who sell diamonds. Do you folks see
why GIA is now all for it’s “cut grade” whereas a while back they
were being much more honest about the fact that it’s more a marketing
tool? But then, the other “criteria” are just marketing tools too,
aren’t they? One doesn’t see the absurdity of this system until one
looks at other colored stones and considers the relevance of such
ideas. I don’t really need a cert to sell a stone, but I think only
an idiot would buy anything significant online without one, and even
then, they better know what they’re looking at, cut grade or
otherwise. I remember scoffing at some guy who was running workshops
on “Romancing the Stone” but that’s about what it is. Still, I think
most retailers are going to lose on this. Before I succumb to
another rant, I’ve just got one thing to say . . . If you make your
"art" a “commodity” whether it’s diamond cutting or PMC creations,
you are going to get run over eventually. That’s the nature of
capitalism. If the product is uniform, then the guy who’s able to
concentrate capital comes out the winner because he can buy more, buy
cheaper, whether it’s materials or labor, and he can sell for less
by selling more. Meanwhile, I think we all need to ponder this
concept of “trust”. You don’t want to play on the customer’s
distrust and fears, but you want to use that energy to keep them
interested in becoming a truly educated consumer and to get them
involved in the buying experience. Of course, it won’t work if
integrity isn’t in the formula.
David L. Huffman