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Markup on diamonds?

Hi all,

Have a customer looking purchase an engagement ring with a diamond
in the $20K-30K wholesale range and I’d like to get an idea about
markup. The setting, labor, etc, is all extra, just tring to get an
idea of what a reasonable markup is on diamonds in this price range.

How do most of you mark up the price of larger stones like this?


I’d add in $5000

David Geller

looking purchase an engagement ring with a diamond in the $20K-30K

Well, Angelo, as with all questions about pricing, it’s never that

I’d like to make around 10% on a sale like that - more if I can get
it. I had a sale like that - they didn’t like the stones so I got one
more. I got it cheaper but didn’t pass on the savings - I priced it
in line with the others. Made $5500 on that one…

In today’s world of cutthroat competition, there’s a prudent thing
to do go to (your customer is) and find YOUR diamond,
making sure the make is comparable. Then price your stone something
less than them, but still competitive. I use Rap to buy, because I
have to, but I don’t use it to sell.

Melee I price at $1200-$1500/ct for most of it. That’s because I’m
paying $550, maybe $650, more or less, for standard clean goods, and
if I sell a 5 pointer for 60 bucks, I’ll make a whopping $32.50 on

You might want to think that you can price diamonds at will, and
make a huge killing, but you just can’t. Diamonds are everywhere and
there are people who’ll sell that stone for $500 profit…And
customers definately shop.

Some of the last diamonds that I’ve sold, I was not able to mark them
up at all, just pass them along to the customer to get the
opportunity to make the ring. Prior to the internet, I was able to
make 20 to 30% profit on a diamond. Now I’ve found that by the time I
include the tax, which is about 10% here in Tucson, I am non
competitive. I now help my customer pick out his diamond on Bluenile.
A good friend of mine just sold a $30,000 diamond and made $52! That
was a little more than the cost of shipping it in. If you are not a
large diamond buyer, it’s hard to get really good prices. They’ve now
become a commodity.

Kevin Potter