[Jewelry making - Article 00379] - Re: [Orchid] BlueNile Vs. "wholesale"

[David L. Huffman]

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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

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