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Jewelry Stores

1,903 Views | 9 Replies | Last: 7 yr ago by Yesterday
betadawg1
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AG
Not sure this is the right forum, but does anyone have any knowledge of actually store markups? Internet search shows a huge difference in markups. Up to 400% on jewelry and 1000% on engagement rings.

If I was looking at 2 items with a retail price of $38,000 would it be completely unreasonable to offer 20%-25% of the retail price in cash?
diehard03
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Not sure how the jewelry store benefits with the cash part of it. They would still get 100% of the money and you be paying a finance company back.
betadawg1
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AG
Cash vs. credit card. No processing fees.
gigemhilo
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AG
Chain stores have crazy markups. How much they want to waggle with you depends on how desperate they are to move the inventory.

There are better ways to buy jewelry. If you are looking to spend that much on bling, you need to look harder.
Buck Compton
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AG
gigemhilo said:

Chain stores have crazy markups. How much they want to waggle with you depends on how desperate they are to move the inventory.

There are better ways to buy jewelry. If you are looking to spend that much on bling, you need to look harder.
Exactly.

Btw, CC processing fees are maybe 2.5-3%.
IrishTxAggie
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AG
Chuck the Jeweler is a sponsor on here. Maybe he can give you some insight.
FarmerJohn
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AG
I can't imagine Chuck the Jeweler commenting on margins.
IrishTxAggie
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AG
That's why I went with "insight" and not "margins".
Dr. Doctor
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AG
I priced diamonds for my wife's engagement ring on line (blue nile, etc) and went to an independent jeweler as I had mine custom made (not Chuck).

I looked at his stocks, and offered comparable prices for his diamonds vs. prices online. I also knew the price of metals (ballpark) and amount needed for the rings. I also rolled the whole price into a single transaction, offered cash and made sure it was "with tax included".

I would estimate from my experience 6+ years ago, the labeled price and the final-sold price was about 50% or so.

YMMV, but this worked for me.

~egon
chucktheaggiejeweler
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Sponsor
AG
Ah, retail jewelry mark up... one of the main reasons I do what I do....

We do not mark up a percentage. We make a fee, not unlike a consultant, which is exactly what I see my business doing. Sales are for the folks taking large margins. That means we can take excellent care of the $1000 budget client, but the $50,000 budget client makes out like a bandit.

In addition to that, we are not trying to sell stuff in a case, where we may be paying interest on jewelry we do not own. We make jewelry, better built, more precise, heavier, solid, and we do it without a markup percentage.

We operate in an office, without the overhead of a retail store, and we see clients by appointment to focus on them solely. I like to teach and inform clients on what really makes return on investment when buying diamonds, etc, but I do what the client wishes to do.

This is the niche Fifth C fills, and as a sponsor since 2009, if I were doing it badly, TA folks would have put me out of business years ago.

If you or someone you know is in the market, let me visit with you or them versus a retail mark up store. We will make a better piece of jewelry for the client every time, and leave markups to the stores!

AGGIE - CUSTOM JEWELER - WHOLESALE PRICING - TEXAGS SPONSOR






God's Peace,
Chuck

Fifth C Jewelry
Yesterday
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AG
Dr. Doctor said:

I priced diamonds for my wife's engagement ring on line (blue nile, etc) and went to an independent jeweler as I had mine custom made (not Chuck).

I looked at his stocks, and offered comparable prices for his diamonds vs. prices online. I also knew the price of metals (ballpark) and amount needed for the rings. I also rolled the whole price into a single transaction, offered cash and made sure it was "with tax included".

I would estimate from my experience 6+ years ago, the labeled price and the final-sold price was about 50% or so.

YMMV, but this worked for me.

~egon
You did quite a bit more than most, but there are so many comparisons regarding diamonds that no one could possibly be exact without setting eyes on the stone. First and foremost are the certifications. GIA being the best and most critiqued will often grade lower than one from AGS or EGL. A GIA H color could be as low as a J from EGL. Is an SI2 stone eye clean? Hows the cut compare or how does it look face up?

I know these things because i've made mistakes on diamonds and mistakes on diamonds can be expensive. To answer the OP, a ring at Jareds that retails at $10k can be had at a wholesaler for $7k can be had at a dealer for $6k and can be had at a pawnshop for $4k which finally can be had from the seller for $2500.

The "markup" from the retailer is most certainly the most but the diamond business has many middle men that want their cut. This isn't to say every stone comes from a pawnshop because that's obviously not the case but if not the pawnshop it comes from a mine which heads to market which is bought buy national buyers which is sold to retailers etc.

Your best bet is to try and cut out the most middle men as you can while keeping the professionalism that you demand. You can buy a stone directly from an individual looking to sell their unwanted piece but that requires you to be the professional. You could buy from Jared's which has the stores, the salesmen, the trademark, the jingle etc. but that requires the most money. I'd suggest heading to Chuck. Just the right amount of professionalism and money!
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