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Jewelry warehouses sell great high-quality diamonds cheap, why can't other shops

  1. K9keystrokes profile image92
    K9keystrokesposted 6 years ago

    Jewelry warehouses sell great high-quality diamonds cheap, why can't other shops?

  2. DebSimmons profile image57
    DebSimmonsposted 6 years ago

    Several possible reasons... One, the wearhouses are very large operations that can usually buy in vast quantities. We see in the everyday consumer market that buying in bulk can save money and this holds true in this situation as well. Dealers are willing to give those jewelers who buy in very large quantities a deal. Another reason could be overhead and location. Those stores who have a high overhead and or have stores in prime locations or in areas where the average cost of doing business is higher necessarily have to mark up their merchandise more than those in lower cost or less than prime areas. Another factor is also sometimes the manner in which the store buys it's merchandise. Some stores will buy their merchandise outright... they actually own the jewelry and gems they are selling so they can generally make better deals on them. It's much harder for a store who has their stock on memo to make those deals. The last possibility is the designers of the jewelry themselves... some jewelry designers like Tacori have fixed the prices on the jewelry the stores carry for them and those prices are very firm. I know for a fact that Tacori will remove their partnership with any stores that offer discounts on their pieces... their prices are firm and stores are expected to adhere to them. Any one or a combination of these factors can affect the prices you will find when shopping for gems and jewelry. Hope this helps! :-)

    Deb Simmons Porter, AJP

 
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