What Is The Difference In Price (Percentage) Between Wholesale And Retail Diamonds?3 min read
Retail and wholesale stores are both selling diamonds that people desire. Diamonds have been traditionally used for engagement rings and up to this modern time they are still in demand. Before you make your diamond purchase let’s compare the difference between the two when it comes to pricing and other factors. Let’s learn about diamond wholesaler vs retailer prices and all.
Where Do Companies Buy Their Diamonds?
After diamonds are mined they are polished to have an appealing appearance. They are then sent to the diamond dealers. These diamond dealers can be directly for the wholesale store or they act as middlemen to bring diamonds to the wholesale sellers as well as retail sellers. The source of the diamonds is transparent since they want to assure their dealers that they are legit.
Where Do Diamond Wholesalers Get Their Diamonds From?
Wholesale diamond dealers have more connections when it comes to the source of the diamonds they sell. Before they make a deal with the source they have to consider several factors since they want to make sure that they are dealing with honest brokers and the source of the diamond is a place they know.
How Do Diamond Wholesalers Work?
Diamond wholesalers are those who buy directly from the source. They deal directly with the small or big-time miners. They get rough diamonds and have them polished and shaped into a form that is ready to sell to buyers. Wholesalers get by bulk and sell it to brick-and-mortar, online and retail stores. Some also sell to individuals depending on the arrangement they have.
Are Wholesale Diamonds Real?
They are indeed real, there are many wholesale diamond dealers all over the world. They buy rough diamonds in bulk from miners and some even have them shipped from the source. There are different sources of diamonds.
Why Are Wholesale Diamonds So Cheap?
Wholesale diamond dealers have several reasons why they can sell their diamonds at a more affordable price. Here is the reason why:
Buying in Bulk
Just like any other stores if you buy at bulk prices are given at a lower price. Wholesale diamond dealers deal with miners and get a lot of diamonds from them. MIners then give them a good amount.
Every time a diamond is passed on from one middleman to another the cost goes up. This is simply how trading goes and how middlemen profit. So when there are no middlemen then there is no additional cost for the diamonds.
Less Overhead Cost
Brick and mortar diamond stores have overhead costs such as their advertisement for their products. Showcase displays, rental for the stores, and other expenses can be added to the overhead cost. This overhead cost is added to the cost of the diamonds to be able to cover the expense.
What is the Difference in Price Between Wholesale and Retail Diamonds?
Wholesale has a big price difference from retail diamond prices. Wholesale diamonds are cheaper by 40% to 60% than retail prices. This is due to the reason stated above, plus diamond pricing in wholesale stores is governed by the Rapaport report. This is a pricing matrix that is set up for pricing diamonds that come in different shapes, sizes, and other factors. Honest diamond dealers will stick with the Rapaport pricing and may even give a lower price upon negotiation.
Wholesale diamonds can be a good choice compared when buying from retailers. This is not just because of the price but also because you can have more choices in the wholesale stores. Take note that diamonds in wholesale stores also have high quality despite their prices.
So What is the difference in price (percentage) between wholesale and retail diamonds? The price difference is big, so if you have any chance to buy from wholesale stores then do so. Be a wise buyer by researching diamonds before buying them. Your knowledge of diamonds can be useful once you will be shopping and negotiating for the diamonds you will be buying. Diamonds cost an arm and a leg, so getting them at an affordable price can be a big matter. Know more about the pricing of the diamonds before buying them since you may have to take some time to understand the pricing better.