Are you buying Jewelry with Gemstones often?
If you are - you should stop and be aware of whats happening. Even though retail Jewellery margins around the worlds have shrinked, they are still quite "retail" and not "wholesale". Do you know how much their margins are? 20%? 50%? 100%? No Jewellery company charges less than 100% profit margin. Thats my guarantee - unless they are closing down. It can go upto 200%, 300%..
When you buy Jewelry, do you know which is the most Profitable section for the Jeweler?
Its the Gemstones in it, be it Semi Precious or Precious Gems. This is because consumers like you are unaware of the "real price" of Gemstones which have way too many colors, variations, and qualities to make it a standard. Moreover, the other thing involved is the Metals involved in making that piece of Jewellery, BUT the metal prices are open to the public and accessible with one single click on google that will disclose the prices within seconds.
Conclusion? Jewellers cannot charge too high on this. Another raw material used is the Labour, which is also quite understandable, however this can still be a way to add profit. A little confused? Let me give you an example:
Miss "X" goes to buy a piece of Gold Engagement with Gemstone Ring from her nearest store in California. They ask for 1,000$ for that single ring with lets say 2 grams of gold, and 1 carat of Diamonds and in the centre a Large Round Swiss blue topaz weighing 50 carats.
Now Miss "X" asks the Shop sales man about how many grams of gold it contains, they say 2 grams, so now Miss "X" knows the cost of gold is 200$ by calculating with the help of google, Labour might cost 30$(?) , The gemstone (Swiss blue topaz) according to Jeweler would be 10$ per carat, and Miss "X" would recheck the price on the internet which is on websites at 10$ per carat or even more. So Miss "X" is assured about the price for 50 carat Swiss Blue Topaz. The 1 carat diamond would be 100$ (Aacording to Rapaport- which is easily available on the internet after purchase- its an official Diamond report)
So Miss "X" calculates and gets 500$ (Swiss Blue Topaz) + 100$ (1 carat Diamonds) + 200$ Gold + 30$ labour = 830$, she is quite satisfied and buys it at 930$ after negotiating. And is a happy customer.
But do you know what the story is behind the scenes? Want to know the cost calculation for the Jeweler?
300$ Swiss Blue Topaz + 200$ Gold + 30$ Diamonds + 30$ labour = 560$
Profit = Double? This was just a hypothetical example I came up with. The conclusion of this Story is...Never buy Gemstone Jewellery. Always buy your Gemstones first, and then your Jewellery. This will give you immense number of options. Do not stop buying Gemstone Jewellery - I am just saying change the way of buying. Buy Gems first - and than Jewellry. After all colored gemstones are really beautiful.
Where to buy Gemstones online? NO - dont make that mistake of buying Gems on the internet via expensive E-commerse sites that are charging Retail prices to you. Instead look for suppliers like us who dont sell online, we complete your search for any Colored Gemstones you are looking for. Visit our site www.NavneetGems.com to see any Genre of gems you like, tell me your requirements, I shall send you pictures with "Wholesale" prices of that need.
Why are online E-commerse sites so expensive?
1) High overhead expenses
2) Atleast a couple of educated, talented staffs which require lots of money to hire to do the edited, uploading, marketing or each product on sale.
3) E-commerce Website development cost - which stand at anywhere between 3,000$-10,000$ for a very good website.
4) Good pictures doesnt mean High quality - it just means high efforts in terms of money and time spent on that photo.
So I hope with this article I hope that I have disclosed the truth of expensive Jewellers who immensely charge extremely high prices and "hide" (Please note not LIE to general people) - I just feel for those who dont understand this and go ahead and give those retailers the extra higher margins. This does NOT apply to all Jewelers, this is completely based on the Jewellers that I found in India who ripped off my family as there was a wedding and then when I saw their Jewellery and the amount they paid, I was ridicuously upset and went to the Jeweler but nothing happened.