Diamonds are considered the most elegant and precious entities that one could possess. It shows power & prosperity, it has been seen to be used on many occasions as a gesture of gratitude. Diamonds are now a multi-billion business even though the diamond market is smaller in comparison to that of gold.
With the demand for diamonds increasing, the online market has boomed up causing the increased availability of choice, of loose diamonds and providing a pathway for wholesale diamonds. Different cuts, styles, and other types of diamonds are found on the market and are now easily available online.
Also Read: Tips For Beginners Diamond Trader – How To Get Started
The business has primarily two models, Wholesale diamonds and Retail of diamonds. In Modern Era, Many Diamonds Wholesaler and Distributor Starts selling Diamonds Online with there Brand Websites. You Can Find Many numbers across the Internet.
The business of diamonds is segregated into several categories:
- Miners and producers, who extract these precious gems through rough diamonds
then sort and sell them
- Cutters and polishers, who buy rough diamonds from the producers, and cut and
- Manufacturers, who create the finished goods from diamonds
- Retailers, who sell the finished goods to the customers
The diamond jewelry retail market recorded the business of $60 billion globally in 2010 and has been on the rise ever since. There is also a great demand for loose diamonds and diamond wholesale, as people choose to modify the diamond by their own will or use it as an investment. And given the fact that diamonds aren’t cheap, there are many ways to buy them for a lower price; one such way is to purchase diamonds in a diamond wholesale another way is to purchase loose diamonds.
Precious stones make up 41 percent of retail gems deals, as indicated by “National Jeweler.” The profit margin on precious stones was under 47 percent for 61 percent of the retailers studied. Diamonds are a controlled market, with the chief diamond mines and merchants controlling the supply and enabling just such a large number of loose diamonds to be sold at some random time.
It is troublesome for the client to correctly assess the value of any stone, as it takes a specialist to separate between an about impeccable stone and one with slight imperfections and roughness that can’t be seen with the naked eye.
Websites such as the Blue Nile, Miadora and Diamond don’t have the overhead of physical stores, so they can undersell diamonds and still turn out to be productive and earn profits. A few retailers will coordinate the online store’s costs to win the devotion of a client, seeking they return for future jewelry shopping.
Any person looking to start a business with these precious gems has to consider a question, whether they want to do a diamond wholesale business or retail business. Both have their share of advantages and risks involved. We are going to look at them to create a better understanding of the two business models.
Diamonds and Geography:
According to statics, it is found that diamonds are mined in Australia, Brazil, Canada, China, Russia, Venezuela, and myriad African countries. However, cutters work mostly in Israel, Belgium, India and New York. Antwerp is the largest diamond cutting capital in the industry.
Diamonds are available in various cuts, shapes, sizes, and types; diamond wholesale consists of dealing in loose diamonds of all types, melee diamonds, white diamonds, blue diamonds, and black diamonds, etc.
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What is Wholesale?
You can see people displaying advertisements with the “wholesale of diamonds” “white diamonds in wholesale” with the emphasis on the word ‘wholesale‘ Whereas, everyone is acquainted with what white diamonds are, what is diamond wholesale or wholesale exactly?
Wholesale is defined as to when you purchase a certain item in bulk, in order to pay a reduced fee. Meaning you will be buying goods in large quantities at low prices. These prices won’t be as low as you think, rather they will just be lower than the originally charged prices per unit. This factor makes diamond wholesale beneficial than just purchasing loose diamonds in a small quantity.
A layman may associate diamonds only with the color white since they have been popularised for ages; However, rare types such as the black diamond and blue diamond are not far behind in diamond wholesale demand from the white diamonds.
What is Retail?
Retail business is different from diamond wholesale as it refers to the one where the buyer is the end-user. The transaction takes place between the retailer and the consumer for his or her own consumption. For this purpose, various sales channels can be used, direct sale, online market or the good old brick and mortar stores.
Also Read: How Are Diamonds Made?
The web is practicing keystone pricing in which diamonds are marked up 100 percent of the wholesale price.
What are the Benefits of Purchasing in a Wholesale?
Buying loose diamonds in a diamond wholesale provides the buyer with flexibility and a reduced fee. The diamonds bought in wholesale cost less than their retail counterparts. The trade of fancy wholesale diamonds and colored wholesale diamonds is largely popular among buyers and sellers.
Consumers who want the value for the money are inclined towards buying diamonds from the so-called wholesalers/sellers. These are the same people retailers purchase their goods from, buying directly from them removes the middleman and a consumer gets the best deal for their money.
Retail of Diamonds:
When the diamonds purchased from diamond wholesale arrive at an actual retail gems store to be sold to the regular consumer, the diamond’s markup has been increased 1.6 to three times its actual cost. In the case of rough diamonds, the bigger and more costly the precious gem, the slimmer the markup.
In spite of the fact that the special case is for rare diamonds, which in view of shortage order a bigger “margin” for the jeweler. Some established block and-mortars can approach the costs that Internet purveyors offer, says iDazzle, yet even they can’t go bring down because of costs, for example, keeping up a business staff and keeping a few diamonds on shipment.
Risks Associated with Wholesale of Diamonds:
The diamond wholesaler does not deal with the everyday consumer; his deal occurs with the retailer, who further has a deal with the customer wanting to buy the diamond. The retailer’s aim is to earn proceeds; consequently, a diamond wholesaler has to sell his product at considerably discounted rates. The difference between the price paid by the retailer to the wholesaler and what is paid by the customer to the retailer is the retailer’s profit margin.
A wholesaler may not be able to earn substantial amounts of money from each transaction in the diamond wholesale; it is therefore that this business model is established on selling large quantities of diamonds. A major shortcoming is that the transactions with the retail diamond shops may be on credit and may require terms in order to give the retailer time to sell the diamonds.
Risks Associated with the Retail of Diamonds:
Firstly, a retail business requires an investment of time and other assets such as infrastructure and a site to open up a shop. Secondly, apart from finding a location, finding prospective customers is a meticulous task unlike in diamond wholesales. Although retailers can earn more money from each customer, they undertake more risk as the investment is larger in this case.
Difference between Wholesale and Retail:
In traditional methods when a consumer wants to buy diamonds in a diamond wholesale, the person first has to pick out what product or item is needed and how much. The desired amount of items should be up to a big level in order to consider it wholesale because no one will provide you with wholesale diamond prices just for a few pieces.
Rough diamond consultants give a general thought of different mark-ups for these precious stones, as the diamond advances through the different phases of being obtained from the assembling to the discount end. They say a diamond producer must make around 30 to 40 percent in earning margin changing over the rough stone to a polished precious stone to remain in business; when the discount intermediary bids the polished jewel to other discount facilitates, his net revenue is 1 to 15 percent or a normal of 5 percent. In the event that he bids to retail shops, benefits are 10 to 30 percent or around 20 percent by and large.
With the coming of the Internet, says jewel industry instructor Truth About Diamonds, the prior practices of increasing diamonds 100 percent or more offered approach to significantly narrow mark-ups in the under 20 percent run. Since web retailers don’t need to convey the stock in-house themselves, yet have the provider transport it to the client straightforwardly, they save money on overhead costs, keeping the mark-up moderately low. These retailers, by making the purchasing procedure straightforward, have constrained physical retailers to cut down their mark-ups also, says Gemological Institute of America certifies gems industry pundit iDazzle.
From the customer’s perspective, while purchasing loose diamonds from a diamond wholesale, the consumer doesn’t have to pay tax as it is expected that the items will go for reselling and then tax will be implemented. So unless you know the crafter or producers of diamond yourself, we wouldn’t suggest you buy it.
Retail, on the other hand, is different, as there is a fixed price for every entity you will end up paying a good amount. This is acceptable as buying from retailers have may profits:
- Return policy
- Guaranteed high quality
- Transportation and Delivery
And many other factors lead for it to be plausible to buy from retailers.
Also Read: What are Ethically Sourced and Conflict Free Diamonds?
What We Offer Here at RRP Diamonds: We are the Best Certified Wholesale Diamond Distributor
To provide you with the value for your money we come with a concept that will give you the best of both worlds.
White diamonds are not a rare sight for anyone however, its rarer counterparts are. As we offer numerous varieties of White & black diamonds, all of the different sizes, cuts or shapes, we’d like to ensure that our customers are completely satisfied with our services and products put forward by us. Our black diamonds are one of a kind, eye-candy gems that have their own place in the market.
We provide you with the choice of a variety of loose black diamonds, and you can buy them directly from us. And if you wish to get the best of both worlds, we have an offer where you can buy wholesale diamonds; you can go ahead and purchase our black diamonds in wholesale too.
The benefit of that will be that, you will get a discount of 15% on your total bill. Payments will be accepted through all; credit cards, debit cards, PayPal, net banking. With such a humble discount, we don’t think one could resist.
**It should be noted that for the purchase of black diamond’s to be considered ‘diamond wholesale’ the total bill preceding the discount should be equal to or greater than $5000.
Be our guest and use this opportunity to get the best value for your money. The demand for loose White & Black diamonds has boosted over the years, and they have become a stature of elegance. Get your hands on these prized gems for the best available prices.
As you will be spending your hard-earned money on these precious gems, we wouldn’t want you to face any inconvenience and would request you to contact us whenever needed. Whether it is a query or just a small problem is sure to contact us, we are available at all times.
Our website has made provisions for a live chat option if you ever need any sort of help urgently. You can even contact us via mail, (the email address has been provided on the bottom of the page). Don’t hesitate in buying; we will give you the best there is in the market.