I'm sure that the consumer understands that the jewelry store must make a profit in order to stay in business, but the consumer always tries to barter the price he pays to below what he believes is it's wholesale cost.
2006-09-17 05:53:55 · 3 answers · asked by olemerv2000 2 in Business & Finance ➔ Insurance
The answer given seems to ignore the added costs above merchandise and the infrequency of visits a consumer makes to the jeweler.(maybe once a year)
2006-09-17 08:26:14 · update #1
No consumer EVER wants to pay the full price for anything! If there's a discount out there, they want it!! When you bought your house, did you offer the asking price, or did you offer less, hoping to negotiate?
When you go to the department store looking for shirts, do you walk away if there's a sale, hoping to come back after the sale is over to pay full price??
Silly.
2006-09-17 10:14:32 · answer #1 · answered by Anonymous 7 · 0⤊ 0⤋
Because the markup in the diamond business is SO high! Most diamonds could be sold at a 75% discount and still return a handsome profit for the retailer -- the per unit losses would more than be made up by increased sales volume.
Diamond markets are tightly controlled, mostly be DeBeers. So much money is involved that they are able to skirt anti-monopoly laws with impudence. If the playing filed were leveled, they'd go out of business in a week.
2006-09-17 08:27:31 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 1⤋
Because there is such a large markup in the diamond business, consumers don't want to pay the high price. I can't really blame them.
2006-09-17 08:06:13 · answer #3 · answered by makeitright 6 · 0⤊ 1⤋