What do jewelery stores actually pay for diamonds/how much markup is there?

Question

im looking to purchase a .76 carat diamond... near colorless, ideal cut, princess cut, no visible infractions... the store i want the setting from is charging me $4400 for the rock... ive seen similar rocks at other stores for as low as $3500 so i take it there is quite a bit of markup on diamonds. the store im buying the setting from seems like they are willing to haggle on price, so im wondering if anyone here in the jewerly field could tell how much markup there is on diamonds/what they pay for them so i have an idea of how low i can try to get them to go

Answer 1

200% markup is average.

Answer 2

there is a good bit of markup and you can usually get a %20 discount at most stores. However depending on each diamond those prices sound about right with a slight discount already. The thing is you are getting something that is near perfect, For my own needs I'll specify a .76 princess cut that is E or F in color, and vvs1 or 2 in clarity. You pay more for a princess cut to begin with becuase of the amount of stone they cut away to get the shape. You can probably bargain some but don't expect a whole lot.

Answer 3

yup - mark up for jewelry (diamond) is at least 800% - these are stuff not everybody need on a daily basis and few can really afford. The teeeeny ones (below .20 carats) are more affordable to the general public. Believe you are talking in terms of US$ here - then, I'd say $3500 is more the market value of what you've described. Oh, the price is also determined by where the diamond is from: those from China seem to be less expensive, not necessary best grade tho. I'v been a keen collector for many years, have teeeeny to larger ones.

Answer 4

Based on what you've said they are asking about twice what they paid for it. This is typical unless you find a real big volume dealer then the profit margin is only about 50% or so. The % profit is larger for smaller diamonds...200% for quarter carat stones and maybe 20% on 3-4 carat stones. You can always try to haggle, but if they come down to your price it is bad form not buy the goods right then and there...I'd ask for at least $1000 off then expect then to give you at least $500 off.

Answer 5

Great place to look for a ring is www.shaneco.com

Their sales persons are not paid on commission, which makes it my favorite store. They also guarantee 100% of their diamonds.

If you purchase a ring for $2500 and later on want to upgrade to a ring that is $7000, you can take your current ring in and you only pay the difference. You can't do that in a regular jewelry store, and if you can they won't give you the full value for the ring you previously purchased.

Check it out. You just might like it!

Answer 6

I think markup depends on the size of the chain. My sister recently got a ring from bids.com and it is great she paid just over 200 and it was appraised at over 2000. They have a return policy so its worth a look.

Answer 7

The markup is REALLY high, especially if you visit a place at the mall. Check out bluenile.com, we got my entire ring, three stone 1.3 carats for less than the price they quoted you for the rock. I love my ring and it appraised for double what we paid.

Good luck! :)


It looks like you can purchase a .76 carat diamond, H Color VVS2 clarity, Princess cut for $2,471 on bluenile.com -->http://www.bluenile.com/diamond_search.asp?track=dss&filter_id=0

Answer 8

about 200% - look at all the shiny lights they have in their store, glittery carpet, plush chairs, and sales people's commissions. Everything has a mark-up and many things more than you'd really expect. If you can find the same quality stone at another store, buy the setting from one and have the store where you buy the stone from set it for you.

Jewelry stores are a necessary evil =) My stepdad hates them, but luckily my husband is more understanding.

Answer 9

Last I knew about 300%