I saved $2701.61 buying a Diamond Ring Online
How is it possible?
I found out that your local diamond and jewelry stores mark up the price 100-300%. This basically means that if they purchased a diamond at a cost of $1000 they will charge you the customer $2000 - $4000. This means they make a profit up to $3000. This is a huge amount of money. So it can be misleading when you think the value of your diamond is $4000 but really much of that value is just profit for the big chain jewelry store.
The reality is you can buy a much higher quality diamond without paying such a high premium to the salesperson at the jewelry store. The Internet has made it easier for us the consumers to buy diamonds and other jewelry closer to cost. This allows us to spend a specific dollar amount and get a way better product.
Essentially you get more diamond for your dollar if you shop online. I used the internet to search for and purchase my wife's diamond engagement ring. It really does still amaze me how easy it was to buy a diamond online and save thousands of dollars. How is it possible for you to purchase these diamonds for a fair value online? (What's the catch?) There is no catch.
I will explain that with simple economics. To keep it real simple here is the answer: Online diamond/jewelry stores have much lower operating costs than a jewelry store in the mall. A big chain jewelry store in the mall has to charge you larger amounts of money for poorer quality diamonds because that is how they pay for their higher costs. Their costs in the mall include rent. Malls have one of the highest commercial real estate rental costs per square foot. I know this after completing a project in an entrepreneurship class at University. Have you ever noticed these big chain jewelry stores in the mall have the best locations? (corner stores) which also means higher costs. There are over 2000 jewelry chain stores in North America. Assuming you need 10 employees per store that means the big chain stores pay over 20,000 employees monthly paychecks. They also need to pay for insurance and theft prevention measures. All of these costs add up to a significant amount and must be passed on to you, the consumer.
jewellery store like are the ones that focus their business to the online consumer. They are able to drive down their own costs using the Internet to sell their products. They need far fewer employees to keep a website up and running. They likely only have to pay for a small rental space or warehouse and they do not have to pay for security and theft protection at every mall. Therefore they can sell you higher quality diamond rings and diamond jewelry at a far lower price. This allows them to still run a profitable business.
The diamonds you can find online are actually of higher quality than most local jewelry stores display. Overall you get a larger selection of certified diamonds to choose from at lower prices when you shop online.