As more and more stores begin to use Lightbox, it is expected that conversations with customers and your lab-grown diamond supplier will be unpleasant.
I noticed a growing problem, but I don't know how to solve it. What question are you asking? Well, this is a complex problem involving science, economics, and integrity issues. This is not an easy problem to solve, but I hope you can all help me by replying to this newsletter and giving your thoughts and opinions. Because my ideas are very fresh.
The problem is, I bought a diamond. Not just a diamond, but a 1.02 laboratory-grown diamond from Lightbox. If there is no setting, the diamond will cost the jeweler about $400. Because I am going to visit the AGS laboratory, I thought, what could be more interesting than checking the number of steps that AGSL must take to test every diamond that enters the laboratory? Has the diamond been graded and analyzed for light performance? (Full disclosure: I am a member of the AGSL Advisory Board and therefore this trip.) Give a shout out to the AGSL team and thank them for visiting their facilities!
It is no secret that the price of laboratory-grown diamonds has been falling, and it is still falling rapidly. With the increase in production and the increase in the number of companies selling these products, downward pressure has been put on prices. I heard that prices are as low as 90% of the Rap list. But what is the 90% discount? How much will they fall?
Lab-grown diamonds are priced based on color, clarity, and weight, and then sold at a discount to natural diamonds. Since they were first introduced to the market, I have been uneasy about comparing machine-made things with their natural counterparts. Synthetic materials are different, and should be positioned in this way from the beginning. In my opinion-using fancy language such as "laboratory planting" and "earth mining" to cover up the compound difference between the two is not enough. Make the appropriate distinction. But doing so will make them much cheaper than the price offered, and for those who sell these goods to the market, the profit will be much less. Let's go back to the AGSL report.
The result of this Lightbox laboratory-made diamond is 1.02 carats H/VVS2, with an AGS cut grade of 1, which means it is close to the "ideal cut". The wholesale price of the stone is approximately US$400, plus the retail price of the mounting parts is US$800. Before Lightbox entered the market, other laboratory-grown diamond sellers assured us that these products are "impossible" to sell at a retail price of $800/carat, they are brown, and Lightbox will never sell these products-this is just a marketing trick. As Lightbox expands its distribution, people who sell LG diamonds need to consider their own laboratory cultivation strategy. You can no longer claim to be ignorant of the existence, price, and quality of these products.
I don't know how you can square this special 6.50mm circle. Knowing that this material exists and is sold directly to consumers, and in more and more retail stores, at $800 per carat, how can the same material be provided at twice or three times the price? It's like buying a 1-ounce gold coin for $4,000, you can buy it for $1,900, and then sell it for $8,000-I don't understand how this will benefit our industry or even create a sustainable business for sellers.
Where's the bulk? What happens when Lightbox launches a 2.00 carat LG diamond at a retail price of US$800/carat or US$1,600, and how does this compare to other 2 carat laboratory-grown diamonds you sell? Keep telling me this will not happen anytime soon. Continue to tell me that at this price, it is impossible to grow a crystal that can produce 8.2 mm RBC. We have heard of this before.
Why should I bring this Lightbox LG diamond to AGSL? At first, because I knew I would visit the facility anyway, I wanted to watch the diamond go through the grading process and what equipment AGSL uses to test the properties of each diamond. Frankly speaking, I am very interested in the quality of Lightbox because our retail customers are increasing. Although I have always known that their products are very high in clarity and color, but I did not expect VVS2, nor did I have the ideal tailoring.
Another noteworthy item is the Lightbox logo, which looks like an octahedral outline and appears on each of their diamonds (just to the left of the arrow in the picture below). I hope that all lab-grown diamond companies can make it so easy to identify-it can be identified relatively easily under magnification without affecting the clarity grade, so you don't need to keep testing diamonds.
I expect that the value of laboratory-grown diamonds will continue to decline, which should not surprise anyone. In this article, Rob Bates suggested that IIA Technologies (the company that owns Pure Grown) launch a direct-to-consumer company that now sells LG diamonds at prices lower than Lightbox. Who owns LovBe? Who owns the companies that own these companies?
However, the problem is not value. This is about how you can sell other lab-grown diamonds at several times the price of the Lightbox. Ah yes...the flat-panel TV controversy. Well, when a competitor sells its TV for $800 and you sell it for $2,000-3,000, it may be difficult for your customers to explain the differences to them if they conduct any research. Although this has nothing to do with pixels, it must have to do with clarity-and most lab-grown diamonds are not VVS2. As more and more stores start to use Lightbox, especially in your market, it can cause very uncomfortable conversations with your customers and your existing laboratory-grown diamond suppliers.
I don't know how you squared that circle. you?
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Abe Sherman is the CEO of BIG-Buyer Intelligence Group. BIG designs solutions for the sales challenges faced by retail jewellers and manufacturers. BIG uses the data analysis tool Balance to Buy to help consult customers and customize their personal experience and results.
You have worked so hard all your life. And, if you are like most jewelers considering retirement, hope that your closed sales will increase your income-while minimizing complications. This is exactly what Doug and Jacki Friedrich, the fourth-generation owners of Friedrich Jewelers Inc. in Vernon, Connecticut, experienced when they chose Wilkerson for sales. "Jewelers considering selling should choose Wilkerson because of their experience," Doug said. With a financial goal of "exceeding expectations", the couple can now focus on enjoying the next chapter of their lives. "This will prepare us for retirement," Jackie said. "The money came in, we didn't complain. It was great."
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