Millennials, representing the age group from 24 – 37 years old, are responsible for 70% of all bridal sales. Many are well educated before coming into the retail store and have an idea of shape, size, color and of course budget. However, they may not realize the true value of natural diamonds and that they are anywhere from 1 billion to 3.7 billion years old. Their rarity is incomprehensible! It is therefore important that when presenting diamonds, to show natural diamonds first. Having a few facts on natural diamonds and why they are so rare will help close more sales, increase the average dollar size of the diamond sale, and reduce the need to discount. Furthermore, never prejudge and underestimate your clients budget by showing lab first.
“Lab created diamonds account for approximately 50% of retail loose diamond sales,” says Asaf Herskovitz, CEO GN Diamond. “They certainly have their place in the market and fill a wonderful void when someone wants size and has only a limited budget. This enables retailers to close more sales with profitability.”
“However, if the average lab sale is $2300 today versus $2900 – a decrease of 23% – in the beginning of 2023, the average profit an independent retailer also is reduced significantly. Comparatively, the average natural diamond sale is up 3% from the beginning of the year to $7,300 allowing the independent retailer to realize an average profit of $2900,” shares Asaf. “Obviously, it is healthier for the independent store to present natural diamonds before lab created diamonds. Regardless, it is most important to make the sale natural or lab based upon the client’s desires. Both types of diamonds have their positives and negatives, but you do not want to lose a sale and you do want to gain a customer.”
Why have lab grown diamonds gone down significantly in the last couple of years? Due to mass manufacturing, there is no limit on production. Additionally, big box retailers like Costco, Walmart, Macy’s, QVC, and JC Penny are increasing their lab grown inventory and providing major competition for independents.
Profitability versus Cash-Flow, The Secret is Having the Right Inventory
“As a recap, the health of the industry is to first sell natural then sell lab,” advises Asaf. “Either sale will create profitability and hopefully referrals. The key to success is to build inventory and now is the season to analyze inventory levels and build up on natural. The mix may be 60% mined and 40% lab.
“Often, diamonds are not presented because there are certain holes in your inventory and a certain size is not available. It is important to build inventory. GN Diamond offers a 100% sell through guarantee on all natural loose diamonds and natural finished jewelry. So, what is the risk? Quite frankly there isn’t one! Having the right inventory at the right pricing is critical now and will certainly be for the holiday season.”
“Analyze your inventory now and fill in any holes in your top selling loose diamond categories. GN Diamond is also seeing many fancy shapes gaining back popularity like emeralds, radiants and marquise shapes.”
Showcase the Unique Value of Each Diamond
The meaning and significance of precious gems lie in their rarity and dazzling beauty. GN Diamond makes it easy to demonstrate the value of every stone in your inventory with Diamond Hunt, a free platform for browsing and comparing loose diamonds online. Diamond Hunt integrates with your website and lets shoppers view 360-degree video, light performance, GemPrint, and certifications for your entire inventory – all with your own branding and markups.
“These facts come from our most recent webinar which was the most popular offer this year thus far,” said Asaf. In that webinar, Shane Decker and Asaf Herskovitz provide excellent selling tips and facts to help retailers for a successful start to the holiday season.
GN Diamond is open 7 days a week, 24/7. Contact GN Diamond at www.gndiamond.com, sales@gndiamond.com or 800-724-8810. “Contact us for all of your loose diamond needs natural and lab. There is a market for both!” says Asaf.
