Regal Imports News - NOVEMBER 2022
Relating diamond reports to diamond prices can often land diamond merchants in uncomfortable situations. Diamond reports are relatively simple documents that describe a complex and multi-faceted product. Their purpose is to give a diamond buyer a feeling of confidence without overwhelming them. Selling a diamond with a diamond report usually becomes an information balancing act, that when pushed too far in one direction or another can easily create confusion or distrust.
Consumers have been taught to trust GIA Diamond Reports completely. A sales representative, trying to distinguish their diamond from other diamonds with GIA reports, literally and physically stands between the purchaser and the laboratory. A seller's more detailed interpretation of the information contained in a diamond report can lead a consumer to believe that a seller is simply trying to facilitate the sale. It is at this point that the seller runs into trouble.
There is no price list or playbook that can help a seller maneuver in this situation. Each diamond is unique and must be seen and compared to other diamonds to establish an accurate price. Diamond professionals know that there are diamonds and then there are diamonds and there are reports and then there are reports.
There can be as much as a 20-30% differential between two GIA diamond reports that, on the surface, appear equal. There is a balancing act that often occurs in diamond presentations, where diamond sellers try not to underplay or overplay the importance of a diamond report.
When a report is overplayed, the report becomes the sole authority, and the seller risks unwarranted comparisons to other, superior, or inferior diamonds. When a report is underplayed the seller minimizes the importance of the report and risks losing the sale and the trust of the customer.
I like to try to simplify how I manage these situations. I differentiate my diamonds by being truthful, personal, and concise. I explain that when buying stock, I simply look at the diamond in question and ask myself whether I would be proud to present that diamond, at that grade, to my wife. This simple personal act in my purchasing process differentiates me and my diamonds from the competition.
Retailers and wholesalers need to take their business 'personal' to keep the interest and the trust of their clients. Keeping the process personal helps to bring down the anxiety level around a luxury purchase and brings a heightened degree of trust to each sales transaction.