Diamond Markups Step By Step
Diamond Markups Step By Step
A diamond makes a long way from the mining to the retail end and markups follow the progress of a stone. Let’s see what are the markups for diamonds on current closed markets and how the Diamond Open Market is going to lower the prices.
Every stage, whether it’s the cutting or selling to a wholesale broker, has its own established markups.
- Producer to manufacturer: 30-40%
It is said that a diamond manufacturers’ common margin amounts to 30 to 40 percent of the raw price.
- Manufacturer to broker: up to 30%
The stone goes from hand to hand of wholesale brokers. The profit of every broker is 1 to 15 percent and if he sells it to retail store it can be even higher, reaching 10 to 30 percent.
- Broker to jeweller: 50-300%
Diamond may be sold to a jeweller who adds a setting or make a diamond a part of a larger gem. Even a simple gold or platinum setting used for a diamond jewellery could be marked up to 50 percent. But some jewelers, especially, the most famous, might be selling $10,000 loose diamonds for $25,000 and $10,000 pieces of diamond jewelry for $30,000!
This way the overall markup can reach 210-270%!
With the advent of Diamond Open Market, the practice of marking up the diamonds can be significantly lowered. This is due to the buyers will be able to buy directly from brokers and small scale online retail shops. A buyer won’t need to pay for the brand as well as for overhead costs, since suppliers won’t need to carry the merchandise in-house themselves. They will be able to ship the stones to the customer directly with the help of DOM partners.
What’s most important - by making the buying process transparent due to the blockchain, DOM will force physical retailers to bring down their markups as well. Welcome to the future of the diamond industry!
Diamond Open Market is a decentralized commodity exchange to buy, sell and trade any types of diamonds. Your own fair pricing, zero fees, physical delivery and other features.
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