Jewerly business question

[rocksolid]

I just spoke to an old and trusted customer of mine who happends to be in the Diamond business. He said business was slow and if I needed or knew anybody that needs anything to let him know. I mentioned that I sell on Ebay and if he wanted to give it a shot we could. He said he would definitly work with me but Ebay seems to just have people looking for bargins and don't really understand quality items. I think this could be a great outlet if I can figure out what to do with it. I really don't want to open jewerly store, anybody got an ideas???

 

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[hakrjak]

There are a million other people trying this on Ebay already, and Bluenile.com is killing them all anyway.... Competition is fierce... Also Diamond & Jewelry sales are way down right now because of the recession.

I wouldn't even try to get into the diamond business unless I was a card carrying Jew... Because if you're not Jewish, you're not going to get into the Tel Aviv diamond markets, you won't even get into the New York Diamond District, and you're not going to be able to buy the product at a sufficient discount. Even the non Jews in the biz are members of cartels that don't share their secrets with new merchants.

Cheers,

- Hakrjak

 

[rocksolid]

He is Jewish and has been in the business for years. I'm not looking to get into the business, just looking to move some product for him and get a cut.

 

[TC2]

Is your friend selling raw diamonds or diamond on a set?

Like you said. The jewelry online business is really slow. How is your friend going to market it with much lower price to boost the sales?

I was told by a diamond brokers about this.

A raw diamond is worthless. It may worth only $300, but it will worth $3000 when it's on the set. Is that true?

The profit margin is huge as far as I can tell, if you sell it right like BlueNile.

I am actually interested in Jewelry business.

 

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[I85]

He is Jewish and has been in the business for years. I'm not looking to get into the business, just looking to move some product for him and get a cut.

From that angle, I don't think it is going to go too well(sorry, just my honest opinion). Diamonds are something most people are going to want to buy from a reputable dealer, not just some random person..especially when one cannot see the item in person before the purchase. I also wouldn't expect anywhere near top dollar on ebay either, at least not until you established a good rep as a diamond dealer.

Of course, you could try a few things and see what happens. It's not going to cost that much to put some on and see what happens.

 

[MooreMillions]

I am very optimistic by nature. However, I don't allow that optimism to cloud the facts.

I receive a very, very solid wealth newsletter from a company based in Delray Beach, FL.

This is an excerpt from October 29, 2008 that I would just like to share to add some perspective: 'My brother-in-law is the buyer for a chain of 32 middle-level jewelry stores. His business is already cutting back, but he says that unless they have a pretty strong Christmas he doesn't "know what will happen."

Actually, he does. He just doesn't want to think about it now.'

People are trying to SURVIVE. This does not mean it cannot be done, it just means you will have to pay attention to every "i" and every "t" more than you would have before. From my own personal business, there is a lot of nepotism but if you have the marketing strategy to sell HIS jewelry, you should go for it.

 

[Igor]

eBay also hosts many loyal quality minded people. It is not just a place for bargains alone. Look for amazon, there is no bargain business.

 

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[Bobo]

To move an item like that online you will have to establish credibility.

My suggestions:
1. Know what your cost is and do some competitive market analysis looking at past auctions.
2. If there is a spread, look at what the reputable dealers are doing. Since you are new you MUST establish some credibility. First thought is escrow services or whatever else you need to do to convince people that they can't be ripped off. Then figure out how to prove that you sent the real item. Ripoffs happen two ways on ebay - people selling crap as gold and people buying gold, substituting crap and falsely claiming they got screwed to collect on the insurance (Sending you back a CZ and pocketing the diamond) - now that Ebay does not let the seller leave feedback it is more dangerous.

 

[Jill]

A raw diamond is worthless. It may worth only $300, but it will worth $3000 when it's on the set. Is that true?

No. That's not true. The raw diamond is worth far less before it is CUT. The setting only adds the value of the setting.

The price charts for many of the online sellers are right there on their websites. So in order to buy a stone from a relative unknown, I would have to know that I'm getting it for less than what I perceive as "market" value.

 

[bizboy]

There are a million other people trying this on Ebay already, and Bluenile.com is killing them all anyway.... Competition is fierce... Also Diamond & Jewelry sales are way down right now because of the recession.

I wouldn't even try to get into the diamond business unless I was a card carrying Jew... Because if you're not Jewish, you're not going to get into the Tel Aviv diamond markets, you won't even get into the New York Diamond District, and you're not going to be able to buy the product at a sufficient discount. Even the non Jews in the biz are members of cartels that don't share their secrets with new merchants.

Cheers,

- Hakrjak

Our family friend has been in the Jewelry business for 15 years, he changed his last name to a Jewish last name and he has not had any problems.

 

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