{"id":24233,"date":"2022-12-09T07:00:17","date_gmt":"2022-12-09T12:00:17","guid":{"rendered":"https:\/\/www.jewelry-secrets.com\/Blog\/?p=24233"},"modified":"2022-12-09T12:07:57","modified_gmt":"2022-12-09T17:07:57","slug":"why-double-for-diamond-upgrades","status":"publish","type":"post","link":"https:\/\/www.jewelry-secrets.com\/Blog\/why-double-for-diamond-upgrades\/","title":{"rendered":"WHY DOUBLE FOR DIAMOND UPGRADES?"},"content":{"rendered":"
\"Why<\/div>\n

Why double?<\/h2>\n

\nWhy do jewelers always want you to pay double the price<\/strong> for upgrading a diamond<\/strong> or an engagement ring?<\/strong><\/p>\n

The answer is simple:<\/h2>\n

\nPROFIT!<\/strong><\/p>\n

\nJewelers have to profit (at least a little<\/strong>), off their merchandise, otherwise they’d go out of business<\/strong>.<\/p>\n

It’s true!<\/h2>\n

\nThere isn’t a big markup<\/strong> on diamonds to begin with, and when you get into larger diamonds (over 1.00 carat<\/strong>), that margin gets slimmer<\/strong>.<\/p>\n

Let’s look at an example:<\/h2>\n

\nSay you owned a 1 carat diamond<\/strong> (the dream <\/strong>carat weight). And say you have a 10 year anniversary coming up…<\/p>\n

\nYou want to upgrade that stone for 1.25 carat<\/strong> (and I’ll say SI1, E<\/strong>, since it’s the most popular color and clarity<\/strong> grade). 1.25 is a nice step up<\/strong>…<\/p>\n

Take a peek…<\/h2>\n

\n\"Upgrading<\/p>\n

\n(Prices from James Allen<\/a> at the time of this post.)<\/p>\n

\nYou would think that trading a $6,500<\/strong> diamond towards a $9,000<\/strong> diamond would be a fine trade. After all, they are making $2,500 profit<\/strong>, right?<\/p>\n

WRONG!<\/h2>\n

\nThe cost on that $9,000 is probably closer to $8,000… So that leaves very little profit<\/strong> off such an expensive stone…<\/p>\n

And there’s more…<\/h2>\n

\nThat’s not actual profit!<\/strong> You still have to factor in payroll<\/strong>, overhead costs, commissions<\/strong>, labor and parts for setting the stone, sizing it<\/strong>… Certifying the diamond (reports cost about $300 each<\/strong>)…<\/p>\n

\nAdd that all together and chances are, you’d lose money<\/strong>.<\/p>\n

“No, No, No,” you say…<\/h2>\n

\n“They’re still getting my $6,500 diamond!!!<\/strong>“<\/p>\n

\nTrue<\/strong>. But that diamond didn’t cost <\/strong>$6,500, and that stone doesn’t pay the bills today<\/strong>. That diamond has to be removed, cleaned up, reset in a new mounting<\/strong>, possibly recertified, inventoried, and then it will sit in the showcase until it’s finally sold once more<\/strong>. Which could take months or even years (Just ask any jeweler, they have pieces in their store that have been there for decades!<\/strong>)<\/p>\n

\nAnd if all <\/strong>customers did this…<\/p>\n

The jeweler would be out of business quickly!<\/h2>\n

\nJust like any business, any place that allows trade-ins (think car dealerships<\/strong>), they have to continuously make some kind of profit<\/strong> off what they sell. Otherwise, why bother?<\/strong><\/p>\n

\nIf they didn’t have a requirement or criteria to upgrade, people would want to trade a $6,500 diamond<\/strong> in for a $6,600 diamond<\/strong>.<\/p>\n

\nIn fact, some would trade it towards a cheaper stone<\/strong>, downgrading, and expecting money back<\/strong>.<\/p>\n

You see how this could spiral out of control?<\/h2>\n

\nJewelers are not in the business to do even exchanges<\/strong>. They have expenses (just like everyone). There is slim profit, and they have to work hard for that profit<\/strong>.<\/p>\n

So they double up!<\/h2>\n

\nThis assures them of constant money rolling in<\/strong> so they can pay the bills, pay the employees, and buy new merchandise to fill the store. It’s a necessary requirement!<\/strong><\/p>\n

But keep in mind:<\/h2>\n

\nGoing back to the example…<\/strong> Not everyone will give you that full $6,500 <\/strong>to trade in your stone… You see, only the jeweler that you bought the diamond from will give you full trade-in value<\/strong> (and that price can’t be combined with a sales price<\/strong> either). You’d be pushing into a $13,000 diamond upgrade:<\/a><\/p>\n

\n\"150<\/a><\/p>\n

\nJust about every jeweler on the face of the Earth works this way. Double up<\/strong>, full trade in price; IF<\/strong> you bought it from them! Otherwise, the price they give you will probably be LESS<\/strong>.<\/p>\n

\nJewelers offer this deal to their own clientele, hoping to keep them as customers in the future<\/strong>. <\/p>\n

\nBut going elsewhere, they might only give you $4,500<\/strong> for that same exact diamond.<\/p>\n

\nSo if you are trading in your diamond, there are a couple of things you should know:<\/strong><\/p>\n

1) Original Condition<\/h2>\n

\nYour diamond must be in the original condition<\/strong> (like it was when you bought it). Meaning; no chips<\/strong>, no cracks, no bearded girdles<\/strong>, no damage whatsoever. It must be “brand new<\/strong>” (and all diamonds will be “brand new” forever, unless you accidentally hit it<\/strong>, strike it, crack the side of it<\/strong>…)<\/p>\n

2) Certification<\/h2>\n

\nIf your previous diamond was certified <\/strong>(GIA, IGI, AGS, EGL…) then turn that diamond report in<\/strong> with the upgrade. This paperwork verifies the quality<\/strong> of the stone and will make it easier for the jeweler to determine value<\/strong>. If you don’t have it, you could get even less value<\/strong>, because re-certifying a stone costs money.<\/p>\n

3) Expect a Bigger Mounting<\/h2>\n

\nBigger stones can’t just be put into the same mountings<\/strong> or heads that your smaller stone was set in. It will have to be set into a much larger head (prongs)<\/strong> in order to be secure and stable. And if the larger stone won’t fit into your old mounting, or look balanced<\/strong>, or the old mounting is too frail and weak, then you’ll have to upgrade (purchase) a new mounting<\/strong> for your larger rock. <\/p>\n

4) No Value for the Gold<\/h2>\n

\nWhen doing trade-ins, it’s important to note that prices are for the diamonds ONLY!<\/strong> Not the mounting (Gold, Platinum<\/strong>…) Just the diamonds can be reused (if they’re in perfect condition<\/strong>). The metal can’t!<\/strong> Metal will have to be scrapped, sent to a refinery, melted down and re-purified<\/strong>. So the value that jewelers give you when you trade-in (or sell) your goods, is diamond value only<\/strong> (and only diamonds, nothing for other gemstones either; ruby, sapphire, topaz, amethyst…)<\/p>\n

So there you have it…<\/h2>\n

\nThat’s the real reason<\/strong> why jewelers charge double the prices<\/strong> for upgrades.<\/p>\n

\nAnd if you are trading in your diamond, before you do<\/strong>… Do yourself some justice<\/strong>: CHECK OUT JAMES ALLEN FIRST!<\/a><\/p>\n

\nThe reason;<\/strong> Their prices are so good (and so low<\/strong>) for certified diamonds, they will usually be BETTER <\/strong>than what most places can give you with <\/strong>your trade-in. Seriously!<\/strong> Look up the quality and size of the stone you’re interested in. See the prices yourself!!!<\/strong><\/p>\n

You’ll be amazed!<\/h2>\n

\nThey do have the lowest prices online (and anywhere)!<\/strong> <\/p>\n

\nCheers! :)<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Why double? Why do jewelers always want you to pay double the price for upgrading a diamond or an engagement ring? The answer is simple: PROFIT! Jewelers have to profit (at least a little), off [Read More…]<\/a><\/p>\n<\/div>","protected":false},"author":2,"featured_media":24237,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29,3,10],"tags":[],"class_list":["post-24233","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-diamond-guide","category-diamonds","category-engagement"],"_links":{"self":[{"href":"https:\/\/www.jewelry-secrets.com\/Blog\/wp-json\/wp\/v2\/posts\/24233"}],"collection":[{"href":"https:\/\/www.jewelry-secrets.com\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.jewelry-secrets.com\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.jewelry-secrets.com\/Blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.jewelry-secrets.com\/Blog\/wp-json\/wp\/v2\/comments?post=24233"}],"version-history":[{"count":0,"href":"https:\/\/www.jewelry-secrets.com\/Blog\/wp-json\/wp\/v2\/posts\/24233\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.jewelry-secrets.com\/Blog\/wp-json\/wp\/v2\/media\/24237"}],"wp:attachment":[{"href":"https:\/\/www.jewelry-secrets.com\/Blog\/wp-json\/wp\/v2\/media?parent=24233"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.jewelry-secrets.com\/Blog\/wp-json\/wp\/v2\/categories?post=24233"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.jewelry-secrets.com\/Blog\/wp-json\/wp\/v2\/tags?post=24233"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}