When I first started searching for my engagement ring, I began with brick-and-mortar stores. I went to Tiffany’s, Harry Winston, Robbins Brother’s, and many others, quickly learning how expensive diamonds were and how wide of a range diamond prices can be. I was looking at GIA (Gemology Institute of America) certified diamonds with almost the exact same grades but their prices were so different. This triggered an alarm in my head which got me thinking, “why are their prices so different?” and “how can I get the most for my money?” As I continued my search I realized that online diamond brands had competitive and consistent prices which were vastly lower in price compared to brick-and-mortar stores. I learned that brick-and-mortar stores had convinced people to pay many times more by taking advantage of buyer’s lack of knowledge, and even further, by convincing buyer’s that their products are superior (not true) through branding and marketing.
Buying a diamond online will simply give you the most for your money. Online diamond retailers are not limited by the costs brick-and-mortar stores are. They are able to cut costs on overheads, onsite staff, and inventory; passing the saving down to you, the customer. Online diamond retailers also have an extensive selection of diamonds for you to choose from which will enable you to make the best choice for your purchase. Gentlemen can buy diamonds from online retailers from any where in the world while brick-and-mortar stores are constrained by their physical location. This allows online retailers to offer you lower prices and still maintain profit margins. Below I will discuss in detail why you should by a diamond online.
Buying a diamond online IS MORE AFFORDABLE than buying a diamond in a store!
Why is buying a diamond online cheaper?
Buying a diamond online is more affordable than buying a diamond in the store, but why is this true? There are actually many factors that allow online diamond retailers to be able to offer lower prices than brick-and-mortar stores and I will discuss the 3 main reasons.
1) Lower Overhead Cost
Inherently, it is cheaper to do business online. You have all heard the saying, “location, location, location,” when talking about real estate for brick-and-mortar businesses. Many times, the best location for your business is also the most expensive location to do business. Online businesses completely avoid this risk by doing business where ever you are through an internet connection.
This is a much cheaper and more effective way to reach customers as it is even more convenient for customers and the business. Online businesses do not have to pay a mortgage or rent for a retail location. This translates into lower cost for utilities, insurance, facility maintenance and many other costs which bog many businesses down. This in turn, means they can still maintain their profit margins while offering you a lower price.
2) Less Salary Cost (needing less staff members)
Brick-and-mortar diamond retailers need onsite sales staff, facility maintenance staff, and store managers to effectively run their business. All of these employees need health benefits, a sales bonus structure, and paid-time-off (PTO) which all contribute to the cost a company will need to cover through their diamond sales. Online diamond retailers have essentially completely cut these costs out of the equation. Yes, online diamond retailers still need sales staff, managers, etc. but at a much smaller and therefore, cheaper scale. Online businesses can strategically place their staff in a location which has a lower cost of living and cheaper wages. Their staff can be more efficient and effective as they are not waiting in one location for clients to come to them, rather they can service clients from all locations digitally. All of this translates to more value for their customer as they need less revenue to make a profit.
3) Lower Cost of Inventory
Most brick-and-mortar diamond companies must first buy a diamond before they sell it. This means they need money upfront to purchase diamonds which typically cost many millions per store. Additionally, they cannot use this money to scale their business or invest in providing more value to you, their consumer. You may be surprised to discover that most online diamond companies do not do this. Most online diamond retailers have diamond suppliers who post their diamonds onto their website and sell their diamonds via the online retailer’s platform. This means that online diamond retailers have tremendously less risk and less money needed to do business. They do not need to put massive amounts of money down to build a giant inventory of diamonds to offer you. They can simply provide a platform for the diamond suppliers to sell you a diamond. This drives the price way down so that you are able to get the most diamond for your money.
How much is the difference in price?
“Ok, so how much cheaper are online diamond retailers than brick-and-mortar retailers?” You ask? It completely depends on the brick-and-mortar brand you are looking at. Premium brands like Tiffany & Co. or Harry Winston are usually about 2x the price of an online brand, sometimes even more. This may seem ok as their diamonds are better quality, right? No, we are comparing diamonds of the same quality and yes, they are still 2x more expensive. Even diamond brands like Kay, Jared, Zales, and even Macy’s can be upwards of 2x more expensive. You may think, “these are cheaper brands, they should be cheaper…” No. These brands charge high prices on low quality diamonds because they know if you are going to them, you have not done your research. Anyone who is in the market for an expensive and quality diamond will not go to them so they make-up for their lower price point and less sales by charging massive mark-ups.
You will have a LARGER SELECTION online than in a store!
More Options
Brick-and-mortar diamond retailers are limited by the amount of diamonds within their store. Yes, they can order a diamond from one of their other locations but now you are essentially doing the same thing you could be doing from the comfort of your home, but in a store and for extra cost. Even with this option available from a brick-and-mortar store you will still not have as large of a selection and you would online. Brick-and-mortar stores must buy each of their diamonds before selling them, meaning their supply is limited by their capital. On top of this, you are not be able to see the “to order” diamond at the level of detail you would online through sites like James Allen or Blue Nile, who use 360-degree HD video proprietary software on each of their diamonds. These online diamond retailers are more affordable and will allow you to see your diamond through magnification.
Make a better choice
When choosing a diamond, having many options allows you to make the best choice. Online, you have so many more options than inside a brick-and-mortar store which means you have the ability to choose just right diamond for you. Many gentlemen find themselves in brick-and-mortar stores trying to settle between two diamonds, neither of which are exactly what they want. The industry’s top diamond retailers, James Allen and Blue Nile, have over 350,000 diamonds combined. Essentially, any configuration of diamond price, quality, shape, color, length-to-width ratio, etc. can be found through them. You will never run into this type of issue searching though their massive selection of diamonds. Gentlemen will be able to find exactly the diamond they had in mind at the best possible price on the market.
Other Advantages of buying diamonds online
Buying at your own pace
Brick-and-mortar diamond retailers know that in most cases they typically have one chance to sell you a diamond, that is the day you walk into their store. This is why in-person diamond salesman are motivated to sell you a diamond right away. Many times, gentlemen who are looking for an engagement ring are buying a diamond for the first time. Some may not even know their exact budget or even the kind of ring they want at this point. In-person diamond salesmen will push you to buy now. They will offer you all sorts of “special pricing” deals to motivate you to take out your wallet. This is not the most effective way to get the most for your money. It is wise to take at least a week to do your research, find exactly what you want, and browse many diamonds until you find the right one. In most cases, the only place you will be able to do this unobstructed is through an online diamond retailer. You will not have to contact their customer service agents until you are fully ready, and they will only help you through the final purchasing steps. You do have the option to discuss your selection with them or ask questions, but you will not be pressured to purchase the first diamond you think is interesting like in a brick-and-mortar store.
Convenience
It may be obvious to say, but I think it is worth noting. It is a major advantage to be able to buy a diamond where ever you are simply through an internet connection, especially with how busy the world is today. Some people may live in rural areas where there are not many local diamond retailers nearby. I live in Los Angeles where, between traffic and parking, anywhere I go no matter how close, will be at least a 30-minute, high stress mission. Buying a diamond online will allow you to avoid all of this inconvenience; saving you time, money, and stress.
Should I buy a diamond online? YES!
If you WANT TO BUY TODAY
Gentlemen, if you are looking to buy a diamond soon I recommend James Allen or Blue Nile as your online diamond retailer. These two industry leaders are in a league of their own when it comes to offering the best value for their price. I have visited countless online and brick-and-mortar diamond retailers and have never found more affordable prices. I have personally worked with both of their customer service teams for diamond purchases and can verify their genuine helpfulness. You will not be pressured to buy immediately or be brushed off as a non-serious buyer. These two online retailers have over 350,000 diamonds combined in all different shapes, sizes, and price points. Both have excellent 360-degree HD video software which will enable you too see the diamonds you are interested in, in great detail through magnification. If you would like to see what they have, click here for James Allen and Blue Nile.