(Closed) What’s the only difference between a Jeweler and a Used Car Salesman?

posted 7 years ago in Rings
Post # 3
Member
5148 posts
Bee Keeper
  • Wedding: June 2011

Jewelry is a luxury item that people buy because they like. It has very little “real” value for resale.

You’d be hard pressed to find anybody selling ANYTHING that would buy it back for the same price they sold it to you. All retail stores have mark-up.

There are trustworthy jewelers just like there are trustworthy used car salesmen. And untrustworthy examples of both, which is no different than any sect of people; whether they be sales-people, police, teachers, accountants, doctors, etc.

As with any large purchase, the best thing to do is research and take your time.

Post # 5
Member
5148 posts
Bee Keeper
  • Wedding: June 2011

@smiles731 – Have you ever worked in retail? Embroidery thread sold for 99 cents may only cost 15 cents for the store to purchase. Figurines sold for $25 may only cost the store $10. The more expensive the items, the longer they take to sell so the more mark-up there usually is. The worth of anything is only what people are willing to pay for it. There are large mark-ups all over retail, not just in cars and jewelry. 

Yes, there’s a large mark-up in jewelry, so do your research and shop around. Just like buying a dishwasher or anything else $500+.

People buy jewelry because they like it, not because it’s actually worth anything. It’s just rocks and metal that have no real use other than looking pretty. Expensive trinkets and baubles that are usually worth more sentamentally that monetarily. 

Post # 6
Member
9824 posts
Buzzing Beekeeper

I can’t really blame the jewelers, and certainly wouldn’t call them “scum” for doing their jobs. Consumers these days have to be smart about their purchases, and do their homework! Don’t just stroll into a mall store, drop $7,000 on a diamond ring and then cry when it’s a glass filled junky ring worth about $800. Research research research! Buy loose diamonds online, get a 3rd party appraisal (not “in house”), get GIA certs, research setting the stone into a pre-owned mounting, go the custom route, it’s surprisingly affordable! People have no one to blame but themselves for getting ripped off.

 

Post # 7
Member
5148 posts
Bee Keeper
  • Wedding: June 2011

RE: “The honest jeweler explained to me that if he bought the ring from me, he would pay me $1200. He would then sell it to his friend (for $1850) who owns a jewelry store in a popular mall in Vegas because rings around 1 carat sell much faster there (for people who marry on the fly and want to spend no more than 5k on a ring). THEN, he told me his friend would want to make atleast twice as much as he paid and would sell it for around $4000.”

The jewler also has to do some maintanence work on the ring, and sit on it for months until someone buys it (jewelry is very much about personal taste). If nobody buys it, then it will likely be scrapped out. You think the jeweler should pay you the appraisal value even though they may or may not be able to sell it? Appraisal value is the REPLACEMENT value, not what it’s ACTUALLY worth if you sell it.

Post # 10
Member
5148 posts
Bee Keeper
  • Wedding: June 2011

@smiles731 – RE: “I value every dollar that I earn and that I spend. I buy jewelry because I like it AND because it is worth something. If it wasn’t worth anything than why doesn’t EVERYONE just buy a CZ?”

Because “value” is different to different people. But if you think jewelry has any real resale value, you’ve been unfortuantely misled. I value every dollar I earn too, but I don’t expect to sell a ring we spent $3K on for that much, I know if I tried to sell it, I’d be lucky to get $500. Nor do I expect to sell artwork I buy for the purchase price.

We spent what we something is worth to us, not what it’s worth to everyone else. If I buy a show-dog, it costs over $1000. Not many people will buy a $1000 dog. My coworker spends $6000 on each bicycle he buys, but that doesn’t mean he could sell those bicyles for $6000 because they aren’t worth that much to most people. Doesn’t mean in either situation we didn’t get “value” for our dollar. 

Just because you can’t resell something for what you bought it for doesn’t mean you were “ripped off”, sorry.

Post # 12
Member
14495 posts
Honey Beekeeper
  • Wedding: June 2011

@smiles731: I think that you are making a wide assumption over a whole industry.  I firmly believe that jewelers are like anything else, they have reputations to protect.  I hardly see Tiffany’s, Cartier, Borsheims, and a host of others peddling in such a way, but also remember that anyone who buys and sells jewelry is also out to make a profit.  Something is only worth what someone is willing to pay for it.  I don’t know about some of the stores, but I know that Borsheims sells on daily market price plus commission (which IMO is more than reasonable).  They have a world wide reputation to protect, people fly in from all over the world to shop there just for their reputation, pricing, and local tax structures.  (The Berkshire Hathaway discount never hurts either)

You are also wrong about loosing their license, they can loose business licenses, dealer licenses, and diamond brokers license as well as a whole host of insurances and bond holders.  It is also well known that the DeBeers has a way of “cutting off” sales to individual merchants.  That happened to a local dealer and they were forced to close within a few months.

Like anything else of value that you purchase, it is all in educating ourselves before we buy.  As they say, buyer beware.  I would never buy so much as a tv without doing my research and there is no way that I would buy a stone without research.  Apart of that research is knowing what the daily market values are for what you are buying.

Post # 13
Member
5148 posts
Bee Keeper
  • Wedding: June 2011

RE: “Please explain how this makes ANY sense at all.. lol (replacement by who?”…or are you insinuating that an appraisal value is basically a form of insurance fraud?)

Replacement value if you were to buy the items again in a store.

It’s not “fraud”, it’s how ANY insurance works.

I have artwork insured for thousands of dollars, doesn’t mean I could just go out and resell it for that amount at any time I wanted. But if I had to purchase the item again from the artist or art gallery, the replacement value is what I would pay.

If I wreck my car, I’d get far more from insurance than I would if I tried to sell my car outright. (Insurance would probably give me about $10K, I’d be lucky to sell my car to an individual for $6K.)

Etc.

Post # 15
Member
647 posts
Busy bee
  • Wedding: June 2011

@smiles731:I’ll go ahead and insinuate that the appraisal value is some form of insurance fraud.  The insurance company wants your item to appraise for more, then they can justify charging you more money to insure something you’re probably not going to lose anyway.

It always gets me with those ring threads where all the posters say, “we paid $2300 for my ring BUT it was appraised for $4500.” As if the appraisal actually makes it worth that much.  It’s worth as much as you paid for it.

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