Diamond Business Participants
Know Who Makes the Diamond Industry Possible
Meet the Players Involved in the Diamond Industry
What makes it possible for people to enjoy diamonds is a group of individual and business entities, with specific roles, arranged in a value added chain. This value added chain is what makes the diamond sale process possible. In this article you will learn the four main players involved in the diamond sales process.
Of course any of the diamond industry participants can fulfill more than one role. For example, a jewelry retailer can also be a diamond dealer. However, for the sake of easier explaining, lets keep it simple.
Diamond End User – Customer
These are the individuals that use jewelry for enjoyment. They are the same as “the public”, “the customer”, “the client”, etc. In the world of diamond jewelry, most end users are women. It is the existence of customers that makes the diamond industry possible. If customers would not exist, diamonds would be worthless, and not worth mining, processing, marketing, etc.
The most common use of diamonds is in the making of wedding bands. So one of the main drivers of diamond sales are weddings. Thus it could be said that for a diamond to be sold, someone needs to get married.
The whole diamond industry is geared towards satisfying the diamond needs of the jewelry customer.
Sometimes the diamond end user may want to sell a diamond. Of the entities presented in this article, it is the diamond dealer the one that is most qualified for buying a customer’s diamond.
This is the company, or individual, in the business of selling jewelry and services to end users. Most often, this jewelers sell or manufacture jewelry that incorporates diamonds in multiple capacities. The focus of the jewelry retailer in on selling jewelry in general. Typically jewelry retailers are specialized in diamonds, but are pretty good with them.
The essence of jewelry retailing is to sell existing, or made to order, jewelry to satisfy a customer’s needs. Since diamonds are a big component of the jewelry industry, most retail jewelers are equipped to deal with a certain segment of the diamond jewelry market.
The value added component of the jewelry retailer is creating an experience that will result in a jewelry sale. Thus, they have nicely appointed stores, with large displays and plenty of jewelry selection.
Fine jewelry, because it is made of precious metal and gens, is very expensive inventory. Of this, diamonds are the most expensive items. Because of this, generally speaking, jewelry store can only hold a few nicer, higher end diamonds.
Chances are that, when it comes to the larger, nicer diamonds, a retailer will not have in inventory a specific diamond that a customer may want. To solve this, the jewelry retailer will connect with a wholesale diamond dealer, or a dealer.
Very few retail jewelers buy diamonds from the public. Most of them are not really equipped for doing this. Plus, it is really hard for them to be buying diamonds from customers, while other customers are buying diamonds around them. Because of this, although some jewelers do it, generally speaking, a jeweler will not entertain the sale, or refer the customer to diamond dealer.
These are companies, or individuals, in the business of dealing with diamonds. They are experts in the subject of diamonds, and diamonds is their business focus. Most of them are highly qualified experts, but that is not the main thing needed to succeed with diamonds. What makes them effective is their ability to develop, locate and create value.
Diamond dealers deal a lot with customers, but mostly for the subject of diamonds. Diamond dealers buy and sell diamonds from customers.
When selling to customers, most often this diamonds are sold loose, but may also be mounted in setting. The focus is on selling diamonds. However, they deal with some diamond jewelry as well. Most often diamond dealers hold some diamonds in inventory, but for the most part obtain their diamonds from wholesale.
Often too, diamond dealers buy diamonds from the end users. Since diamonds are so expensive, given the typical diamond dealer business model, most often, in order to better use their capital, the diamond dealer sells those diamonds to the wholesale diamond dealer.
Diamond Wholesale Dealer
These are companies, or individuals, in the business of dealing with diamonds but only work with “the trade”. This for the most part means diamond dealers and jewelry retailers. Wholesale diamond dealers don’t deal with the public. Their business model is to inventory a large amount and variety of diamonds, for them to be sold to the retail jewelers and retailers. True diamond wholesale dealers have the financial capacity to hold a large amount of diamonds.
Diamond wholesale dealers very commonly obtain a large part of their inventory from diamond dealers. Direct diamond producer sourced diamonds are very important too.
Now that we have the players in the diamond business clearly defined, diamond transactions will be more easily understood.