News from All Diamond
Making Diamond Prices Transparent
Pricing is at the heart of making the case for rarity of diamonds, which in turn is key for restoring consumer demand. Pricing, however, has also been the Achilles' heel of the diamond industry, especially in a context of increased consumer knowledge.
"Technology is changing our industry in an immense way. Buyers are better informed than ever and internet jewelers have opened up a new world that allows buyers to educate themselves and to shop around while they cut costs and overheads," Ehud said in a February 2016 interview.
"A completely new approach has to be based on a fully transparent market to gain the trust and understanding of the marketplace," he expanded.
"This means everything from disclosing everything about the characteristics of the diamond, through how it was priced, to continuous and always available information on its current value. Consumer education about every parameter of a diamond and how each component of the diamond pushes the price up or down must be created and offered smartly so all understand the premise and the promise."
Ehud challenged the belief that the asymmetry of information between diamond sellers and buyers was an advantage over time. Instead, he believed that pricing transparency was essential to drive and sustain consumer demand. He stated, "I believe that if consumers were more educated about diamond prices and if they had access to information on diamond prices, we'd all be selling more diamonds and more jewelry."
Detailed information about diamonds should not be a trade secret, but a way to drive interest in diamonds. "Let's make all information known, and let's make diamond prices clear and accurate, once and for all," he concluded.
To help demonstrate how pricing transparency can be realized in practice, Ehud shared the key principles of the diamond pricing system he pioneered and used for 40 years. These principles will be shared in the next few articles.
Related articles:
The Case for Transparency – How
Mercury Crystal Clear™: Gaining Transparency in the Diamond Market
Transparency offers clearer, brighter future for diamonds
When you subscribe to the blog, we will send you an e-mail when there are new updates on the site so you wouldn't miss them.
