As yet another key pillar of Mercury Crystal Clear™, Ehud emphasized the need to improve pricing systems by using actual transaction prices rather than benchmark pricing, which has traditionally been more common in the diamond industry.
A key component of Mercury Crystal Clear™, the diamond pricing system which Ehud founded, is expanding consumer knowledge of diamond characteristics beyond the 4Cs (Carat, Color, Clarity and Cut) known to the ordinary buyer.
"The importance of a transparent and easily understood pricing system for diamonds cannot be stressed enough. For many years, the general press and many consumers have been stating that the misunderstood differences in diamond prices are a turn-off."
Ehud's case for pricing transparency in the diamond industry was made clear in the previous Insight blog. This means making every piece of information about a diamond available to consumers. To help demonstrate how this can be put into practice, Ehud shared his own diamond pricing model, which he used for decades to price both rough and polished diamonds.
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.
Ehud welcomed the generic diamond marketing campaigns that emphasized the rarity of diamonds. In July 2016, he wrote "The return of a relevant generic diamond marketing campaign is a blessing. 'Real is rare. A diamond is real' is a step forward to changing the current consumer mindset and is naturally inspired by 'A diamond is forever'".
At the same time, Ehud realized that in the current market structure, allocating sufficient funds to invest in an impactful marketing initiative is not simple, and suggested a possible solution, "In view of our fragmented sector, diamond players should consider branding alliances to jointly invest in promoting diamonds".