Diamonds Traders value honor and tradition almost as much as they value the diamonds themselves. So when buying and selling diamonds, it is crucial to know and follow the unspoken rules of negotiation.
Today the diamond trading business remains relatively closed; those that aren’t physically in the diamond bourses are usually working with their “go-to” connections. Online diamond trading sites such as RapNet have opened the doors by creating online communities with all the tools and information that manufacturers, suppliers, dealers, buyers and jewelers need, to buy, sell and find diamonds.
But whether you are trading in person or online, the following tips will help you negotiate better so you can get the best deal. Having information at your fingertips helps ensure that you are always operating from a position of strength.
Tips for Diamond Buyers: Patience and Knowledge Pay Off
- No matter how badly you want a particular diamond, wait for the seller to make an offer – don’t throw out the first price. And when the seller gives a number, consider it just the first step in the negotiation.
- One of the best ways to show the seller that you are a knowledgeable buyer is to know your pricing and quote actual prices for a similar diamond. Whether your pricing reference is a physical inventory slip or a diamond price listing that you saw on a site like RapNet, being able to negotiate from a position of knowledge is critical.
- It’s key to know the availability of the diamond you are interested in. When buying a diamond from a usual long-standing seller, you may not get the breadth of availability information you need to determine the scarcity or abundance of that diamond type and therefore determine your best offer. Using a tool like a diamond trading network to seek out this information allows you to view dozens of diamonds with the same specifications, at prices that you can quote. Armed with this availability information, you can ensure you receive the best price possible, either from your usual seller, or from someone new you found when researching.
- Continue to negotiate and don’t be afraid to let a salesperson walk away – you can always call them back if you change your mind and want to accept the terms that were offered during the negotiation.
Tips for Diamond Sellers: Establish Your Boundaries
- For each diamond you offer to a buyer, you need to establish a high, realistic price and a walkaway price before even setting the meeting or negotiation. Naturally, this takes an intimate knowledge of the factors that impact diamond prices, such as the diamond’s quality, as this is usually the first thing a buyer will consider.
- Other factors that should be considered for the negotiation are current market conditions and how desperately the buyer needs a specific diamond at that moment, because these factors can also change the price a buyer would offer on any given day.
- Take the time to review real-time market data, pricing information and diamond availability from a reputable online diamond trading site to be sure that your thresholds are reasonable. With carefully established parameters for each stone, you can keep a steady head in even the fiercest negotiation.
- Reputation can play an important role for negotiations too. Having a reputable diamond trading history behind you and building up positive ratings on a diamond trading network, can give you the edge over other sellers when making a deal. Good reputations are built by such things as delivering on time, being responsive, being honest about the diamond and offering a fair price.
- And of course, as with any negotiation, you should also be prepared to walk away if you can’t reach a favorable deal.
Tips for Diamond Dealers: Arm Yourself with Knowledge
The trickiest role in the diamond trading business is that of the diamond dealer – the ultimate negotiator who has to befriend the buyer while still representing the interests of the owner of the diamonds. There’s an old saying, “the smartest salesperson is the one that doesn’t understand the diamond.” In other words, one who can’t be persuaded that the diamond is worth less than he is asking. Of course in reality, the opposite is true. The dealer needs to deal with the claims of the buyer (the quality is no good, the price is too high) while knowing full well what the true value of each stone is.
Those diamond dealers armed with real-time market intelligence will be best equipped to strike the best deal for everyone involved.
Trading networks like RapNet can help you in acquiring the information you need. Its comprehensive inventory of diamonds, prices and quality information – and community of industry experts – provides the perfect place to acquire the understanding of market intelligence needed to negotiate from a position of knowledge and strength.
Mazal and Bracha
So let’s recap. Don’t be intimidated by market data – let it guide your interactions, but don’t let it limit you. Only a smart negotiator who thinks on his feet is going to get the deal he wants.
Sellers know how much they are willing to bend and buyers know how much they are willing to spend. Together, everyone can reach a middle ground where both parties will be gratified. Once you have reached a point in the negotiation you feel is fair and satisfying, seal the deal with the time-honored phrase, “mazal”. Mazal indicates a deal – an agreement and a commitment to abide by the verbal agreement that was reached. The word “Bracha” means blessing and was added to ensure that the transaction will be blessed with good fortune.