DISPELLING THE MYTH OF ‘SPECIAL’ DIAMONDS

The diamond business is one that often features high mark-ups, but that doesn’t have to be the case. Stephen Penn spoke to Andy Reynolds from London Diamonds to help explain the myth surrounding the ‘special’ diamonds sold by boutiques

The notion that a store can sell their own ‘special’ diamonds with their own price hike is a confusing one. High-end stores and boutiques have to add a huge margin to the cost of every diamond, to cover the cost of their fancy showrooms.

Andy Reynolds, from London Diamonds, wants to help people avoid falling into the trap of buying ‘special diamonds’ and he explains it like this:

Imagine you are buying a new car. You have narrowed your choices down to a 5 series BMW. It’s fast, stylish, quite frugal and has space for your family and assorted kit.

You like the sleek styling and decide that a dark blue one, with black leather and around 20,000 miles would be perfect.

You have a budget of £25,000 and notice several cars with the correct specification for sale.

Now, there is another car, the same specification as the others but this one is ‘special’ according to the salesperson selling it. They offer you unlimited champagne whilst discussing their car with you and mention that they will include a fancy branded car cover and some expensive air freshener which they will spray around the interior for a special ‘premium’ smell.

However, this ‘special’ car has a ‘special’ price, it’s £60,000 compared to £25,000 for the others. It must be so very, very special you tell yourself.

The dealer selling this car has a beautiful showroom, with comfortable sofas and fancy artwork on the walls. Although it takes some time for them to notice you, once they know you are seriously interested in their ‘special’ car, the glamorous staff can’t do enough for you and display permanent smiles. They give you their undivided attention.

They explain that it is ‘special’ because they are selling it. They only sell cars that meet their ‘exacting standards’ they say. It must be true. People will know you are a discerning individual they say. Only the very best will do for you. The ‘free’ champagne starts to make you feel slightly woozy.

You decide to buy it. You only live once after all.

A few years later and it’s time to upgrade. You decide to find out its value, confident of achieving the highest possible sale price.

However, the market doesn’t care where you purchased it from, they just want to know the mileage, service history and condition report. They don’t think your car is ‘special’ at all. In fact, it’s worth the same as those other cars you saw a few years back, the ones that were not as ‘special’.

When you are next in a jewellery boutique, ask them what makes their diamonds ‘special’ and if they will buy them back from you when you upgrade. Then, call London Diamonds.

To find out more, visit www.londondiamonds.com or call +44 (0) 207 993 4020