Conventional shopping for a diamond ring can become annoying rather quickly. When and if you listen to the FM radio in your car, how many commercials do you hear? Once you step outside, there are tons of billboards and bus stop ads all showing seemingly the same diamond ring in different positional variations. Graphics, ads on buses, TV… The “BUY” our diamond ring in the most glamorous jewellery store message is everywhere.
Surprisingly a lot of folks end up buying diamonds, not in the big bright and beautiful jewellery store but rather choose an entirely different route. People gravitate towards buying diamonds in the same place they will buy diapers and baby wipes after the wedding. Why does it seem perfect to purchase a diamond ring where most buy their milk and detergent?
Cosco doesn’t promote diamonds per se. But when they do, they fail rather miserably. I think they should not even attempt it! If you read the story in the link, you will see that Cosco is in the middle of a giant lawsuit with no other then the most famous engagement ring purveyor, Tiffany. Cosco in their naive ignorance had mistakenly advertised they were selling “Tiffany Style” engagement rings. Which in my view is fair game because there is no “Tiffany Style”. Everyone makes the form, its straightforward and clean. Just because Tiffany were the first ones to produce simple and clean diamond ring designs, does not give them the moral right to own the designs.
It will be interesting what the lawyers will argue as the Tiffany vs Cosco is going to trial.
More often than not the diamonds you can buy in Cosco are going to be a lot better than in a regular jewellery store. It all comes back to the margins and the fact that a wholesale giant has immense buying power.
Just as in the case of milk, the reason milk is cheaper in Cosco is evident. Cosco buys in bulk and commands the price they will pay. If I am a milk producer and I can sell quantity at lower margins, I will it.
The reason you’re bombarded with Diamond commercials are margins as well. The more marketing efforts you see or hear from any given diamond jewellery store, the more of a markup (margin) makes its way in the price of your diamond. If you have a budget the and the conventional jewellery store is spending a lot on advertising you end up with a smaller or lower end diamond than you otherwise would have. My advice is to choose the retailer with most positive reviews online.
It seems that Costco features best priced diamonds and engagement rings. But that is far from reality. Below I have put together a list of diamonds and rings taken from Pure Diamond and compared it to Costco priced jewellery you can see in the pictures.
Notice how the pseudo leather holder that houses simulated Cubic Zirconia ring, meant to simulate a diamond is so worn out, parts of it are peeling off. Come on Costco, how much profit do you make? Please update your display cases.
The pictures of the current Cosco pricing line up in Canadian Dollars and the links from purediamond.ca for the diamonds and diamond jewellery that is cheaper. Unfortunately, Cosco sells only IGI certified diamonds.
IGI certificate is an inferior one to the GIA certificate. Pure diamond GIA certified diamonds are still cheaper then Cosco. Why? I will do an extra blog post on jewellery margins shortly, so stay tuned.
Here is what Pure Diamond can offer, a bigger and better quality diamond than Costco.
GIA Certified 1.72 Carat Round Brilliant Cut Diamond F VVS2 and a 19K white gold ring ALL for a full $1000 less than in the picture COSCO…
Here is another example, Princess Cut Diamond set in a Solitaire Style Ring.
We will be happy to significantly beat all the diamond and ring prices. Have a look on our diamond search.