Diamond Retail Benchmark (DRB): Taking The Stress Out of Diamond Buying

May 23, 10 by

Making a purchase of any kind, big or small, can be very stressful if you do not have access to all the information available. Buying diamonds is notoriously tricky for consumers, many of whom don’t have enough knowledge about what they are buying to make informed and rational choices.

In essence, many consumers are walking into stores blind. Perhaps they have heard of the 4Cs but they do not necessarily know what it really means. They do not really understand why a diamond is priced one way and another, that to them is almost identical, has a completely different price tag.

While it may be advantageous for some to keep the end buyers of diamonds and diamond jewelry in the dark, it is not a method that engenders much consumer confidence, and it is not a method that builds a transparent and healthy industry. Consumers should be able to buy a diamond safe in the knowledge that they paid a fair price for their purchase.

Last year, IDEX Online decided to do something to enhance customer confidence when it comes to buying diamonds and released the first “draft” model of the groundbreaking Diamond Retail Benchmark (DRB) – a consumer-directed price list that uses up-to-date market data. (The DRB is currently in “Beta” mode. IDEX Online is gathering feedback from users and will be making improvements in the guide in the near future. The DRB a price benchmark based on each of the 4Cs – Cut, Carat, Color and Clarity. The DRB should be used for background information only; actual prices are determined by the sellers.)

Abraham Stern, CEO of IDEX Online, said, "Consumers will be guided on the reasons for the level of discounts from the DRB. This guidance and education will allow consumers to make informed decisions, therefore enhancing the diamond shopping experience.”

Speaking at the launch of the DRB in Ramat Gan, IDEX Online Research Analyst, and retail maven, Ken Gassman cited the need for a unified price list in the diamond market. Gassman, who spends much of his time with shoppers and retailers, described the confusion expressed to him by countless consumers unsure of how much they ought to pay for their diamond jewelry. He bemoaned that while most Americans understand the barometers that measure pricing in the clothing or other retail markets such as automobiles, no such standard existed for diamonds or diamond jewelry.

Gassman said, “I’m glad to see the industry is addressing this void in the diamond category. I’m confident this will bring about a new wave of empowered consumers that will feel more comfortable buying diamonds, and by doing so will benefit the entire value chain."

By having a unified list that sets price benchmarks, Gassman said the DRB list would help clear up confusion among diamond shoppers. “It reduces the need to play 'pricing roulette,' wherein customers don't know what to think."

Prominent diamond companies, including Eurostar and Rosy Blue, have already pledged to use the list and Cartier in Paris has already expressed interest as well. Sarin Technologies, a leading developer of advanced diamond manufacturing and planning systems, has released a tool that integrates the DRB list into its diamond planning applications. The tool downloads the DRB from IDEX Online’s website and uploads it to Sarin’s software. It is available for three of Sarin’s applications – Advisor, Instructor and DiaVision. Existing customers can log onto Sarin’s site and download the tool immediately. Future versions of Sarin’s products will support an embedded importing capability of the DRB.

How Can I Obtain The Diamond Retail Benchmark?

The Diamond Retail Benchmark is available on the IDEX Online website at www.idexonline.com/DRB.asp.The website offers the opportunity to search prices online and to download the guide in various formats, including as a PDF file, an excel file or as a CVS file.

While the DRB is accessible to everyone, IDEX Online members can receive an automatic monthly update of the DRB files.

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