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The Diamond Dispatch: The Price is Right, But Only if Your Strategy is Smart | June 10, 2025 (1 comment)
Merrick, NY--Is your pricing making the right first impression? The numbers on your tags instantly shape how customers perceive your brand. Get it right, and you build trust and close the sale. Get it wrong, and you may lose them before the conversation begins.
Our Mission:
The Diamond Dispatch column is crafted to inspire and equip retail sales associates and store managers with practical tools to elevate the in-store experience. Each edition blends proven sales training techniques, creative merchandising ideas, and real-world customer engagement strategies, helping teams deliver memorable, personalized service. By focusing on the art of storytelling, effective communication, and hands-on product knowledge, this column aims to empower professionals to build lasting client relationships and drive store success from the sales floor.
While some brands dictate a Manufacturer's Suggested Retail Price (MSRP), private label brands allow for more flexibility. This freedom can be powerful, but only when paired with smart research and a willingness to evolve. Too often, jewelers set prices based on perception, not market reality, which leads to missed opportunities and declining margins.
Start with research. Price shop your local and online competitors. Get your hands on their holiday catalogs, study their websites, and don’t be afraid to make the occasional mystery purchase. This lets you gauge whether their claims about quality hold up and gives you an inside view into what your customers are comparing your products to.
Don’t let your mindset become a roadblock. Many owners and buyers cling to quality standards like “we only carry VS” or “we won’t go below SI1.” That might sound impressive within the industry, but the truth is, most consumers can’t tell the difference between VS and SI. Meanwhile, these stores are pricing themselves out of reach for a large portion of the market.
Picture this: A customer walks into your store, admiring a 14kt white gold, channel-set 1 carat total weight diamond band. It's priced at $3,500. As they admire it, they pull out their phone and do a quick search. Within seconds, they find a similar band online for $2,190. Keep scrolling, and there's a lab-grown version for $1,540. Suddenly, your piece feels overpriced, even if the quality is better. In that moment, you're not just competing on craftsmanship; you're competing with instant, side-by-side comparisons happening right in your showroom.
Give customers a choice. Offering at least two quality levels on staple items lets you compete on price without sacrificing your overall standards.
Even among the top retailers, pricing varies widely. You need to earn at least a markup of 2 to 3 times after discounts on your basic items. If you can’t do that and still be competitive, it may be time to rethink your suppliers or expand your quality range.
Share your strategy with your team. Once your pricing strategy is dialed in, don’t keep it in a silo. Equip them with comparisons, talking points, and confidence to handle customers who are browsing online while standing in your store.
Smart pricing isn't a race to the bottom, it's a strategy to rise above. Know your market, offer real value, and protect your margins without pricing yourself out of the game.
About the Author:
Megan Crabtree is the Founder & CEO of Crabtree Consulting, a boutique consulting firm with a proven track record of successfully growing jewelry retailers and manufacturers for over two decades. Known for their unique data-driven approach, they flawlessly identify barriers and create tailored growth opportunities, fueling unprecedented success and helping clients reach their goals in the industry.