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Three Ohio Jewelers Confirm Diamond Sales Trends, Supply Concerns November 17, 2021 (0 comments)
Youngstown, OH—These are good times to be a jeweler.
While that’s not news to the industry anymore, it’s still a hot topic in the business media. Most recently, three independent jewelers interviewed by the Business Journal Daily in Ohio discussed how much the pandemic has boosted bridal business, and how they and customers both are coping with higher diamond prices. Engagement ring image from Cirelli Jewelers’ website.
Tom Duma, owner of Thom Duma Fine Jewelers in Warren, and Rob Komara of Komara Jewelers in Cornersburg both told the paper what jewelers across the country are experiencing: the pandemic has pushed couples to reassess their priorities. For many, that means cementing their relationship with an engagement, although for others it means realizing the relationship isn’t working and moving on. But for those who are getting engaged, the diamonds are bigger and more expensive than ever.
Related: Consumers Value “Investment” Purchases, 43% Ready To Splurge This Year
Jewelers across the United States are experiencing record diamond sales—and increased diamond prices are no deterrent. Duma, a luxury jeweler and Rolex dealer, says his average center stone sale is one carat, while at Komara Jewelers, it’s risen from one carat to 1.5 or two carats.
But jewelers are trying to balance wholesale price increases and profitability. Komara told the Business Journal he can’t negotiate with vendors because they know someone else will pay full price. Duma, meanwhile, said he’s trying to absorb price increases himself to keep costs steady for customers. At his store, the typical engagement ring sale is between $6,000 and $8,000, considerably higher than the national average of $3,726 recorded at the end of 2020. That’s typical for better jewelers, whose average engagement ring sale is usually about twice the national average.
Jay Cichanski of Cirelli Jewelers in Boardman, the third jeweler interviewed for the story, told the Business Journal that it’s not just diamonds that are getting more expensive, everything is. That includes the cost of packaging, gift wrap, shipping, catalogs, and so forth.
All three jewelers beefed up their diamond and bridal inventory significantly for the holiday season, by at least 30% to as much as 75%. And all three confirmed that everything takes longer to get, something Mastercard SpendingPulse warned about in September. Demand for custom (or customized) pieces continues to increase, especially among Millennials, but when those pieces are made by the manufacturer it’s taking a lot more time—at this point, orders taken now likely won’t be ready for Christmas, said Cichanski.
Still, with diamond sales tracking well above last year—itself a record year—the hassles are well worth it.