While retailers are seeing larger lab diamonds selling like ovals, rounds, radiants and cushions, the question remains, how does this new trend impact bottom line cash flow. It is correct to say that profit margins may be on the rise, but the average sold memo/stock piece is severely lower, especially with the increase in lab-grown diamond sales.
The share of lab-grown diamonds on memo is only increasing as well as their sales according to Tenoris a trend analytics company supplying retail and consumer trend data. According to Tenoris, year to date, natural diamond sales face challenges with the increase in man-made diamonds.
The importance of first presenting natural diamonds to prospective clients is ever so important to help raise bottom line cash flow and a healthy business acumen. Because GN Diamond speaks with over 5,000 jewelers daily, we offer free sales training and webinars on presenting natural diamonds and lab grown diamonds. The pros and cons of both are easily explained as well as overcoming pricing objections.
Since the prices of lab grown diamonds have gone down over the last few months, and contrary to what Tenoris reported earlier this year, GN has seen a stronger interest in natural diamonds and has sold many larger, natural diamonds. Furthermore, it is important to create natural diamond sales, especially with older clientele. Here keep in mind that no matter what, you never want to lose a sale whether it be man-made or from the earth.
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