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the pitfalls of buying online
Aren't Blue Nile's diamonds cheaper?
Originally, it was hoped that e-commerce would save consumers money by eliminating the "bricks-and-mortar"? costs. Certain types of products did indeed become cheaper and many other products became more convenient to buy -- but not everything became better online. Blue Nile's expenses were over $27,000,000 last year illustrating how e-commerce faces a different yet significant set of operating costs. Large volume independent jewelry stores like Perrywinkle's have very low "bricks-and-mortar"? costs relative to sales volume and are able to buy at lower prices than Blue Nile, and offer better diamonds for the money.
How can I compare online pricing to stores?
There is a weekly wholesale price list similar to an automobile "Blue Book"? called the Rapaport Diamond Report. Since Perrywinkle's is a subscriber to this report we will show you how to compare a diamond to its wholesale price. This ensures that you'll never pay more than a comparable online diamond and often times you'll pay much less. But Perrywinkle's offers more value than simply the price since two diamonds of the same color and clarity can look very different under close examination. Further, since a component of the cut grade is based on preference an online diamond may not be worth any price to you just as a five star rating for Paco's Tacos is meaningless if you don't like Mexican food.
How can Perrywinkle's purchase diamonds at a lower cost than Blue Nile?
Blue Nile does not own the diamonds listed on their website. They are owned by New York and Los Angeles diamond houses. Blue Nile has a modified consignment arrangement such that they pay for a diamond after their customer purchases it. Blue Nile is never in a position to negotiate price in their favor --- either at first when they in essence are "borrowing"? diamonds to list on their website or second when the customer has already committed to it. The disadvantage to the customer is that the diamonds are not hand selected. Even amongst GIA certificated diamonds there are less desirable diamonds within each grade.
Perrywinkle's owns and believes in every one of the diamonds in its huge inventory. A Perrywinkle's diamond must meet a standard higher than simply being certified by the GIA. This places Perrywinkle's in a position of buying strength -- rejecting diamonds if the value isn't right. Perrywinkle's superior knowledge of diamonds within the overseas diamond markets combined with its financial strength enables us to buy stone by stone or in bulk anytime and anywhere.
Doesn't Blue Nile have a lower mark-up?
Blue Nile claims that jewelry stores mark up 100 percent because running a jewelry store is expensive. Their CEO claims that a jewelry store's basic model is to buy for $1 and sell for $2 while Blue Nile buys for $1,000 and sells for $1,300.* This argument may hold true for small local "Ma and Pa"? stores but large volume independent jewelry stores like Perrywinkle's have similar or lower mark ups on loose diamonds compared to Blue Nile.
Doesn't Blue Nile offer GIA certified diamonds?
Yes, either GIA or AGS but since the diamonds listed are owned by New York and Los Angeles diamond houses they are not hand selected. Blue Nile doesn't pay for the diamond unless you buy it so in essence Blue Nile is a clearing house. Their diamonds are not hand picked; they are picked through. Blue Nile is left to sell what has not been selected by diamond wholesalers and jewelry stores in the US.
Don't I save the sales tax online?
Sort of. Blue Nile doesn't collect sales tax just as Perrywinkle's doesn't collect tax for items shipped outside of New York or Vermont. Technically you are responsible for remitting the tax for an internet purchase to the state that you reside but few people comply. A jeweler who you know and trust can easily provide more than enough value and service now and in the future relative to the 6% to 8% sales tax.
Doesn't Blue Nile offer refunds?
Yes but your money will be tied up for 2 to 3 weeks between registered mail and Blue Nile's processing time. Shipping and insurance costs as well as the bureaucracy of dealing with lost packages are all your responsibility. Furthermore, if the diamond you received mistakenly doesn't match the certificate that came with it you are at Blue Nile's mercy. It's best to see your diamond under a microscope and see it weighed in front of you before paying for it.
Doesn't Blue Nile offer settings as well?
Yes, but so does Wal-Mart; selling a setting does not make one a jeweler. Perrywinkle's designs and manufactures incredible jewelry. Perrywinkle's employs specialists for each of the skills required to craft our legendary rings including setters, goldsmiths, casters, fabricators, and hand engravers. Each and every diamond in a Perrywinkle setting is a cut with incredible precision and the setting carries a lifetime warranty serviced and inspected by experts. There is no warranty with Blue Nile settings or quality standard for the diamonds in the setting. Blue Nile rings only come in certain pre-made ring sizes. If your fiance requires a different ring size it must be shipped back and can only be sized up or down slightly. If necessary Perrywinkle's will manufacture a ring from scratch in any size. In addition Perrywinkle's carries the world's top national engagement setting brands: Scott Kay and Tacori. The results are plain to see. Can you imagine not being able to touch and scrutinize the quality of your ring or speak directly with a designer until you receive it in the mail?
* Red Herring magazine interview with Blue Nile CEO Mark Vadon December 10, 2005
** Blue Nile financial statement
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