Diamond Store Profit [Official Numbers]

Any good negotiator will try to understand both his and his opponent’s BATNA – Best Alternative to a Negotiated Agreement, before stepping into the negotiating room. Sometimes the negotiating room is in the back of the Teamster’s Head Quarters at 25 Louisiana Avenue and sometimes it is at a diamond dealer’s booth on 47th Street in NYC. To this end we thought it would be useful for you to know just how much profit each stage of the value chain adds as it make’s it way from the ground to your ring finger.

Know The Wholesale Diamond Price Before You Go. Visit:

JAMES ALLEN – Jewelers.NYC’s Online Discount Diamond Store of the Year – 2017 (~40% off)
Most Popular: Round>GIA>Ideal Cut>VS2 Clarity> G ColorOne Click

1/2 Carat | 3/4 Carat 1 Carat | 1-1/2 Carat | 2 Carat | 2-1/2 Carat | 3 Carat

Listed below are the five steps that diamonds undergo to get from there to here!

  1. Rough Diamond Mining and Sales (21% of a Retail Diamond’s Cost)
  • This is the cost of extracting, crushing and separating rough diamonds from filler rock.
  1. Cutting and Polishing (8% of a Retail Diamond’s Cost)
  • This is the cost a diamond cutter charges to craft the final product we see in jewelry.
  1. Wholesale Markup to Jewelry Manufacturers (3% of a Retail Diamond’s Cost
  • This is a “middleman” sales charge. Nothing else happens to the diamond from this point forward.
  1. Diamond Markup by Jewelry Manufacturers (34% of a Retail Diamond’s Cost)
  • This is the jewelry maker’s markup on the diamond – it has nothing to do with the cost of the setting.
  1. Diamond Markup by Retail Stores (35% of a Retail Diamond’s Cost)
  • This is the retail store’s markup on the diamond.

What this tells you is that the diamond that is on the average person’s finger costs 29% of the retail price paid for it to develop into a finished product. It also explains why online diamond stores like James Allen or Zoara can sell a diamond for 40% less and still make a profit!



Jewelers.NYC Online Diamond Store Reviews



Information Source: The Global Diamond Report 2013 | Bain and Company