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.
Listed below are the five steps that diamonds undergo to get from there to here!
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!
Information Source: The Global Diamond Report 2013 | Bain and Company