Assignment 20 - Marketplace Flashcards
What factors influence the price of a polished diamond?
4C but also other factors (like provenance)
How do payment terms affect price?
Dealers usually offer better prices for immediate payment in full.
How does lab-grown diamond pricing differ from natural diamond pricing?
Currently most lab-grown diamonds are significantly cheaper than naturals (based on cost-plus-model introduced by De Beers)
In the jewellery industry, the origin and history of ownership of a gemstone or piece of jewellery
Provenance
Conditions of a sale agreed upon between buyer and seller stating how and when an invoice is to be paid
Terms of payment
A short-term agreement in which a dealer entrusts goods to a client without requiring immediate payment
Memo
A long-term agreement in which a dealer or manufacturer loans goods to a retailer
Consignment
A price of a gem divided by its carat weight
Per-carat price
A discounted price for buying an entire parcel or a substantial part of it
lot price
A premium price paid for selecting stones from a parcel
Pick price
Model in which final sales price is based on the cost to produce the product plus a small markup
Cost-plus-model
Model in which manufacturers charge the highest initial price that customers will pay and lower it over time as new competitors enter the market
Price-skimming-model
How does market awareness help you succeed in the marketplace?
Market awareness helps you make better decisions, generate new ideas, and solve problems more effectively.
How can you develop market awareness?
- Read trade publications
- Join trade organisations
- Attend trade shows
- Networking
A magazine, newspaper, journal, or website that shares information on news, trends, and other topics to a specific industry
Trade publication
Exchanging information and developing contacts among people with a common professional or special interest
Networking
A committee, club, society, or association in which a group of people, or members are united for a similar purpose
Trade organisation
An event at which businesses promote and sell their products and services
Trade show
Something currently in demand or popular among consumers
Trend
How does sustainability apply to the diamond and jewellery industry?
Sustainability usually involves:
- economic
- environmental and
- social
considerations.
The ability to continue a specific behaviour indefinitely
Sustainability
A commitment to reserve a portion of the resources derived from a country for the economic development of that country
Benefication
How are product transparency and traceability related?
Traceability of a diamond is an important basis of transparency.
How can you contribute to a sustainable diamond and jewellery industry?
- Be transparent about supply chain
- Give back to the community
- Establish goals and practices to better use resources and minimize waste.
