A diamond wholesale is an entity that sources uncut diamonds from a producer. The wholesaler then unloads the stones to local cutters and jewelers, some of whom have their own in-house cutters. Wholesale diamonds are also sold by cultivated diamond producers. Oftentimes, the diamonds sourced by a wholesaler are the same quality as those purchased by retailers. So, how do these two entities interact?
In a typical buying process, a wholesaler shows a customer four to eight loose diamonds, depending on what the customer is looking for. The customer inspects each stone under a 10x magnification lens to make sure it does not have any internal flaws. Once the customer chooses the stone, the wholesaler will put it in a setting. A good wholesaler will make a custom setting for the center stone and place it in the ring while the customer stands.
How Diamond Wholesalers and Retailers Interact
In order to begin doing business, a diamond wholesaler must obtain a business license from their city hall. Before doing business, wholesalers must check their city or county requirements. Additionally, they must file an annual statement with the city or county in which they conduct business to determine how much local sales tax they owe. It’s a good idea to get a business license from the city and county where you live. This way, you can save up to 50-70% on the price of your diamond.
In addition to diamond wholesalers, Lumera offers valuable services and benefits to consumers, including free shipping, a lifetime trade-in guarantee, and referral programs. Lumera is the closest retailer to a true wholesaler in terms of pricing. Their markup on diamonds is less than 9% compared to traditional jewelers who mark up their diamonds by more than 100 percent. They also offer low prices because they have much lower overhead costs than traditional jewelers do.