On the OneTrueRock site you will often see crazy savings: often between 5% to 20%. This seems crazy! In this blog post we want to explain how this is possible. We are going to dive into how the diamond industry works and find:
- The same diamond is often listed for sale on multiple sites at different prices
- Individual diamonds are not priced efficiently (there are good and bad deals)
Aggregating Listings: Same Diamonds, Different Prices
In a vastly oversimplified view of the diamond supply chain:
- Miners: dig the diamonds
- Cutters: cut and polish the diamond
- Dealers: hold inventory of diamonds for sale
- Retailers: websites or jewelers sell to the end consumer
At every stage along the way the price of the diamond increases. It is important to understand:
many dealers list their diamond for sale on multiple retailers at different prices
If you think about hotels - same thing happens. The same room listed on different sites for different prices. That price difference can also be significant. A 5-15% price difference is not uncommon.
Where this gives us an opportunity as a diamond search engine is to scan and aggregate all of the listings then find the cheapest listing. Finding a 10% saving on a $5000 allows us to potentially save you $500!
How real are these savings?
The diagram below shows the price difference between two retailers for the same diamond.