Hello, Grammaton Cleric!
Thank you for requesting my services. I've recently researched selling
a similar piece of jewelry for a close relative. I'll be glad to offer
a "guided tour" of that research and selling experience. We were
pleased with the final dollar amount.
I started my research on the Internet, looking for people who'd
successfully sold used jewelry to a commercial buyer and were happy
with the price they'd received. This initial search turned up mostly
disappointed sellers.
The few sellers who were satisfied with the price offered by jewelers
and other commercial buyers were those whose jewelry had either been
purchased at a very low price (below wholesale), or whose jewelry
appreciated in price during the ownership interval. The original
purchase price, plus appreciation or current wholesale price was equal
to or greater than the seller's initial outlay.
Jewelers, for the most part, buy used jewelry at only one half of
wholesale prices. Some will accept retail consignments, but with a
substantial commission. Some pawn shops will pay about the same as a
jeweler. I spoke to an acquaintance, a retired gemologist, who
verified all I'd been told.
Why such low prices? Jewelers can obtain the same, or a similar piece,
new, with a quick phone call to their own wholesaler, and can have the
item in stock overnight. They are usually able to keep the item for 30
days (one invoice period), and if not sold, simply return it to the
wholesaler. Buying from an individual involves a greater cash outlay,
plus, the piece remains in inventory until it sells.
This (slightly cheesy) explanation covers the typical used jewelry
selling experience.
How to Sell Your Diamond Jewelry
http://www.gemsutra.com/selling_jewelry.html
Selling on Consignment
----------------------
As you mentioned, it's possible to offer your ring for sale on
consignment, at market value. This works best if you choose a popular
estate jeweler. Commission to the jeweler is generally 30-35%. We
investigated this possibility. No guarantees of the time it might take
to sell an item, but it conserves your own time and effort. Some
caveats, however.
Ask around. Word-of-mouth is a great source on this. Ideally, talk to
people you or your friends know who've actually sold jewelry through
consignment, or who have made purchases from an estate jeweler.
Discuss the consignment in detail, then get all the details in
writing. You'll want a document showing what price the jeweler will
try get for the ring, his/her commission, and the price or percentage
you are to receive. It can be profitable to set both an ideal price,
and a price you are willing to accept.
You'll want a receipt showing that the jeweler has the ring, and is
responsible for it.
Find out what you'd receive if the ring is lost or stolen. Most
jeweler's insurance companies will pay only wholesale price for a
claim. Get it in writing.
Selling Person-to-person
------------------------
The most likely way to receive a maximum price is to sell the ring
directly to an individual jewelry buyer, however this will involve
some time and effort. Our investment was about 25 hours over five
weeks, with costs and fees totalling about two-thirds of the item's
original purchase price. We received $1,200, almost double the
original purchase price. Various fees and costs involved ate up about
$400 of that amount.
Setting the price is probably the most essential part of the entire
transaction. Determining a likely price will also be a factor in your
decision about the best time to sell.
The price you can actually sell at will depend upon a number of
factors, among them:
-- Intrinsic value
-- Style popularity
-- Desirability
-- How hard it is to find
An appraisal is a statement of the ring's worth from a recognized
authority. a jeweler or gemologist. A jeweler can also help assess the
likely selling price, based on knowledge of the retail market. You'll
need an appraisal.
The highest appraisal will be an Insurance Replacement appraisal.
Insurance replacement value is what most jewelers will charge for a
similar/identical ring, brand new. This appraisal can be a selling
point, also, because a 'no name' appraisal can be used by the buyer
for their own insurance purposes.
Discuss your goals with your appraiser. There are different appraisal
methods and values, depending on the appraisal type, and intended
market.
Person-to-person sales are most often accomplished through newspaper
advertising, a local auction house, or an online auction house.
We selected a combination of two methods, and actually both were
equally successful, our jewelry sold in an online auction, but we also
received an offer the same day (for the identical price) through
newspaper advertising.
We also investigated live auctions (Christie's, Bunda, Freeman) but
felt they weren't the most practical for our one piece.
We weren't (aren't) online auction experts. In fact, we'd never sold
any item via an online auction. I helped put myself through college as
an ad-taker for a large newspaper, so we had a good idea of how to
write an effective classified advertisement.
Our Beginning Assets:
One ring (platinum/diamond) with an original price of $750 **
Insurance Replacement appraisal of $2000
A friend with lots of auction experience *
Webpage design skills
Advertising copywriting skills
A digital camera
A sense of adventure
* You can also use a consigner or trading assistant
** An older pre-owned diamond, reset in platinum. The value of $750
was given at the time the diamond was remounted, as the ring would
have sold as, new.
We're great believers in experimentation. I don't assume I know
everything, or even enough, about selling to be able to write a
perfect advertisement that will garner the desired price. So we
tested.
Newspaper Advertising
---------------------
We tackled the newspaper side first. There are several local bargain
sheets that accept free ads. We placed a dozen ads with varying prices
and different text, counted the phone calls and gauged the level of
interest. Each ad used a different "ask for" name, so we could easily
tell them apart.
In general, classified advertising works most effectively if copy is
written without abbreviations, and offers clear descriptions, i.e.
Diamond Engagement Ring - Platinum band, .78 carat diamond in
six-prong Tiffany setting, size 6. Tasteful and elegant.
or
Diamond Platinum Engagement Ring - .78 carat Ideal Round [brand]
diamond, in a sleek, modern platinum setting. Alas, now a spectacular
bargain.
The price and contact information should also be clear and more
verbose than the "usual."
Certified appraisal of $2,000. Asking $1,234. Includes $25 gift
certificate at [local romantic eatery]. Pictures viewable online. For
more information, speak to Joe at [local phone number]
People reading the classifieds looking for this type of item will read
every ad. Do no more than perhaps bolding the initial item name
(Diamond Engagement Ring). A buying decision, or even the desire to
seek additional information, is triggered mostly by an emotional
reaction. Words convey emotion more effectively than boxes around an
advertisement. Our final ad was placed for 15 days, in a regional
newspaper with a readership of approximately a half million, at a cost
of $65. The ad listed a firm price of $1,200. We received an offer at
that price on the 12th day, after telephone contact and a (previous)
meeting to view the ring. However, we'd already made a commitment
earlier that same day to sell the ring in an online auction.
If you're not comfortable meeting with a prospective buyer in your
home, choose a more neutral location. A bank is a good choice, or
perhaps the jewelry store where you received your appraisal.
Online Auctions
---------------
I have to reiterate that we're auction novices. The technical
expertise, and lots of valuable advice came from our more experienced
friend.
We initially placed several, short half-experimental auctions, using
the appraisal value as the reserve price, and tried out various
descriptions, images, and sales copy. None produced a bid above
$1,000, however, we learned which categories attracted the best
bidding, and what sort of copy had the greatest appeal to likely
buyers. We were still kind of hopeful that we'd be able to attract
that reserve price. We learned differently, and adjusted our
expectations.
We spent a Saturday on photography. Besides very clear and detailed
front and side views, for display in the auction category listing, we
experimented with a number of props and display surfaces.
We posed our ring with a single red rose, several additional flowers
that caught our eye that morning at the florist, black velvet, silver
satin, several avant-garde looking boxes, and amid tiny, tasteful
confetti hearts from a party store.
The most successful test image was of a beautifully manicured hand
wearing the ring. We decided to add one more element for the final
version. We corralled a friend, gave him a home manicure, and used the
pair holding hands with the ring in closeup. A very subtle Photoshop
blur, plus lighting effect was added to this sales or logo image. A
simple front view was chosen as the gallery image.
Copywriting ranged from the simple to the overly-descriptive. I've
always been a sucker for those long, story-like item descriptions, but
my partner wanted something more conventional. We compromised, with a
simple descriptive category listing, and an HTML webpage-like
Description, with all purchase information, shipping, and the other
auction details. It turned out that about 100 well chosen words drew
the most interest. We're not allowed to reveal personally identifying
information here on Google Answers, so I'll simply give an example of
sales copy, using your own descriptors. We found that a taste of the
the unconventional attracted more (and higher) bidding. [ words in
brackets ] would be text hyperlinks to definitions and descriptions.
Diamond/Platinum Engagement Ring .78 VS2 F
An tasteful expression of love, for the woman-to-be in your life.
Cake, tuxedo, and happily ever after are extra. If you know fine
diamonds, you'll appreciate the quality of diamond and setting. If
not, [learn more].
The diamond is an [Ideal Round Cut], .78 carats, graded VS2, lovely in
closeup. This clear white [F] gemstone is beautifully and securely
displayed in a six-prong Tiffany setting. The band and mount are
[platinum]. Brighter and harder than gold, stylish platinum will be
forever the same as the moment it's given.
We included appraisal information, offered resizing information,
payment options and shipping policies (free, insured shipping), and
included a blurb about gift wrapping. We chose colors to complement
our image and settled on black on white for sales copy.
We selected a 7 day auction. The reserve was reached and exceeded in
the last hour of bidding.
Our good friend offered these recommendations:
Choose your time carefully. Most of the bids will come in during the
first day the auction is posted, and the last day. How many people
will be available to look at those times? Afternoons and early evening
hours are the most convenient for most potential bidders. Take a look
at competition for your bidders time, including TV schedules. Take
East Coast and West Coast time differences into account. Look over
weather forecasts, also. Bad or indoor weather is good for sales.
Use only a few of the built-in enhancement exposure tools available.
Basic listing fees are inexpensive. Once you're confident about your
reserve, satisfied with the appeal of your auction display page, and
know which category to best list, be willing to pay about $25-$30 for
one auction listing. There's a also an additional fee when the item is
sold.
Offer all the information you think a buyer might want. Put yourself
in the buyers shoes, and think about what you'd want to know before
spending this amount on an online item. Brainstorm creative copy.
It's considered poor auction etiquette to place an excessive reserve
price, then contact the high bidders with private offers when the
price isn't met. Keep your reserve within reasonable attainment
(appraisal price or below).
Patience is a virtue. There's always another auction.
Above all, work up enthusiasm for item and your experience. Enthusiasm
is contagious. If you have it, your buyer's will catch it, too. Have
some fun with your selling experience.
Resources
----------------------------------------------------------------------
Jewelry Auctioneers
http://www.auctionguide.com/dir/Jewelry/
DeBeer's (Diamond Information)
http://www.adiamondisforever.com/buy/
uBid
http://www.ubid.com/
eBay
http://www.ebay.com
eBay Trading Assistants Homepage
http://www.ebay.com/tradingassistants/?ssPageName=STRK:SRVC:022
Yahoo Auctions
http://auctions.yahoo.com/
Answer Strategy
----------------------------------------------------------------------
My answer was crafted around my personal jewelry selling experience.
Google Search Terms:
ubid OR ebay "seller tips"
auctions "sell for you"
auctions jewelry platinum
auctioneers jewelry -online
"jewelry consignment" terms
estate jewelers
"selling used jewelry"
auctions jewelry platinum diamond
"used jewelry" selling maximum price
"platinum ring" selling maximum price
I hope this extended ramble offers useful information that'll help you
obtain the best price for your own ring. Should you have any
questions, please, feel free to ask.
---larre |
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