Understanding Diamond Pricing, Availability, and Customer Preferences

Date & Time: August 28, 2024, 13:37
Location: Nekta New York Conference Room, 74 West 47th Street, New York, NY 10036
Attendees: Mike Nekta, Nekta New York Associate

 

In a recent meeting at Nekta New York, our team explored the nuances of diamond pricing, availability, and customer preferences. Here's a detailed summary and key takeaways from our discussion.

 

1. Pricing and Availability of Diamonds

 

Key Takeaway:
Diamond pricing and availability are significantly influenced by factors such as cut popularity, rarity, and market trends. There have been notable fluctuations in diamond value in recent years.

 

Discussion Highlights:

• Three-Carat Diamonds:
  Mike Nekta noted that three-carat diamonds are typically priced around $28,350, although pricing can vary based on availability and discounts. Two-carat diamonds, while less expensive, may not offer the same visual impact.

• Popularity of Cuts:
  Oval diamonds are the second most popular cut after round diamonds and are often priced higher due to their rarity. They've been top sellers for the past six to seven years, as highlighted by the Nekta New York Associate.

• Marquee Diamonds:
  Despite having a list price, marquee diamonds often benefit from discounts due to lower demand. For instance, a marquee diamond was recently purchased for $20,000.

• Inventory Value Trends:
  Mike Nekta observed a significant decrease in diamond inventory values over the past two years, dropping by about 40%, which has impacted both pricing and availability.

 

2. Diamond Cuts and Customer Preferences

 

Key Takeaway:
Customer preferences for diamond cuts and settings are driven by visual impact and social trends, with a growing demand for larger diamonds.

 

Discussion Highlights:

• Variety of Cuts:
  Different diamond cuts offer unique visual effects. Emerald cuts elongate the appearance, round cuts are known for their brilliance, and oval cuts vary widely in shape.

• Settings that Enhance Appearance:
  Customers often prefer settings that enhance the diamond’s appearance. For example, six-prong crown settings can make diamonds appear up to 10% larger, as noted by Mike Nekta.

• Influence of Social Media:
  Social media is increasingly influencing customer preferences, leading to a higher demand for larger diamonds. The average diamond size now sold is between five and six carats, reflecting this trend.

 

3. Customer Interaction and Decision Making

 

Key Takeaway:
The decision-making process for customers is often dynamic, involving multiple changes before a final choice is made. Simpler settings generally have broader appeal.

 

Discussion Highlights:

• Decision-Making Process:
  Mike Nekta shared that customers often change their minds throughout the decision-making process. For example, a client may switch diamond settings several times before making a final decision.

• Preference for Simplicity:
  Simpler settings are typically more reliable as they tend to be well-received by customers. A recent example involved a client who preferred a straightforward setting over a more elaborate one.

 

4. Future Plans and Follow-ups

 

Next Steps:

• Client Discussions:
  Mike Nekta and the Nekta New York Associate will finalize the budget and preferences with the client to align with their needs and expectations.

• Visual Aids:
  Mike Nekta will provide videos and pictures of various diamond settings to offer the client visual references for review.

• Final Review Call:
  A call will be scheduled with the client to review final details and assist in making the ultimate decision.

 

By understanding these dynamics, we can better navigate the complexities of diamond sales and tailor our approach to meet evolving customer preferences and market conditions.