How Consignment Works
A jewelry store will showcase your item in their store amongst their own inventory for an agreed price. They will take a percentage of the price once the sale goes through; this typically ranges from 10%-30%.
Make sure to be clear on:
- Your minimum price
- If there are any additional fees
- What commission percentage they charge
- How and when you will be paid
- What happens if they do not manage to sell your jewelry
Advantages Of Selling Diamonds And Jewelry On Consignment
You may be able to make more money selling your diamonds and jewelry on consignment. The store will take a pre-established percentage of the sale, so do make sure to factor this into the amount that you will walk away with.
Consignment allows you to reach a targeted audience who are looking for jewelry. And depending on the commission charged by the store, sell for closer to the retail price of your item.
Drawbacks Of Selling Diamonds And Jewelry On Consignment
The main drawback when it comes to selling on consignment is of course time. You are waiting for that perfect combination of the right person, to walk past that particular store at the right time, looking to buy that exact item of jewelry at that price. It is unlikely that this will happen in a matter of days. It can take months, years or in many cases, simply never sell. People regularly look into consigning diamond rings but soon see that it is a lengthy and drawn out process.
Added to this is the fact that not all jewelry stores will be interested in your particular piece of jewelry. It all depends on their customer’s tastes and preferences and if your jewelry will be of interest to them. What sell well in Miami might not sell so well in Omaha as customers' tastes differ from state to state. It may take you time to find a jewelry store that will accept your items and with whom you will also agree on a commission.
And finally, there is also a trust issue that should be considered. Your jewelry is being entrusted to someone else and there is always the possibility that your items could be damaged or that the store could shut down. Consigning engagement rings or any other valuable pieces of jewelry, you will want to be sure to find a reputable and financially stable store that you will feel comfortable working with. You are effectively becoming partners with them so do not be tempted to simply choose the jewelers who offers the lowest commission and will ask for the highest price. Focus instead on finding a store that is established, professional and trustworthy.
Tips For Selling Diamond Jewelry
- Paperwork
Holding on to any paperwork (certificate, jewelers appraisal, insurance appraisal etc.) will add value to your diamonds and jewelry.
- Research
Make sure to thoroughly research any jewelry store or diamond buying company you choose to work with. Check out their online reviews and make sure that they are BBB accredited. Do not be afraid to get quotes from various sources before committing to one avenue of selling.
- If you are under time pressure
Consignment would not be the right option as you could easily find yourself in a situation whereby your jewelry does not sell for months and even years. Should you be in need of freeing up cash immediately, then selling your jewelry to diamond and jewelry buyers will be the quickest solution. Online diamond and jewelry buyers are able to offer the best price for your diamonds and jewelry and have the fastest turn around time. Sell your items and have money in your account in as little as 24 hours with myGemma.
