January 2020 - Lab Grown Magazine

January 2020 | LG | The Lab Grown Diamond Resource Book 10 Reason #3 - Customers who buy lab-grown diamonds are more likely to refer their friends and family. Why EVERY Retail Jeweler Should Be By Jerry Taylor Lab-grown diamonds have taken center stage in one of the most heated debates in the history of our industry. And many jewelers are still hesitant, or even adamantly against selling them. For you that fall in the latter category, here are three reasons you should be offering lab-grown diamonds to your clients, and then some good tips on how to successfully sell them. LAB-GROWN DIAMONDS Selling Reason #1 - Customers want them. Reason #2 - Your profit margins will increase. Customer demand for lab-grown diamonds is growing more and more every day, especially among Millennial and Gen X consumers. In a recent study by MVI Marketing, 66% of millennial customers reported they would consider a lab-grown diamond. This is significant because it represents a 13% increase from last year. Also, 23% of customers reported they are definitely going to buy lab-grown. It’s simple. If you’re not offering lab-grown diamonds to your customers, you are losing sales. You will make more money selling lab-grown diamonds.Full stop.Here’s the math. If your customer has a $5000 budget and you sell them a 1-carat round diamond (I color, SI-1 clarity, Ex cut, GIA) set in a simple solitaire setting, you’ll gross about $1200 profit. Not bad. But if you sell a 1.5-carat lab-grown diamond of the same quality (I color, SI-1 clarity, Ex cut, IGI) then you will gross over $2000! If one quarter or even one tenth of your customers choose lab-grown over mined, your profit margins will increase...a lot! Lab-grown diamonds are new and exciting and consumers that choose them are much more likely to refer their friends and family to the jeweler that helped them with this exciting purchase. They want to evangelize this new product category and your name can be the one they tell their friends and family about.