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A Pricing Manifesto- Part One

Marty Hurwitz
Marty HurwitzPublished on January 09, 2023

The lab-grown diamond prime growers of the world must ask themselves some hard questions as we enter 2023...

Among these are:

1. Why are we allowing so many wholesalers in the distribution channel to de-value the price and margin for our product?

2. Why are we allowing short-term customer thinking to drive the long-term valuation and vision of our shareholder investments in growing diamonds?

3. How can we shrink the product distribution pipeline to get closer to the consumer and add true value and untapped opportunity to our product?

The first step in answering each of these questions is to accept these facts:

a)    We are not in the mining of diamonds business

b)    Nor are we mined diamond traders

c)    We are not producers of a commodity product

d)    We grow our product to the specific needs and requirements of our end consumers and those that serve them

And if we accept these facts, we must then ask ourselves:

Why are we allowing an artificially created, mined diamond pricing index to define the value of our product?

We begin 2023 filled with hope and potential for the lab-grown diamond industry.

As consumer demand for our product continues to grow globally, let us take back control of our distribution channels and recognize that channel power and control are how we will gain added value and added margin.

The lab-grown diamond prime growers of the world, to regain control of the distribution channel and stabilize pricing, must take the initiative to end Rap-based, lab-grown diamond pricing in 2023.

If you want to learn more about how you can END LGD RAP PRICING IN 2023 contact me here.

If you want to learn more about how you can END LGD RAP PRICING IN 2023 contact me here.

Key Steps to End Lab-Grown Diamond Rap-Based Pricing in 2023

Identify long-term thinkers vs. short-term traders of your product.

If a customer does not add value to your product, they should not be a customer.

Stop giving your worst customers (short-term traders) your best pricing.

Start offering your best customers (who are thinking long-term about your product and adding value) your best pricing and the most support.

Yes, cash is king, and we all need cash flow to run our businesses, but short-term cash flipping is exactly what has gotten us where we are today.

Learn to love NO!

Differentiate your product even as your short-term customers continue to tell you there is no difference.

Emulate the semi-conductor business, the bakery business, the space tech business, the defense business--grow your product to the specs your customers need.

Don’t grow for inventory (just because you can); grow for long thinkers that add value to your product.

Incentivize customer projections, long-term relationships, and purchase orders for consistent, repeatable products.

Figure out exactly what it costs you to grow diamonds of different sizes, shapes, and qualities.

Add a healthy margin to your precise costs and tier your pricing based on your best customers, not your worst customers.

Embrace Environmental, Social, and Governance (ESG), chain of custody, traceability, and community benefits. Make it 3rd party certifiable, don’t just greenwash it. Don’t let any customers tell you it’s not important. It is very important to consumers, and they are paying a premium for it.

Define and detail all the value drivers of your product (not just lower price).

Improve your presentations to customers to be much more about all your value drivers, all the time. Make sure everyone in your company is singing from the same hymn sheet.

If you want to learn more about how you can END LGD RAP PRICING IN 2023 contact me here.

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