We had them running down the corridors from our post last week about the need for lab-grown diamond prime growers to get off Rap based pricing. Here's part two...
We heard from several prime growers, jewelry manufacturers and retailers all expresssing interest in exploring how they can help transition the lab-grown diamond supply chain off of the Rap based pricing that currently dominates the market.
So here are some thoughts on the next steps:
Please answer 7 easy multiple choice questions for us about how lab-grown diamonds are priced in the wholesale market.
These questions should take less than 2 minutes to complete. All responses will be kept confidential and only reported in aggregated statistics.
Just Say No to Rap Based Pricing
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.