IN 2023, MANY retailers faced a significant challenge as the average purchase price saw a decline, largely attributed to the surge in lab-grown diamond transactions. The market dynamics shifted dramatically with offerings like Lightbox by DeBeers selling a 1-carat lab-grown diamond for $600, a fraction of the retail price for a natural 1-carat diamond, which typically hovers around $6,000. Walmart further disrupted the scene by launching a 1.5-carat lab-grown diamond set in a solitaire for just $698 in December 2023.
Amidst this wave of lab-grown popularity, retailers who incorporated these diamonds into their inventory found themselves in an easy sales scenario. Little education was required, especially for customers who sought lab-grown diamonds online and came into the store with a specific preference. However, this ease led to a certain complacency among retailers.
Shift Your Focus to Natural Diamonds
In 2024, retailers should think about refocusing on training their associates in the art of selling natural diamonds. Understanding the unique selling propositions of natural diamonds and emphasizing their rarity is essential. Retailers should showcase natural diamonds first, regardless of customer inquiries about lab-grown options. Lab-grown diamonds should be presented as a last resort and kept discreetly in the back, to be pulled out only after exhausting the explanation of the value of natural diamonds.
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Promote Platinum for Increased Average Ticket
A significant aspect of this training is educating associates about platinum. The rarity, natural whiteness, and durability of platinum make it a valuable choice. Associates should be well-versed in conveying these advantages to customers. By focusing on platinum for engagement ring transactions, retailers not only maintain customer engagement but also increase the average ticket. Selling an engagement ring can potentially lead to additional sales of platinum bands, amplifying the overall transaction value.
Encourage Add-On Sales
Associates should be adept at suggesting complementary items and not hesitate to inquire about additional purchases. Retailers can incentivize their team to achieve multiple-item sales by introducing fun contests and incentives.
Sell Bands with Engagement Rings
Training associates to promote the simultaneous sale of the band with the engagement ring is a strategic and customer-centric move. Having matching diamonds on both the engagement ring and band guarantees that the diamonds on both the ring and band stop at the same point, providing customers with a harmonious and visually appealing set. This strategy will enhance the customer’s overall experience while turning one transaction into an opportunity for multiple sales and solidifying your commitment to delivering excellence.
The always-evolving landscape of diamond sales demands a proactive approach from retailers. Education, emphasis on natural diamonds, platinum promotion, and effective add-on sales strategies are the keys to surviving and thriving in this dynamic market.
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