True wholesale diamond prices are not generally offered to the public, according to the PriceScope website. Diamond wholesale vendors work with jewelry retailers, providing products for the retailer to sell to customers. In general, wholesale prices are low enough for the retailer to include his mark-up to the public, yet high enough for the wholesaler to make a profit. Understanding the process of purchasing wholesale diamonds will help streamline your business and your bottom line.
Obtain a jeweler’s business license from your local city hall. According to the Diamond Info website, a wholesaler will require this before doing business with you. Check with county offices and comply with any additional requirements at that level. As a business owner, you will be required to file an annual statement with the city and county, declaring any profits or losses. It is from this figure that your local government sales tax obligation will be determined.
Contact wholesalers you have dealt with in the past. Request letters of reference from them. Many wholesalers require three reference letters before they will do business with you. If you are new to the industry, obtain reference letters from business owners that you have worked with in the past and submit them.
Register with the Jewelers Board of Trade (JBT). This organization is a highly respected, vetting entity that provides credit ratings and credit reports for more than 70,000 jewelers worldwide. Belonging to the JBT allows potential wholesalers to check your ratings when you request a business relationship with them.
Purchase the minimum order size initially to test drive reliability, product quality and customer service. Once you are satisfied, place larger orders as needed.
Check your own credit ratings with JBT every six months to ensure there are no mistakes. Request letters of reference from every wholesaler you are in good standing with and store them for future use.
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