THE TRUTH ABOUT DIAMONDS

 

"What Can I do To Find The Best Price".....

Be wary of the word "Wholesale" in advertisements and in company names. Do not rely on representations made by jewelry retailers' claims of having the lowest prices because they are wholesalers or sell at wholesale prices. Make Sure to compare the prices to those of other local retailers for the same quality and size and see for yourself if the price is lower.

Why Is It Considered Misleading For A Retailer To Advertise As A Wholesaler....

Transactions between a seller and an end-user are always retail. Using the word wholesale in advertising leads prospective customers to believe they will be participating in a wholesale transaction and will automatically save money over a retail transaction. This is erroneous because it in fact is a retail transaction at a higher price. retailers seek to make a profit. Therefore, a markup from the wholesale price is expected. Even if there is a wholesale division, when selling to an end-user, the company is selling at a retail price. For that reason, mentioning that a company is a wholesaler selling to the public may be misleading. Many states require all retail sellers to markup the wholesale price. Otherwise, the practice is considered dumping and unfair trade. Using the word wholesale masks the markup. Online Advertising - the same laws apply. These rules for advertising "wholesale to the public" apply fully to selling on the Internet. If sales on the Internet are to end users, these sales are retail NOT wholesale.

Is It Legal For Jewelers to Advertise As Wholesalers Or Selling At Wholesale Prices?

Many states including North Caroline, Arkansas, Georgia, Kentucky, Texas, California, New York and Michigan have strict laws prohibiting the use of the word wholesale in retail advertisements. In some states this is a criminal offense, due to the word's ability to mislead consumers. If a jeweler advertises as selling at wholesale prices, they must sell at the wholesale price. Some states define this as the price the jeweler paid for the item from the supplier. Other states, and the federal government, say they must sell at or below the average price retailers would pay in the area. A company advertising as a wholesaler, must sell for the purposes of resale and rarely, if ever, sell to end users.