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Why Diamond Manufacturers Avoid Memo Firstly, there’s never any guarantee that the desired amount of goods will ever sell.
Secondly, and perhaps more importantly, while the diamonds are on loan at this store (or chain), they can’t be sold to anyone else.
The store will only receive an invoice for a diamond once it’s sold.
Diamond manufacturers are obviously very reluctant to agree to such an arrangement for several reasons.
Read About the Online Diamond Market If you haven’t yet, now would be a great time to review my article entitled “Truth about James Allen & Blue Nile” which traces a brief history of the evolution of the diamond jewelry market in the United States from the early 20th century until the online diamond boom of today.
In the article, I explain why traditional bricks and mortar jewelry businesses will never be able to fully compete with online-only stores. I present them here once more:1) Inventory Online stores (like James Allen and Blue Nile, for example) have no need to carry any serious amount of inventory.
Only when an order is placed by a customer does the online-only store purchase the diamond from their vendor.
This means close to 1,000 pairs of each quality/size combination of diamond studs.Zales Today Nowadays Zales Corporation owns several jewelry chain store brands.Obviously, the most well known is Zales itself which operates in almost 700 stores across the 50 United States and Puerto Rico.The vast majority of bricks and mortar store owners don’t have that kind of cash, so these purchases need to be financed.Online-only stores simply don’t have this problem.3) Memo vs.