A New Service for Buying Diamonds

Ron Samuelson, CEO at SamuelsonsDiamonds.com, has teamed up with his brother-in-law David Dannenbaum to create DivorceYourDiamond.com. Flying under the radar with a beta version for about a year, the new service created by the diamond duo is a lead generation service for jewelers looking to purchase diamonds from John and Jane Q. Public.

Why the middle man role?

Samuelson and his partner know that many large, luxury jewelers with the financial wherewithal to purchase larger diamonds of one-carat on up from the public would prefer to do so discreetly.

“These aren’t the kind of goods a person puts in an envelope and then drops in the mailbox,” says Samuelson. “These are diamonds people typically paid $5,000 to $50,000 for when buying their bridal jewelry.” 

Ron Samuelson, CEO at SamuelsonsDiamonds.com.
Ron Samuelson, CEO at SamuelsonsDiamonds.com.

Jewelry consumers who visit DivorceYourDiamond.com fill out an online form or can call the company’s toll-free number. With his network of jewelry retailers, Samuelson contacts a retail jeweler in customer’s area and hooks them up.

Jewelers pay a one-time set-up charge and a monthly service fee. This covers operational expenses and feeds a modest promotional budget on Samuelson’s end. Currently Samuelson and his partner aren’t “making a big splash” but are getting the word out via the Internet, generating leads using SEO (Search Engine Optimization) methods.  

Additional services that are part of Samuelson’s DivorceYourDiamond.com include how to buy a diamond from the public. Samuelson warns that buying a diamond isn’t the reverse of selling one. And, gemological knowledge doesn’t serve you well in “closing the deal” when buying a diamond.

“The training involved is explaining to people fair market value,” says Samuelson. “Many people think that they can get the same money back that they originally paid for the diamond, and that’s simply not the case.”

Training on buying a diamond is available electronically over the Internet scheduled in two to three hour sessions or half-day in-store sessions for face-to-face training can be done. 

The homepage of DivorceYourDiamond.com.
The homepage of DivorceYourDiamond.com.

At the moment, Samuelson and his partner have six retailers signed up for their services. “We’re looking for a certain retailer profile – one where there’s a strong knowledge of diamonds,” says Samuelson. “Plus, we’re also guaranteeing geographic exclusivity.”

Another issue is solvency. Like buying gold from the public, customers get cash on the spot when selling diamonds to a retailer. In this economy, retailers who can afford the cash outlays to buy diamonds from the public will benefit from improved margins when the stone is eventually resold.

Samuelson doesn’t see much of a problem attracting retailers to the new service. “Retailers want sizeable diamonds and the public is the biggest diamond pipeline out there,” says Samuelson.