The simple science of fair diamond jewelry pricing

We at KARAAT aim to raise the bar for fine diamond jewelry. This means rethinking the sustainability and ethics of the manufacturing and choosing higher quality and value for the materials used – all this while providing you fairer pricing!

But what does the pricing and value of fine diamond jewelry actually consist of?

What makes up the cost and value of fine diamond jewelry?

To simplify, the cost of fine jewelry consists of three areas.

What does jewelry pricing consist of?

1. Materials

Quality of the raw materials impact the cost. Generally, the lower the quality, the lower the cost – vice versa, the higher the quality, the higher the cost and value of your jewelry.

To understand gold quality and what actually is high quality gold, see this article we wrote.

To understand diamond quality and what actually is high quality diamonds, see this article we wrote.

By working directly with the manufacturers and skipping all middlemen, we are able to provide you higher quality gold and diamonds for cheaper than the traditional jewelers. This means higher value for you, for a lower cost.

 

2. Cost to manufacture

High quality fine diamond jewelry should be handmade. To ensure a high quality of work, they should be handmade by skilled professionals. These skilled professionals need to be compensated for the work they do.

Making high quality jewelry requires more skills from the manufacturer. Cheaper is not better when it comes to fine diamond jewelry.

We have decided to not go for the cheapest possible option, but have worked with professionals to find the highest possible quality craftsmanship. All our jewelry is designed in Finland and hand made in Italy. We are proud of the high quality finish in our jewelry.

 

3. Markup

There are multiple different aspects that impact the size of the markup. Generally the rule is that the more steps there are before the jewelry reaches your hand, the higher the markup. Everyone wants to take their slice – not just the store you buy it from, but all the middlemen as well.

In addition, designing fine jewelry takes time and effort - not to mention the designing of sustainable jewelry. Well designed and manufactured pieces of jewelry are works of art that you can wear - this is what the size of the markup reflects.

Markup is the most important component in our fair pricing. As mentioned, we have been able to skip the middlemen and get our jewelry directly from the manufacturer. What this means is that you get higher value, without the markup of multiple middlemen.

Skipping the middlemen enables us to choose higher quality materials to provide you even higher value for the jewelry you buy – and still being cheaper than traditional jewelry stores. With sustainability and high ethics being our brand’s core values, we charge a fair markup for the efforts we have made to create these beautiful long-lasting pieces and providing our customers a channel and the best experience possible for purchasing our jewelry.

 

KARAAT vs. retail prices

To demonstrate how our prices compare to prices of jewelry sold in traditional retail channels, we have gathered examples of pieces similar to the quality and carat weight for diamonds and gold used in our jewelry.

Solitaire Diamond Ring

KARAAT Jewelry solitaire diamond ring solid 18 karat gold

Pavé Halo Diamond Necklace

KARAAT Jewelry Pave Halo Diamond necklace 18 karat solid gold

Diamond Bezel Bracelet

KARAAT Jewelry Diamond Bezel Bracelet 18 karat solid gold

Pavé Diamond Hoops

KARAAT Jewelry Pave diamond hoops earrings

 

We challenge you to find something with fairer pricing - but for higher value! If you do find something - comment below!

 

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