You Get What You Pay For

I have always questioned that statement. Why do you assume that paying more gets you more? Have you ever sat next to someone at a concert and one of you paid more for the seat? Is the viewing experience that different from the overpriced seat next to you? We all want to sit in the front row during a concert but most of the time select a cheaper seat. Life is much like the many ways of getting a seat for a concert or game—some of us stand in line all night for tickets, while others of us value time more and buy from a broker at a premium. The same item of jewelry can sell for several different prices depending on how, where, and when you buy it.

If jewelry is given to you as a present, does it then have no value because you did not pay for it? If you overpay, what bonus do you get? In fact, how do you know what you should pay for something? What is worth selling if you need money? What holds value better in case you sell in the future? Every time I give a talk on this topic, I hear terrible stories about how someone feels cheated, whether it’s the seller or the buyer of jewelry. With all the “we buy gold” scams out there, you should know what you have and how much it is worth.

Here are some ways to simplify the process. Watches usually have a suggested retail price from the company that manufactures or markets them. In theory, price could only come down from the suggested price, and the watch would not be sold at a higher price than the suggested price. Most prices are easily found on Web sites. Some companies sell two different versions of watches, one for the United States and other developed countries and a lower-grade version intended for less-developed countries. The latter product is often sold here in discount stores and the Internet. Some watches have a very strong used market, and others have almost no secondary market. Value is best when you can find a secondary market for at least 50 percent of what you paid new.

Jewelry usually holds better value if you do not pay for a designer name. Single diamonds typically hold value better than several small diamonds. Similarly, nontreated gems generally hold value better than do treated gems. Jewelry bought from owner-based or independent jewelers are a better value than the jewelry bought from corporate stores. All of these generalizations have exceptions, of course. It is possible to have a better value in a mass-produced item from a mall store than a one-of-a-kind creation from an independent jeweler. It is possible that a treated gem that is pretty will be a better value than a nontreated gem that is less pretty. This is where independent appraisals can be very helpful. I recently consulted with a customer who wanted an independent opinion on two items—one bought on the Internet and another from a local jeweler. I told the client that the Internet item should sell for around $800. They paid $1,200 but were told it was worth $4,000. When I looked at the other item, the quality was much better and I told them that it should sell for about $1,500. They had bought it for $1,200. Same price, but one was a good value while the other had a phony sale price.

Instead of “You get what you pay for,” how about “You deserve to get value for your money”?

For more information on jewelry, jewelers, or appraisers, visit arizonajewelers.org.