How are Engagement Rings Priced? Trade Secrets of a Jeweller

How engagement rings are priced

A simple guide to the way we price engagement rings

Have you ever wondered how we price engagement rings?

How do jewellers price up an engagement ring? At the same time, why do some rings cost so much more than others? Our simple guide aims to unravel the mystery of how jewellers price an engagement ring.

Mass-produced engagement rings

Some jewellery manufacturers mass-produce engagement rings for many well-known high-street jewellery chain stores. Many of these jewellers advertise permanent closing-down sales and rock-bottom prices. Many of the ring designs feature lower colour or clarity diamonds in light-weight settings. Interestingly, many such rings originate from India or China, imported cheaply.

Once imported at a low cost, the chain stores apply their margin and sell items in high volume.

Independent jewellery retailers

Many other jewellery retailers provide a choice of ready-made or made-to-order engagement rings. Made-to-order rings take 3-4 weeks. The process involves a tailored service to create a ring design styled around the client’s requirements.

Serendipity Diamonds Showroom

Serendipity Diamonds showroom – engagement rings appointments are available in our mezzanine area.

Unlike bespoke designs, jewellers work with existing ring designs but vary the size and quality of the diamond. In addition, jewellers tailor the precious metal to the client’s preference and budget.

All diamond rings made in this way break down in cost as follows.

Parts of an engagement ring affecting its cost

1. The main diamond

Kensington diamond engagement ring with lab-grown diamond

Most diamond engagement rings feature a central diamond. For example, in the case of a single-stone or solitaire ring design. Diamonds vary according to the 4 C’s—colour, clarity, carat weight and cut. As a result, qualities vary enormously in addition to price.

At the same time, many jewellers now offer natural diamonds (mined) or lab-grown diamonds created in a laboratory. Lab-grown diamonds suit smaller budgets with no visible difference in appearance. For this reason, lab-created diamond engagement rings typically work out to around 50% less than natural diamond rings.

2. The cost of outer diamonds

Shoulder diamonds

Small diamonds sometimes appear on the shoulders of a ring. Or, within a surrounding halo around the main diamond. We factor in the cost of small diamonds in addition to the cost of setting the diamonds into the ring.

3. Precious metal cost

Precious metal for ring mounts

The prices of all precious metals fluctuate over time. But, generally, precious metal prices rise over longer timescales. Higher purity metals, such as 18-carat gold, cost more than lower purity metals, such as 9-carat gold. We base the price of the empty ring mount or setting on its gram weight. The price of precious metal per gram varies daily. For this reason, we regularly update our metal prices associated with each ring design.

4. Fashion price

Making a ring

Unlike unformed precious metals, we apply a fashion price for most engagement rings. This takes into account the time and cost to cast and create the ring design.

5. Mounting, setting and finishing the ring

Most of our made-to-order engagement rings pass through several stages. At each stage, a specialist takes care of each part of the ring’s creation.

Jewellery ring finishing with a final polish to the engagement ring

As a result, a cost for labour goes onto each ring created. For example, casting, mounting, setting and finishing all take time to complete. Even Rhodium plating a white gold ring adds a further cost for the Rhodium.

Mounting a ring involves the connection of

Further cost considerations applied to engagement rings

Delivery and tax

Other considerations for cost include the cost of delivery. For example, many of our deliveries take place outside the UK where our showroom is located.

Engagement ring boxes, including pocket box for proposing - packaging at Serendipity Diamonds

For example, we send many rings to the USA. As a result, we factor into each purchase the delivery cost, sent through a secure courier such as FedEx. In addition, we prefer to pay the tax and duty levied on entry into that country. Put simply, we save our client any trouble by factoring in this cost.

Bespoke design

In addition to made-to-order rings, a further option of bespoke design exists. Bespoke engagement rings involve a further stage of design. As a result, clients enjoy a unique ring design unavailable elsewhere. The additional cost to CAD design the ring goes into the overall cost but ensures a one-of-a-kind jewellery design found in no other jewellery store.

Furthermore, this option enables a buyer to select a unique gemstone as part of the ring design.

Bespoke moss-agate and diamond ring set
Moss agate and diamond engagement ring with custom wedding ring made by bespoke design.

Sales discounts

From time to time, we run sales or promotions on both ready-made-engagement rings and made-to-order engagement rings. Legitimate and timely promotions provide a very efficient way to reduce the cost of a ring design significantly. Please remember to subscribe to our newsletter or contact us for information on any new or upcoming sales or promotions.

About Mark Johnson

My name is Mark and I'm founder at Serendipity Diamonds. By day you'll find me working in our showroom—in a variety of roles. My work (which I love) ranges from photographing jewellery, to writing blog posts and helping clients with my colleagues Drina, Emily and Debbie.

About Mark Johnson

My name is Mark and I'm founder at Serendipity Diamonds. By day you'll find me working in our showroom—in a variety of roles. My work (which I love) ranges from photographing jewellery, to writing blog posts and helping clients with my colleagues Drina, Emily and Debbie.