Which Gemstone You Prefer, a Diamond or a Ruby?
I’m not very knowledgeable about gemstones but if you are one of the people whose business is all about jewelry, I think you already know that ruby is rarer than diamonds. In fact rubies are 40 times rarer than diamonds and diamonds are just made out or compressed carbon which sits under the earth for millions of years but why are they more expensive than rubies? A top shelf ruby cost about $3,000 per carat depending on the cut or color. But the best diamond will reach $40,000 per carat!
We learned in school about supply and demand. The less supply, the more expensive an item or product should be. So why a diamond cost so much? It’s simple as 1, 2, 3 because buying a diamond means a lot than just buying a mere gemstone. Try to think for a while, when you think of the word “diamond”, what comes to your mind? If you are a romantic person, you might think of the word “diamond” as “love”, “commitment”, “forever” or “getting married”. It also has a romantic feeling towards your spouse or a girlfriend. There is also a song that becomes a television commercial slogan, “Diamonds Are a Girl’s Best Friend“.
That’s no accident. That idea you attach to diamonds comes from powerful marketing in the diamond industry. Now think of the word: “ruby.” Does it have any impact to you or do you have any special meaning that comes to mind? (My guess is “no.”) This is the reason why jewelers can command a higher price for a less precious gemstones because customers see diamonds as “love” and “commitment”. And those two words are far more valuable to any person than just just a pretty red rock. This is a powerful lesson for your own business.
You want to attach a specific powerful marketing message to your business that makes your product a diamond… NOT a ruby. In other words, you want ONE marketing message that redefines your product and makes it a thousand times more desirable. That’s how you’ll attract new customers. That’s how you channel demand for your product. And like the diamond industry, it’s also how you’ll be able to charge higher fees.