Dsr

Diamond_Dude

Hi I am looking into starting up my own business selling diamonds however the DSR are causing me some concern. If I buy from my supplier and receive the item, customer gets it 1-2 days later, then on the 6th or 7th day they decide they don't want it I have to accept the return. That's fine, however that then means I am not covered by the DSR for my supplier and I will get stuck with the diamond - this isn't a problem for the odd diamond unless it is really expensive but if it keeps happening it would cripple my business. Simply selling the diamond on to another person is not a simple process due to a limited customer base it could take years.

Essentially I am acting as a middle man selling close to wholesale (which all diamond consumers have to go through, you can't buy wholesale unless you're a business. Since my profit margins are so low, undercutting all UK competitors by £100-£1000's I can't absorb much additional cost. Is there anyway I can discourage getting messed about my consumers or another way I can go about selling? Unfortunately collection is not an option.

Cheers for any help.

bod1467

As you will be acting as a business then the DSR won't apply for your transaction with your supplier anyway. The clue is in the true name of the DSRs ...

Consumer Protection (Distance Selling) Regulations

... your relationship with your supplier will be on a B2B basis. (Business to business)

OlliesDad

The only way to potentially cover yourself is by agreeing an extended returns period with the wholesaler.

The reason why the current big companies sell at the price they do is to cover themselves when things go wrong.. if you cannot afford to build this into your business plan, the business is a bit of a non starter.

wealdroam

OP, read this Office of Fair Trading guide to the DSRs.

Very easy to read.

Diamond_Dude

Thanks for the replies very helpful. I wasn't sure about the DSR business to business part so that's good to know, I considered putting it in my initial post but figured someone would pick up on it if it were incorrect . For now I will just talk with my supplier and see what they say regarding returns - if I have anymore questions I will post them here again.

tomtontom

I'm not sure you have thought this through fully. What happens if something goes missing in the post? Assuming you are fully insured you'll get your money back, but that can take upwards of a month to come through and you would need to refund the customer within that time. What if an item is returned to you damaged? Under the DSRs you would have to refund the customer, then you would have to pursue them through small claims - this would take months.

You will need a very healthy cash flow to make this work.

George_Michael

Are you sure that you will be able to have enough of a turnover to make a living?

I'm not being funny, but I wouldn't have thought that too many people would be willing to spend £100s/£1000s on unseen diamonds from a brand new business seller.

CoolHotCold

Simply put, if you're asking for legal help on mse in regards to setting up a business you may want to look at a professional first.


A investment now will save money and headache later.

bris

Diamonds are a commodity in high demand so if you are buying at proper wholesale prices then it's impossible to be stuck with one.

It's clear to me you have no idea about the diamond business, if your going to be buying them then you need to work it out quick.

Diamond_Dude

'I'm not sure you have thought this through fully. What happens if something goes missing in the post? Assuming you are fully insured you'll get your money back, but that can take upwards of a month to come through and you would need to refund the customer within that time. What if an item is returned to you damaged? Under the DSRs you would have to refund the customer, then you would have to pursue them through small claims - this would take months.'

I have not, which is why I am still gathering information. The information provided on here has been very useful so far - so thanks again everyone for your input. I was afraid of the damage item part, I suppose I'd just have to increase the prices slightly to accommodate such instances.

'You will need a very healthy cash flow to make this work.

'Are you sure that you will be able to have enough of a turnover to make a living?

I'm not being funny, but I wouldn't have thought that too many people would be willing to spend £100s/£1000s on unseen diamonds from a brand new business seller.'

The diamonds are all GIA graded and come with the full original lab report, plus I inspect them myself. I know a lot more than most sellers and I am able to select much higher quality diamonds than most as well as explain how they're better, the standard of diamonds for sale in the UK is terrible - the USA put us to shame there. As for being able to be sure I can make a living that's not clear, I'm willing to invest if it looks like I'll have a decent chance but as indicated above, still considering all aspects at the moment.

'Simply put, if you're asking for legal help on mse in regards to setting up a business you may want to look at a professional first.


A investment now will save money and headache later. '

This is true, however for now, before I decide if I am prepared to commit research such as this can only stand to help, whether it makes me pull the plug before spending money on a professional or leaves me better equipped to discuss matters with them on a more meaningful level.

'Diamonds are a commodity in high demand so if you are buying at proper wholesale prices then it's impossible to be stuck with one.

It's clear to me you have no idea about the diamond business, if your going to be buying them then you need to work it out quick.'

Ok here you're completely wrong. The prices are true wholesale and the GIA reports will make them more desirable. The diamond trade is doing reasonably well at the moment - however as someone else indicated above, I'd be a new guy on the market, diamonds like many other products rely on good marketing, now that's a front I'm inexperienced at. Moreover, if my supplier does not accept returns I could be stuck with very undesirable diamonds. For example, most people assume diamonds with SI2, SI1, VS2 clarity are eye clean, that's completely wrong. They're graded due to how easy the inclusions are to see under 10x magnification, as well as a few other factors such as durability issues. Therefore, if I buy a VS2 diamond with a black crystal on the table that is visible from 6-12" away, who wants to pay for VS clarity and the diamond not be 100% eye clean? A little off topic, but ironically most people would in this instance prefer an SI2 with a 'feather' since they're usually not visible to the human eye, but most people don't realise feather is a nice word for crack and that diamond may not last.

Thank you for your replies. I didn't expect so many so quickly and they have been very helpful overall, some much more so than others lol.

Money-Saving-King

bris wrote: »

It's clear to me you have no idea about the diamond business, if your going to be buying them then you need to work it out quick.

You can't really come out with a statement like that unless you
know about the diamond business and know what you're talking about which from your post you obviously don't. Out of the two of you it's clear you know the least about the diamond business some I'm not sure what you're trying to achieve really?