Tiffany's Vs Costco Essay

It poses no surprise that many retailers sell diamonds. According to Statista, in 1960 the average one carat diamond cost about $2700, fast forward fifty-five years it is now worth ten times that amount. Although all diamonds must meet the same standards and are rated equally there is a justification for spending thousands more to make the purchase at Tiffany’s versus Costco for instance. Costco is well known as a muti-billion-dollar wholesaler selling products in a variety of categories, while staying selective of the products they carry. Costco carries 4,000 difference products while supermarkets have about 30,000. Costco manages its risk through diversity. This is the place you can purchase groceries and a diamond ring all in one place. I understand how one would purchase a diamond in Costco versus Tiffany’s due to the substantial savings and the companies relaxed return policy. But saving thousands of dollars by making such a purchase in Costco can prove to be a poor decision in the long run.

Costco does not offer any type of customization. This limits the buyer’s selection. You cannot choose a setting of a different metal and mound your diamond on

The company has about 247 locations world wide and it vastly known for its engagement rings. It is extremely selective with the diamonds it purchases. In fact, Tiffany’s refuses 99.96 % of the world’s trade diamonds. It has been crafting engagement rings for 130 years. In February of 2013 Tiffany & Co. filed a trademark suit against Costco for several million dollars. The suit came about because Costco ring settings along with the high placement of the diamond were very similar to those of Tiffany and Co. Customers were making their purchases at Costco assuming that no matter the price they would be getting a high quality diamond for a lot less. Many customers were made to think they were purchasing a Tiffany’s engagement ring at