Every day, jewelry store owners feel the squeeze:
A customer browses your lab-grown diamonds, then buys online for less.
Another asks, “Can you match this price?” and walks out when you say no.
You adjust your markups, only to see your margins shrink again the next month.
Lab-grown diamond supply has grown fast, and prices are falling. What used to be a predictable cost is now a moving target.
Relying on stone cost alone to set your prices is risky and confusing.
This blog walks you through five practical strategies for pricing lab-grown diamonds and highlights common pricing mistakes to avoid.
Let’s dive in.
Back in 2015, lab-grown diamonds were only about 10% cheaper than natural ones. Now, they sell for around 90% less than natural diamonds of the same size and quality.
Why? Here’s the short answer: Supply is catching up with demand — and then some.
Since 2020, the production of lab-grown diamonds has ramped up fast.
Advanced technology, bigger factories, and investment from large producers mean these diamonds are coming to market quicker than ever. And as the supply grows, prices naturally fall.
Compare it to any other product — when there’s more of something than people want to buy, sellers have to adjust their prices to move inventory.
In the lab-grown diamond world, this is exactly what’s happening. While natural diamonds have decades of supply stability, lab-grown stones are still in a scaling phase, creating volatility and risking margin erosion.
The trend isn’t expected to reverse anytime soon.
For jewelry store owners, this means relying solely on stone cost to set prices is risky. You need strategies that account for more than just the diamonds themselves.
Related Read: Pricing Jewelry: 9 Strategies To Boost Sales
One of the biggest mistakes jewelry stores make is sticking to a “cost-plus” pricing approach — simply adding a markup to the stone’s price. With lab-grown diamonds, that method is dangerous because the cost of the stones is dropping, sometimes faster than you can adjust.
The alternative: value-based pricing.
Instead of pricing based only on the stone, consider the full experience your store provides:
When you price based on value rather than cost alone, you’re less vulnerable to fluctuations in the diamond market.
Another way to protect your margins is by bundling products and services. Customers love a simple, all-in-one solution, and bundling lets you incorporate things like:
When you bundle, customers perceive higher value without focusing only on the price of the diamond. They’re paying for the experience and service.
Bundling also helps you avoid the trap of undercutting online competitors.
Many e-commerce websites sell the stone at a lower price but don’t provide the in-person experience, sizing adjustments, or immediate help if something goes wrong. You can offer those extras as part of the bundle and justify a higher price.
Not all customers have the same budget or priorities, which is why a tiered pricing strategy works well.
Think in terms of good, better, best:
Tiered pricing lets you cater to multiple segments of customers without lowering prices across the board.
Some buyers are fine with entry-level offerings, while others are willing to pay for the top-tier experience. It also helps guide customers toward your higher-margin options through subtle upselling.
Lab-grown diamond prices can shift from month to month, but changing your prices daily can confuse customers and overwhelm your staff.
Instead, establish a monthly pricing review process:
Monthly reviews strike a balance between staying competitive and keeping a consistent customer experience.
One of your strongest weapons against falling diamond prices is service differentiation.
Online retailers can’t replicate:
Emphasize what makes your store unique so you can justify prices that are higher than online alternatives. Customers are willing to pay a premium for service, expertise, and the ability to see and feel the product in person.
Your pricing strategy needs to consistently communicate these advantages. Marketing, in-store messaging, and staff conversations should all highlight the value beyond the stone itself.
Related Read: Jewelry Customer Management: 10 Tips & Tools
Even with smart strategies in place, you can unintentionally hurt your margins.
Watch out for the following mistakes:
Following these lab-grown diamond pricing tips is essential, but keeping up with the fast-changing prices can feel overwhelming.
That’s where Jewel360 comes in.
Jewel360 is an all-in-one, cloud-based jewelry point of sale (POS) system made for jewelers.
Here’s how it helps you when it comes to pricing lab-grown diamonds:
Want to protect your margins on lab-grown diamonds while giving customers a better experience? Schedule a demo today to see how these strategies come to life.