This is the Laher Engagement Ring Journal.

Today, we’re talking, ‘budget’…

Thinking about ‘price’ in this industry is a strange one…

Unlike every other shopping experience, budget is generally allocated prior to engaging in the product search. Then, you look to maximise or stretch your budget as best you can. 

The funny thing is, we as the merchant, think about it the same way. We don’t benchmark in the same way you would in other industries. Price is less of a reflection on ‘who we are’ - more so, what we are providing. 

Price carries heuristics that are psychologically built in based on the perception of premium, fair and cheap product categories.  

By nature of how these are built in over time, it’s going to be hard to change these mentalities. 

So, I’m not even going to attempt to do so. 

However, I do employ you to think about engagement ring shopping as a value-based trade off. 

Whether on the product/gemstone level, OR the trade-offs that you make in other areas of life in order to afford a particular engagement ring. 

Let me give you three examples…

1. The trade-off between a coloured gemstone and diamond. This generally comes down to the trade-off between the unique individual characteristics of a coloured gemstone and the brilliance and sparkle of a diamond. 

2. The trade-off between a natural diamond and a lab grown diamond. 

3. The trade-off between a stretched budget and a reasonable budget. 

You may think, where am I going with this? 

Well, I’m going to use example number 3, to speak about many of our mid tier designs and how you should be considering these. 

Take our latest symmetrical cluster design that was released at $3,770. Based on industry averages in Australia, this sits about 20% below the average cost. 

We can fully appreciate that this may perfectly slot within your current budget. However, another scenario that I’d like to introduce is the trade-off you make today that is exploiting opportunity risk. 

Opportunity risk is an important one to remember. Stretching yourself on a budget today may limit your opportunities to enjoy other areas of life. 

Don’t consider a lower tier budget as less of a commitment, but exercising your ability to capitalise in other areas - such as a better honeymoon, putting a larger down payment on a house, and so on... 

Even if your budget was 8-10k, your partner may appreciate the choice to allocate a portion of this to other aspects of your life, whilst you settle on an engagement ring that sits well below what you had previously planned to spend. 

If not already, you and your partner will be tackling many financial decisions together in the future and this choice will be the first that will have a significant impact on the opportunities you have. 

We are constantly hearing stories of couples being stretched on their budgets when they come to make their engagement ring decision. By jewellers, inlaws or society as a whole. 

That is not us. In fact, I am telling you the exact opposite. 

The symbolism of your commitment alone is enough. The ring, honestly, it’s that important. A strange thing to say as a jeweller, but it’s the truth. 

We will always have a range of designs to suit every budget and this doesn’t mean the pieces hold any less significance. Often, its purely down to a smaller size of gemstone. Just as beautiful and just as important in gesture alone. 

When you’re down on one knee, the swing tag hanging from the ring means absolutely nothing.