Wants to Make Sightholders Pay Fee - Feb.2005
De Beers has instituted 3% price increase at the January sight, that could be
as much as five to six percent on the bigger stones. Initial indications are
that most categories got the raise. We think these increases will become more
frequent with the dollar low against the Euro and the South African Rand. The
bulk of these increases will therefore impact traders who deal in dollars.
This is leading consumers to trade downward. We are already getting more
calls for SI stones, as long as they are eye-clean.
De Beers has also announced that it will start making sightholders share the
burden for the DTC consumer advertising. According to some press accounts,
sightholders will have to pay a 2% charge to help underwrite the cost of
advertising, as well as things like its sales system. While it is still not
clear how exactly it will work, it could be another charge added on for the
consumer. v
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