How is the price of a diamond engagement ring determined?


Regarding the price of a diamond engagement ring, there are a number of factors culminating in a business model that combines ‘Antwerp-based’ and ‘online’ to offer a strong price advantage:

  • Direct buying from the source in Antwerp, for centuries the world centre of the top quality diamond trade. More than 80% of the trade in rough diamonds takes place in Antwerp as well as 50% of the trade in polished diamonds. It is therefore only logical that the best diamonds can be selected for the purpose that they ought to serve in the very heart of the international diamond trade, and then this at the best prices. Another advantage of Antwerp is that all the craftsmen needed to fabricate a diamond jewel are also located here, which results in interesting synergies and know-how sharing. These are goldsmiths, setters, engravers and diamond experts. They all work in their own workshops in this unique diamond district. Antwerp is an economic hub due to the presence of an international port and the dynamic fashion industry. This special character also creates an effective interplay with diamonds, for example in design.
  • Direct selling – E-commerce is a rapidly growing trend with a high growth potential in Europe. In the future e-commerce will also become an established channel for the sale of diamond jewellery. It is worthwhile for companies to take up this trend as e-commerce can skyrocket your turnover. The higher the percentage a jeweller can sell online compared to sales in a showroom, the lower their prices by saving on costs needed to maintain expensive retail outlets and luxurious shops. Last but not least, an online shop is also very conveniently open 7/7 and 24/24 to all customers all over the world.


Direct selling by disintermediation results in a significant shortening of the business chain, which translates in lower prices of diamond engagement rings for the final customer. There are a number of additional factors that can reinforce this benefit even more:

  • An efficient stock control is based on production after sales. The price of a diamond engagement ring can be lower if the production only begins at the moment the customer buys the diamond jewel, for the maintenance of a limited supply implies the development of a low-capital intensive business model.
  • Online marketing campaigns strengthen the focus on the product. Any investment goes directly to the jewel. The investments can thus directly be seen in the diamond ring itself. In terms of marketing, the focus is on online and digital marketing rather than on printed marketing. BAUNAT for example, chose not to sponsor traditional events or celebrities. We have opted to invest in service, optimizing the e-store and the product because customer satisfaction can lead to a strong effect through viral communication and word-of-mouth advertising.
  • Expertise and knowledge of employees and shareholders with a broad network who have been active for decades in the diamond trade and who now know the sector through and through. In this way you are able to always purchase the cheapest diamond with the best quality.

BAUNAT embodies all of the above. As a result, we can offer our customers a wide range of diamond engagement rings at unbeatable prices.