Sam’s $560,000 Pendant: Will Anyone Buy It?
By George Anderson
Perhaps actually selling it isn’t the point. Regardless, whether the idea is to send a message that it can offer merchandise on par with the more upscale Costco, simply draw attention to its new line of colored diamonds or sell an extremely expensive piece of jewelry, Sam’s Club will put a one-of-a-kind 3.74 carat pink diamond pendant valued at $813,000 on sale at an everyday low price of $560,000 on Friday, May 6.
In a released statement, Sam’s Club jewelry expert Dee Breazeale said, “Fancy colored diamonds are the hottest trend in jewelry. We are thrilled to bring the fancy colored diamond trend enjoyed by Hollywood’s elite to the general consumer population. And the timing of this pendant couldn’t be better. What mom wouldn’t be delighted to receive a piece of jewelry worth $813,000 for Mother’s Day?”
Delighted indeed, but for the vast majority of Sam’s business and consumers members not prepared to shell out $560,000 there are other options, according to Ms. Breazeale.
“Sam’s Club has a truly wonderful selection of jewelry for the person that wants the best quality at the best price. We offer members a fantastic value and the word is getting out! People who discover Sam’s Club jewelry are really amazed at the quality and the great prices.”
Moderator’s Comment: What is Sam’s Club trying to accomplish with its one-of-a-kind pink diamond pendant? Has it succeeded? –
George Anderson – Moderator
This is just a publicity stunt. Anyone with the wherewithal to pay $560,000 for something is going to have the sophistication to buy it cheaper somewhere else. A list price of $813,000 means it’s probably worth $400,000.
This is just a publicity stunt, but it could backfire. If the stone goes unsold for any length of time, it will reflect badly on Sam’s.
For all practical purposes, perception IS reality in the marketplace. I don’t know what Sam’s actual thoughts were in this gambit, but I believe it will clearly communicate to a wide audience that one might expect to find SOME very upscale merchandise at Sam’s priced, as their usual practice, at a very attractive discount. If you are looking for quality at a low price, Sam’s is a good place to look. And they will not be limited in the range of “quality” they offer. I believe this is the message, and it is a great message. I regularly recommend that supermarkets have a “dollar” aisle feature for the very same “message” reasons. The message it sends is more important than the merchandise sold.