CGA: Item on sale lesser quality than expected

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Jeeves

301 posts

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#104824 21-Jun-2012 08:45

Hi Guys,

I bought a ring from MH a few months ago on sale. Bought it for around $1500 and it's RRP was $3099. At the time I took up their offer of sending it to get independently valued. The valuation came back saying that the diamond was several grades lower in quality and clarity. The store manager wasn't too pleased with this so ordered another ring from China for me. This 2nd ring came in and while the quality was ok the clarity was again lower than what it should have been.
When I first bought the ring, MH gave me a "Certificate of Authenticity" which goes on about what I purchased and states the value, clarity etc (Mostly for insurance purposes). This cert states what the ring should be, not what it actually is.

Now MH have offered to order in a 3rd ring, however this isn't really an option as it will take 8 weeks, and I need to "use" the ring before that 8 weeks is up, after which I do not wish to swap out or return the ring I use.

So I did mention to the manager that I would be happy to take the 2nd ring, with a partial refund of say $100 or something to make up the difference in quality, but she harped on how I bought the ring for a special price and she couldn't really do that.
I can understand her view point, but my view point is I paid X dollars for a product I did not get. To me the fact it was on sale is irrelevant. I could argue the point that if the sale price was priced around the quality of the jewel I was actually getting, it could have conceivably gone lower than the $1500.

So am I right in asking for a partial refund?

Returning the ring altogether and getting a full refund is not an option, nor is replacing the ring with another design.

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#644131 21-Jun-2012 08:56

What was the valuation on the 2nd ring? More than what you paid or less?

Can MH get another one from another of their stores?

Byrned

455 posts

Ultimate Geek

#644133 21-Jun-2012 09:05

This is covered under the fair trading act. The goods aren't the same as advertised so either ask for a refund or goods matching the description (and give them a timeframe to do so).

Jeeves

301 posts

Ultimate Geek

#644137 21-Jun-2012 09:39

Im not sure what the $ value was on the 2nd ring, but I vaguely recall her quoting a number in the $2000's (It was over the phone).

Byrned: As mentioned, getting a full refund is not an option for me, and they have offered to get another ring in from the manufacturer but it will take too long as I need it before that timeframe.

Apparently the ring was very popular so no other stores have it. (I bought it in early May).

xpd

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#644141 21-Jun-2012 09:44

MH are a pain to get refunds etc out of, wife purchased a ring, and after a few months noticed one of the settings had dropped lower than the rest.... it went back 3x for the same issue... in the end the manager agreed to refund - the day wife went to get refund, got told "no, we dont refund, store credit only" - wife argued with them and basically only got a refund by threatening to let our sick 4 yr old throw up all over the store.

We dont deal with MH at all anymore after that experience.

So good luck with getting anything decent out of them.. :(

Gavin / xpd / FastRaccoon / Geek of Coastguard New Zealand

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NonprayingMantis

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#644142 21-Jun-2012 09:45

Likely the best you will get is a refund.
If I am being cynical, then seems like a strategy is to price a $1000 ring at $3000, then ?discount? it to $1500. If the person gets it valued and realises it was rubbish, and refuses an equally crummy replacement, then give them a refund. If not, you are quids in.

Reminds me of this fable:

?A city boy, Johny, moved to the country and bought a donkey from an old farmer for $100.00. The farmer agreed to deliver the donkey the next day.
The next day the farmer drove up and said, ?Sorry son, but I have some bad news, the donkey died last night.?
Johny replied: ?Well then, just give me my money back.?
The farmer said: ?Can?t do that. I went and spent it already.?
Johny said: ?OK then, just unload the donkey..?
The farmer asked: ?What ya gonna do with him??
Johny: ?I?m going to raffle him off.? (Note: To raffle is to sell a thing by lottery ? draw lot ? to a group of people each paying the same amount for a ticket)
Farmer: ?You can?t raffle off a dead donkey!?
Johny: ?Sure I can. Watch me. I just won?t tell anybody he?s dead.?
A month later the farmer met up with Johny and asked, ?What happened with that dead donkey??
Johny: ?I raffled him off. I sold 500 tickets at two dollars apiece and made a profit of $898.00.?
Farmer: ?Didn?t anyone complain??
Johny: ?Just the guy who won. So I gave him back his two dollars.?

stevenz

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#644151 21-Jun-2012 10:22

The stones that MH use are usually of a very poor grade (just look at the valuation form). Reputable jewellers would rarely use such low quality stones unless it was a special request for some reason.

There's a reason that they remain in a perpetual state of "Sale!" yet still make huge profits.

@KnightNZ

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#644160 21-Jun-2012 10:29

The general business model if I'm not mistaken is sell at a cost price of 32% so at fifty percent off they are still making money ... I'd say go to a wholesale jeweller

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mattRSK

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#644161 21-Jun-2012 10:36

Congratulations

surfisup1000

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#644181 21-Jun-2012 11:23

stevenz: The stones that MH use are usually of a very poor grade (just look at the valuation form). Reputable jewellers would rarely use such low quality stones unless it was a special request for some reason.

There's a reason that they remain in a perpetual state of "Sale!" yet still make huge profits.

I've always been suspicious of MH.

They have these sales of 50% or more off, and it is usually only on the lesser quality trinkets. And, they rely on confusion (caused by such large discounts) and lack of customer knowledge.

eg, I bet they'd never give 50% discount on 24 carat gold items. Too easy to work out the true value.

To get the true market worth, weigh the gold, rate the gem and look up the prices on the international market for such a gem.

Workmanship adds a little bit of value so you can allow for that if you like.

Jeeves

301 posts

Ultimate Geek

#644192 21-Jun-2012 11:37

Hrm, thanks to this thread I've done some research on diamond clarity.

I feel ripped off now :(

John2010

532 posts

Ultimate Geek

#644201 21-Jun-2012 11:51

Jeeves: Hrm, thanks to this thread I've done some research on diamond clarity.

I feel ripped off now :(

I have a friend who used to own a quality jewellery manufacturing business overseas. He has been exposed to the pedlars of mass produced jewellery and says is fine for the cheap trinkety stuff if that is all one is after but spend more and it is still all second and third class stuff along the lines of "never mind the quality, feel the width".

As olthers have said, if one wants quality item one should go to a reputable quality retailer or manufacturing jeweller.

We buy jewellery from MH and similar but only for the purpose of costume jewellery, and they are great for that.

Jeeves

301 posts

Ultimate Geek

#644204 21-Jun-2012 11:56

Unfortunately we had a very small budget, so when we saw this, which was supposedly on sale for half price, we grabbed it.

Ah well. I'll be going down this afternoon to view the 2nd ring. I'll be sure to have a much more frank chat now that I'm armed with a bit more info.

trig42

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#644221 21-Jun-2012 12:20

It will be OK, getting a diamond ring from a manufacturing jeweller will cost a lot more than $1500. If you had paid full price, you would be right to feel ripped off, but if an independant valuer has valued it at over $2000, you got a good deal.

Congratulations on the upcoming event, don't let this taint it - it will be great.

stevenz

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#644225 21-Jun-2012 12:26

Valuers are not created equal as well. I've seen a certain large "specialist" valuation company produce a number of quite "creative" valuations.

I've seen things valued both significantly above, and below what they were purchased for, often quite shortly after the fact as well which should largely negate market fluctuations in gem/gold prices. This isn't an indication of incompetence or fraud etc - certain aspects of valuation do come down to the opinion of the valuer (perceived workmanship & overall quality of the item etc)

In this vein, don't take watches to jewellers to be valued, and don't take jewellery to a watchmaker.

@KnightNZ

John2010

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#644227 21-Jun-2012 12:30

Jeeves: Unfortunately we had a very small budget, so when we saw this, which was supposedly on sale for half price, we grabbed it...

But on the fortunate side 99.9% of the people who look at it on the lucky finger will not know what the quality of the stone is and furthermore many probably wouldn't even know that gemstones differ in quality.

And congratulations.

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