【Is it a scam!?】Is the purchase price offered by Jewel Cafe really that low? To investigate their negative reviews, I visited one of their branches myself to experience it firsthand.

It has hit a new highest record for precious metals, especially in the gold trading market in April 2020! 

For those who are considering selling their precious metals such as jewelry etc, have you decided which store to sell? 

Many people research through word-of-mouth and online reviews before going to sell.

In the realm of recycle purchase chain stores, one often encounters recurring sentiments in reviews or comments such as "The prices offered here are quite low," "They're ripping customers off," or "Despite being told there's value, it's hard to sell." 

These comments shed light on a common concern regarding the disparity between expected and actual purchase prices, especially when it comes to precious metals. When individuals approach certain precious metal stores for assessments, they sometimes find the offered price to be significantly lower than anticipated, sometimes even less than half of what they originally paid.

In this discussion, we'll delve into the reasons behind these prevalent rumors of underwhelming purchase prices for precious metals, and explore strategies to ensure a more favorable selling outcome, potentially preventing losses. If you're contemplating selling your precious metals, the insights provided here could serve as valuable reference points.

Is there negative feedback about selling items to Jewel Cafe? What are people saying about Jewel Cafe in online reviews and comments?

You may see various reviews or comments about Jewel Cafe, a “recycle specialty store” you often see online. I have picked up some of them, therefore let me introduce them.

Jewel Cafe's positive reviews 

"Excellent service and loved the hospitality! The staff is mostly polite and very generous." "Highly recommended."

"Best service and the best environment to deal with!!!"

"My Louis Vuitton bag’s inner became sticky, but the staff assessed it nicely."

"The staff kept smiling at me during the assessment. She treated me well even though I did not sell it."

Jewel Cafe's negative reviews

"I’m shocked because it is much cheaper than when I bought it."

"Long waiting time for the assessment."

"They rejected my item by saying they could not buy it."

And so on… One intriguing aspect is the presence of reviews stating both "High price!" and "Cheap price" for Jewel Cafe's services.

Certainly, the pricing offered by Jewel Cafe is primarily influenced by factors such as the item's condition and its rarity value. When it comes to precious metals, such as rings and necklaces, Jewel Cafe often offers competitive prices, for wedding rings, engagement rings, and anniversary pieces. 

Many individuals approach Jewel Cafe with the expectation of receiving fair compensation, particularly if they originally purchased the items at a higher price. It's advisable to first seek an assessment at a specialized store to gauge the potential value of your items accurately.

In my recent experience, I decided to sell my precious metals at Jewel Cafe, intrigued by their reputation and pricing policies.

I recently underwent a second-hand assessment at Jewel Cafe.

How much is the value of the K18 gold ring with stones?

I promptly visited the nearby Jewel Cafe I found online, carrying with me a K18 gold ring adorned with small diamonds that I purchased for around RM2,300 a while back. (Note: The diamonds are small, hence there is no certificate.) Initially, I wore it daily, enamored by its charm, but lately, it's been collecting dust, prompting me to consider replacing it with something new.

Having visited second-hand shops before, I felt a tad apprehensive for my first visit to Jewel Cafe. Unlike my previous experiences with male attendants, I was pleasantly surprised to be greeted by two female staff members at Jewel Cafe, which provided a sense of security, particularly for a female customer like myself.

Upon expressing my inquiry about the potential selling price, the staff kindly accepted my item and requested a brief wait. Despite having just one item to assess, I braced myself for potential disapproving looks, which, fortunately, never materialized.

The assessment process, spanning roughly 5 minutes, felt remarkably swift, aided by the hospitality of the staff who offered beverages and engaged in friendly conversation.

"Apologies for the wait. Here's the assessment," they finally returned, revealing a valuation below RM1,000. While the offer was notably lower than my original purchase price, I couldn't help but feel pleasantly surprised—it exceeded my expectations by approximately RM500.

The reason why the satisfaction of Jewel Cafe’s purchase was higher than expected previously

Previously, my anticipated price was approximately RM500, based on the "material weight" alone. I assumed the standard practice involved weighing the item on a kitchen scale and multiplying it by the current market price of the raw material.

However, I discovered that the published unit price per gram reflects the rate for trading in 1 kg units, which doesn't necessarily translate to the final price, especially for reputable companies that levy trading fees. Additionally, my item being K18 gold rather than "pure gold K24" means a 25% reduction in purity, a factor that should be considered.

Moreover, since my item was sold in several grams, this aspect needed to be factored in as well. Ultimately, selling at the same price would yield zero profit for the store, making it natural for the purchase price to decrease for the store to make a profit.

Although I could have left with the initial offer, I felt that it wouldn't suffice to truly "experience second-hand selling." Hence, I decided to inquire further.

“Um… Why the price is much higher than I expected?”

The answer was quite surprising, but if you think about it, it’s convincing.

“It comes with many small melee diamonds. We have included them!”

Based on the story, it's common for shops to refrain from quoting prices for colored stones unless they are relatively large diamonds. Similarly, for diamonds, the value is significantly influenced by their size (carat), and only a few shops offer visible prices for diamonds unless they possess certificates or are of substantial size. Many shops also tend to overlook small melee diamonds during appraisals.

However, at Jewel Cafe, they took a different approach by assessing the melee diamonds as part of the overall design, emphasizing that their value is added to the precious material based on size. Depending on the item, it's determined whether to sell it directly at the store or through auction, often considering factors like the design's popularity.

Reflecting on the purchase price in the trading market, I genuinely felt that Jewel Cafe's assessment was fair and aligned with industry standards.

Considering the negative reviews such as “Rip-off” and “Cheap”, it was a high purchase compared to my expectations!

What factors contribute to a store offering lower purchase prices?

Be careful with the shops that have too much-fixed cost

After surveying, many stores purchase gold and branded items. However, besides big companies like Jewel Cafe, there are also stores where it is said that “their offer price is low”.

The reviews indicate low and uncertain purchase prices often originate from unknown sources, possibly within the same industry. While some reviews may not accurately reflect the reality, historical data suggests that certain stores indeed offer incredibly low purchase prices.

A distinguishing feature of such stores is their tendency to appear overly luxurious. These establishments, with their large and opulent interiors and numerous staff members, often incur intermediate costs. To sustain these expenses, they may need to keep purchase prices low, as monthly expenditures must be offset by profits from purchases.

Despite perceptions that such stores may offer high prices due to their upscale appearance, the reality might be quite the opposite.

Is a store that purchases a wide range of items better?

Looking back at past negative reviews on the internet, it's apparent that many purchase stores with excessively low purchase prices specialize solely in precious metals.

Conversely, stores offering considerably higher prices typically deal with a variety of items beyond just precious metals, such as branded bags and accessories.

For chain stores specializing solely in precious metals, profitability hinges solely on transactions involving these metals, which can justify lower purchase prices. However, stores dealing in branded items and other merchandise can diversify their revenue streams, allowing them to potentially offer higher purchase prices.

Regardless of reviews, it's advisable to consider these factors when evaluating second-hand specialty shops.

The “standard” of the seller is also one of the factors.

One reason for feeling a product is "low-priced" despite its reasonable cost could be due to an internalized standard based on the initial high purchase price of similar items. 

This tendency is particularly evident in the realm of jewelry design incorporating gemstones, where the retail price often greatly exceeds the material cost. This phenomenon is commonly perceived as follows:

The selling company includes labor costs, rent, etc. in the profits. 

Fees for designer and manufacturer are also paid from there.

Consequently, prices tend to be steep, particularly for items considered pivotal in life such as engagement and wedding rings. It's common for these items to be marked up by as much as tenfold from their cost price.

Conversely, buyers often rationalize their purchases by thinking, "I paid this much for it, so it should be worth around that much!" For instance, if someone purchases a ring for RM10,000, they might expect its resale value to fall within the range of RM3,000 to RM5,000. However, discovering a significantly different valuation can evoke feelings of being misled or overcharged.

While precious metals contribute to the high cost, resale prices typically reflect only the material value, excluding design and labor fees.

In the end, were you satisfied with the assessment price of Jewel Cafe?

It’s a little off-topic, but the purchase prices at Jewel Cafe are highly appealing to me!

Of course, the purchase price was higher than my expectation.

My good impression of Jewel Cafe

They told me the reason for the purchase price. 

The female staff was friendly and made me feel comfortable.

The assessment took around 15 minutes.

These are the reasons that I have excellent impressions of Jewel Cafe! Of course, the purchase price is the most important, but I would prefer to visit a store that feels good.

JJewel Cafe boasts several locations across the Klang Valley, making it easily accessible. Their positive reviews extend beyond precious metals to include branded bags, luxury watches, and more. Be sure to explore their offerings!