How Do I Know if Jewelry is Priced Fairly?

Written By Allie Perry February 1, 2025

You've seen them before—big, flashy sale signs boasting "50% OFF!" or “Limited-Time Deal!” But are you really getting a bargain, or are you being manipulated by a pricing strategy designed to make you spend more on your jewelry? Spoiler, if you’re shopping with a big corporation, it’s probably the latter. It’s called decoy pricing, and it’s a common tactic big businesses use to influence your behavior as a consumer. I’ll teach you how you can determine if the sale you’re seeing is offering legitimate value, or if it’s being used in a predatory way.

What Is Decoy Pricing?

It’s basically a mind game played at your expense. Decoy pricing is a psychological pricing strategy that introduces an intentionally less attractive option to make another product seem like a better deal. For example, imagine you’re buying a ring:

• Option A: A simple silver ring for $50
• Option B: A silver ring with a gemstone for $200
• Option C (the decoy): A silver ring with a smaller gemstone for $190

Because the $190 option is so close in price to the $200 ring but offers significantly less value, the marketer’s hope is to subtly nudge you toward choosing the $200 option, which now seems like the best deal. I mean, you’re supposedly getting a much bigger/better/shinier gemstone for only $10 more! How could you resist‽ For you it’s only $10…but think about the chain jewelry stores you’ll find opposite one another in the mall, like Kay Jewelers or Zales, who serve tens of millions of customers a year. If even half a million of those customers opt for the ring that costs $10 more, that’s $5,000,000 in extra revenue for the year. Oh, and you can double that number right off the bat, because while Kay Jewelers and Zales seem like competition, they’re actually owned by the same parent company, Signet Jewelers. And if you think you can avoid these practices by shopping at places like Jared, Blue Nile, or Diamonds Direct, think again- they, and a handful of other jewelry stores and online retailers, are all owned by Signet Jewelers. You only have the illusion of choice, and they all have the same goal in mind- record breaking profits.

But what’s worse than nudging you to buy a legitimate piece of jewelry that just happens to be more expensive? Lying about the value itself.

Predatory Pricing Practices: Fake Sales and Inflated Prices

Some shady businesses take decoy pricing even further by artificially inflating prices before applying a so-called "discount." That amethyst necklace you fell in love with that was always meant to sell for $80 might be listed at $160 instead- and then "marked down" by 50%. You'll think you’re getting a fantastic deal, but in reality, you’re paying exactly what the retailer intended from the beginning.

This tactic is particularly common in industries where pricing can be subjective, such as jewelry, clothing, and home goods. Some businesses rely on these deceptive strategies, using fake discounts to create urgency and drive purchases. It’s technically legal for a company to mark a product at a higher price just so it can be marked down later without hurting the company’s profits. But if the company’s intent is misleading consumers like you, it’s called “False Reference Pricing” and is generally illegal under most consumer protection laws.

A sneakier version of this that I’ve frequently encountered in the grocery store are the little sale tags that say “DEAL: 2 for $5!” when the regular price of each item is already $2.50, or worse- LESS than $2.50.

I was shopping for sneakers once and found a sale sticker on a box of sneakers I wanted. The sale sticker has been stuck on crookedly, showing part of the MSRP underneath, and I decided to peel it off and see the initial price. Imagine how shocked I was when the MSRP was lower than the sale price. That was the fakest “sale” I ever came across in person, and the management at that store had no answer when I questioned them about it.

What You Should Watch Out For

If you want to avoid falling for these tricks, here’s what you should do and what you should look out for:

• Compare prices across different retailers. If one store always seems to have massive discounts while competitors have steady, reasonable pricing, that could be a red flag.
• Be wary of “was” prices. If a store claims an item was originally much higher in price, check its historical pricing using tools like price trackers or by researching past sales.
• Watch out for limited-time deals that never end. If a business is constantly running “final day” sales, they might just be using pressure tactics rather than offering a real bargain.
• Trust your instincts. If something seems too good to be true, it probably is. 

You should also make every effort to be educated about the purchase you want to make, especially it has a high price tag. For example, if you see one store selling a two carat diamond ring at a fraction of the cost of their competitors, ask yourself why. Is the less expensive ring really two carats? Is the stone the same color and clarity as the ring at the more expensive store? Is the more expensive store selling one single stone that’s two carats while the “bargain” store is selling a cluster of multiple diamonds that have a combined weight of two carats? When you’re comparing prices, especially with fine jewelry and precious gemstones, it’s vital to compare not only the cost, but the quality of the piece you’re buying.

What Is Transparent Pricing?

Transparent pricing means companies, and especially artisanal small businesses like mine, set fair, consistent prices without deceptive markups or fake discounts. No gimmicks, no strings, just honest work sold for an honest price. These businesses don’t manipulate customers into thinking they’re getting a deal when they’re not. Instead, they offer competitive, honest pricing from the start.

Transparent pricing often includes:

• Clearly stated costs with no hidden fees
• Honest, consistent pricing without artificial inflation
• Genuine discounts based on real markdowns, not price manipulation

Why You Should Appreciate Honest Pricing

At Allie Perry Designs, I don’t engage in decoy pricing or fake sales, and I always aim for an experience that honors you as my customer as well as the health of my small business. I treat you the way I’d want to be treated as a consumer. I don’t rely on flashy discounts to drive sales—instead, I work year-round to earn your trust by offering fair prices every single day. You’ll never see a “75% OFF” signs at my store, because I’m not interested in playing mind games with you to trick you in to buying the jewelry I make so carefully by hand. You can always be confident that what you’re paying is a fair reflection of the product’s value. And because I don’t go back through my inventory and inflate the prices to match the current metals market, sometimes you’ll even find absolute bonkers deals because I made those pieces at a time when the the cost of the metals I used was significantly less!

By supporting businesses like mine that practice transparent pricing, you’re encouraging ethical business practices and discouraging manipulative sales tactics. In the long run, this creates a marketplace where quality and trust matter more than gimmicks and psychological tricks.

The Bottom Line

Decoy pricing and fake sales are everywhere, unfortunately, but after reading this article, you’re now an informed consumer with the power to see through them! By recognizing predatory practices, researching prices, and supporting small businesses like mine that value honesty, you can make smarter purchasing decisions and avoid falling for artificial deals.

If you’re ready to shop for handmade, one-of-a-kind jewelry that’s priced fairly and honestly, check out my current selection at allieperrydesigns.com.