The Economics of Rough Diamond Yield
The price difference between a Round Brilliant and a Princess cut starts at the polishing wheel. To create a Round Brilliant with an 'Excellent' cut, a manufacturer must polish away 50% to 60% of the original rough diamond. This massive weight loss is factored into the high per-carat cost of round stones.
Conversely, the Princess cut is an incredibly efficient use of a well-formed octahedral rough crystal. Manufacturers can often yield two Princess cut diamonds from a single rough stone with only 20% to 30% weight loss. This high yield translates directly to a significantly lower wholesale price per carat.
Retail Markup and Inventory Strategy
Because Princess cuts are substantially cheaper at wholesale (often 25-35% less than an equivalent Round), they offer retailers flexibility. A retailer can either pass the savings to the consumer—offering a larger looking stone for the same budget—or maintain a higher percentage markup compared to highly commoditized Round Brilliants.
While Round Brilliants turn over faster and represent the majority of sales, maintaining a curated selection of high-quality Princess cuts allows retailers to capture budget-conscious bridal clients while maintaining healthy blended margins.