What is the term for a premium price for selecting stones from a parcel?

What is the term for a premium price for selecting stones from a parcel?

• A. Parcel premium
• B. Pick price
• C. Time value price
• D. Grade premium

Answer: (B)

The main idea here is the extra value added by selecting stones from a larger parcel. When a seller or broker pulls out individual stones to meet a buyer’s exact preferences (size, shape, color, clarity, etc.) from a bundle, they’re performing a selection service. That service is priced as the pick price, a premium that compensates for the time, effort, and expertise involved in sifting through the parcel to extract stones that fit the buyer’s specs. This distinguishes it from simply paying the base price for the parcel or for the stones themselves, and from other concepts like a grade-based premium or a general parcel premium. The term pick price specifically captures the cost of the selection process itself.

The main idea here is the extra value added by selecting stones from a larger parcel. When a seller or broker pulls out individual stones to meet a buyer’s exact preferences (size, shape, color, clarity, etc.) from a bundle, they’re performing a selection service. That service is priced as the pick price, a premium that compensates for the time, effort, and expertise involved in sifting through the parcel to extract stones that fit the buyer’s specs. This distinguishes it from simply paying the base price for the parcel or for the stones themselves, and from other concepts like a grade-based premium or a general parcel premium. The term pick price specifically captures the cost of the selection process itself.