I had pretty much the same conversation, and also bought a ring that wasn't too expensive. I did feel a bit stupid for even spending that much once I saw AliExpress had a similar ring for $2:
I actually ordered one to see what it's like: The band looks exactly the same (I'm guessing it's just plated or a alloy though) and the fake diamond looks more shiny and isn't as heavy as it should be.
Wow indeed ! I had to dig some prices to see if that was indeed possible, especially with shipping. Made me realize the real value of $1 outside supermarket.
So, a top branded (Swarowsky) quality for a 1 ct equivalent CZ will run for $2, unbranded (AAAAA) for $1 and that's when you buy them by the unit.
Good quality (AAA) one bought wholesale will not go over 0.30$. That's still for good quality, if you cut down on quality price can drop much further (try ebay-ing). Note that AAA quality is what I buy for my coloured stones and they are IMO magnificent.
The material of the ring is silver plate, so that is basically worth nothing. Even if it was solid silver you would not have 1$ worth there, so $0.10 is probably generous.
2$ is probably 500% margin -at least- on the raw material (wow!) - I would not be surprised they didn't make 100% with manufacturing and shipping included. Impressive times to be alive.
http://www.aliexpress.com/item/GH620-Italina-brand-Classic-d...
I actually ordered one to see what it's like: The band looks exactly the same (I'm guessing it's just plated or a alloy though) and the fake diamond looks more shiny and isn't as heavy as it should be.