Just because it’s the most competitive category doesn’t mean you can’t make money.
Let’s face it — bridal is the most important part of any jewelry business. It can also be one of the most competitive areas thanks to its stellar status. Everyone wants a piece of the action and sometimes it feels as though you are almost giving the product away just to get a sale.
So how can you make this part of your business more profitable? Here are our best tips to get the most from this important part of your store.
1 Review your margin policy. Are you achieving the best margin you can on your product? Fast sellers in particular need to be fully priced. Our KPI reports allow you to determine not only what items are selling well across the industry but the price points they are selling for. Are you underpricing a proven seller compared to the competition? Do you re-price fast sellers upwards once they prove themselves?
2 Develop a strategy to combat discounting. Many retailers are frustrated by requests for discount but few have a strategy to deal with it. Instead of becoming frustrated, see it as a plus: the customer has just given you a buying signal — they want the item. You don’t need to roll over at this point. Test how serious they are about wanting a price reduction with an initial “no.” If they insist, ensure they are ready to commit before going any further.
3 Use technology to customize and personalize. CAD design technology and prototype models can help you offer a larger range of merchandise without the heavy price tag. Allowing customers the opportunity to create their own unique piece or to customize an existing item (which can often be delivered to you within 48 hours) is a cost-effective way to cater to a wider buying audience at an improved margin.
4 Establish added value and a point of difference. You need to give customers a reason to buy from you. Having the “best service” is not an answer. Create more value for your customer so their focus is less on price and more on how they stand to benefit.
5 Restock proven winners. Whether you sell “off the shelf” or focus more on custom, certain styles, sizes and cuts will be the proven winners. Make sure you have these in stock. Don’t be afraid to continue stocking proven winners — with only 20 percent of your inventory being profitable, they are hard to find, so don’t abandon them once they are bringing results for you.
This article originally appeared in the September 2017 edition of INSTORE.