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3 Ways to Instantly Increase Your Store Profits

These three small changes can yield big results to your bottom line.

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IF YOU’VE been the owner of a retail fine jewelry store over the past few years, you may feel like you have a target on your back — and it has nothing to do with being vigilant about security. We are being squeezed by internal forces, like the inability to find qualified sales help and a decline in overall store traffic, as well as external forces like deep internet discounting and the fickleness of millennials. So what’s a jeweler to do? 

Here are three solid ways you can make some extra profit without much extra effort. 

1 Update your watch battery pricing and offer lifetime contracts. Jewelers do a huge business by offering this service (which can’t be easily duplicated online), so make sure you are charging at least $15 installed with a one-year warranty. Offer your customer a lifetime battery contract for $29.95 and you’re guaranteed to increase your profit and keep that customer coming back to your store.

2 Change all of your pricing tags to end in 99 cents. The majors have been doing it for years. Your customer won’t care or probably even notice since they’ve been conditioned by Wal-Mart and Target to expect it. If you sell 3,000 items this year, it’s a free $3,000. You can use that money for an inexpensive company car or an awesome employee party after the holidays.

3 Charge to clean those pearls you restring. Most jewelers offer a pearl stringing service, and as you know, those pearls always need to be cleaned before they are restrung. We have been conditioned to do that at no charge. Explain to each customer that you will professionally clean their valuable pearls before restringing for only an additional $29. I’ve never had a customer say no to this offer, and they always thank me afterwards.

In this troubled retail environment, who doesn’t need a few ways to make some extra money?

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Evan James Deutsch is founder and president of Evan James Limited, a 30-year-old AGS Fine Jeweler located in Brattleboro, VT.

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Shane Decker

4 Sales Meetings You Must Hold Before the Holidays

Cover these topics to maximize your selling opportunities this season.

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FROM DEC. 1 TO the 24th, closing ratios double and impulse sales skyrocket. The problem? It’s too easy. Salespeople tend to slip into lackadaisical sales practices because the sales happen either way.

Unfortunately, this endangers repeat business and could even cost you holiday sales.

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To prevent this from occurring, hold sales meetings over the next four weeks and address each of these topics in turn.

1. Store Floor Awareness: Emphasize that your team must know what’s happening at all times with all clients. There’s an old wives’ tale that whoever is closest to the door is the greeter; not true. If you’re near the close, you’re not going to turn away to greet a new customer. That means someone else needs to be ready. Has the client been greeted? Does a salesperson need an assist? Is the client about to walk away? Teach your team how to recognize and react to these situations.

2. Wowing All Customers: Salespeople say they are too busy to do this, and that everyone has what they want already. Wrong. This is the time of year that impulse buys greatly increase. All you have to say is, “Guess what’s in the vault?” or “Guess what just came in?” Let the rest take care of itself. Show your team how to “wow” every customer and emphasize just how critical it is.

3. Closing: Clients want you to close. At Christmas time, no one is just looking; everyone is just buying. Learn to professionally create a sense of urgency, but always be honest. You can say:

  • “We only have one of these left.”
  • “These have been really popular this year.”
  • “We can’t get any more of these until after Christmas”
  • “She’s going to love it; you should do this.”
  • “We sell this item faster than we can get it in.”
  • “You’re going to be a hero; she won’t believe you did this.”

If it’s on Dec. 24, you can even say, “We close in 10 minutes. There’s not another place you can go and just look; this is it!”

4. Add-ons: Too many salespeople spin and walk to the point-of-sale after the first item is sold. When you do this, you tell the client they’re done. Instead, purchase some beautiful, small sharp scissors. From now on, once you’ve sold an item, take out your scissors, cut the tag off and lay it on the counter pad. That says you’ve sold the item, but you can continue selling.
The average Christmas buyer buys 15-20 gifts, and the average salesperson sells just one. Instead, after the first item is sold, say one of these add-on lines:

  • “This is part of a set.”
  • “We have what matches.”
  • “I gotta show you what goes with this because she’s gonna love it.”
  • “How many others are on your list?”

These are called lead-in lines because they lead into the next presentation. The average add-on takes 30 seconds because you don’t have to sell; they’re already sold.

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Commentary: The Business

Million-Dollar Seller Achieves Jewelry Dreams

Aly Martinez builds on success.

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IT STARTED WITH beads and a spool of fishing line. I had always been creative and loved anything artistic, but nothing grabbed my attention quite like jewelry. Beading in my bedroom on the weekends quickly led to jewelry-fabrication classes in high school, and by the time I graduated a hobby had turned into a passion and a dream of a life-long career. In college I majored in retail merchandising, but knew I wanted to keep my focus on jewelry. I became connected with my local Art Guild, and when I wasn’t in class I was in the studio taking every jewelry fabrication class I could get my hands on. In 2007 I began working at Kevin Kelly Jewelers, a local family operated jewelry store. There they taught me the basics of repair work, custom work and selling. I was a sponge and wanted to learn everything they were willing to teach me. Upon graduating college in 2009 I knew I wanted to keep going and to learn more, and found myself asking “What next?” I quickly discovered GIA and started on my Graduate Gemology degree. By the beginning of 2010 I started working at Jones Bros. Jewelers part-time changing watch batteries and cleaning jewelry. Again, I said yes to anything they were willing to teach me. Now fast forward nine years later, and I’m a full-time sales associate with a million dollars sold in 2018.

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So what exactly happened throughout those nine years? A lot. Selling full-time was not necessarily something I thought I’d ever do, but I quickly fell in love with the personal connections I was able to make with clients. Once I started, selling a million dollars in a year became a professional and personal goal. A goal that I added to my other goals that I never forgot about and slowly kept working toward. With the help of GIA’s Distance Education Program I was able to continue taking classes while working, and travel to Wisconsin for lab courses. And I’ll admit I put it on the back burner for a while, but creating my own jewelry line was something I’d dreamt about for years, and so I made sure to never lose sight of the initial driving force for my passion for this industry.

Year after year I came close, but never quite hit that million dollar mark. By 2018 I wasn’t ready to give up, but knew it was time to broaden my focus. I dove headfirst into the rest of my Graduate Gemology training, became a brand ambassador for Tacori, and finally created Emerald May, my own jewelry line. I traveled more than ever before – Wisconsin for labs, Vegas for trade shows, and California for Tacori and had my hands in more and more projects. Ironically, with my focus on other things I had wanted for so long, my sales continued to grow, and by the end of 2018 I was one class away from becoming a Graduate Gemologist, my own line was officially started with several pieces sold, and I had reached my goal of selling a million dollars in a year.

It’s a surreal feeling to look back on everything that’s happened over the years to get to where I am now. Something that started as a hobby has turned into a career, a career that drives me to do better every day. The million dollars became so much more than a sales goal. It was something to strive for, something to push me, and once achieved served as a symbol that with enough determination and pursuit anything is possible. It’s given me the courage to keep pursuing other goals and dreams I’ve set for myself. Looking back on all of the hard work, education, and incredible amount of support I know that dreams don’t always have to stay dreams, they truly can become your reality.

So if you’ve taken the time to read this, I hope above anything else you feel inspired. It doesn’t matter if your dreams or aspirations are the same. It’s about finding that thing that drives you day after day that leaves you wanting more. It’s about pushing yourself to go after the things you’ve always dreamed of. It’s about starting somewhere, anywhere, and never giving up or losing sight of what you want and what you’ve worked so hard for. Start at the bottom if you must, just start Be open to every opportunity thrown your way, because you never know where that may lead you. I could have said no to selling because it wasn’t something I thought I’d want to do, but years later it’s become one of my absolute favorite things to do. You never know where something may lead, so take it all in, learn as much as you can, and never lose sight of your dreams – they could be your reality someday.

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Where Did All My Profits Go?

Understanding cash flow vs. profit can affect how you manage your business.

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A COMMON COMPLAINT FROM retailers after the CPA has completed the end of year financials is, “Where is the money?” Often, they have reported a healthy profit (which also leads to a bigger tax liability to the IRS), yet their bank account never seems to reflect the profit the business makes.

It’s a common issue. Most store owners expect their profit to show up in the bank account — and that’s perfectly understandable. After all, profit is supposed to be what you have left after paying your operating costs and vendors. Yet, rarely does it align.

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The reality is that cash flow and profits are two different things. Cash flow reflects the ins and outs of your bank account over a period of time. Profit is about your income and the expenses that relate to that income. That means the expenses don’t necessarily line up with when you paid them.

One of the best examples of this is the inventory you buy. For instance, let’s say Bob’s business does $1 million in sales for the year. With a keystone markup, Bob makes a gross profit of $500,000 from his business. After expenses of $400,000, his net profit is $100,000.

The bank account tells a very different story. Although the cost of goods sold is $500,000, Bob didn’t necessarily spend that much on inventory for the year. If he spent $600,000 on inventory purchases, he would have increased his inventory holding by $100,000. However, he didn’t sell the extra inventory, and therefore, it doesn’t pay for itself, but it will still come out of his bank account!

Timing is another important factor in paying vendors, too. Whether you pay your vendors immediately or pay the amount six months later, this will affect your bank balance, but it won’t affect your profit — the item is an expense when you sell it, not when you pay your vendor.

Your bank account can also be affected by assets that you buy. A new vehicle that is deemed a business asset may leave a hole in your bank account now if you pay cash, but as a business asset, its cost will be spread over several years to reflect when it is used. Your profit will look healthier than your bank account in this situation.

Of course, another factor to consider is personal spending. Withdrawing a good deal of money from your business account to support your lifestyle isn’t a business expense and won’t decrease your profit. It will, however, certainly lower the balance of your bank account.

It’s important to understand this difference between cash flow and profit so you don’t get caught spending money you don’t have.

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