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Laurie Owen: Leaders and Occupancy Costs

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[h3]4.8%[/h3]

What is it? How much the top performers in the 2004 Jewelers Financial Benchmarking Study spent on occupancy costs. An occupancy cost of 4.8% means that for every $1 of sales, the company spends about 5 cents on occupancy costs, such as rent, occupancy, utilities, and store security.

Strategy: How to get by with spending less? Start by comparing yourself to others. Find industry benchmarks and see how you stack up, line by line. Monitor your expenses monthly by getting a timely profit-and-loss statement with your expenses in dollars and percentages so you track changes before they get out of hand. Look carefully for unusual fluctuations when examining your statements. Pay close attention to expense items which lend themselves to personal (not business) use by yourself or your employees and evaluate whether you’re getting adequate benefit for the cost (e.g. mobile and long-distance-phone use, company-provided automobiles, Internet-access time, consumable supplies, etc.) At least once per quarter, review all expenses and ask, “How can I reduce this?”

 

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Laurie Owen is senior vice president at Business Resource Services. Contact her at [email protected].

[span class=note]This story is from the June 2006 edition of INSTORE[/span]

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Wilkerson Testimonials

If It’s Time to Consolidate, It’s Time to Call Wilkerson

When Tom Moses decided to close one of the two Moses Jewelers stores in western Pennsylvania, it was time to call in the experts. After reviewing two candidates, Moses, a co-owner of the 72 year-old business, decided to go with Wilkerson. The sale went better than expected. Concerned about running it during the pandemic, Moses says it might have helped the sale. “People wanted to get out, so there was pent-up demand,” he says. “Folks were not traveling so there was disposable income, and we don’t recall a single client commenting to us, feeling uncomfortable. It was busy in here!” And perhaps most importantly, Wilkerson was easy to deal with, he says, and Susan, their personal Wilkerson consultant, was knowledgeable, organized and “really good.” Now, the company can focus on their remaining location — without the hassle of carrying over merchandise that either wouldn’t fit or hadn’t sold. “The decision to hire Wilkerson was a good one,” says Moses.

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Laurie Owen: Leaders and Occupancy Costs

Published

on

Give your store a perfect figure

{loadposition laurieowenheader}

[h3]4.8%[/h3]

What is it? How much the top performers in the 2004 Jewelers Financial Benchmarking Study spent on occupancy costs. An occupancy cost of 4.8% means that for every $1 of sales, the company spends about 5 cents on occupancy costs, such as rent, occupancy, utilities, and store security.

Strategy: How to get by with spending less? Start by comparing yourself to others. Find industry benchmarks and see how you stack up, line by line. Monitor your expenses monthly by getting a timely profit-and-loss statement with your expenses in dollars and percentages so you track changes before they get out of hand. Look carefully for unusual fluctuations when examining your statements. Pay close attention to expense items which lend themselves to personal (not business) use by yourself or your employees and evaluate whether you’re getting adequate benefit for the cost (e.g. mobile and long-distance-phone use, company-provided automobiles, Internet-access time, consumable supplies, etc.) At least once per quarter, review all expenses and ask, “How can I reduce this?”

Advertisement

 


 

Laurie Owen is senior vice president at Business Resource Services. Contact her at [email protected].

[span class=note]This story is from the June 2006 edition of INSTORE[/span]

Advertisement

SPONSORED VIDEO

Wilkerson Testimonials

If It’s Time to Consolidate, It’s Time to Call Wilkerson

When Tom Moses decided to close one of the two Moses Jewelers stores in western Pennsylvania, it was time to call in the experts. After reviewing two candidates, Moses, a co-owner of the 72 year-old business, decided to go with Wilkerson. The sale went better than expected. Concerned about running it during the pandemic, Moses says it might have helped the sale. “People wanted to get out, so there was pent-up demand,” he says. “Folks were not traveling so there was disposable income, and we don’t recall a single client commenting to us, feeling uncomfortable. It was busy in here!” And perhaps most importantly, Wilkerson was easy to deal with, he says, and Susan, their personal Wilkerson consultant, was knowledgeable, organized and “really good.” Now, the company can focus on their remaining location — without the hassle of carrying over merchandise that either wouldn’t fit or hadn’t sold. “The decision to hire Wilkerson was a good one,” says Moses.

Promoted Headlines

Most Popular