While overall sales continued to climb in August, rising 13 percent to $105,769 from $93,458 in the same month last year, a dip in average sale (from $292 to $271) and a decline in margin squeezed profitability at the typical U.S. jeweler. The data suggest jewelers are working harder than they need to be and underscore the need for store owners to get more out of their diamond departments. To be sure, diamond sales continue to do well; on a 12-month rolling basis they were up from an average of 300 units at the start of 2013 to almost 370 in August 2014. But there is still room for improvement. Here are three ways to get more out of your diamond sales:
Shop the competition. What are they doing right? What can you do better? It surprises me how few jewelers do this.
Revisit your inventory. Are you fully committed to your diamonds? Do you review product regularly? Do you look to re-price items that are slow moving, or that are selling fast? Do you move your displays regularly? Does the product look tired?
Check your staff. When was the last time you had your team mystery-shopped? Do they know how to effectively close a diamond sale? Do you show specific diamond jewelry at meetings and offers tips on how to sell it? Pull out these old pieces, incentivize them and get them moving again.
Data gathered from the POS systems of more than 250 stores by the Edge Retail Academy (edgeretailacademy.com).
This article originally appeared in the November 2014 edition of INSTORE.