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By the Numbers: Sales Rebound From Early Year Slump

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Hooray for April! The beginning of the second quarter snapped a three-month decline in sales at independent jewelry stores, with same-store sales surging 22 percent on-year to an average of $103,418. If this keeps up, 2014 sales could come in 12 percent ahead of last year’s total. Overall, it was a strong set of numbers with average sale, units sold, and total profit dollars all showing a nice improvement. The only black spot was margin, which shrank to 44 percent from 48 percent in April 2013. Had margin been maintained at the 2013 level, the jewelers in our survey group would on average have banked an extra $3,840 at the end of the month. Obviously there is some correlation between lower margins and higher sales but for the most part, preserving margins is often about being creative, and strong. Here are a few things you can do to protect your profitability:

  • Ask enough for the item in the first place. Make sure you give yourself some cushion to fend off discount-hungry consumers.
  • Leverage your stars. If an item is a good seller, ask more for it.
  • Don’t forget the cents. I know a store that made an extra $6,000 in net profit during the year simply by adding $0.95 onto the price of everything under $200.
  • Try saying no. Around 50 percent of people will accept it. As for those who push, try offering an alternative slow-selling item or negotiate some terms to offset some of the cost of discounting.

For the full story and more ideas to improve your store’s performance, visit instr.us/7142

Data gathered from the POS systems of more than 250 stores by the Edge Retail Academy (edgeretailacademy.com). To join the benchmarking panel, email [email protected]

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Wilkerson Testimonials

Retirement Made Easy with Wilkerson

The store was a landmark in Topeka, Kansas, but after 80 years in business, it was time for Briman’s Leading Jewelers to close up shop. Third generation jeweler and owner Rob Briman says the decision wasn’t easy, but the sale that followed was — all thanks to Wilkerson. Briman had decided a year prior to the summer 2020 sale that he wanted to retire. With a pandemic in full force, he had plenty of questions and concerns. “We had no real way to know if we were going to be successful or have a failure on our hands,” says Briman. “We didn’t know what to expect.” But with Wilkerson in charge, the experience was “fantastic” and now there’s plenty of time for relaxing and enjoying a more secure retirement. “I would recommend Wilkerson to any retailer considering a going-out-of-business sale,” says Briman. “They’ll help you reach your financial goal. Our experience was a tremendous success.”

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David Brown

By the Numbers: Sales Rebound From Early Year Slump

Published

on

{loadposition davidbrownheader}

Hooray for April! The beginning of the second quarter snapped a three-month decline in sales at independent jewelry stores, with same-store sales surging 22 percent on-year to an average of $103,418. If this keeps up, 2014 sales could come in 12 percent ahead of last year’s total. Overall, it was a strong set of numbers with average sale, units sold, and total profit dollars all showing a nice improvement. The only black spot was margin, which shrank to 44 percent from 48 percent in April 2013. Had margin been maintained at the 2013 level, the jewelers in our survey group would on average have banked an extra $3,840 at the end of the month. Obviously there is some correlation between lower margins and higher sales but for the most part, preserving margins is often about being creative, and strong. Here are a few things you can do to protect your profitability:

  • Ask enough for the item in the first place. Make sure you give yourself some cushion to fend off discount-hungry consumers.
  • Leverage your stars. If an item is a good seller, ask more for it.
  • Don’t forget the cents. I know a store that made an extra $6,000 in net profit during the year simply by adding $0.95 onto the price of everything under $200.
  • Try saying no. Around 50 percent of people will accept it. As for those who push, try offering an alternative slow-selling item or negotiate some terms to offset some of the cost of discounting.

For the full story and more ideas to improve your store’s performance, visit instr.us/7142

Advertisement

Data gathered from the POS systems of more than 250 stores by the Edge Retail Academy (edgeretailacademy.com). To join the benchmarking panel, email [email protected]

{loadposition xtra-browncolumn}

Continue Reading
Advertisement

SPONSORED VIDEO

Wilkerson Testimonials

Retirement Made Easy with Wilkerson

The store was a landmark in Topeka, Kansas, but after 80 years in business, it was time for Briman’s Leading Jewelers to close up shop. Third generation jeweler and owner Rob Briman says the decision wasn’t easy, but the sale that followed was — all thanks to Wilkerson. Briman had decided a year prior to the summer 2020 sale that he wanted to retire. With a pandemic in full force, he had plenty of questions and concerns. “We had no real way to know if we were going to be successful or have a failure on our hands,” says Briman. “We didn’t know what to expect.” But with Wilkerson in charge, the experience was “fantastic” and now there’s plenty of time for relaxing and enjoying a more secure retirement. “I would recommend Wilkerson to any retailer considering a going-out-of-business sale,” says Briman. “They’ll help you reach your financial goal. Our experience was a tremendous success.”

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