Connect with us

David Brown

By the Numbers: Sales Rebound From Early Year Slump

mm

Published

on

By the Numbers: Sales Rebound From Early Year Slump

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

By the Numbers: Sales Rebound From Early Year Slump

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]

David Brown is the President of The Edge Retail Academy (sister company of The Edge), who provide expert consulting services to help with all facets of your business including inventory management, staffing, sales techniques, financial growth and retirement planning...All custom-tailored to your store’s needs. By utilizing the power of The Edge, we analyze major Key Performance Indicators that point to your store’s current challenges and future opportunities. Edge Pulse is the ideal add-on to the Edge, to better understand critical sales and inventory data to improve business profitability. It benchmarks your store against 1100+ other Edge Users and ensures you stay on top of market trends. 877-569-8657, Ext. 001 or [email protected] or www.EdgeRetailAcademy.com

Advertisement

SPONSORED VIDEO

Thinking of Liquidating? Think: Wilkerson

When Peter Reines, owner of Reines Jewelers in Charlottesville, VA, decided it was time to turn over the “reins” of his 45-year-old business to Jessica and Kevin Rogers, he chose Wilkerson to run his liquidation sale. It was, he says, the best way to maximize the return on his decades-long investment in fine jewelry. Now, with new owners at the helm, Reines can relax knowing that the sale was a success, and his new life is financially secure. And he’s glad he partnered with Wilkerson for this once-in-a-lifetime opportunity. “There’s just no way one person or company could run a sale the way we did,” he says.

Promoted Headlines

Most Popular