Categories: David Brown

By The Numbers: The Discount Balance

MOST JEWELERS FIND it difficult to resist a request for a discount; it’s part of the to and fro of retailing, and strategically it’s often necessary to get slow sellers out of the store. Still, it’s crucial to get the balance right as the impact on your bottom line can be surprisingly large. Here, see what happens when a typical $1.3-million retailer reins in his price-cutting by just 10 percent, both in terms of the size of the discount, and on the number of items being discounted. These figures are for July. Over a year it ads up to an extra $37,000 in gross profit!

This story is from the October 2008 edition of INSTORE.

David Brown

David Brown is the president of Edge Retail Academy, a leading jewelry business consulting and data aggregation firm that provides expert business improvement plans to help with all facets of your business, including improved financials, healthier inventory, sales growth, increased staff performance, recruiting and retirement/succession planning, all custom-tailored to your store’s needs. They offer Edge Pulse to better understand critical sales and inventory data, to improve business profitability, benchmark your store against 1,200-plus other Edge Users, and ensure you stay on top of market trends with their $3 billion-plus of industry sales data. Contact (877) 569.8657, ext. 001, Inquiries@EdgeRetailAcademy.com or EdgeRetailAcademy.com.