IF YOU WERE in the jewelry business in 2021, you most likely had your best year ever in terms of sales. But most retailers are wondering if they can duplicate these numbers in 2022, let alone surpass them. Some industry leaders have said to expect a 20-25 percent decrease, and I don’t disagree with that. What I can say is it’s not going to be easy and having a strategy of how to hit or surpass those numbers will be essential.
When I worked in the retail space, I began setting one day aside for me, the CEO, and management to determine the three things we needed to focus on to hit the numbers we wanted for the upcoming year. I still do this today for myself, and we help our retail clients determine a plan as well.
Below are a few areas to consider. Based on your business model and market, you can decide what your top three areas of focus should be.
- Is there a way to sell the same number of customers yet increase sales? Yes! Sell platinum! Educate your team by partnering with Platinum Guild and have in stock platinum merchandise or pricing readily available to upsell the customer.
- Over 50 percent of consumers do not buy their wedding band from the store where they purchased their engagement ring. Run a report that shows customers who have purchased an engagement ring but haven’t purchased a wedding band. Do a focused marketing mailout with this list of customers and offer an incentive for them to come back and buy the wedding band from you.
- Are you buying goods at the most competitive price to make the best margin? Take the time to research your basic product pricing versus other vendors you don’t currently work with. Also, find products where you can hide margins and consumers can’t price-shop the item, such as complete engagement rings with live centers.
- How is your pricing compared to your local competitors? Send your staff to secret shop them and take any flyers they may have to compare pricing.
- Make sure you are set up to meet customers where they want to be met. That could mean being set up for virtual sales so they can buy from the convenience of their couch or offering curbside pickup.
- Are your marketing dollars creating traffic and leads? Run a report to see how your customers found you. Review your website analytics or data behind any digital ads. Tweak the budget based on what is driving the most traffic or leads.
- Determine two dates throughout the year to do three-day in-store events. When you master this, it can generate up to 10 percent of your annual revenue.
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