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David Brown: Escape the Post-Holiday Hangover

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David Brown: Escape the Post-Holiday Hangover

David Brown: Escape the Post-Holiday Hangover

Yep, even 3 months out you may still be sorting out December

BY DAVID BROWN

David Brown: Escape the Post-Holiday Hangover

Published in the March 2013 issue

Even though the holiday season’s trading party ended a couple of months ago, you may still be negotiating your way through the post-Christmas hangover of restocking and paying vendors. Holiday trade can certainly be great when the money rolls in, but at some point, the piper must be paid!

If you’re disciplined with your reorders and have had a lot of memo inventory, you may face the double impact of paying for the initial memo product and paying to reorder it as replacement inventory, so getting the cash flow balanced can be extra important at this time of year.

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If things are a little tight, the following steps may help you recapitalize and set yourself up nicely for the remainder of the year:

Cash up old inventory. It may be a tried and true formula, but a sale is often the most effective means of moving dead product out and freeing up cash. Make sure that if you go into sale mode, you don’t do it half-hearted, and that you remove all good sellers from the mix, or they will be the first to go and nothing will be achieved.

Make up loose product. If you’re manufacturing-based, then chances are you have a safe full of loose stones without a good home. Using these to remake fast-sellers and restock can be an effective means of keeping the cost of restocking down.

Negotiate terms with your vendors. Discussing an extended payment period for reorders and new items can help ease the pain of getting your inventory range back on track. Again, this needs to be a win-win for both parties and you should make a commitment to the vendors that you will be willing to reorder fast-selling items

Order for start of next month delivery. When reordering fast-selling items after the 20th of the month, a good way of deferring payment is to ask for them to be delivered at the start of the next month. Provided the item isn’t so quick that you would sell it weekly, then a few days won’t matter if it gets you an extra month’s credit. This can be effective on big-ticket items that may be slower to sell.

Review old items. If you’re not selling or discounting old product, then you may be able to negotiate an exchange with vendors for some new pieces rather than paying cash. This will depend on the terms and conditions for each vendor, but if they are able to move it elsewhere, it is in the interests of both sides to clear the way for fast sellers to come in. (But again, make a commitment to reorder.)

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Every good party has someone feeling a little worse for wear, but it needn’t be you. Take the steps to ensure you are feeling 100 percent when the cleanup begins, and you will enjoy a great start to 2013.

About the Author: David Brown is President of the Edge Retail Academy, an organization devoted to the ongoing measurement and growth of jewelry store performance and profitability. For further information about the Academy’s management mentoring and industry benchmarking reports contact [email protected] or Phone toll free (877) 5698657 Edge Retail Academy, 1983 Oliver Springs Street Henderson NV 89052-8502, USA

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SPONSORED VIDEO

Wilkerson Testimonials

If It’s Time to Consolidate, It’s Time to Call Wilkerson

When Tom Moses decided to close one of the two Moses Jewelers stores in western Pennsylvania, it was time to call in the experts. After reviewing two candidates, Moses, a co-owner of the 72 year-old business, decided to go with Wilkerson. The sale went better than expected. Concerned about running it during the pandemic, Moses says it might have helped the sale. “People wanted to get out, so there was pent-up demand,” he says. “Folks were not traveling so there was disposable income, and we don’t recall a single client commenting to us, feeling uncomfortable. It was busy in here!” And perhaps most importantly, Wilkerson was easy to deal with, he says, and Susan, their personal Wilkerson consultant, was knowledgeable, organized and “really good.” Now, the company can focus on their remaining location — without the hassle of carrying over merchandise that either wouldn’t fit or hadn’t sold. “The decision to hire Wilkerson was a good one,” says Moses.

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David Brown

David Brown: Escape the Post-Holiday Hangover

Published

on

David Brown: Escape the Post-Holiday Hangover

David Brown: Escape the Post-Holiday Hangover

Yep, even 3 months out you may still be sorting out December

BY DAVID BROWN

David Brown: Escape the Post-Holiday Hangover

Published in the March 2013 issue

Even though the holiday season’s trading party ended a couple of months ago, you may still be negotiating your way through the post-Christmas hangover of restocking and paying vendors. Holiday trade can certainly be great when the money rolls in, but at some point, the piper must be paid!

Advertisement

If you’re disciplined with your reorders and have had a lot of memo inventory, you may face the double impact of paying for the initial memo product and paying to reorder it as replacement inventory, so getting the cash flow balanced can be extra important at this time of year.

If things are a little tight, the following steps may help you recapitalize and set yourself up nicely for the remainder of the year:

Cash up old inventory. It may be a tried and true formula, but a sale is often the most effective means of moving dead product out and freeing up cash. Make sure that if you go into sale mode, you don’t do it half-hearted, and that you remove all good sellers from the mix, or they will be the first to go and nothing will be achieved.

Make up loose product. If you’re manufacturing-based, then chances are you have a safe full of loose stones without a good home. Using these to remake fast-sellers and restock can be an effective means of keeping the cost of restocking down.

Negotiate terms with your vendors. Discussing an extended payment period for reorders and new items can help ease the pain of getting your inventory range back on track. Again, this needs to be a win-win for both parties and you should make a commitment to the vendors that you will be willing to reorder fast-selling items

Order for start of next month delivery. When reordering fast-selling items after the 20th of the month, a good way of deferring payment is to ask for them to be delivered at the start of the next month. Provided the item isn’t so quick that you would sell it weekly, then a few days won’t matter if it gets you an extra month’s credit. This can be effective on big-ticket items that may be slower to sell.

Advertisement

Review old items. If you’re not selling or discounting old product, then you may be able to negotiate an exchange with vendors for some new pieces rather than paying cash. This will depend on the terms and conditions for each vendor, but if they are able to move it elsewhere, it is in the interests of both sides to clear the way for fast sellers to come in. (But again, make a commitment to reorder.)

Every good party has someone feeling a little worse for wear, but it needn’t be you. Take the steps to ensure you are feeling 100 percent when the cleanup begins, and you will enjoy a great start to 2013.

About the Author: David Brown is President of the Edge Retail Academy, an organization devoted to the ongoing measurement and growth of jewelry store performance and profitability. For further information about the Academy’s management mentoring and industry benchmarking reports contact [email protected] or Phone toll free (877) 5698657 Edge Retail Academy, 1983 Oliver Springs Street Henderson NV 89052-8502, USA

Advertisement

SPONSORED VIDEO

Wilkerson Testimonials

If It’s Time to Consolidate, It’s Time to Call Wilkerson

When Tom Moses decided to close one of the two Moses Jewelers stores in western Pennsylvania, it was time to call in the experts. After reviewing two candidates, Moses, a co-owner of the 72 year-old business, decided to go with Wilkerson. The sale went better than expected. Concerned about running it during the pandemic, Moses says it might have helped the sale. “People wanted to get out, so there was pent-up demand,” he says. “Folks were not traveling so there was disposable income, and we don’t recall a single client commenting to us, feeling uncomfortable. It was busy in here!” And perhaps most importantly, Wilkerson was easy to deal with, he says, and Susan, their personal Wilkerson consultant, was knowledgeable, organized and “really good.” Now, the company can focus on their remaining location — without the hassle of carrying over merchandise that either wouldn’t fit or hadn’t sold. “The decision to hire Wilkerson was a good one,” says Moses.

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