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Five Steps for Making Your Bridal Business Hum Like a Well-Oiled Machine

Paying close attention to SKUs that generate special orders is one.

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WE ARE LED TO believe that having the “biggest selection” in the market is the best approach when, in fact, that is counterintuitive to evolving retail models. Growing evidence to supports a “less-is-more” strategy across retail, and we should ask ourselves why bridal should be any different.

If having the biggest selection in bridal was the answer, retailers would have a much healthier inventory picture. The data, however, shows that the average retailer is not only seriously over-inventoried, but their current inventory is all too often misaligned with their best-sellers. You want your customers to have choices, but your bridal story should be curated for clarity, and you should closely analyze your data as part of the ongoing process.

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Fixing your bridal category doesn’t have to be a daunting task. Here are a few initiatives you can implement immediately:

Set your stock turn and return-on-investment targets. You should expect a minimum of a one-time stock turn, a big improvement on the current overall industry average of 0.47.

Review your data. Identify your fast sellers (items that sell within 180 days) in loose, semi-mounts and bands. There is simply no reason why you would ever be out of stock in these categories. For example, an SI1 G-H 1-carat loose diamond tends to be a fast seller, and yet it is often out of stock when we review retailer inventory levels. Know that any bridal that generates a one-time stock-turn at full margin within 365 days should be replenished.

Pay close attention to your live samples, such as semi-mounts and diamond bands, that generate special orders. Many retailers incorrectly assume that most of their bridal pieces generate orders, when in fact the vast majority of SKUs generate little to no sales at all.

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Implement strategies to purge non-performing inventory. This should include stock balancing with your top vendors. Next, you can look at markdowns, spiffs and recycling non-performers into more basic (saleable) styles. Feature your markdowns in your email blasts and, possibly, on your social media platforms. Markdowns should take place starting with the one-year anniversary of receipt of a given item and continue every 30-60 days until the piece is gone. Be aggressive, as your objective is now about recovering your investment. Research shows with each passing year, you will get less and less on the dollar.

Re-merchandise. Clean up your jammed cases. Move your non-performers out of the case and create an organized back stock. This will allow you to display your best performers and strategically highlight your key pieces and collections. Putting your rings into collections such as “by designer” or by styling such as halos, three-stones, solitaires and so forth makes it much easier for your customer to shop.

Recognize that today’s young customer is not interested in navigating your sea of insignificant merchandise. They want to know what your store is about and why they should care. They are much more likely to respond to nicely curated stories than overflowing cases. Even in the case of bridal, more is definitely not more.

Sherry Smith is the director of business development for The Edge Retail Academy.

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I Thought I’d Seen All the Jewelry I Needed for This Year … But I Was So Wrong

August shows in New York yielded many designs that retailers need to see.

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WITH LAS VEGAS JEWELRY Week two months in the past, I thought I had seen everything I needed to see for the season as far as new trends, hot items and designers to watch or discover. But August in New York kicked off with Spectrum Awards Editors’ Day and then, from Aug. 10-14, four shows ran almost concurrently: Melee the Show, NY Now, The JA Show and Metal & Smith. There were also press deskside appointments of saleable and noteworthy designers. A summer head cold, pad full of notes and iPhone full of photos later, I realized there was a lot more to report and bring to the attention of retailers who couldn’t make this trip into New York City.

Let’s break it down.

The colorful pieces shown above are by (left to right) Soulbound, Sofia Zakia and Rebecca Overmann.

These rings are by (left to right) Karen Karch, K8 Jewelry and Elizabeth Street.

Engaging Colors

This was the leading trend at these shows for a new wave of bridal rings rendered beautifully by both established independent and up-and-coming designers. The best in this category included Rebecca Overmann, Megan Thorne, Karen Karch and Sofia Zakia as well as rising stars Elizabeth Street, Soulbound (all at Melee the Show) and K8 Jewelry (at The JA Show).

Vibrant and unexpectedly refreshing stones for engagement rings such as green sapphires, moonstone, garnet, purple and red spinel, rubies, aquamarines, pink sapphires and a host of other gemstones we never thought would sell in this category created new excitement among retailers who shopped the show.

These old-meets-new designs are by (left to right) Talon, Sofia Zakia, Heavenly Vices and Erica Molinari.

The Past Meets the Present

This trend can be seen in independent designer collections with jewels that borrow from the past yet are imbued with both a current sensibility and built-in longevity. Contemporary designers are inspired by different periods and reimagine their influences with daring and the freedom to mix time frames and materials with abandon. A few of these creative designers also work with one-of-a-kind pieces that they transform into symbolic keepsakes for today’s woman. Designers mixing old and new or reflecting on pieces of the past and turning them into modern jewels include Samantha Jackson of Heavenly Vices (Metal & Smith), Erica Molinari (Melee the Show), Sofia Zakia (Melee the Show),  Talon (press preview) and Darsana (press preview).

Shown here are chains by (left to right) Roule & Co., Polly Wales and Mallary Marks.

Working On the Chain Gang

This is a theme that continues to evolve as designers create their own chains from cast and handmade links in different shapes, lengths and widths. There’s often an extra link that acts as an “add on” to lengthen or add one medallion or multiple charms and medallions to the chain. Whether they be necklace or bracelet chains, the links can also be worn alone. They are often textured with touches of different colors of diamonds as accents or combined with vivid colored gemstones to pump up the style quotient and add an extra dimension of elegance. Designers who have joined the chain gang include Polly Wales (NY Now), Tura Sen (Melee the Show), Michelle Fantaci (Melee the Show) and Mallary Marks (Melee the Show).

Shown here are pieces by (left to right) Theresa Kaz, Roule & Co., Michelle Fantaci and Darsana.

Show Me Your Heart

Designers have brought back this universal symbol of love in all materials. It is one of the most popular motifs I saw from Las Vegas and the August shows in New York City. Although the heart still evokes sentimental and spiritual meanings that range from romance to devotion to friendship to divine love, the modern interpretations are anything but frilly or fussy or sugary sweet. These new versions range from feminine yet bold to daring and edgy. Designs from Thereza Kaz (The JA Show), Roule & Co. (Melee the Show), Michelle Fantaci (Melee the Show) and Darsana (press preview) are sure to win the heart of today’s consumer.

Shown here are earrings by (left to right) Hannah G, Soulbound, Sarah Swell, Moritz Glik and Julie Lamb.

The Ear Party

This trend continues with all shapes and styles of earrings. Multiple piercings are still going strong in smaller studs and drops. Geometric linear styles are going strong, and those with spherical drops offer a feel of the planets and celestial themes so prevalent this season. For different styles check out Moritz Glik (Melee the Show), Hannah G (press preview), Soulbound (Melee the Show) and Julie Lamb (Metal & Smith).

These pieces are by (left to right) Alex Monroe, Lene Vibe, Lene Vibe and Alex Monroe.

In the Garden

This is where you will want to stay even when the chill of fall comes along. This is a look that seems to continue well into fall/winter and holiday as so many women love floral motifs. And when they are mixed with insects in gold or precious stones and metal, well, we even appreciate them then, especially when created by Lene Vibe (Melee the Show), whose pieces continue to grow more magical and who creates a whole little fantastical world around pearls.

Alex Monroe Jewellery (Melee the Show) also does an amazing job with the tiniest of insects and a range of small and delicate blooms that appear on necklaces, earrings and rings.

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Shown above (left to right) are displays by Julie Lamb, Heavenly Vices and Alex Monroe.

These displays are by (left to right) Soulbound, Megan Thorne and Lene Vibe.

On Display

Take a page out of these designers’ cases. All of them used either vivid colors or the perfect props that allow you to understand their designs and make them pop. Check out how Soulbound creates the feeling of its collection within a 6-foot case with small objects (Melee the Show). Alex Monroe Jewellery creates a similar vibe with their displays props and pretty little accents (Melee the Show). Megan Thorne’s touches always echo back to her feeling for antique inspired creations such as in her vintage peacocks that act as ring trays. Lene Vibe (Melee the Show) also adds an extra touch with glass and brass cases that act as displays for her little garden party of jewels. Heavenly Vices (Metal & Smith) shows that you can display pieces beautifully when you only have a table to work as long as you have just the right hue in light violet displays that pop gold and silver, diamonds and enamel touches. And Julie Lamb (Metal & Smith) proves that you are in New York with her themed posters and touches that speak to the city she captures in her collection.

These plume-inspired pieces are by Annie Fensterstock.

Stand Out and Show Your Plumes

If these styles don’t bring out the peacock in you, I don’t know what will. Peacock feathers take shape in all different renditions, but two favorites were those that appeared in earrings by Annie Fensterstock at Melee the Show and at The Spectrum Awards Editor’s Day.

Shown here are pieces by (left to right) Michelle Fantaci, Erica Molinari and Brooke Gregson.

A Jewel of a Different Color (or Many Colors)

This trend can be seen in those with enameling in everything from antique-inspired looks to those with a pop ’60s feeling. Whether the enamel technique is used to highlight bold gemstones or to create the backdrop for motifs and messages, it is now being seen in different variations, which we saw at the shows in Las Vegas and New York and at press previews.

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Commentary: The Business

How to Get Rich from Lab Grown Diamonds

Take a stand and make some noise about it.

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SOME JEWELERS WILL make millions from lab-grown diamonds. Some by going all-in, some by refusing to sell them at all.

It’s the very brouhaha that spells opportunity for aggressive jewelers who take a stand early, one way or the other, to exploit the dispute and cash in.

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If you want to make a boatload of money, be a catalyst for the debate. Go public in a big way for whichever position you advocate. If you sit on the sideline and “wait for the market to demand the product,” the parade will pass you by, and you’ll miss the windfall that could have come.

You can actually win by adopting any of three positions:

1. Become the lab-grown specialist in your market. Go all in and shout it from the rooftops and go public with all of the benefits of buying lab-grown diamonds that the average consumer knows little or nothing about at this point. Do that and you’ll have a torrent of intrigued customers flocking to your doors.

2. On the other hand, you may be able to do just as well by scorning lab-growns altogether. “We’ll never stoop to selling those assembly-line diamonds,” would be your cry, and you raise the alarm just as loudly about all the challenges they present the consumer. The pro-lab-grown consumers will desert you, but your high-brow, purist clients and prospects will reward you with their loyalty, their money and their referrals.

3. The third position is that of the fair broker. You take the middle ground but are just as aggressive in your advocacy. “Yes there are advantages and disadvantages of both lab-grown and natural diamonds. We’ll give you the straight scoop, and respect your adult ability to make the right decision for you.” This position probably doesn’t have quite the same “bigness” to its sales-generating potential. Middle of the road is mediocre. Extreme positions tend to render extreme results. But it is nonetheless a credible, reasonable and profitable position to take that can bring extraordinary results, if you market your position hot and heavy.

There will be jewelers in the same city who win by taking any of these positions. They’ll battle each other like crazy, head-to-head, and all three of them can win at the cash register.

Remember, some jewelers were scolded when they started buying gold, and warned that they’d be perceived as pawn shops. But many got rich doing it.

Same with Pandora. The sparkle is obviously off that bead now, but while it lasted, many jewelers who went all-in got rich.

I can’t predict how long either the controversy or the public’s appetite for lab-grown diamonds will last. Could be a blip; could be forever. But I can say that those who get in early and make the most noise will also make the most millions the soonest.

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Shane Decker

Did You Know that When You Close a Sale, You’re Helping Your Customer?

They want to leave with their chosen product in a bag.

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TODAY’S CLIENTS DON’T have time to shop tomorrow. They buy the day they shop; you do the same thing. Millennials shop online before they decide to come to your store. Older generations might go from store to store to find what they want, but they too buy the day they shop. Most of us start with the store where we want to leave our money.

Clients want you to close the sale. In part, they are paying you to make a professional decision for them and trusting you to do it. Sixty to 70 percent of your clients cannot make up their own minds. That’s why you should never say, “Can I wrap it up for you?” They will walk because you’re asking them to make a decision.

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Moreover, approximately 90 percent of all clients who say I’ll be back never come back; 7 percent do. And, around 80 percent of all clients who say “I’ll be back” buy elsewhere within the first one to two hours after leaving your location.

The No. 1 reason clients leave empty-handed is not inventory or price. It’s that they were not closed. Too many salespeople do show-and-tell presentations rather than show-and-sell presentations. Independently owned stores’ closing ratios are between 27-33 percent, yet 80 percent of shoppers buy the day they shop. If you shop today, do you have time to shop tomorrow? Didn’t think so.

Never believe the client is coming back. This is the time for a team-sell or a T.O. When they say “I’ll be back,” that means they are leaving to shop somewhere else.

When you let the client leave empty-handed, you’re giving money to one of your competitors.

The best way to preserve client loyalty is to close the sale. A client is successful when they leave with a bag, give you money and they’re glad they came in — not when they have to leave and start the process somewhere else.

One of your most successful opportunities should be your referral clients, but remember, they have high expectations. Someone bragged about how awesome you or your team was. If the expectations are met, closing ratio with referrals are usually over 80 percent. Interestingly, this is a higher percentage than even clients who come in two-three times per year. Another type of presentation that should have a high closing ratio (80 percent) is the appointment.

The more money the item costs, the easier it is to close it. A $500 item is harder to close than a $5,000 item and so on. Why? Because the client can. Never decide for the client how much they can spend. Let them decide that. Do not do price presentations.

Owners, track clients coming in with a door counter and see how many sales slips are written up. This will tell you your closing ratio, which is the most important number in your entire company. You’ll also learn what your team is doing. Ultimately, your store’s closing ratio should be 50 percent or more.

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