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David Brown

5 Ways Jewelry Retailers Can Keep Costs Down During the Pandemic

If sales are slow to come, costs must be held down.

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WE HAVE BEEN suffering from a global health issue, but as we move forward from this situation, our focus will increasingly be on the economic impact of what we have encountered. No business can sit comfortably in a situation where the doors are shut, regardless of the length of time. As we progress out of the current dilemma, there will be the need to review many aspects of our business, including many of the costs that we deal with on a month-by-month basis.

Here are a few of the key costing areas we need to look at, but also, where assistance is close at hand.

Commercial Tenancies

Now is a good time to understand the intricacies of your tenancy agreement. What are your rights and obligations? Given recent events, what options do you now have as a result of legislation and funding that may be available at a local, regional or national level?

Lending Costs

With lending costs now at almost record lows, should you consider refinancing? Do you have the option of any payment deferrals or support being offered? The Small Business Administration in conjunction with the Federal Reserve is making funding available to help with business and the retention of employees.

Inventory

Your inventory is your biggest in-store investment. Dead product sitting on your shelves is money that could be used to support your business at the moment. How can you clear this inventory?

Compliance Costs

There has been some relaxation in the timeframe for regulatory filings for small businesses, which relaxes the pressures and costs of compliance.

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Staff Payments

Staff are a large cost for all stores, but again the government is offering some assistance here through the Paycheck Protection Program Liquidity Facility (PPPLF), which can provide funding to keep staff in their jobs. No business wants to lose good staff or have to lay someone off at a time such as this if it can be avoided.

A large percentage of the federal government’s business initiatives have focused around keeping liquidity going in the economy. Money is at historically low rates and is becoming increasingly available for businesses that are trapped in the current financial situation. There are options available for business funding and payment deferral, and it’s important all of these options are considered. In addition, municipal and state authorities have also been providing assistance, and now is the time to explore the options that are available to you in these areas, too.

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

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Wilkerson Testimonials

A Liquidation Sale during a Pandemic? Wilkerson Showed Them the Way

For 25 years, Stafford Jewelers of Cincinnati, Ohio, was THE place to go for special gifts, engagement diamonds, high-end Swiss watch brands — in other words, the crème de la crème of fine jewelry. But this summer, the Stafford family was ready to retire. So, they chose Wilkerson to help them close up shop. “One of the biggest concerns was having the sale in the middle of COVID,” says Director of Stores Michelle Randle. Wilkerson gave the Stafford team plenty of ideas as well as safety guidelines, which they closely followed. “All of the employees felt safe, the customers coming in the door felt safe and we did a lot of business,” says Randle. How much business? “The inventory flew,” she says. Translation: They sold millions and millions of dollars-worth of merchandise. Randle calls it, “an incredible experience.” Would she recommend Wilkerson to other retailers who are thinking of thinning their inventories or retiring? “Everyone got more than what they expected out of the sale. You have to hire Wilkerson. They’re amazing.”

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