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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 president of the Edge Retail Academy, a force in jewelry industry business consulting, sell-through data and vendor solutions. David and his team are dedicated to providing business owners with information and strategies to improve sales and profits. Reach him at [email protected]

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