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Jewelers’ Gross Sales Are Up, but What About Margins? It’s Time to Take a Closer Look At Bridal

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Our Edge Retail Academy data pool has expanded and now includes just under 1,000 stores.

Our data, which includes stores with at least three years of historical information, continues to show the independent retailer’s gross sales growing, up 4% for the rolling 12 months ending in January.

Units continue to decline year-over-year for independents, coming in at 5% down for the rolling 12 months and 11.5% down from two years ago.

While units continue to decline, the overall average retail sale continues to climb, up 10% for the rolling 12 months at $288, including all product and service sales.

Gross profit is up 4% for the rolling 12 months, and overall margin has held steady at 46 for 36 months.

Bridal sales continue to perform well, with rolling 12-month sales up 2.9%. Units and average retail sale are up ever so slightly, and margin has come up slightly from 44 to 45.

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The bridal department represents approximately 30% of all gross profit.

While it is important to grow your bridal business, it’s equally important to ensure this is a profitable area for you. How do your sales compare to our industry data? Are you achieving sales growth? If so, is it also achieved while growing or at least maintaining margin?

Sales growth is pointless if margins are being sacrificed at a comparable level. Here are a couple of tips to help you improve margins achieved:

1. Review markup on fast-selling items. The 80/20 rule is alive and well when it comes to bridal. Research continues to show that approximately 20% of your bridal inventory is driving 80% of your bridal sales. Are you achieving better margins on your best-selling bridal pieces? More importantly, have you gotten rid of the non-performers? This will allow you to achieve higher stock turns, generating a better return on investment, and the approach better aligns with the evolving retail notion of “less is more.”

2. Look at your discounting policy. First and foremost, you should never discount your fast sellers. This simply makes no sense. Second, revisit your discount policies. Why are you discounting? Is it merely because the customer asked? Have you trained your staff on how to answer questions about discounting? Focus on value and points of differentiation and train, train and train some more. Finally, if you have a customer looking for a deal or you’re set on giving something away, have a tray of non-performers ready that you will happily discount to recoup your investment.

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On these numbers alone, every extra percent of markup will add nearly $20,000 in pure bottom- line profit. It’s worth thinking about.

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

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2019 Big Survey: 10 Times When Jewelry Store Employees Left the Job in Dramatic Fashion

Results of the 2019 Big Survey have been rolling in. Here’s a sample.

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WE ASKED SURVEY respondents to share the most epic ways they’d seen someone quit or be fired. Dealing with employees on their way out can be touchy. Sometimes these unfortunate encounters even culminate in award-winning dramatic performances. Read on for the most memorable ways employees have parted ways with jewelry stores:

Top 10 Countdown

The award for best dramatic performance goes to the employees who:

10. Screamed at the top of their lungs, “I QUIT”

9. Showed up in pajamas, had a breakdown, then quit and walked out.

8. Threw rings at the boss while asking for a raise, then quit.

7. Threw a crystal piece through a showcase shelf.

6. Hit the jeweler in the head with a bag of bananas.

5. Threw his key at me.

4. Came in wielding a pipe wrench screaming that we were liars.

3. Ran out of the shop, arms raised in the air, saying “he’s trying to kill me.”

2. Got drunk at a charity event we were sponsoring, hit on one of the ladies and pulled her skirt up. Police were called.

And the No. 1 best dramatic performance goes to:

1. The employee who hired a marching band to quit.

The 2019 Big Survey was conducted in September and October and attracted responses from more than 800 North American jewelers. Look out for all the results in the November issue of INSTORE.

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Wow Your Customers with This Video Messaging App

Jewelers can make online experiences feel a lot more like in-person experiences.

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DO YOU REMEMBER the last time a business did something unexpected for you? Something you truly appreciated? Of course, you do. Those are the moments that imprint themselves on our memories. For me, it was with a video messaging app called Bonjoro.

My Wow Moment

When I signed up for their free trial, I expected to get a video message from them. That’s what they do. And they told me I would. What I didn’t expect was to get a video answer about a tech issue I was having minutes after I emailed them about it. That blew me away.

In the jewelry industry, we pride ourselves on our in-store service and fret about our online marketing. Gone are the glory days with greater foot traffic. Now everyone wants to kick the tires online before they commit to coming in. But what if you could bring your amazing customer service to customers before they ever stepped foot in the store?

Bonjoro to the Rescue

That’s exactly what Bonjoro allows you to do. Bonjoro is an easy to use video to email messaging app for businesses. They make recording and emailing a personalized video to customers almost effortless. And you can even send these videos when they’ll have the biggest impact, like right after they fill out a contact form on your site.

Imagine a prospective customer visits your site. They fill out a contact form with some details about the type of engagement ring they’re looking for. After they press submit, someone on your sales team gets a notification. Once they have a free minute, they pull out their phone and record and send a video in less time than it would take them to respond to the email.

“Hi, Jim! I know exactly the style that you’re looking for, and we have some great options for you. You can see a few of them in the case behind me, but I have a few more that I’d like to pull out and show you. You mentioned that you have a lunch break at noon. Why don’t you stop by tomorrow, and I’ll have them all ready for you? In the meantime, there’s a link to our website’s engagement ring gallery in this window. If you see anything else you like, you can write me a quick message, and I’ll be sure to add it. See you soon!”

An Experience Like No Other

This is an experience most jewelers aren’t going to offer. The enthusiasm and confidence communicated in a video are hard to match in an email response. And the customer has likely never received a response like this from a jewelry store. Just the thought that someone took the time to personally address them with a video will make them more likely to stop in. Plus, they already feel like they know you.

Almost Face-to-Face

Bonjoro is a way to send quick, personalized videos to customers. They’re meant to be mixed into the daily routine and workflow of your sales team. This isn’t the time for high-quality video production or perfect angles. This is much more personal and organic than that.

People online aren’t used to being addressed personally by video. It gives them a personal touch that usually only happens in the store. When you use Bonjoro, the most important thing is to press the record button and talk to the customer like they’re right there in front of you. What a wonderful way to wow your customers!

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Commentary: The Business

Customer Fired for Cause

Her phone manners left something to be desired.

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Laurelle Giesbrecht of French’s Jewellery says her daughter Heidi, now 15, is not afraid to answer the phone despite what happened and calls it “a learning experience.”

WHILE VISITING A great friend and store owner, Laurelle Giesbrecht of French’s Jewellery in Alberta, Canada, we were commiserating over coffee. I have always loved hearing her stories about community involvement or win/win sales interactions. This time, she had a real doozy.

A customer had recently purchased a $300 ring for her daughter and had sent her back to the store for a free sizing. The young girl had decided it was not going to be on her third finger but the much larger first. That meant the ring needed to be sized from 5 to 10. For this, there would be a charge. The girl left the ring.

Laurelle’s daughter, Heidi, was answering phones as her mom finished closing the store. It was the last call before locking up. Heidi asked how she could re-direct the caller and then, holding the phone to her chest, asked her mom if she wanted to take the call. Mom assured her she was doing fine. It brought a smile to her face when she heard her daughter tell the caller that she would pass the message along to their HR manager.

But later at home, the true story emerged. The call had been from the original purchaser of the size 5 ring, and using a long string of vulgarities, she had demanded a full refund. The next day, typically affable Laurelle left a message requesting a return call. When the return call came, Laurelle informed the customer that the swearing she had done over the phone had been directed at her 13-year-old daughter. She added that she would not allow that treatment of any of her staff. After informing the customer that she would process a full refund, she asked for her mailing address so she could mail it. Laurelle calmly informed the customer that she was not to come back to her store.

But the story was not over. The customer ignored the request to not return to the store and instead brought a beautiful bouquet of flowers with a neatly written card. She wanted to personally deliver them to the 13-year-old child who had listened so intently to her vulgar language. This customer knew that the depth of her apology could only be appreciated by a face-to-face meeting between an embarrassed adult and precocious child!

If there are lessons here, they are written between the lines.

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