Gold is shining bright again. Sales in units had been in a steady decline for some time but, as the graph above shows, they have recovered sharply in recent months at the stores in our survey group.
With no obvious catalysts driving the sales improvement we can only assume it’s a delayed reaction to the decline in the price of gold over the last two years. With many inventory items purchased near gold’s high, and given a stock turn of only one per year, most jewelers would have been reluctant to drop their prices. But current prices reflect a more reasonable buy-in level for jewelers replenishing stocks, and a more affordable price for customers, which would spur demand.
Not surprisingly, the percentage contribution from gold to overall sales has also seen a steep increase, with sales inching their way to 9 percent of store sales at the typical American jeweler. If your sales have not shown a similar resurgence, it could be because you are carrying a lot of old product at outdated (and inflated) prices.
Sadly, there is no simple way to deal with this. You may have to bite the bullet and cut your prices to move the items on. The good news is that any restocking will be at a lower price. Take heart from the fact that lower prices make your merchandise more attractive, so ultimately this “correction” is good for you.
For the full story and more ideas to improve your store’s performance, visit instoremag.com/bythenumbers.
JEWELER SUCCESS STORIES
“Halfway Through the Sale, We Already Did a Year’s Worth of Volume”
Torin Bales says he was “blown away” by Wilkerson’s results after the company ran his retirement sale. “When you hire a consultant, you have to let them take control,” says the Texas retailer. After all, if you’re like most jewelers, you only retire once. Get the maximum return on your life’s investment. Turn to Wilkerson & Associates and let your new life begin!
Latest Know How Stories
- Two Ways to Keep From Discounting an Item
- Like the Tires of a Car, One Flat Salesperson Can Ruin the Experience
- Here's What You Say to Get a "Just Looker" to Try Something On
- This Crazy Experiment with Vacation Time Could Boost Your Employees' Performance
- Want to Make More Money? Leave Your Product Comfort Zone