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Laurie Owen: Inventory Turns

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Stats to know for your store

{loadposition laurieowenheader}

[h3]1.4[/h3]

What is it? It’s the number of inventory turns you should be shooting for per year. (Of course, if your turn is higher, all we have to say is … well played, sir, well played.) Typical is 1.1 to 1.4 turns per year, according to a 2001 Jewelers of America “Cost of Doing Business” survey. Your store’s profit margin is an important consideration here. Says David Geller: “A gross margin of 50 percent goes well with a turn of ‘one’. Less than that and you may have problems making profits”. Geller reasons that since most jewelers have profit margins in the 41 to 48 percent range, they need at least a 1.25 turn to stay healthy. And for optimum health, you should shoot for a 1.4 turn.

Strategy: How can you move your entire inventory an average of one and a half times per year? Two keys: 1.) Re-order fast sellers frequently – as often as weekly, and 2.) Have your hand on the switch, ready to euthanize any dogs the very instant they turn one year old. Be ruthless! Keep turning!

 

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Laurie Owen is senior vice president at Business Resource Services. Contact her at [email protected]le.com.

[span class=note]This story is from the January 2006 edition of INSTORE[/span]

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Wilkerson Testimonials | MSG Jewelers

Wilkerson Takes the Worry Out of Closing

MSG Jewelers has always treated its customers like family. When owner Mike George decided to retire and close the doors of his St. Louis, Missouri jewelry store, he selected a company to manage his going-out-of-business sale that treats its customers like family, too. That’s why he chose Wilkerson. “Wilkerson was able to do all the things that we needed,” says George. In the end, the bittersweet store closing was so much easier with Wilkerson at the helm. From marketing to pricing to inventory, Wilkerson does it all. “It’s a package deal,” says George.

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Laurie Owen: Inventory Turns

Published

on

Stats to know for your store

{loadposition laurieowenheader}

[h3]1.4[/h3]

What is it? It’s the number of inventory turns you should be shooting for per year. (Of course, if your turn is higher, all we have to say is … well played, sir, well played.) Typical is 1.1 to 1.4 turns per year, according to a 2001 Jewelers of America “Cost of Doing Business” survey. Your store’s profit margin is an important consideration here. Says David Geller: “A gross margin of 50 percent goes well with a turn of ‘one’. Less than that and you may have problems making profits”. Geller reasons that since most jewelers have profit margins in the 41 to 48 percent range, they need at least a 1.25 turn to stay healthy. And for optimum health, you should shoot for a 1.4 turn.

Strategy: How can you move your entire inventory an average of one and a half times per year? Two keys: 1.) Re-order fast sellers frequently – as often as weekly, and 2.) Have your hand on the switch, ready to euthanize any dogs the very instant they turn one year old. Be ruthless! Keep turning!

Advertisement

 


 

Laurie Owen is senior vice president at Business Resource Services. Contact her at [email protected].

[span class=note]This story is from the January 2006 edition of INSTORE[/span]

Advertisement

SPONSORED VIDEO

Wilkerson Testimonials | MSG Jewelers

Wilkerson Takes the Worry Out of Closing

MSG Jewelers has always treated its customers like family. When owner Mike George decided to retire and close the doors of his St. Louis, Missouri jewelry store, he selected a company to manage his going-out-of-business sale that treats its customers like family, too. That’s why he chose Wilkerson. “Wilkerson was able to do all the things that we needed,” says George. In the end, the bittersweet store closing was so much easier with Wilkerson at the helm. From marketing to pricing to inventory, Wilkerson does it all. “It’s a package deal,” says George.

Promoted Headlines

Most Popular