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Laurie Owen: Inventory Turns

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Stats to know for your store

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[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].

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

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Wilkerson Testimonials

Retirement Made Easy with Wilkerson

The store was a landmark in Topeka, Kansas, but after 80 years in business, it was time for Briman’s Leading Jewelers to close up shop. Third generation jeweler and owner Rob Briman says the decision wasn’t easy, but the sale that followed was — all thanks to Wilkerson. Briman had decided a year prior to the summer 2020 sale that he wanted to retire. With a pandemic in full force, he had plenty of questions and concerns. “We had no real way to know if we were going to be successful or have a failure on our hands,” says Briman. “We didn’t know what to expect.” But with Wilkerson in charge, the experience was “fantastic” and now there’s plenty of time for relaxing and enjoying a more secure retirement. “I would recommend Wilkerson to any retailer considering a going-out-of-business sale,” says Briman. “They’ll help you reach your financial goal. Our experience was a tremendous success.”

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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]

Continue Reading
Advertisement

SPONSORED VIDEO

Wilkerson Testimonials

Retirement Made Easy with Wilkerson

The store was a landmark in Topeka, Kansas, but after 80 years in business, it was time for Briman’s Leading Jewelers to close up shop. Third generation jeweler and owner Rob Briman says the decision wasn’t easy, but the sale that followed was — all thanks to Wilkerson. Briman had decided a year prior to the summer 2020 sale that he wanted to retire. With a pandemic in full force, he had plenty of questions and concerns. “We had no real way to know if we were going to be successful or have a failure on our hands,” says Briman. “We didn’t know what to expect.” But with Wilkerson in charge, the experience was “fantastic” and now there’s plenty of time for relaxing and enjoying a more secure retirement. “I would recommend Wilkerson to any retailer considering a going-out-of-business sale,” says Briman. “They’ll help you reach your financial goal. Our experience was a tremendous success.”

Promoted Headlines

Most Popular