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Laurie Owen: Lucky Number 21.3

Stats to know for your store.

Published

18 years ago

February 1, 2006

David Squires Instore February 2006 Issue

21.3

What is it? That’s the percentage of each sales dollar the top performers in our 2004 Jewelers Financial Benchmarking Study took home. Actually, 21.3% was just the median, or half-way point, of this group. This means some owners socked away even more. We call this measurement ODP, or “Owner’s Discretionary Profit”. It’s made up of net profit before tax plus owner compensation, which includes all amounts paid to owners (salaries, bonuses, retirement, and benefits). Compare this to 9.5% ODP for all survey participants. Apply the difference to the median study sales figure of $1,677,680 and you get a whopping $197,000 in additional profit dollars.

Strategy: Manage your costs, especially staff costs and cost of goods sold. Hang out with other high-ODP performers. Set a target ODP for the year, track it regularly, and brainstorm ideas to improve it.

This story is from the February 2006 edition of INSTORE.

This Third-Generation Jeweler Was Ready for Retirement. He Called Wilkerson

Retirement is never easy, especially when it means the end to a business that was founded in 1884. But for Laura and Sam Sipe, it was time to put their own needs first. They decided to close J.C. Sipe Jewelers, one of Indianapolis’ most trusted names in fine jewelry, and call Wilkerson. “Laura and I decided the conditions were right,” says Sam. Wilkerson handled every detail in their going-out-of-business sale, from marketing to manning the sales floor. “The main goal was to sell our existing inventory that’s all paid for and turn that into cash for our retirement,” says Sam. “It’s been very, very productive.” Would they recommend Wilkerson to other jewelers who want to enjoy their golden years? Absolutely! “Call Wilkerson,” says Laura. “They can help you achieve your goals so you’ll be able to move into retirement comfortably.”