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Laurie Owen: Lucky Number 21.3

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Stats to know for your store

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[h3]21.3[/h3]

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.

 

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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 February 2006 edition of INSTORE[/span]

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Wilkerson Testimonials | Sollberger’s

Going Out of Business Is an Emotional Journey. Wilkerson Is There to Make It Easier.

Jaki Cowan, the owner of Sollberger’s in Ridgeland, MS, decided the time was right to close up shop. The experience, she says, was like going into the great unknown. There were so many questions about the way to handle the store’s going-out-of-business sale. Luckily for Cowan, Wilkerson made the transition easier and managed everything, from marketing to markdowns.

“They think of everything that you don’t have the time to think of,” she says of the Wilkerson team that was assigned to manage the sale. And it was a total success, with financial goals met by Christmas with another sale month left to go.

Wilkerson even had a plan to manage things while Covid-19 restrictions were still in place. This included limiting the number of shoppers, masking and taking temperatures upon entrance. “We did everything we could to make the staff and public feel as safe as possible.”

Does she recommend Wilkerson to other retailers thinking of retiring, liquidating or selling excess merchandise? Absolutely. “If you are considering going out of business, it’s obviously an emotional journey. But truly rest assured that you’re in good hands with Wilkerson.”

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Laurie Owen: Lucky Number 21.3

Published

on

Stats to know for your store

{loadposition laurieowenheader}

[h3]21.3[/h3]

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.

Advertisement

 


 

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

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

Advertisement

SPONSORED VIDEO

Wilkerson Testimonials | Sollberger’s

Going Out of Business Is an Emotional Journey. Wilkerson Is There to Make It Easier.

Jaki Cowan, the owner of Sollberger’s in Ridgeland, MS, decided the time was right to close up shop. The experience, she says, was like going into the great unknown. There were so many questions about the way to handle the store’s going-out-of-business sale. Luckily for Cowan, Wilkerson made the transition easier and managed everything, from marketing to markdowns.

“They think of everything that you don’t have the time to think of,” she says of the Wilkerson team that was assigned to manage the sale. And it was a total success, with financial goals met by Christmas with another sale month left to go.

Wilkerson even had a plan to manage things while Covid-19 restrictions were still in place. This included limiting the number of shoppers, masking and taking temperatures upon entrance. “We did everything we could to make the staff and public feel as safe as possible.”

Does she recommend Wilkerson to other retailers thinking of retiring, liquidating or selling excess merchandise? Absolutely. “If you are considering going out of business, it’s obviously an emotional journey. But truly rest assured that you’re in good hands with Wilkerson.”

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Most Popular