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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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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.

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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 | 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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