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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

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: 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]

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.”

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