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These Are the Unexpected Expenses that Really Hurt Jewelers

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When you run a small business, there’s always something unexpected coming up — sometimes positive, sometimes negative.

And sometimes expensive.

For Big Survey 2016, we drilled down on the surprises that hurt jewelers the worst. Our question: “What unexpected expense has hurt you the most financially?”
Here are the top nine answers, along with the percentage of respondents who named them.

  • Building/equipment maintenance (16%)
     
  • Taxes (7%)
     
  • Theft or robbery (8%)
     
  • Insurance costs (5%)
     
  • Legal fees/lawsuits (5%)
     
  • Employee loss/theft/betrayal (5%)
     
  • Diamond loss/breakage (5%)
     
  • Remodel/renovation (4%)
     
  • Fire (1%)
     

And then there were the really unexpected expenses …

  • “A surprise in the generational transfer of assets from the last generation to our current ownership. Mom gave everything to the Salvation Army. We survived, but it was a mess for a while.”
  • “A car crashed into our shop in August 2009. We were closed six months. Damages were $800,000, but insurance only paid $700,000, so we were out of pocket $100,000. We’re still suffering.”
  • “Vendors cashing checks same day when they agreed to post-dated checks over four months. I had just mailed out checks for rent and sales taxes and to the IRS for about $10,000. I took about $10,000 in diamonds from a vendor with post-dated checks in return. He cashed them the next day. I had to sell the diamonds and scrap out what I had to cover all the checks. Lesson learned: no post-dated checks ever to anyone.”

 

 

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Wilkerson Testimonials

If It’s Time to Consolidate, It’s Time to Call Wilkerson

When Tom Moses decided to close one of the two Moses Jewelers stores in western Pennsylvania, it was time to call in the experts. After reviewing two candidates, Moses, a co-owner of the 72 year-old business, decided to go with Wilkerson. The sale went better than expected. Concerned about running it during the pandemic, Moses says it might have helped the sale. “People wanted to get out, so there was pent-up demand,” he says. “Folks were not traveling so there was disposable income, and we don’t recall a single client commenting to us, feeling uncomfortable. It was busy in here!” And perhaps most importantly, Wilkerson was easy to deal with, he says, and Susan, their personal Wilkerson consultant, was knowledgeable, organized and “really good.” Now, the company can focus on their remaining location — without the hassle of carrying over merchandise that either wouldn’t fit or hadn’t sold. “The decision to hire Wilkerson was a good one,” says Moses.

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These Are the Unexpected Expenses that Really Hurt Jewelers

Published

on

When you run a small business, there’s always something unexpected coming up — sometimes positive, sometimes negative.

And sometimes expensive.

For Big Survey 2016, we drilled down on the surprises that hurt jewelers the worst. Our question: “What unexpected expense has hurt you the most financially?”
Here are the top nine answers, along with the percentage of respondents who named them.

  • Building/equipment maintenance (16%)
     
  • Taxes (7%)
     
  • Theft or robbery (8%)
     
  • Insurance costs (5%)
     
  • Legal fees/lawsuits (5%)
     
  • Employee loss/theft/betrayal (5%)
     
  • Diamond loss/breakage (5%)
     
  • Remodel/renovation (4%)
     
  • Fire (1%)
     

And then there were the really unexpected expenses …

  • “A surprise in the generational transfer of assets from the last generation to our current ownership. Mom gave everything to the Salvation Army. We survived, but it was a mess for a while.”
  • “A car crashed into our shop in August 2009. We were closed six months. Damages were $800,000, but insurance only paid $700,000, so we were out of pocket $100,000. We’re still suffering.”
  • “Vendors cashing checks same day when they agreed to post-dated checks over four months. I had just mailed out checks for rent and sales taxes and to the IRS for about $10,000. I took about $10,000 in diamonds from a vendor with post-dated checks in return. He cashed them the next day. I had to sell the diamonds and scrap out what I had to cover all the checks. Lesson learned: no post-dated checks ever to anyone.”

 

Advertisement

 

 

Advertisement

SPONSORED VIDEO

Wilkerson Testimonials

If It’s Time to Consolidate, It’s Time to Call Wilkerson

When Tom Moses decided to close one of the two Moses Jewelers stores in western Pennsylvania, it was time to call in the experts. After reviewing two candidates, Moses, a co-owner of the 72 year-old business, decided to go with Wilkerson. The sale went better than expected. Concerned about running it during the pandemic, Moses says it might have helped the sale. “People wanted to get out, so there was pent-up demand,” he says. “Folks were not traveling so there was disposable income, and we don’t recall a single client commenting to us, feeling uncomfortable. It was busy in here!” And perhaps most importantly, Wilkerson was easy to deal with, he says, and Susan, their personal Wilkerson consultant, was knowledgeable, organized and “really good.” Now, the company can focus on their remaining location — without the hassle of carrying over merchandise that either wouldn’t fit or hadn’t sold. “The decision to hire Wilkerson was a good one,” says Moses.

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