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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

Wilkerson: “They Feel Like Family”

Newton’s Jewelers in Fort Smith, Ark., was a true institution. But after being at the helm for most of his life, owner (and descendent of the original founder) Kelly Newton decided it was time to retire. He chose Wilkerson to handle the sale. “I’ve known the owners of Wilkerson for a long, long time. I felt at home with them,” he says. The final retirement sale was just a “blast” and the Wilkerson sales team made it so very simple and straightforward, says Newton. Would he recommend Wilkerson to others? Absolutely. “They’ve done incredible work,” says Newton. “They feel like family.”

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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

Wilkerson: “They Feel Like Family”

Newton’s Jewelers in Fort Smith, Ark., was a true institution. But after being at the helm for most of his life, owner (and descendent of the original founder) Kelly Newton decided it was time to retire. He chose Wilkerson to handle the sale. “I’ve known the owners of Wilkerson for a long, long time. I felt at home with them,” he says. The final retirement sale was just a “blast” and the Wilkerson sales team made it so very simple and straightforward, says Newton. Would he recommend Wilkerson to others? Absolutely. “They’ve done incredible work,” says Newton. “They feel like family.”

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