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Travelers Should Be Super Careful with Their Jewelry — Here’s Why

Jewelers Mutual Insurance Group released a new survey.

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THE NUMBER OF travelers reporting lost or stolen jewelry has doubled over the past four years, according to a national survey conducted by Jewelers Mutual Insurance Group. The survey revealed that 20% of respondents suffered a jewelry loss while on vacation. That’s up from 10% just four years ago.

Jewelers Mutual reports the most risky place for travelers to wear fine jewelry is at the beach. And while the insurance company advises sun worshippers to protect their jewelry in a room safe or hotel vault before heading to the water’s edge, too many are choosing to tempt fate. The result: 27% of all travel-jewelry losses can be traced to where the surf meets the sand.

Still another pain point is that only 1% of the lost or stolen jewelry is ever recovered by their owners.

“Travel continues to be a vulnerable time to misplace or have jewelry stolen,” noted Don Elliott, director of claims at Jewelers Mutual. “Travelers can and should insure their jewelry, and there also are steps they can take to minimize risk.”

Elliot outlined these important tips…

  • Document: As you’re packing, take a photo of the pieces you’re taking with you. If you need to file a police report for any reason, this proof of ownership will be very helpful.
  • Carry It: Never put jewelry in a checked bag. Wear it or stow it in your carry-on bag and keep that bag in sight at all times.
  • Don’t Post It: Avoid being an easy target. Don’t share photos of your jewelry or where you are staying on social media.
  • Wear Wisely: Avoid wearing jewelry while swimming, especially in cold water where finger sizes can temporarily shrink.
  • Tuck Away: Never leave jewelry out in the open. Use the safe in your room or hotel vault.
  • Conceal Don’t Reveal: Tuck necklaces inside your shirt, turn your engagement ring to the inside of your hand and cover any bracelets or watches with a sleeve when in dangerous areas.
  • Button Up: If you’re packing earrings, fasten them to an extra button to avoid them being separated or misplaced.
  • Suck It Up: Thread necklaces through a paper straw. This will prevent them from being easily misplaced or lost, with the added benefit of avoiding a tangled mess.

Jewelers Mutual also introduced its new digital publication called “Your Guide For Traveling With Jewelry.” It covers packing, time away, and upon-return tips, as well as advice for buying jewelry on vacation and what to do if your jewelry is lost or stolen while traveling. Click this link for more information.

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Conducted in May 2019 by Kantar Group, the Jewelers Mutual survey reflects the experiences of 1,044 adults, ages 18 to 64.

Howard Cohen is the Shoreham, NY-based editor of The Jeweler Blog, a daily blog ghost-written for retail jewelers. Cohen, a long-time industry veteran, is dedicated to making social media tasks simple and affordable for every jeweler. For more information, visit thejewelerblog.com or contact Cohen at 631-821- 8867, hscohen60@gmail.com. Websites: thejewelerblog.com, thejewelerblog.wordpress.com.

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Where Did All My Profits Go??

Understanding cash flow vs. profit can affect how you manage your business.

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A COMMON COMPLAINT FROM retailers after the CPA has completed the end of year financials is, “Where is the money?” Often, they have reported a healthy profit (which also leads to a bigger tax liability to the IRS), yet their bank account never seems to reflect the profit the business makes.

It’s a common issue. Most store owners expect their profit to show up in the bank account — and that’s perfectly understandable. After all, profit is meant to be what you have left after paying your operating costs and vendors. Yet, rarely does it align.

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The reality is that cash flow and profits are two different things. Cash flow reflects the ins and outs of your bank account over a period of time. Profit is about your income and the expenses that relate to that income. That means the expenses don’t necessarily line up with when you paid them.

One of the best examples of this is the inventory you buy. For instance, let’s say Bob’s business does $1 million in sales for the year. With a keystone markup, Bob makes a gross profit of $500,000 from his business. After expenses of $400,000, his net profit is $100,000.

The bank account tells a very different story. Although the cost of goods sold is $500,000, Bob didn’t necessarily spend that much on inventory for the year. If he spent $600,000 on inventory purchases, he would have increased his inventory holding by $100,000. However, he didn’t sell the extra inventory, and therefore, it doesn’t pay for itself, but it will still come out of his bank account!

Timing is another important factor in paying vendors, too. Whether you pay your vendors immediately or pay the amount six months later, this will affect your bank balance, but it won’t affect your profit — the item is an expense when you sell it, not when you pay your vendor.

Your bank account can also be affected by assets that you buy. A new vehicle that is deemed a business asset may leave a hole in your bank account now if you pay cash, but as a business asset, its cost will be spread over several years to reflect when it is used. Your profit will look healthier than your bank account in this situation.

Of course, another factor to consider is personal spending. Withdrawing a good deal of money from your business account to support your lifestyle isn’t a business expense and won’t decrease your profit. It will, however, certainly lower the balance of your bank account.

It’s important to understand this difference between cash flow and profit so you don’t get caught spending money you don’t have.

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How to Create a Feeding Frenzy In Your Store

Limited-quantity special offers can do more than build short-term traffic.

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IMAGINE A VIRTUAL feeding frenzy of customers coming into your store to buy, right now.

Nice idea, right? But that’s not the sort of thing you can simply turn on or off like a faucet … or is it?

Actually you can, and it’s the perfect thing to create using email marketing and social media. The secret is to offer extremely attractive offers on extremely limited merchandise, and do it on a regular basis.

For example, maybe you offer an 18-inch strand of freshwater pearls with a regular price of $89 for just $27. Who wouldn’t want to buy that? Of course, many, many people would and will. But to get the feeding frenzy, you need one more element … urgency!

In this case, the urgency is manifested in the form of an extremely limited supply. “But I only have 17 of them, and when they’re gone, they’re gone!”

But why would you want to do this? I mean, let’s say you bought those pearls for $12 a strand. Well, selling 17 strands at a profit of just $15 a strand makes you a whopping $255. Hardly worth the trouble, right?

Well, consider this: When you do this regularly — at least once a month, and once a week is better — you can predictably expect the following:

  • You will virtually eliminate opt-outs from your email list. People will stay with you forever, not because they want or need any one thing or things, but they’ll be afraid of missing the one screamin’ deal they do. Research proves this to be true.
  • You’ll very likely see an increase in email opens.
  • You’re likely to see an increase in your social media engagements in the form of page likes, comments, etc.
  • You’ll finally be able to track social media responses directly to specific posts; no longer will you have to guess if your social media is working. You’ll know … and how well.
  • You’ll have customers walking in to buy. And that makes upselling and add-on selling much, much easier. If your sales team is well-trained, that li’l $27 sale turns into your average ticket or higher.
  • Perhaps most important, you’ll be training your customers on how to be your customers. You’ll be delivering the message that, in this relationship, they’re expected to buy from you.

Obviously, to make “feeding frenzy” marketing work, you need to buy right. Make it part of your trade show routine to visit the closeout booths to find such deals. Buy unusual numbers of the items you want to make your feeding frenzy offers (17 of these, 22 of those, 8 of another thing, 31 of something else).

It’s also important to keep the price points low. You can have something with a $200 value or more, but you’ll want to keep the “deal” price under $100, and under $50 is best. This has to remain an “impulse” buy that virtually any and every customer can appreciate.

And once you’ve mastered the art of the feeding frenzy offer, start making more compelling offers to your customers for those bigger items for bigger occasions. You’ll see your traffic, sales and profits skyrocket.

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David Geller

What You Can Learn About Turn from Clothing and Furniture Stores

Hint: Turn more, earn more.

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THERE ARE REALLY only three important numbers in a retail store: gross profit dollars, inventory on hand, and inventory turn. So who’s better at managing money among these three retailers?

Store                         Gross Profit %
Jewelry                      42.6%
Furniture                  45.0%
Clothing                    46.5%

Darn close, aren’t they? The grass isn’t so green on the other side after all. Or is it?

Let’s look at inventory turn, which means how many times a year an item sells. (These numbers are from stores doing “pretty well.”)

Store                            Turn            Days in the Store
Jewelry                   1.4                       260
Furniture               3.5                       104
Clothing                 4.3                       84

A clothing store won’t keep a shirt/suit/jacket/blouse in the store more than three to four months. They will heavily discount it at that point to get it out the door; they don’t just “squash” merchandise closer together to show more like jewelers do.

Furniture stores work the same way. They have a natural problem: available floor space. The biggest reason for high turn in a furniture store was told to me by a furniture store owner: “Where am I going to store an extra 100 mattresses?”

Clothing stores get rid of their merchandise every quarter. Furniture stores get rid of their inventory every four months, and a good jeweler turns their merchandise a little over once a year. But most jewelers I meet have had their total merchandise for two-and-a-half to four years! This causes terrible cash flow and piles of debt.

If you buy jewelry in January, it should sell at least once by Christmas; that would be a turn of 1.0. If it stays until after Christmas, discount it or give a spiff to the sales staff to unload it, or even return it to your vendor and exchange it.

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If it is still there in 18 months, scrap it. That’s what clothing and furniture stores do.

Let me show you the money-making power of turn. All three stores are going to buy an item for $200. For a jeweler, this might be earrings; for a clothing store, a nice jacket; and for a furniture store, it might be a chair. In the table below you can see the cost, profit margin in dollars, and what that brings in for total product dollars in a year.

Keeping an item long-term is a detriment. Even if someone buys it three years from now, you should have had that $207 in profit for each of the three years, totaling $621 brought into the store (not the measly $163.35 you would make by holding it three years).

When it’s over a year old, most things need to be disposed of and replaced. Maybe your customers just aren’t buying what you have in stock. Change that!

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