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By Don Greig, Director, Focus Business Management Institute
"Failing to plan is planning to fail". - Unknown
Having an powerful getting program is one of the keystones to retail jewelry store profits. Keep in mind that each and every month ends a previous 12 month trading cycle and begins a new one. How nicely you plan your acquiring for the next 12 months will control your success.
SUPPLIERS We are all acquainted with the Pareto principle: 80% of the effects come from 20% of the causes. The exact same holds true for your suppliers. Your top 8-10 vendors will need to be producing 80% of your sales. Consequently, if you would like to improve your annual sales by 30%, you'll want to boost the sales of your top suppliers by the identical amount. What supplier wouldn't want a 30% annual enhancement in sales? Let them recognize precisely what your ideas are and exactly what you'll need to have from them in order to make it happen (e.g. quicker delivery time, greater terms, much more aggressive balancing).
Additionally, you must be changing those vendors that aren't supplying you what you'll need - even if they have been a tried and accurate provider for several years. We have discovered that as industry cycles alter, so do the corporate models and customer service levels of the wholesale suppliers. You must make the changes to your enterprise that may allow you to succeed now. Go out and obtain suppliers who have stunning merchandise in a selling price point (over $1000 average retail sale) that will help you move to a higher level. You also will need to discover a few additional diamond vendors who have the good quality, cut, and price you need to pay. You might come across these suppliers at the Luxury Show, the JCK show, the Continental Purchasing Group, Centurion, and also the IJO show.
SPENDING "You've got to spend money to make money." This is accurate, however it is how you invest your cash that's the important element to success. Retail jewelers look at their monthly spending and tend to believe, "Wow. I don't wish to spend that a lot this month on stock simply because I've this and that to pay" and then they don't stock their store effectively. Remember, a retail jewelry store performing $1 million in annual sales will spend at the very least $500,000 on product over the next 12 months. When you don't spend money on the stock, you won't have it within the store, and you can't sell it.
This $500,000 is your open to purchase for the year, an average of $40,000 per month. This is simply extrapolated; a $2 million store will spend $1 million ($80,000 per month); a $3 million store will invest $1.5 million, ($125,000 per month), etc. This is actually a lot of dollars and how wisely you spend it'll fully control your prosperity.
BUYING Spending just isn't buying. Spending is having dollars leave your bank account. Getting is the process of realizing what you will need and then spending the funds called for to obtain it. After you go to the tradeshows these figures need to be foremost within your mind. You're not signing up for the shows to peruse; you might be signing up for the shows to purchase very gorgeous diamond semi-mounts, diamond pendants, bracelets and earrings one piece at a time. You must also know what cost points of what item you should carefully stock your store and get the wholesale cost already calculated to ensure that you'll be able to make sure a goal of 130% average markup.
Diamonds and color will need to yield 80% of your sales, with the diamond sections comprising 62% of gross sales and also the color departments comprising the remaining 18%. The rest of your store will account for the remaining 20% of your company, but your focus needs to be on how you buy the items in this 80% group. It's best to be seeking to obtain gorgeous pieces that fall into the $3,750, $6,500, $15,000, and $25,000 retail cost ranges.
When attending the trade shows, be sure to stop by the Chinese plus the Indian pavilions to see the new exciting trends which are coming into the United States. Visiting these sections also gives you a broader worldwide perspective of what exactly is going on within the jewelry business nowadays.
What's your planned open to buy? The table underneath shows just how much it is best to be looking to carefully spend at the trade shows, together with the amount of old inventory that you simply ought to attempt to stock balance (or exchange) together with your distributors.
A solid buying program is vital to the success of your retail jewelry store. Keep in mind: What you do purchase at these shows is dictating what you'll sell, and how nicely you might profit, inside the next calendar year.
Focus BMI will probably be attending the following trade shows in 2011, and attends most of the main trade shows in the USA on a yearly basis. Please be sure to come visit us at the IJO show in Nashville.
We welcome you to head over to our booth for a custom purchasing analysis plan.
"Failing to plan is planning to fail". - Unknown
Having an powerful getting program is one of the keystones to retail jewelry store profits. Keep in mind that each and every month ends a previous 12 month trading cycle and begins a new one. How nicely you plan your acquiring for the next 12 months will control your success.
SUPPLIERS We are all acquainted with the Pareto principle: 80% of the effects come from 20% of the causes. The exact same holds true for your suppliers. Your top 8-10 vendors will need to be producing 80% of your sales. Consequently, if you would like to improve your annual sales by 30%, you'll want to boost the sales of your top suppliers by the identical amount. What supplier wouldn't want a 30% annual enhancement in sales? Let them recognize precisely what your ideas are and exactly what you'll need to have from them in order to make it happen (e.g. quicker delivery time, greater terms, much more aggressive balancing).
Additionally, you must be changing those vendors that aren't supplying you what you'll need - even if they have been a tried and accurate provider for several years. We have discovered that as industry cycles alter, so do the corporate models and customer service levels of the wholesale suppliers. You must make the changes to your enterprise that may allow you to succeed now. Go out and obtain suppliers who have stunning merchandise in a selling price point (over $1000 average retail sale) that will help you move to a higher level. You also will need to discover a few additional diamond vendors who have the good quality, cut, and price you need to pay. You might come across these suppliers at the Luxury Show, the JCK show, the Continental Purchasing Group, Centurion, and also the IJO show.
SPENDING "You've got to spend money to make money." This is accurate, however it is how you invest your cash that's the important element to success. Retail jewelers look at their monthly spending and tend to believe, "Wow. I don't wish to spend that a lot this month on stock simply because I've this and that to pay" and then they don't stock their store effectively. Remember, a retail jewelry store performing $1 million in annual sales will spend at the very least $500,000 on product over the next 12 months. When you don't spend money on the stock, you won't have it within the store, and you can't sell it.
This $500,000 is your open to purchase for the year, an average of $40,000 per month. This is simply extrapolated; a $2 million store will spend $1 million ($80,000 per month); a $3 million store will invest $1.5 million, ($125,000 per month), etc. This is actually a lot of dollars and how wisely you spend it'll fully control your prosperity.
BUYING Spending just isn't buying. Spending is having dollars leave your bank account. Getting is the process of realizing what you will need and then spending the funds called for to obtain it. After you go to the tradeshows these figures need to be foremost within your mind. You're not signing up for the shows to peruse; you might be signing up for the shows to purchase very gorgeous diamond semi-mounts, diamond pendants, bracelets and earrings one piece at a time. You must also know what cost points of what item you should carefully stock your store and get the wholesale cost already calculated to ensure that you'll be able to make sure a goal of 130% average markup.
Diamonds and color will need to yield 80% of your sales, with the diamond sections comprising 62% of gross sales and also the color departments comprising the remaining 18%. The rest of your store will account for the remaining 20% of your company, but your focus needs to be on how you buy the items in this 80% group. It's best to be seeking to obtain gorgeous pieces that fall into the $3,750, $6,500, $15,000, and $25,000 retail cost ranges.
When attending the trade shows, be sure to stop by the Chinese plus the Indian pavilions to see the new exciting trends which are coming into the United States. Visiting these sections also gives you a broader worldwide perspective of what exactly is going on within the jewelry business nowadays.
What's your planned open to buy? The table underneath shows just how much it is best to be looking to carefully spend at the trade shows, together with the amount of old inventory that you simply ought to attempt to stock balance (or exchange) together with your distributors.
A solid buying program is vital to the success of your retail jewelry store. Keep in mind: What you do purchase at these shows is dictating what you'll sell, and how nicely you might profit, inside the next calendar year.
Focus BMI will probably be attending the following trade shows in 2011, and attends most of the main trade shows in the USA on a yearly basis. Please be sure to come visit us at the IJO show in Nashville.
We welcome you to head over to our booth for a custom purchasing analysis plan.
About the Author:
Focus Business Management Institute stands out as the industry pioneer in retail jewelry organization consultation courses. By means of an exclusive statistics software package that has been improved upon over the last three decades, the employees at Focus BMI can give most people with an accurate analysis of the stock you'll need to have with your store and at exactly what cost points, to be able to supercharge your profits.
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