This week we are featuring tips culled from the expert presenters at the upcoming JA New York Show. If you are attending the show, don't miss the Jewelers of America-sponsored education seminars held Sunday, July 27-Tuesday, July 29.
One of the main challenges facing jewelers today is too much cash tied up in non-performing inventory.
By drilling into the details of inventory, you can discover patterns that will help you improve the way you buy. Abe Sherman, CEO of Buyers International Group (B.I.G.), will offer a session at JA New York Summer Show on “Inventory Out of Control! Solutions for a Changing Market.”
Sherman says a few simple steps diligently applied can have you planning your inventory to get the results you desire; he offers these tips to thrive with your buying patterns:
- Next time you are ready to buy, think about the retail price first. Most of us buy based on cost, and mark up the piece and wonder if we can sell it for “$x.” Why not work backwards from retail? It's how the Majors do it.
- Before you start buying, look at what your customers have bought over the past year so you can start planning your inventory based on what product and price points sell.
- Review your inventory by category by retail price points. You may have too much inventory in a particular category, but this does not mean you have the correct distribution of prices and styles. You still may have gaps in your selection.
- Understanding the price distribution of your current inventory before you buy is the first step to getting your inventory under control.
- Decide where you need product at each retail price point and know how much you will spend at cost for each retail price.
- Bring a printout of your inventory to show your suppliers. Work with them to get your inventory in balance and having the right merchandise in stock for the upcoming season.
Take The Tip:
Jewelers of America is hosting a full-day of Financial and Inventory Management seminars, on Monday, July 28, at the JA New York Show, as part of their Thriving in 2008 program. Attend Abe Sherman’s presentation: “Inventory Out of Control! Solutions for a Changing Market” at 12:45 p.m. on Monday, at the JA New York Summer Show. The Thriving in 2008 seminars are located in the Lower Level Meeting Rooms area, Room 1E01-02, located downstairs adjacent to the Javits Food Court. For more information or to register, click here.