The JA Report: News, Tips & Trends from Jewelers of America

You’re Never Too Small to Strategize

For many small, independent businesses, thinking strategically about the future -- particularly during times when you’re caught up in the day-to-day -- can be tough. For those smaller business owners asking, “Do I really need to go through all the trouble of strategic planning?” Jewelers of America’s David Peters says it is imperative “if you want to keep your doors open and prosper.”

Peters’ says small business owners should consider the following factors, and start creating a business strategy now:

Inspire High Performance from Mediocre Staff

Among the elements of a successful business is a manager’s ability to lead. Yet, in today’s high-stress climate, finding time to inspire and lead staff to success is not a priority for many owners and managers. However, leadership must be on a successful store’s agenda. According to Harry J. Friedman, of The Friedman Group consulting firm, leadership and sales inspiration are critical to the growth and long-term success of any retail organization.

Friedman insists that a successful manager must have vision beyond store statistics, like average sales, items per sale or sales per hour. The focus should be on providing customers with the absolute finest, most exquisite and elegant sales presentations possible. “If you train your staff to execute this service-centric strategy on a consistent basis with every customer, the last thing you’ll have to worry about is your numbers,” he explains.

Take Friedman’s advice and inspire your sales staff to perform, so you can stop worrying about the numbers:

Invest in Customer Service and Reap Future Rewards

Consumers may be in a holding pattern when it comes to discretionary spending, but your business can’t afford to slam on the breaks with them. In “How to Fly Over Recessionary Obstacles,” Peter Bregman advises companies to focus on the future. In particular, he notes the importance of maintaining great customer service. Consumers may be more cautious with their dollars right now, but they expect to be treated well. If you cut back on customer service now, you’ll risk losing those clients for good.

Bregman says to pretend it is already 2010 and proposes three immediate steps:

Safeguard Your Merchandise from Storms

Before hurricane-force winds and rain whip your business, have a plan in place to safeguard your merchandise and minimize loss. Jewelers Mutual Insurance Company offers a Hurricane Preparedness Guide  on its website.  The Guide is an invaluable resource to business owners, and we’ve included a small expert so you can preview its important tips.

If you’re hit by a hurricane or storm, you’re likely to sustain damage but, by following Jewelers Mutual’s tips to secure your merchandise, you can minimize your loss:

Promote the Deal of the Day (or Week)

If you feel overwhelmed with all the social networking options out there, you’re definitely not alone. “Many organizations lack the time, budget or experience to start from scratch,” writes Alexandra Samuel at the Harvardbusiness.org’s Conversation Starter blog. 

She shares ideas to help build your social media presence at low cost and risk. One example is the “deal-of-the day,” which lets people know about special, time-limited offers.  You can utilize social media to publicize and generate buzz about these offers.

Start promoting regular deals online using the following tips from Samuel:

Write Effective Job Cards

Diamonds may be a jewelers’ best friend, but the unsung category of repairs can help get you through the downturn. As many customers now choose to upgrade their jewelry, versus buying new pieces, these jobs are critical to your bottom-line. In order to capitalize on your bench jewelry services, you need to make sure your sales associates recognize the importance of repairs and can write effective job cards. 

David Peters, Jewelers of America’s resident education and management expert, offers the following tips for sales associates:

Attracting Customers in a Downturn

The economic recession has been tough on just about everyone, but luxury retailers have felt the pinch more than most. Yet many soldier on, running their businesses lean and mean and preparing for brighter days ahead. In a special report, JCK Magazine spoke with several retailers and asked them, “What is your best tip or strategy for bringing customers into the store during a tough economy?”

Use the following tips, directly from the retail frontlines, as published in JCK:

Fill Your Online Shopping Cart: Part 3

When you venture into the online world, especially with e-commerce, your website’s design and usability are pieces of the overall puzzle. Good security can be the glue that holds it all together. Consumers who shop on your site need to know that the trust and confidence they place in your brick-and-mortar experience hasn’t been compromised online.

David Peters of Jewelers of America offers the following tips on developing the most secure site:

Fill Your Online Shopping Cart: Part 2

If you’re thinking of making your website e-commerce enabled -- or, you already have an online shop but haven’t been able to capitalize on it -- Jewelers of America’s David Peters says you should consider the real reasons consumers buy online. As it turns out, their motivation to buy in cyberspace is very similar to what makes them buy in your store. The experience should be virtually (pun intended) the same.

Peters says customers will buy from your site, if you provide:

Fill Your Online Shopping Cart: Part 1

When it comes to e-commerce, your online store should be an extension of your brick-and-mortar one, with the same kind of quality and service a customer would find if they walked through your front door, says David Peters, Jewelers of America’s resident education and management expert.

In this three-part Tips Series, he shares the real reasons users take the plunge from browsers to buyers. He provides the features that cause people to purchase from a particular website:

Benchmark to Success (and Survive)

Knowledge of your strengths and weaknesses is important in any economy, but in the current downturn it can be the difference between advertising your product or advertising your “going out of business” sale.

The 2009 Jewelers of America Cost of Doing Business Report proves this point. The Report found that despite the fact that jewelers of all size and type saw declines in 2008, those who controlled costs were able to lessen the impact of the downturn. On average, high-profit firms grew by 3.1%, while their low-profit counterparts were down -12.6%.

David Peters, Jewelers of America’s resident education and management expert, says using the Report can help jewelry retailers see how their business compares to industry averages, so you have the tools you need to shore up strengths and eliminate weaknesses.

Use the 2009 CODBS Report for strategic planning and benchmarking, and you will be able to:

Protect Yourself When Buying Gold

Buying and selling gold and other precious metals has become a significant part of today’s jewelry business. (The just-released 2009 Jewelers of AMerica Cost of Doing Business Report revealed that karat gold jewelry is the fourth highest product category for retail jewelers in 2008.) But will your policy cover you -- and at what value -- if scrap gold is lost in a robbery or during shipment?

To protect your business, take Jewelers Mutual Insurance Company advice and comply with local, state and federal requirements, which may include:

Get Rid of “Toxic” Inventory: Dispose of the Duds

 According to The Gordon Company’s Retail Jewelry Insights, as much as 25% of many jewelers’ inventory was unproductive last year. Given the downturn an even a higher percentage of this “toxic inventory” won’t be what customers want this holiday season.

Today, we offer tips on how to dispose of hard to sell inventory. The following suggestions can be found in “Toxic Inventory Threatens Jewelers”: