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

Ignore Management Details and Lose Profits

We continue our in-depth coverage of the recently released 2011 Jewelers of America Cost of Doing Business Report with a spotlight on high- and low-profit income statement measures. Last week, we excerpted a section on the benefits of comparing your business’ operating ratios to high- and low-profit jewelry firms. This week, we look at how a high- and low-profit income statement comparison can reveal key performance areas jewelry business owners should review in their stores to improve profitability.

The following excerpt is another example of how the 2011 Cost of Doing Business Report -- with its comprehensive data tables on a cross section of jewelry firms -- is an invaluable benchmarking tool to help you find areas to cut costs or strategize how to improve performance.

High- or Low-Profit: Where Does Your Jewelry Business Stand?

Jewelers of America recently released our 2011 Cost of Doing Business Report, an invaluable benchmarking tool for retail jewelers. Jewelers can use it as a benchmarking tool to find areas to cut costs or as a reference tool when seeking favorable business financing options.

With 45 pages of comprehensive data tables on a cross section of jewelry firms, many jewelers wonder where to begin to analyze their data. So in the coming weeks, we’ll be excerpting some informative sections of the Report to illustrate its benchmarking benefits. You’ll see that unlike complex finance reports, the Jewelers of America Cost of Doing Business Report is designed for business owners, not financial experts.

This week, we look at the benefits of comparing your business’ operating ratios to high- and low-profit jewelry firms:

JA Survey Helps Jewelry Retailers Improve Cost of Doing Business

With Jewelers of America's annual Cost of Doing Business Survey currently underway, we've been posting quick tips from previous Cost of Doing Business Reports on our Facebook and Twitter feeds to show the insightful retail jewelry benchmarking data it reveals. Follow us so you don't miss out -- we've included some highlights after the break!

When you participate in the survey, you receive a copy of the Jewelers of America Cost of Doing Business Report ($150 value) -- which has been an invaluable industry benchmarking resource for 20+ years. 

Click here to participate in the Survey today!

It's quick and easy -- Most of the key measures of financial performance in our 2011 Cost of Doing Business Survey are based on the two primary financial statements: the Profit-and-Loss statement and the balance sheet. Take the survey today!

Understand Your Numbers

Jewelers of America is conducting its annual Cost of Doing Business survey, which helps retail jewelers gain valuable insight by looking back at their previous year's numbers for key performance measures.

The survey reveals key data points that help you run your business better:

• For instance, the 2009 survey indicated that the most profitable jewelers turn their inventory 1.2 times per year, versus low profit jewelers who only turn inventory once. If your numbers are closer to low profits, brainstorm with your team on ways to improve your inventory turn – our survey shows even a slight improvement could improve your bottom line.

Tips for improving inventory turn in your store:

Increase Profitability Through Benchmarking

Comparing your store’s financial performance to industry averages and/or standards can have a profound impact on your business. Jewelers of America’s Cost of Doing Business Report, published each summer, helps you find out where your store measures up across multiple operating-performance areas. That knowledge is a powerful tool, since even small adjustments can lead to better profits.

Jewelers of America is currently conducting its 2011 Cost of Doing Business survey, make sure you participate to benefit from the benchmarking analysis it reveals (Take the survey now! or learn about its benefits).

When you take the survey online, you’ll get an immediate calculation of your financial data and operating ratios. David Peters, Jewelers of America’s resident education and management expert, says that once you have this information you can increase profitability by:

What’s Your Cost of Doing Business? Series

Jewelers of America released its 2010 Jewelers of America Cost of Doing Business Report, which analyzes jewelry retailers’ financial data from 2009. The Report, which has been published annually for two decades, represents the most complete and historical comparative financial information available to specialty jewelers in the U.S.

Do you know your cost of doing business? Or how your profitability, or lack thereof, compares to your jewelry competitor down the street? Jewelers of America developed the Cost of Doing Business Report to help independent jewelers benchmark their performance based on key financial indicators and effect positive change in their business profits. In JA’s “What’s Your Cost of Doing Business?” Series, we’ll reveal just how vital the Report is to your business management, and how it assists you in improving profitability.

You can use data tables in the 103-page Report to take control of your business management and improve profitability in the following ways:

Employee Rewards Made Easy and Affordable

Creative ideas to help you create employee incentives that don't bust your budget from David Peters, Director of Member Services & Education for Jewelers of America

When times are tough, most retail jewelers are looking for ways to cut spending. One place they start is often with employee rewards and incentives, but that could be a mistake. Your employees are your most valuable assets and ensuring they remain happy and productive is critical. This is particularly true during periods when budget cuts and work reductions have made their jobs more challenging.

The primary purpose of creating a rewards program for your staff is to facilitate a means to acknowledge and reward good performance and to motivate and promote teamwork. Ultimately, it is about meeting and exceeding your company goals.

When putting together an employee rewards program, consider the following factors:

Think Twice When Cutting Costs

When reviewing how to save money in your retail business, it’s important to carefully consider how each cost-cutting decision you make will impact your business. David Peters, Jewelers of America’s resident education and management expert, shares his insight on how to analyze cost-cutting decisions.

Use his tips to review your cost-cutting options to see how they will affect key areas of your business: 

Analyze Your Store From The Inside

In looking to where your business needs to go (and grow), outside factors like the economy can have an impact, but you also have to look within. As we've noted earlier, identifying your strengths and weaknesses is a critical component of success. David Peters, Jewelers of America’s resident education and management expert, says you must put your business under a microscope.

Peters recommends taking the following steps to analyze your business:

Anaylze Your Store's Strengths & Weaknesses

In order to ensure your business not only survives, but thrives today and tomorrow, it is important to take a close look at your S.W.O.T.S. (Strengths, Weaknesses, Opportunities and Threats). David Peters, Jewelers of America’s resident education and management expert, says that a thorough evaluation of all four positions should be done at least annually, or when a major shift (such as the current economy) occurs.

Peters offers the following guidelines for analyzing your business's SWOTS:

Cut Personnel Costs Creatively

When it comes to cutting costs, personnel is one of the toughest areas to look at. One way to ease the pain is by taking a little bit off across the board, versus hacking off costs in one area or another.

David Peters, Jewelers of America’s resident education and management expert, shares some tips on how to effectively control personnel expenses.

Use this tips to thrive with creatively cutting the personnel costs of your business:

Cut Expenses On Your Retail Space

Use Simple Steps To Improve Inventory Management