If you’re a retail jeweler, your store takes on the look of what you buy. If you’re a jewelry designer, you are what you design. If you’re a jewelry manufacturer, you are what you manufacture. If you want to be better at what you do, you need to stock, design, or manufacture what people want to buy.

Sometimes I wonder whether consumers are better jewelry buyers than most retail jewelers. Consumers buy what sells, and this becomes a bulletin to jewelers: Stock what consumers buy!

Reordering inventory after the Christmas holiday is important, but reordering the right merchandise is crucial. Analyze what sold over the holidays and replace merchandise that sold quickly. These are your fast sellers. If an item sold within weeks, chances are it will sell again, very quickly.

Consciously begin to reorder higher-priced merchandise because that will increase your average retail sale. Increasing your average retail sale is a key to increasing your overall revenue. On average, only about 5% of your total annual sales creates half of your gross profit.

Finally, consciously increase your margins this year. Just a 10% increase in margin can bring an extra $100,000 in increased profit to the average million dollar jewelry store. No other factor can increase the profitability of your business this quickly. People don’t know the value of your jewelry. They only know what you tell them. So don’t worry about increasing your margins this year.

If you believe you are what you sell, reorder fast sellers, consciously increase your average retail sale, and increase your margins. Do these things and your business will improve dramatically in 2013.

Sapphire & Diamond Band courtesy of Universal Jewellery Design Centre, http://www.ujdc.com/

Tags: Advice, Business Development, Business Tips, Knowledge, Leadership Skills, Vision