Three ways to increase profits - without spending any money
We always think about the 'good old days' but in reality retail has always been tough. How can jewellers increase their profits - without spending any money?
Make your window display unbelievably attractive. It comes back to the 'would you buy from your own shop' - make sure all your stock is superbly presented, the lighting is wonderful (check out UK based Parify for solutions), the jewellery is sparkling clean (use professional cleaning products from companies such as Town Talk) What about your stock descriptions? Are they bland, matter of fact or do they tell a tantalising story.
2. Increase your prices. What? Have you gone a bit mad Ian? You will be surprised how it can be done! Evidence shows that independent retailers size up their competitors - and then price just below them. Wrong! If you know your service is better, if you have worked hard to make sure your stock is better presented and that your after sales care is second to none - why not charge more than your opposition? Your customers will expect it. People do not buy just on price - if they did then window displays, quality of goods and the attitude of your staff would make no difference, but of course it all makes a big difference! Most customers (especially your target better off customers) like to be sold to in a nice environment by friendly, knowledgeable staff and they are willing to pay for that service. Check out this company for details as to how and why you should increase your prices, particularly in a recession: Cardell Media.
3. Get companies to give you stock on approval. You may prefer to own all your own stock, but who now can afford to stock everything that your customer may ask for? The answer of course is No. In the past, companies offering goods 'on approval' (appro) would only lend out poor sellers or they would charge you extra for the goods once you had sold them. Not any more! Brilliant companies such as River Mounts have a great business model where they will lend you plenty of stock at exactly the same rate as if you were buying it outright. They will let you swap stock over at any time and also offer a 'reserve today, receive tomorrow' service where you can almost instantaneously get stock in to show clients. This way, you can afford to show your customers what they want, when they want it. Many savvy, big successful jewellers across the UK use this system to their advantage.
So don't think just because the news is full of doom and gloom that that means that your business is going to do badly. Take steps to protect your cash-flow, get advantages over your competition and always make sure that your window displays, quality and staff training make your store the store of choice in your area.
If you'd like to learn more about the above or need advice on any aspect of selling - to end users or selling into retail please get in touch. I would love to hear from you.