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GARY J. LONG JEWELERS: HOW TO DO GOOD BUSINESS IN A BAD ECONOMY | September 12, 2012 (0 comments)
Stockton, CA—You might think a jeweler who lived in a city that's had the highest foreclosure rate in the United States for the last four years, and whose town filed for bankruptcy right around the time he became president of the local Chamber of Commerce, might be pessimistic about business. You’d be wrong!
“I’m a very positive person,” smiles Gary Long of Gary J. Long Jewelers, Stockton, CA, an American Gem Society member store. “People still have birthdays; they are still buying anniversary presents; they still graduate from high school. We’re not going under; business is going to keep going.”
And he’s not kidding. Not only will business keep going, but Long’s store profits are up more than 40% over last year, achieved by buying gold off the street. Long began this practice about three years ago.
“We kinda had to reinvent ourselves in around 2009, 2010. The profit was there; the cash flow was the problem. We thinned out some of the lines we buy, we became more efficient. We really believe in the ARMS program – if it is a fast seller, reorder it … if it doesn’t move, don’t replace it. We eliminated big, big merchandise (five-figure high ticket items that sold slowly). Hearts On Fire continues to be our #1 vendor and we kept adding and removing lines, fine tuning to make things work,” said Long.
Long bought the store in 1983. He worked in a nearby jewelry store and heard that one in Stockton was for sale. He was 29 when he went to see the jeweler to try to buy the store. “I came down, told him I had no money but I wanted to buy his store. He wasn’t interested initially,” said Long. “So I said, hire me and I’ll increase your profits. You keep the profit dollars for the amount I increase sales over your current profits, and we’ll split the overage. It worked out great for me. The jeweler was impressed that I believed in myself that much. I ended up buying the store,” said Long.
Inventory has changed since Long bought the store. In 1983, the inventory had 13 watch lines! Today, there is one, Belaire, private labeled with Long’s store logo on the face. According to Long, he wasn’t receiving adequate service from the watch brands he carried initially. “There also wasn’t enough margin; the watches didn’t turn fast enough here,” said Long.
Gary J Long Jeweler’s best selling categories are diamond bridal, diamond earrings and diamond pendants. “We’re the bridal store for the 2nd time around,” says Long. “It’s a mature clientele. We’re bringing in the younger customers with lines like Hearts On Fire, Zeghani, Simon G. and Andrew Meyer to connect with them. We’re offering something different.”
Two years ago Long inventoried the Belle Etoile line, calling it “the fastest turning product I’ve ever put in the store. It started with three linear feet of showcase and grew to six feet in six months. And two years later they now have 12-14 feet.”
Long also has a sizable inventory of loose diamonds that are selling well. “Our number of pieces sold has never dropped,” says Long. “Customers are still buying, just smaller diamonds. Our average sale had decreased in 2008-2010; now it’s beginning to rebound.”
Long reaches his customers through various channels. There’s his website and Facebook page, (both of which are currently scheduled for updating); four-color ads in various regional publications along with his extensive community involvement. Long ensure his company has the back cover of the Lincoln Center Chronicle, the monthly magazine/newspaper (the shopping center where Long’s is located) that has a 10 day shelf life instead of a one day span.
Gary J. Long Jewelers' homepage.
Long’s community involvement includes a long relationship with the The Greater Stockton Chamber of Commerce. The Chamber honored him as "Business Person of the Year 2007" and Long currently serves as its president. Each month, Long’s ‘letter from the president’ is featured in the Chamber's newsletter, below.
Giving back. Long also hosts special events benefitting various charities. “You have to give back,” he says simply. "You have to.”
One upcoming event features the Belle Etoile line. Long is hosting an in-store event for the local hospital Foundation, doctors, nurses and employees (and recently did one benefitting the American Cancer Society). “We don’t discount the line but we do donate 20% back to the hospital,” says Long. “We’re real active with supporting our well-deserved underfunded non-profit charities.”
While times have been challenging, Long and his store are thriving and he’s beginning to see housing starting to come back and things are looking up. “Our current big push is to get everyone to shop locally,” says Long, sounding like the Chamber president he is. “We want to keep that sales tax base in our community.”
The team at Gary J. Long Jewelers.
“We’re a town of 400,000,” says Long. “With the nicest people; we’re very agri- oriented, we literally feed the world here in central California. The fact that we’re in a challenging position does not reflect the town or the people. The city is amazing. We have progressive leaders in place, innovative core business community. I’ve lived here almost 30 years. I love this town.”