Sales Strategy

Think Strategically!By Ira Bergman, The Gordon Co. |  October 27, 2021 (0 comments)

Ft. Lauderdale, FL—The irony about the last 18 months is that most retail jewelers have benefitted significantly from the pandemic.  We all know how travel restrictions and a “stay at home” mentality have become the jeweler’s best friend.  Less store traffic for sure, but serious shoppers have created higher average retail sales and unexpected growth since last Spring.  It’s been a kind of jewelry buying frenzy that we haven’t seen for many years.

Some retailers still can’t believe their recent success.  Many worry how long it will last, while others think the good times will continue to roll.  Go ahead and ride the wave as long as you can, but I’ve been around for more decades than I care to recall.  One thing I know, things can’t continue to go up without an eventual correction.  This is precisely why my message to all jewelers is to think strategically as you close out the year, and especially as you make plans for 2022.

So let’s talk strategy.  What should you be doing as you close out the year and consider alternatives for the next 12 months?

1. You need product.  Supply chain issues abound.  We all know this.  Some suppliers cut off orders back in early September because they couldn’t guarantee delivery by December.  You need to make sure that you have what you need right now.
2. Consider the uniqueness of the time.  This could well be a “once in a lifetime” holiday season, so it’s no time to be conservative.  I could make an argument that you should be “doubling down” on your advertising and driving traffic like never before, and perhaps even having a major sale event to take advantage of a very favorable economic opportunity.
3. You need people.  I know.  It’s been very hard to attract and retain good people.  It’s a problem not just in our trade, but for every business enterprise.  Recruiting and retention is no longer a “once in a while thing.”  It’s an ongoing effort, to the point of recruiting even if you don’t have a position to fill.  And on retention, people don’t leave companies.  They leave bad owners, bad managers, toxic cultures, negative co-workers, and the like.
4. You need perspective.  Think long and hard about what is going to make your business stronger in 2022.  What are your ideas for the store?  What are your plans for yourself?  How much longer will you be in business?  Do you have a succession plan?  Have you considered a business transition?  Is an exit strategy in your sight?  Where do you go from here?
5. You need a plan.  Alternatives for next steps are often confusing, even debilitating, if not strongly considered.  My experience is seeing jewelers procrastinate and fail to make decisions that could drive traffic,  lower inventory levels, create cash flow, reduce debt, and increase profitability.  Jewelers continue to do what they’ve always done and somehow believe that things will change.  They seldom do unless you have a plan and work that plan to change the way you think.  How you think determines what will come next.
6. You need a friend.  Seeking advice is one of the smartest things you can do.  It reveals strength, not weakness.  Intelligence, not incompetence.  Humility, not arrogance.  If you need help, seek it out.  My company offers free advice to anyone who calls.  We aren’t the only ones.  There are plenty of quality consultants and experts in our field who love our industry and want to help jewelers compete and thrive.  Reach out to them.

To recap, the current pace of business will change at some point.  You must be strategic in your thinking and planning.  Consider all your options and be decisive.  Don’t wait until it’s too late to address any of the issues above.  Find the right balance between caution and assertiveness.  These are interesting times, unprecedented times.  Let’s all make the most of them.  If we can help, contact us or ask for our free Case Study book.

Have a great selling season!

The Gordon Co. provides a wide range of services to maximize clients’ return on investment of underperforming assets. Some of the primary services we provide and events we conduct for upscale retail jewelers include inventory reduction events, cash raising, retirement sales, store relocation events, strategic store closing, store consolidations, ownership transition events, going out of business, and more. For information, visit www.gordonco.com or call (800) USA-GEMS.