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For the past decade, Abe Sherman has been writing an industry newsletter, which is published periodically in industry magazines. With an uncanny ability to understand the economic issues affecting the jewelry industry, Abe skillfully interprets the impact and creates solutions for retailers. In 2009, BIG's Mary Galeski took the baton and began running (and she hasn't stopped yet!). Her recent newsletters not only describe why the industry needs change but how we go about getting there.
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8/6/09
Alloy Samples - A Good Strategy? by Abe Sherman
An increasing number of bridal manufacturers are selling alloy and CZ rings as samples to augment the jeweler’s bridal selection. Is this an idea whose time has come? There have been articles and blogs written about what has become known euphemistically as Brass & Glass addressing this issue. Some contend that this is a strategy that will undermine what a ‘fine’ jewelry store is supposed to be. Those speaking against the concept believe the potential damage that could be done to our industry would include allowing non-industry interlopers to swoop in and take over your bridal business. If they had ever worked behind the counter and walked a couple through the myriad issues concerning her perfect ring, I think they would realize there is little chance that the corner grocery store will be setting up a bridal department anytime soon… After the third or fourth messed up special order, they would ship the whole thing back and stick with selling melons. more...
5/23/09
The Evolution of Our Industry by Abe Sherman
A crisis requires an immediate action plan. You work through a crisis: you rebuild the house after a fire; you rebuild the city after a serious earthquake. We approach the crisis as having a beginning, a middle and an end—the light at the end of the tunnel, and we push through to emerge on the other side, knowing that we can rebuild it, we will rebuild it. In our industry, we have been addressing our current “issues” by applying crisis management. We cut our expenses, lowered our inventory and we are looking to introduce new merchandise that might address otherwise missed selling opportunities by attracting a new customer base. By taking these steps, all necessary by the way, we feel as if we are doing what we need to be doing to work through this crisis.
There are two things we cannot know at the beginning of any crisis: How long will this last and what does it look like on the other side. While our industry is indeed at some point on the timeline of the crises (actually, more than one in my opinion), we can only guess about how long they will last and what our industry will look like on the other side. That said, I don’t believe that we are merely dealing with a series of crises—I believe our industry will continue to shake for many months and perhaps years to come, just as the aftershocks of a serious earthquake. I believe this will be the time we will look back upon as the beginning of significant evolution. more...
4/28/09
Conversation #2 - The Danger of Magic Numbers - by Mary Galeski
A client mentioned said to me on a recent call, “You’re the first consultant ever to tell me there is no such thing as magic numbers.” I too, once believed their were magic numbers. That is, specific targets that indicate “good” versus “bad” performance in a jewelry store. I have since learned through practice, a diverse client base, and working with people who know how to ask the right questions, that there are inherent dangers in basing your own goals on someone else’s definition of success.
The top five questions we get asked by jewelers who are searching for magic numbers are:
5. “How can I increase my Average Sale?”
4. “What’s a good margin for me to shoot for?”
3. “What’s a good percentage of aged inventory?”
2. “How much inventory should I have for my current level of sales?”
And the number one question we get asked:
1. “What should my stock turn be?” more...
4/14/09
Conversation #1 - A Word from Seth Godin - by Mary Galeski
A few weeks ago I wrote a newsletter entitled “The Conversations Have to Change.” In it I addressed several common interactions in our industry and suggested some new ways to approach those interactions. This newsletter will be the first in a series to follow up on those recommendations.
Conversation number one – It is no longer sufficient to ask how much inventory we need, instead we must ask which merchandise we need.
Let’s face it; we got ourselves into our current cash flow difficulties by asking how much inventory we need. We target a sales goal and then decide how much inventory we need based on that goal. Sometimes this is for a particular line of merchandise. Other times it is for an entire category or the whole business. Those of us who are more “numbers oriented” may run some very complicated formulas to determine exactly how much margin we will get, how many customers we will need, how much we will spend on advertising etc, etc, etc. In other words, we plan carefully before we invest. There is absolutely nothing wrong with any of this planning in and of itself. more...
3/23/09
The Conversations Have to Change - by Mary Galeski
It is no longer sufficient to talk about how much inventory we need. We must instead focus on which merchandise we need.
It is no longer effective to talk about what terms we can expect from our vendors. We must discuss how we can collaborate on solutions to our common problems.
It is no longer acceptable to assume we know what our customers want. We must examine what is working in the current environment and pay careful attention to what they do want.
It is not relevant right now to discuss our image. We must instead be consumed with what is important to our customers.
It is no longer imperative to consider jewelry only an aspirational purchase. The core of our business must become what is meaningful to the customer beyond bragging rights.
It is no longer tolerable to have dictated terms from the brand. We must collectively alert the brands to what is in our common interest. more...
Newsletter Archives
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5/10/2008 |
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2/25/2008 |
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2/1/2008 |
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12/26/2007 |
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12/2/2007 |
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11/26/2007 |
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11/17/2007 |
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8/27/2007 |
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3/8/2007 |
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12/6/2006 |
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