Hello everyone! This post is all about finding out what your Holiday Season buying plans are! This season seems to be a bit different than the last few! We might actually have to work HARD at selling items and work HARD at selling to new people!
Last year, some of our best customers had huge changes in their economic situations, and we definately felt the pinch. These are customers that generally spent anywhere from $3000 to $12,000 at Christmas and all of a sudden, we were lucky if they spent $250!!! It was quite a shock, but we still managed to break even with the prior years' sales.
This year, the situation looks like it will be even more interesting...
I am focusing on buying much lower price points and fewer high end pieces. If I am really lucky, I will get the high end pieces on memo or consignment, so if they don't sell, I'm not out anything! I am trying to roll the die a little more in my favor this year. Terms are very tempting with all of your regular vendors, but most everyone wants the bill paid in full in January. I have spent a lot of the year struggling every month to make ends meet, and I don't want to give up all the profit in January to meet those terms. There is always jewelry left over, the vendors don't take it back, and you could still be sitting on it next Christmas! These are the things you should be doing your best to avoid!
There are no clear cut answers to the state of the economy, but smart buying will be a huge factor in how you start 2009. Let's do our best to start out ahead.
If anyone has any ideas or suggestions on how to make better decisions...please forward them. We really do need to help each other stay in business!
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4 comments:
Kelly,
We are also finding the same problems as you describe. One thing we have done is reach out to new venders or venders we have not done business with in a while, they are thirsty to get us back, so we have started to negotiate the ability to return SOME percent of an order. Say, we buy $100k, then we have the right to return $20k, this way, hopefully, we sell $50-60k and can return $20k and this really helps. WE are also going to be very early with discounts to customers, lay a way and of course, pushing the older merchandise. All old stock is already on sale!
I sure hope some others have some good ideas!
Hey Kelly!
We've been doing a lot of discounting on old merchandise. Any profit is better than no profit. We also only deal with vendors that have either a 2 for one or better on their returns. Strellman's Dramatic Jewelry (AKA Rogue Valley Benchworks) is Dollar for Dollar!!
Layaway is always a big thing here in our town (We're the county seat and only have about 8-9000.) We will periodically run a special where we will match their first payment up to $100 on any item over $299.00. It's a HUGE sucess. FOr example, if a customer selects a ring for 500 and puts down 100 on the deposit, we will reduce the price of the ring by 100. They love it!
See ya!
Kelly, I would also recommend checking out some of the "brass and glass" displays out there. IT helps to fill your cases, people have something to hold in their hands and you aren't out hardly anything. (Also means you're not holding merchandise till next christmas!)We have 3 lines right now in our store and they are some of our biggest sellers. I usually just tell people that I need to order it in their size.
Train your customers! Train them to come in early and let YOU take care of them.
Hi Kelly -- It's important to keep a positive attitude. Rearrange your store so customers don't get the feeling that everything is the "same old". (Of course, you do need some new and fashionable pieces,too.) We don't know what lies ahead, but shake off the doom and gloom and put a smile on your face, warmly welcome every person who comes in, and make up your mind to make their time in your store a fun and upbeat experience. If a customer can't afford jewelry, and wants to repair an item as the gift this year, they are still your customer. Wrap the refurbished piece up prettily and thank them for being your customer. If the person who spent $1000 last year is looking at a $100 sterling bracelet, give him the same time and attention as always, wrap it beautifully, and make things fun. Do the most with what you have and hang in there.
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