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60 APRIL 2008
INSTORE A P R I L 2 0 0 8
61
Y
ou work six days a week,
hate to mark down merchandise, and live and die by the
word of your customers. How
do we know that? Because
more than 750 of you told us
so. Following the biggest-ever
survey of independent jewelry store owners, we
believe we have a pretty good idea how business is
being down at Heartland & Sons Jewelers. Now it’s
your turn to see how you compare with your peers.
No
9%
!0 Do you do
appraisals?
Yes
86%
No
14%
!1 Please break
down your annual
sales by percentage
in the following
categories:
Diamond jewelry
(excluding bridal)
19%
the basics
|||||||||||||||||||||||||||||||||
4 What were your
sales last year? (If
store located?
you have more than one
store, please tell us the
average per store.)
Midwest
$500,000 to $1 million
1 Where is your
In a lifestyle center
Bridal jewelry
15%
5%
Repairs
Other
15%
5%
Loose diamonds
In a mall
12%
4%
32%
29%
Northeast
0%
$250,000 to $500,000
20%
20%
Southeast
Less than $250,000
17%
15%
Southwest
$1 million to $1.5 million
8%
On the Internet
Comments: There’s been
much talk lately about
resurgent downtown
retail communities. If so,
most independents would
seem well placed.
13%
West Coast
South
12%
7%
$3 million to $5 million
Northwest
5%
3%
More than $5 million
Canada
5%
3%
Other, please specify
3%
Comments: As for the
rest? Hawaii (3), the midAtlantic Coast (3), Alaska,
(2) and a few that don’t
like being pigeon-holed:
Colorado (2), Oklahoma,
(1) Michigan (1).
2 How big is your
store?
56%
11%
Karat gold
8%
Designer lines
6%
Timepieces
services &
inventory
Other
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Pearl jewelry
8 Do you have an
in-store repair shop?
5 How many
generations old
is your store?
1
56%
2
20%
84%
No
16%
9 Do you do
custom design
work?
Yes
3
91%
4
5%
4%
3%
Estate/antique
2%
Gift cards
Yes
16%
1,000-2,500 sq feet
Colored gemstone
jewelry
5%
$1.5 million to $3 million
8%
!2 Over the past
year, which of the
following gemstone
categories has been
your best performer
(based on a
combination of
sales, growth and
margins)?
Diamonds
70%
25%
White gold
1. Hearts On Fire (61 votes) k
2. Pandora (47)
3. Simon Golub (37)
4. Simon G. (18)
5. Rolex (15)
6. Hot Diamonds (11) k
7. Seiko/Pulsar (10)
8. Tacori (10)
9. Stuller (9) k
10. Gabriel & Co. (8)
11. Allison-Kaufman (7)
11. Elle (7)
11. Leslie’s (7)
14. A. Jaffe (6)
14. Roberto Coin (6)
16. Chamilia (5)
16. David Yurman (5)
16. Hidalgo (5)
16. Scott Kay (5)
20. Alex Sepkus (4)
20. Bellarri (4)
20. Breuning (4)
20. John Hardy (4)
20. Lazare Kaplan (4)
20. Martin Flyer (4)
20. Rego (4)
52%
Yellow gold
26%
Platinum
Synthetics
1%
11%
Titanium
!3 Same question,
but this time for
metals:
White gold
68%
Yellow gold
13%
Silver
7%
Platinum
6%
Palladium
3%
Titanium
1%
Stainless steel
1%
!4 Same question
once more, this time
by the jewelry
category.
Fashion (women’s)
52%
4%
Tungsten
4%
Palladium
3%
Comments: White gold
lost some of its shine this
year, (down from 71 percent last year), suggesting
the fashion mavens were
right — yellow gold is
making a comeback. The
other thing to note was
the rise of alternative
metals. It was from a
small base, but they now
account for more than 10
percent of wedding-band
sales.
!7 Not including
sapphires, what is
your best-selling
colored stone in
terms of total sales
value?
Ruby
24%
18%
16%
35%
Anniversary
9%
Timepieces
Tanzanite
Others
0%
8%
Tourmaline
7%
Garnet
6%
Aquamarine
2%
5%
21%
< 1,000 sq feet
17%
5,000-8,000 sq feet
4%
6 Do you own or
4%
Citrine
Rent
2%
60%
> 8,000 sq feet
2%
Peridot
rent your store?
mr. and mrs. fix-it m 9
Comments: Sapphire
was so dominant last year
that we left it out this
time. (And some of you
still tried to sneak it in!)
In the absence of the
great blue one, ruby and
amethyst were the big
winners. “Others” mentioned included opal, tsavorite, alexandrite, spinel,
jade and quartz. But the
biggest “other” vote was
for blue topaz as well as
other topaz varieties —
smoky and mystic.
84 percent of jewelry store owners have an in-store repair shop. One of the swankier
is the repair shop at Ozel Jewelry in Cucamonga, CA.
you, the
Own
2 How many stores
do you own?
40%
7 Is your (flagship)
store located:
1
87%
2
9%
3-5
3%
6 or more
1%
62 APRIL 2008
On a downtown
street
36%
In a strip mall
28%
In its own free-standing building
22%
jewelry you carry?
Right-hand ring from
Hearts On Fire (#1) set
with ideal-cut diamonds (1.78
to 1.88 TCW). $6,900-$8,500.
The Moonstruck Collection
from Hot Diamonds (#6).
jeweler
|||||||||||||||||||||||||||||||||
40%
37%
40%
High school diploma
41-50
36%
13%
Master’s degree
31-40
7%
12%
2%
9%
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
20-30
GED
2%
1%
companies receiving three votes
Older than 70
Alwand Vahan, Cherie Dori, Citizen, Dilamani Designs, Finelli,
Guy Laroche, Krementz, Lyric, Natalie K, SteelX, Trollbeads
1%
!9 And your sex?
companies receiving two votes
Andrea Candela, Angelique de Paris, Artcarved, Belair, Benchmark,
Bentelli, Bixby, Boma, Camelot, Chad Allison, Dangler, Dora
Jewelry, Edward Mirrell, Forever10 Diamonds, Frederick
Goldman, Galatea, GelinAbaci, Honora, Ivan Alan, Mikimoto, Mark
Schneider, Ostbye & Anderson, Parade Design, Stuckey, Supreme,
Tag Heuer, Timeless Designs, Tom Kruskal Designs, Uneek
Male
68%
Female
32%
@0 Religion?
Total votes: 615
70%
Jewish
15%
Non-believer
5%
Other
5%
Agnostic
4%
Buddhist
1%
Muslim
0%
@1 Schooling:
What’s the highest
educational/vocational training level
16%
Other, please specify
11%
10%
7%
@2 It’s election year,
so we know you
have to be thinking
about it. If today
were Nov. 4, which
candidate would you
vote for:
Accounting
Republican
Training staff
6%
Responding to customer queries/ complaints
3%
Answering e-mails
1%
52%
0%
Democrat
32%
Christian
21%
Working in the shop
(bench area)
Managing staff
companies receiving one vote
A Jour, Almas Jewellers, A.O.D., Asch Grossbardt, Bauman-Massa, Berco,
Calgaro, Cape Cod Jewelry, Carla, Carleone, Caroline Ballou, Cartier,
Cathy Waterman, Chelsea Taylor, Chimento, Christian Bauer,
Christopher Designs, Denny Wong, Eighternity Diamonds, Emily Ray,
Enchanted Bridal, Endless Diamonds, ESQ, Fantasy, Fisher LeStage,
Fossil, Frederic Duclos, Gadi Designs, Gems One, Gerald David Bauman,
Goldman Kolber, Gottlieb, Guertin Brothers, Hermes, Hope USA,
Humphrey, Jale International, Jeff Cooper Designs, Jewelfire, Jewels by
Star, Jewel Trends, Jody Coyote, Judith Ripka, Judy Mayfield, Kabana,
KC Designs, Kirk Kara, Konstantino, Lagos, Leach & Garner Gold,
Leddel, Levy Creations, Libman & Co., Lieberfarb, Livingstone, Louis
Feraud, Luminar Creations, Magick, Malakan, Marah Lago, Marco
Bicego, Mark Patterson, Master Design, Memoire, Michael Spirito,
Naledi, Nancy B, Nanis, Niessing, Noah of Barcelona, Nouveau 1910,
Novell Design Studio, Oscar Heyman, Parle, Paul Winston Bridal, Penny
Preville, Philip Stein, Phyllis Bergman, Picchiotti, Polar Ice, Q-Ray,
Raymond Mazza, Ritani, Sara Blaine, Sarah Graham, Siffari, Soho, Spark
Creations, Star 129 Diamonds, Stella, Susan Michel, Sorrelli, Strellmans,
TeNo, Tissot, Town & Country, Venetti, Versace, Ziamonds, Zina, Zoppini
Strategizing, marketing
and planning
Managing inventory/buying
Doctorate
61-70
25%
Bachelor’s degree
Unfinished college
course
51-60
Selection of breast cancerawareness ribbons from
Stuller (#9) $42-$110.
Selling on the sales
floor
you reached?
!8 How old are you?
Emerald
11%
2%
!5 What is the best-performing brand-name
Amethyst
Other (see below)
Bridal
More than 4
2,500-5,000 sq feet
BRANDS THAT WORK
Pearls
4%
survey breakout
Please estimate
the percentage of
your wedding-band
sales (in terms of
total sales value) in
the following
categories:
!6
Colored gemstones
0%
Comments: Compared to
last year’s survey, diamond goods have fallen
off while gold, not surprisingly, is up from 44
percent. The biggest
shock, given their strong
showing in other retail
sectors over Christmas, is
gift cards: 0 percent. Do
jewelers need to rethink
them, or are they really
out of place in a jewelry
store?
!5 (SEE SIDEBAR) k
None
9%
Independent
7%
Comments: If we were to
go by the median numbers, the typical independent jewelry-store
owner in North America
is a male in his 40s or 50s
with a bachelor’s degree
— or at least a partial college education. He’s also
likely to have an elephant
pinned to his shirt come
November — and celebrate Christmas in
December.
@3 In the store,
what activity takes
up most of your
time?
Comments: By way of
comparison, we asked
industry consultant Kate
Peterson how she’d prioritize her activities if
she were running a store.
Her top four priorities
were: 1. Training; 2.
Active client development; 3. Sales floor management; and 4. Brand
development, which
includes marketing. She
acknowledges you will
probably spend most of
your time on the sales
floor, but training should
be foremost among your
thoughts, she says.
@4 What percentage
of total store sales
do you personally
make?
26-50%
25%
INSTORE A P R I L 2 0 0 8
63
(80 percent of the work
is done by 20 percent of
the staff )
survey breakout
18%
Other (see below)
18%
Attack! Attack! Attack!
11%
You have to be prepared to walk up to the
gates of prison to succeed in business
it don’t come easy m 26
83% of jewelry store owners work more than 40 hours
a week. Guess nobody ever said this job was easy.
16-25%
I plan to retire and have
a GOB sale
24%
16%
1-15%
20%
51-75%
18%
More than 75%
12%
@9 How many
business books did
you read last year?
2-5
0%
44%
1%
None
@5 How many days
did you take off last
year?
30%
24%
6-10
More than 10
18%
A month or more
Helping customers
celebrate special
moments
45%
Being your own boss
#0 Do you use
6-10
#2 (SEE GRAPHIC) k
part of your job?
17%
5%
11-15
Comments: The most
popular “other” response
— by far — could probably
be summed up as “The
customer is king.” Among
the others were: “Plan,
organize, execute,”
“Improve every day,”
“Work hard, play hard,”
“No one walks” and our
favorite “Delegate, delegate, delegate.”
#3 What’s the best
26%
1
8%
16-30
2%
consultants or
trainers to help your
business?
15%
23%
Sense of being a community institution
10%
Other (see below)
1-5
No
10%
10%
56%
0
Yes
2%
44%
@6 How many hours
do you work a week?
41-55
51%
56-79
29%
31-40
13%
80 or more
3%
Less than 30
3%
Comments: Well done.
More of you are seeking
“professional help” (to
improve your store’s performance, that is). Last
year the “No” figure was
64 percent.
#1 What principle or
motto best describes
the way business is
done in your store?
Enjoy what you do and
the business will take
care of itself
28%
@7 Is your business
partner your spouse?
The hedgehog principle
(Slow, steady focused
on one thing at a time)
23%
No
55%
The 80/20 principle
Yes
45%
@8 Do you have
succession plans for
your store?
25%
20%
64 APRIL 2008
4%
The jewelry
3%
Industry friends
1%
Comments: We should
have learned from last
year; for many of you
(about one in four of “others”) it’s “The whole
package!” followed by
“Satisfying my creative
urge.” There were quite a
few for whom “Working
with family and friends”
was the best thing about
the job and those who
revelled in the “Sense of
achievement of building
up a business.” Some
weren’t quite so enthusiastic about the high points
of the industry, although
there was just one who
told us “None of the
above.” He said it was
“The golf — on my day
off.” Hmm …
OPPOSITE PAGE) k
#5 (SEE SIDEBAR
40%
I plan to sell it
4%
Carrying on a family
tradition
#4 (SEE SIDEBAR
No plans
I plan to pass it on to
my children
The money
OPPOSITE PAGE) k
m well read: Threequarters of you read
at least one business
book last year. Might
this have been it?
#6 Honestly now,
when a customer in
shorts, a “Megadeth”
T-shirt and mullet
#2 What’s the greatest
source of stress in your
business?
Managing finances
30%
Economic uncertainties
29%
Dealing with staff
21%
Other (see below)
8%
Customer expectations
6%
Competitive pressures
5%
Family expectations
2%
Comments: No prizes for
guessing the fastest riser this
year. “Economic uncertainties”
came out of nowhere to take the
No. 2 spot, with almost one in
three of you saying it’s the
biggest worry on your mind
right now. Among the “others,”
were customers from hell, managing time and dealing with that
annoying “perfectionist” streak
in you.
#4 What is your usual response to this
customer objection: “It’s lovely but I
don’t think I can afford it.”
B
y far, the most common strategy
was to offer layaway, which was
the solution mentioned by a
whopping 27 percent of the 601
retailers who wrote in responses
to this question. Other common
responses included offering
finance options, suggesting something similar that
costs less, or doing mathematical calculations to
show the item isn’t really that expensive (“If you
wear this every day for 20 years, that’s 365 x 20,
divided by the cost of the jewelry ...”) Other common
verbal responses included: “But you deserve it!”/“But
you look great!” “Don’t spend more than you can
afford” or “Life is short”/ “You only live once.” Here
were some of our individual favorite responses:
“
“
“
“
“
“
“
I’m writing that one down on my card so you can
call me when you can’t sleep and I’ll show you these
gorgeous pieces I just got in.”
Isn’t owning beautiful things why you’ve earned the
money in the first place?”
Then don’t buy it. Let me show you something you’ll
be thrilled with!”
Well, let’s look at some other choices.” (But always
keep that one piece out because sometimes they end
up buying it.)
Ms. Jones, many of our clients can’t put down the
money immediately, that’s way my father started our
layaway plan back in 1939 for a dollar down.”
Neither can I. That’s why I’m selling it.”
That’s OK, we can provide sparkle for any budget. Let’s
find the right thing for what you want to spend.”
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#5 Finish this sentence in 25 words or
less: The perfect sale is ...
we received tons of interesting responses to this
question — so many that we’ll probably collate them
into a future feature story, but basically responses
broke down equally into two categories — sales that
are quick and profitable, or sales that are emotionally
rewarding. Favorite sample responses of each type:
“
“
A $5,000 engagement ring made by an employee
when I’m on the golf course. No sizing, no returns,
she loves it.”
When the customer walks out smiling, wearing the
piece, and remarks on the way out to another customer, ‘Look what I just got!’”
INSTORE A P R I L 2 0 0 8
65
Men over the age of 21
wearing rapperinspired jewelry
hairstyle enters your
store, you
instinctively think:
5%
Donald Trump has
bad hair too.
Maybe he’s looking for
a 9-carat blue diamond.
16-25%
Diamonds in the daytime with a basic
tee and jeans
1%
66%
|||||||||||||||||||||||||||||||||||
$0 How were sales
23%
last year?
This could be my
chance to offload that
7-year-old alexandrite
lizard brooch.
45%
26-35%
36%
36-50%
store performance
Nice mullet.
what proportion of
your sales?
0-15%
2%
$4 What is your
busiest month for
selling diamond
engagement rings?
22%
He’s coming nowhere
near my David Yurman
collection.
Down
20%
3%
Way up (MORE THAN 20%)
December
12%
#7 (SEE SIDEBAR
39%
Way down
ON THIS PAGE) k
(MORE THAN 20%)
6%
#8 (SEE SIDEBAR
ON OPP. PAGE) k
sales per square
foot does your store
generate per year?
#9 What’s the most
common fashion
crime you see
in your store?
22%
41%
18%
24%
13%
12%
10%
Still wearing what
Sarah Jessica Parker
wore eight years ago
September
January
July
2%
August
$2 The holiday
season (from Black
Friday to New Year’s
Eve) accounts for
6%
March
2%
$401 to $500 per sq
foot
8%
June
4%
< $250 per sq foot
Grossly miscalculated
uses of pattern
6%
4%
$501 to $750 per sq foot
15%
8%
February
5%
> $750 per sq foot
The fashion Christmas
tree (over-accessorizing)
10%
November
October
25%
$251 to $400 per sq
foot
Piercings away from
the ear
May
6%
Don’t know
Big woman, small
jewelry
April
11%
$1 How much in
2%
$5 Who is your
toughest
$3 Rank these holiday/calendar dates in importance in terms
of sales for you (1 is most important and 8 least important):
2. Valentine’s Day
1. Winter
holidays
3. Spring
weddings
4. Mother’s
Day
(christmas,
hanukah, kwanzaa)
5. Graduation season
6. Fall engagements
7. Tax return
season
8. Father’s
Day
Comments: The holiday season is big for just about every retailer, although
no other has as much as at stake as jewelers. In 2006, the season accounted
for an average of 31.9 percent of sales, compared to 19.6 percent for the total
retail industry, according to National Retail Federation figures.
66 APRIL 2008
DUMB ADVICE
#8 What was the worst piece of business advice you
competitor?
Other local independent jewelers
32%
Internet retailers
23%
Jewelry chain stores
19%
book have benefited you more than any other?
ever received from someone else in the trade?
Other (see below)
the most oft-repeated words of wisdom the American
jeweler lives by — or at least the 544 who responded to the
question — are the Golden Rule, which, setting aside its
appropriate name, is befitting of a profession that prides itself
on trust and service.
From the Golden Rule to “Don’t judge a book by its cover,”
your best business wisdom could be general. Or specific: “The
buckle goes at the 12 side.”
People you cited multiple times as inspirations included a
number of authors and industry consultants:
experts: David Geller (I N S T O R E columnist,
JewelerProfit); Shane Decker, (I N S T O R E columnist, Ex-SellEnce, Shane Decker Sales Academy), Don Greig (Focus
Management) and Brad Huisken, IAS Training.
authors: Jack Mitchell (Hug Your Customer), Zig Ziglar
(Secrets of Closing the Sale), Jim Collins (Good to Great), Robert
Kiyosaki (Rich Dad, Poor Dad), Joel Osteen (Your Best Life
Now), Jay Abraham (The MasterMind Marketing System),
Doug Hall (Jumpstart Your Business Brain), Paul Hawkins
(Growing a Business), Spencer Johnson (Who Moved My
Cheese?) and Jeffrey Gitomer (The Sales Bible).
Gitomer’s bible was not the only bible guiding you in daily
life, with The Bible mentioned numerous times. Nor were your
sources of written inspiration limited to business or religious
texts; Joseph Campbell, Edmund Burke, Thomas Jefferson,
even William Shakespeare (“Above all else, to thine own self be
true”) were mentioned.
From literary, wisdom ranged to practical: “Go sell
something.” And from practical to concise: “Turn.” And from
concise, to just downright quizzical: “Shoot low — they’re
riding Shetland ponies!”
Here are some more notable pearls of wisdom:
abbreviated: “CUEing. (Creating Unforgettable
Experience).”
pecuniary: “Take care of the nickels and dimes, and the
dollars will take care of themselves.”
blunt: “If you’re not making money, close up shop.”
allegorical: “A fool can throw a rock in the ocean and a
thousand wise men cannot bring it out.”
confucian: “You can never step into the same river
twice.”
timely: “If you are open 9 to 5 you are catering to the
unemployed.”
listless: “It’s not life or death, it’s just jewelry.”
resolute: “Never give up!”
puritanical: “Work hard, keep the faith, tomorrow will
be a better day.”
fastidious: “Always keep the store and contents
impeccable and move things around to keep them fresh.”
folksy: “You can’t sell out of an empty wagon.”
spouselike: “You are too old to work all night anymore.”
practical: “Wear clean underwear, you never know
what might happen.”
simple: “Do what you love.”
we want to know. Just who have you been listening to for
business advice? From the 480 responses we received, it seems
jewelers have a little devil sitting on one shoulder whispering
sour somethings in their ears. We’ve scraped the bottom of the
barrel to bring you some of the very worst bits and pieces here.
And to the jeweler whose partner’s advice gets worse with
every new piece shared, take heart from another reader who
advises, “Even the worst piece of advice teaches you
something.”
Big Box stores
œ “Discount! Discount! Discount!”
œ “Buy! Buy! Buy!”
œ “The secret to success is to cut back on the buying.”
œ “You don’t need all that education. On-the-job training is
the best.”
œ “Get the sale no matter what it takes.
œ “As long as they think they are getting a good deal it’s
OK.”
œ “Don’t go into business for yourself.”
œ “Gold prices aren’t going to go up.”
œ “Fire to inspire.”
œ “Pay yourself last.”
œ “Pay yourself first.”
œ “Buy a laser welder.”
œ “Don’t buy a laser welder.”
œ “Plastics.”
œ “Always buy based on price.”
œ “Don’t advertise; it’s a waste of money.”
œ “King Tut jewelry is going to be really big this year.”
œ “Always answer a question with a question?”
œ “Don’t train new employees.”
œ “You just can’t compete with Wal-Mart and all the big
chains out there today.”
œ “Location doesn’t matter so much if you are a unique
establishment.”
œ “You really need this 350-unit earring display.”
œ “It’s not copyright infringement if you change the size by
10 percent.”
œ “Go into the jewelry business — you make lots of money
and will have short hours.”
œ “Never pay your bills until you have to.”
œ “Pay your vendors before you pay the government.”
œ “I never saw the benefit from going to those trade shows.”
œ “Buy hooker earrings.”
œ “Put ashtrays out and let people smoke. In fact, light up
with them.”
œ “Employees are tools.”
œ “Follow the trends, don’t set them.”
œ “It’ll sell like hotcakes.”
œ “They won’t know the difference.”
œ “A woman cannot make it alone in this business.”
œ “Don’t ever think you can make a living making jewelry.”
œ “Lie to make the sale.”
œ “Sell your color grading masters and use CZ masters.”
œ “Trust me!”
$8 (SEE SIDEBAR
ON NEXT?PAGE) k
12%
More than 50%
BELOW) q
Flat
survey breakout
8%
40%
8%
SMART ADVICE
#7 What words of wisdom from a mentor or business
10%
$3 (SEE SIDEBAR
Up
survey breakout
7%
$9 Are you thinking
of selling your
business in the next
18 months?
6%
1%
Comments: Other luxury
retailers, such as electronics stores, auto dealerships, fur salesmen and
travel agents, led the list
of those pushing you hard
for your customers’ dollars. Some were also feeling the heat from cruiseship operators and
TV?shopping.
$6 Main source for
new customers is:
%3 Do you source
any goods directly
from overseas?
No
68%
No
92%
Yes
32%
Yes
8%
“Wholesale” retailers
Designers/vendors
with retail outlets
mix of wax carving,
CAD/CAM work and plating and casting work.
operations
||||||||||||||||||||||||||||||||||
%0 Mark the days
your store is open:
Monday
78%
Tuesday
98%
Wednesday
Comments: It reads like a
list of countries we’d like
to visit: Belgium (62),
China (60), India (38),
Thailand (37), Hong Kong
(36) (yes, we know it’s
part of China), Israel (33),
Germany (23), Brazil (6),
Japan (5), Switzerland (5),
Turkey (5), Australia (4),
Singapore (3). ?
%4 question
deleted due
to technical
error.
98%
Thursday
99%
Friday
your staff
||||||||||||||||||||||||||||||||||
99%
Referrals/word of
mouth
69%
a buying group?
%5 How many fulltime employees do
you have, not
including your
spouse? (If you have
more than one
store, what’s the
average per store?)
No
2-5
Saturday
95%
Sunday
12%
Advertising
21%
Foot or drive-by traffic
%1 Do you belong to
6%
New residents in the
area
Changing market
demographics
1%
Other
1%
Comments: The numbers
speak for themselves. For
the second year in a row,
“word of mouth” was
clearly your best generator of new sales (73 percent last year versus 69
percent this year).
$7 The most famous
customer you’ve ever
had was of a similar
celebrity caliber to:
Weatherwoman
for the local TV
affiliate (Local Alist)
50%
Oprah Winfrey (A-list)
19%
Vanna White (National
Enquirer B-list circa
1985)
15%
Anne Nicole Smith
(National Enquirer Alist)
8%
D.B. Cooper (Infamous)
8%
49%
62%
2%
1
Yes
23%
38%
6-10
Comments: The
Independent Jewelers
Organization and the
Retail Jewelers
Organization scored
highest in terms of membership. It was also interesting to see how many
respondents belonged to
both (more than 30). The
IJO and RJO were followed by
the Continental Buying
Group, BIG, Polygon,
Prime and a few
regional groups. One
respondent also kindly
surrendered the information that he belonged to
Sam’s Club. Thank you for
that.
%2 Do you outsource
any operations? (i.e.
repair, payroll ...)
Yes
67%
18%
11 or more
10%
%6 How do you pay
your salespeople?
Hourly wage
43%
Base plus commission
30%
Salary
18%
Base plus bonus
8%
Base pay only
1%
%7 Average annual
sales per full-time
salesperson:
Less than $100,000
No
39%
33%
$100,000-$200,000
Comments: Repairs (324)
edged payroll (222) as the
task you most often
“jobbed” out.
Interestingly almost half
of the repairs involved
watches or clocks. Others
included other accounting
(49), engraving (17), pearlstringing (14), and then a
27%
$200,000-$300,000
16%
$300,000-$400,000
8%
More than $500,000
5%
INSTORE A P R I L 2 0 0 8
67
survey breakout
Lectures
Moving out of the area
55%
Role playing
$8 All right, spill the beans ... who’s the most famous
customer to ever visit your store? (If you’ve got any
stories associated with the visit, feel free to dish.)
52%
Outside reading assignments
46%
Sales tapes
man, was it fun to read the responses to this question.
You’ve served just about everybody — Beatles (Ringo Starr)
and Rolling Stones (Keith Richards), former presidents and
members of the first family (Betty Ford, Jimmy Carter,
George H.W. and Barbara Bush, Bill and Hillary Clinton) —
even former presidential flings (Monica Lewinsky). Here are
a few comments you sent while name-dropping:
46%
Buddy training
35%
Outside trainers
30%
Mystery shopping
20-29%
17%
22%
To take another jewelry
job elsewhere
40-49%
21%
11%
10-19%
To return to school
17%
8%
More than 50%
To have children or
other family reason
12%
Less than 10%
8%
4%
Medical reason
5%
*0 Your
store’s
typical profit margin
on diamond jewelry
is:
Reached retirement age
3%
Don’t know the reason
11%
Other (see below)
3%
50-60%
11%
the promised land m 61
By now, most of you are pretty used to rejection. Of the 165 people who said they
tracked their closing ratio, only 35 percent made sales more than half the time.
$400,000-$500,000
More than 50%
4%
35%
%8 How much did
35-50%
25%
your top salesperson
sell last year?
25-34%
Less than $150,000
15-24%
37%
$250,000-$499,000
23%
$150,000-$249,000
21%
$500,000-$750,000
28%
Less than 15%
^8 Did you fire any
19%
employees last year?
3 weeks
7%
^2 How much do
you pay your bench
jeweler per hour?
More than $23.00
Don’t have a benchie
22%
14%
1%
^5 Tick all of the
benefits you provide
your full-time staff:
20%
$50,000-$64,900
13%
$65,000-$80,000
$20-$23.00
^0 Do you track your
sales team’s closing
ratio?
79%
Yes
^1 If so, what is it?
Paid holidays
14%
74%
Health insurance
13%
^3 How much did
you pay your store
manager last year
(including
commission and any
bonuses)?
Don’t have a store
manager
58%
Paid sick leave
55%
Paid family/personal
leave
32%
17%
$40,00 to $49,900
More than $70,000
10%
68 APRIL 2008
9%
$60,000 to $70,000
28%
Comments: Almost half
of the respondents who
explained their decision
to fire someone said it
was because of poor performance. Other reasons
cited were tardiness or
abuse of sick leave (6),
theft (2), personal problems (2), exaggerated CV
(2), giving store secrets
away to a competitor (1),
substance abuse (1),
abuse of discount policy
(1) and Myspace addiction (1).
^9 Did any of your
mike tyson
robin williams
shaquille o’neal
Wanted store closed as
he shopped. But jeweler dared to say “no.”
After the cancellation
of Mork and Mindy,
circa 1983, comedian
had ring repaired.
Not surprisingly, he
had to duck to get in
the front door.
31%
64%
36%
18%
Dental
17%
Optical
9%
celebrities who get around
(mentioned by more than one store)
Pearl Bailey, Tom Cruise, Hulk Hogan, Michael Jordan, Evel Knievel, Barry
Manilow, Jayne Mansfield, Paul Newman, Shaquille O’Neal, Luciano Pavaroti, Elvis
Presley (“OK, it probably was an impersonator”), Red Skelton, Serena and Venus
Williams, Robin Williams
celebrities who really get around
^6 Tick all of the
techniques you use
in your training
sessions.
(mentioned by three stores)
Morgan Fairchild, Liberace
More than 60%
&1 How many days
30-39%
16%
do you promise to
turn around a repair
during “normal”
periods of the year?
10%
20-29%
3%
Less than 20%
1%
3-7
53%
*1 Your store’s
8-14
25%
^7 How
Fewer than 3
many
sales
meetings
do you
hold?
20%
No promises. It’ll get
done when it’s done.
1%
Don’t do repairs
&2 What is the most
typical profit margin
on colored-stone
jewelry is:
Fewer than one Every month
a month
17%
32%
None
20%
One a week
18%
Every two weeks
9%
More than one
a week
4%
50-60%
48%
More than 60%
28%
40-49%
&0 If so, what was
the reason?
To take another
non-jewelry job
29%
Other
18%
30-39%
7%
20-29%
2%
Less than 20%
Laser welder
31%
Flex Shaft
29%
CAD/CAM system and
mill
13%
Basic soldering torch
12%
Bench Mate
11%
Hand graver
4%
||||||||||||||||||||||||||||||||||
&3 Do you do your
own accounting?
Yes
59%
No
41%
33%
Conflict in the workplace
Comments: Most of you really need to
meet more. Your staff can be one of the
most important sources of feedback and
ideas for your business.
advanced piece of
equipment you have
in your shop?
finances
No
24%
Life Insurance
25%
||||||||||||||||||||||||||||||||||
employees quit last
year?
Yes
Maternity leave
43%
Less than $40,000
8%
Well, it was only one
of her rings — with 50
pages of provenance.
85%
$50,000 to $59,900
21%
“I love your voice ...
what’s your name?”
“Lenny.” (silence,
realization.) “Yeah,
that Lenny.”
Paid vacations
20%
13%
No
One of two “roughlooking” characters
waiting for Mrs. Jones
to pick a diamond.
marie
antoinette
98%
Pension plan
8%
lenny kravitz
Employee discounts
20%
10%
More than $80,000
tommy lee jones
$18.50-$19.99
21%
$40,000-$49,900
Yes
Month or more
your shop
14%
72%
13%
40-49%
1%
No
None
Less than $17
$30,000-$39,900
The year was 1978.
“He was a terrible
dresser.”
^7 (SEE GRAPHIC) k
$17-$18.49
Less than $30,000
arnold
schwarzenegger
1 week
22%
your top salesperson
earn in total
(including salary,
commission and
bonus)?
tom cruise
Jeweler made him a
pin, then played football with him during
Days of Thunder era.
53%
10%
9%
%9 How much does
paid vacation on
average do you give
your staff each year?
sharon stone
Wanted a toe ring just
like the one the jeweler’s wife had.
2 weeks
22%
9%
More than $750,000
^4 How many days
45%
Comments: For the
handful who said they do
absolutely no training —
even of themselves, we
can only say “tsk-tsk.” As
for the other techniques
employed, training from
vendors and groups like
the AGS, featured prominently. A dozen respondents said they used the
“Just watch and do as I
do” method. Two advocated “water-boarding” —
and all we have to say to
that is, “Hey, want to
write next month’s In the
End for us?”
&4 What’s your
Gross Margin Return
on Inventory
Investment
(GMROI)?
1%
Don’t know
None
$50,000-$100,00
Less than $20,000
14%
19%
Less than 50 cents
$20,000-$50,000
13%
8%
More than $1.50
More than $500,000
8%
7%
Comments: One of the
highlights, or lowlights
depending on how you
want to look at it, of last
year’s survey was how
few jewelers instantly
knew their store’s
GMROI. This year
showed a marked
improvement — the “don’t
know” figure fell from 57
percent to 41 percent. Of
the rest, more than twice
as many were reporting a
better performing inventory (“more than a dollar”
or 1.0) compared to last
year. So, good grades here.
54%
Less than 15%
50-60%
30%
48%
26% to 33%
More than 60%
21%
14%
40-49%
More than 33%
18%
3%
&6 Your store’s
average gross margin
of profit on all goods
is:
&8 Advertising costs
as a percentage of
total sales are:
45%
35%-49%
35%
20%-34%
8%
65%-80%
7%
More than 80%
3%
Less than 20%
$100,000-$500,000
&7 Payroll as a
9%
20-29%
3%
1%
42%
6-10%
*3 Do you buy off
36%
the street?
Less than 2%
16%
Yes, actively
More than 10%
36%
6%
No
&9 Your store’s
typical profit margin
on loose diamonds is:
2%
percentage of sales
30-39%
Less than 20%
2-5%
50%-64%
&5 How much debt
is your store
carrying?
26%
typical profit margin
on gold jewelry is:
15% to 25%
15%
25%
$1.00-$1.50
*2 Your store’s
25%
41%
50-99 cents
is:
30-39%
25%
35%
Yes, but reluctantly
30%
*4 How long do you
wait before you’ll
mark down a slow-
INSTORE A P R I L 2 0 0 8
70
up a percentage point,
billboards up 1.5 points,
Internet up half a point
and radio and newsletters
holding steady).
moving item?
Up to two years
38%
One year
*9 Do you count the
25%
number of customers
who come into your
store each day?
Never. I don’t do sales
18%
As soon as I realize
it’s a dog
9 times or more
(0 If you answered
10-25%
44%
26-50%
I told you, we
don’t do sales
16%
eat dog world m 84
In too many stores, the dogs rule. More than half of
you will hold onto slow sellers for up to two years.
Less than 10%
4%
Down to cost
2%
*6 If a favorite aunt
left you $250,000 to
invest in the
business, where
would you direct it?
advertising
& marketing
*8 Which of the
following do you
believe gives you the
biggest bang for your
advertising buck?
Direct mail, including catalogs
||||||||||||||||||||||||||||||||||
Pay down debt
32%
Stick it in the bank
20%
Others
10%
Find a new location
for my current store
9%
Buy advanced equipment
8%
Bring in more high-end
designer brands
5%
Open a second store
4%
Comments: Among the
“other” responses were
33%
following gets the
largest portion of
your advertising
budget?
2%
More than 200
1%
(1 Who writes your
ads?
I do
Billboards
33%
Direct mail including
catalogs
21%
Internet
6%
2%
18%
TV
15%
Billboards
7%
Internet
4%
Monthly newsletters
1%
The media provider
Comments: The most
noticeable thing about
this year’s results was
how little they changed
from last year. With the
exception of a slight erosion in print (down from
21.6 percent) all the others were almost the same
as last year (TV down a
percentage point, catalogs
5%
(2Are you
experimenting with
any alternative
marketing
techniques such as
social websites,
mobile marketing or
viral marketing (e.g.
a Youtube video clip)
No
Comments: Last year the
figure was 75 percent,
which is an improvement
and suggests jewelers are
doing better than their
counterparts in other
retailing sectors. Not having a website is likely
costing you money. The
Purdue Retail Institute
estimates that retailers
without a strong Web
presence could be missing
out on 2 to 5 percent in
sales annually.
13%
Daily
3%
||||||||||||||||||||||||||||||||||
you were being
cased?
Yes
71%
No
Establish a basic
Internet presence
for the store
73%
Serve as a cyber catalog
14%
Act as a fully functioning e-commerce site
Yes
Do you have a
buzzer on the front
door?
No
63%
Yes
37%
(9
Have cyber
criminals ever
attempted to attack
or access your store’s
financial data?
Yes
96%
No
4%
(SEE RESPONSES
ON PAGE 16)
(STATS TO BE
PROUD OF ... AND
NOT, PAGE 73) q
100
13 %
(6
73%
(8
(5 If so, its main
function is to:
A friend/relative
9%
Monthly newsletter
Radio
An agency
15%
14%
Print
21%
100-200
Radio
26%
29%
No
25%
16%
have a website?
79%
50-99
TV
27%
Annually
Yes
55%
19%
||||||||||||||||||||||||||||||||||
31%
Print
*7 Which of the
11%
Remodel my
current store
Fewer than 25
(4 Does your store
26-49
How often do
you update your
website?
EXTRA
27%
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
a
f e w
W
w o r d s
o f
t h a n k s
e’d like to thank all 758 readers who took this year’s survey,
making it the biggest-ever analysis of the lives and business habits
of American jewelers. While it might have seemed like a difficult slog
to those who took it, we hope that seeing all the information together
gives you a better understanding of both your store and other jewelers
— and provides you with leads on what you need to do improve and/or sustain your business. The information collected in The Big Survey will also be used for numerous other
projects throughout the year and we’re already excited about next year’s poll. See you then!
— david squires, ralf kircher, chris burslem,
paul holewa and eileen mcclelland
72 APRIL 2008
survey breakout
STATS YOU SHOULD
BE PROUD OF ...
AND STATS THAT
YOU SHOULDN’T
2-4 times a year
(7 Have you ever felt
internet
6%
“buy big, 2-carat-plus
diamonds,” “invest in my
website,” “buy out my
partner,” “bullion” and
“retire to Aruba.”
7%
yes to the previous
question, how many
customers visit your
store per day?
61%
survey breakout
if business were a sport, you guys would be
posting some big numbers in some parts of your
game. Here are a few of them:
there are lies, lies and statistics. But no matter
how you slice and dice these numbers they don’t
make some of you look a great as you can be:
œ More than half of you grew your business last
year — sales “up” or “way up” totaled 52 percent.
œ Only 4 percent of you said you were in the
business for the money. That suggests you’re in it
for the right reasons.
œ Just over half (54 percent) of you take more 11
days or more a year of vacation. You deserve it.
œ Not one of you provided identifiable details
about your dealings with the rich and famous.
Discreet you are.
œ Almost four in five of you (78 percent) spend 5
or more percent on advertising. The typical US
specialty jewelry retailer spends 4 percent.
œ 41 percent of you do more than $400 in annual
sales per square foot. It’s not quite on par with the
nation’s best (Apple at $4,032) but it’s better than
most retailers. Saks Fifth Ave, for example, does
$362.
œ 6 percent said sales were down more than 20
percent.
œ GMROI. Of those of you who know it, 56
percent are posting a ratio below $1.00, or 1.00. Big
name independent jewelers average $1.11, Tiffany’s
does $1.27 and Blue Nile, $3.84, according to 2006
figures.
œ Almost half of you (46 percent) take 10 or
fewer days off a year. It’s hard to be fresh when you
never give yourself a chance to recharge.
œ One in 50 of you believe you should test the
limits of the law to succeed. Remember what
happened to Gordon Gecko?
œ 42 percent don’t provide your staff with health
benefits.
œ 40 percent have no succession plans.
Remember, it may not just the future of your store,
it could be your retirement, so start thinking ahead!
security
18%
30%
the first price cut?
31%
5-8 times
5%
34%
41%
Yes
*5 And how much is
Monthly
Weekly
1-2 times
34%
70%
The end of the season
for which it was purchased
year do you “touch”
your customers with
direct mail, a phone
call or customer
events?
3-4 times
No
15%
(3 How often in a