 |
|
How well does your store measure up? Comparing your store’s financial performance
to that of other jewelry retailers can help you improve your store’s
profitability.
The survey includes key performance measures:
sales volumes within store types; productivity ratios; financial-strength
indicators; and balance-sheet data. The study’s format, scope and
content are similar in each annual edition, making for easy, year-to-year
comparisons. The report also contains a practical “how to” section
demonstrating methods of interpreting and utilizing the data. One jeweler who takes advantage of the survey
is John Allison, owner of Allison’s Custom Jewelry in Sidney, Ohio.
“I always read it,” Allison says. “I’m curious about
all the industry’s statistics. To measure success you’ve got
to compare yourself to something.” Paul Penaloza, owner of Penaloza & Sons
in San Antonio, Texas, also finds the survey beneficial. “I give
a copy to my accountant, and he gets a lot of use out of it, too,”
he says. JA’s survey is published every fall.
The 2002 edition, containing data compiled from 2001, is now available.
Among other information, the survey found the following:
• Overall net profit to net sales for
survey respondents was 6.1 percent for 2001, the same as in 2000 and lower
than the 7.3 percent reported in 1999. • Gross margin for survey respondents
held the line in 2001 at 49.3 percent, up slightly from the 47.4 percent
reported in 2000, although it remains below the levels reported in the
1980s. Keep in mind that deviations from industry
norms do not automatically call for action on your part. The most important
thing is to be able to explain why your firm experienced significant deviations
from the typical jeweler. The 2002 Cost of Doing Business Survey is available to JA retailers at the members-only price of $19.95. JA members who contributed to the data by completing questionnaires receive one free copy. To purchase the survey, call JA at 800.223.0673, or visit www.jewelers.org.
|
|
You
can evaluate your store’s performance and plan for the future using
the comprehensive, comparative financial information found in Jeweler’s
of America’s Cost of Doing Business Survey. The annual survey
provides insight into the status of the industry and where you stand compared
to your peers.
•
Overall, survey respondents reported flat sales for 2001 (a 0 percent
increase in sales). This is down significantly from a median sales increase
of 3.3 percent in 2000 and a 10.5 percent increase achieved in 1999.