Brought To You By RDI Diamonds
As we kick off a new year, we all hope for a return to normalcy. After months of pandemic-driven social distancing, restrictions and lock-downs, consumers will be excited to visit your store. Now is the time to ensure you have the right inventory on-hand to capitalize on that excitement! Here are some tips for success.
Turn to Technology
As they say, the best predictor of the future is the past. Without a doubt, the most effective way to maintain an accurate view of the past is through technology and point of sale systems (POS).
Unfortunately, jewelry stores are notorious for “breaking the rules” and not enforcing a consistent POS process. Entering data correctly and across the entire store is essential for gleaning accurate insight to help plan for your future needs.
Carry the Essentials
Make sure you have the classics in the cases. For example, round brilliant cut diamonds are consistently the most popular and thus, will always be in high demand. As far as finished jewelry goes, diamond studs sell year-round and are timeless pieces that will never go out of style.
Did you know that 80 percent of engagement ring shoppers buy a ring on the first day they set out to shop for one? That means if you don’t have what they want, they will go somewhere else. This is why it is so important to leverage the technology and data available to you to better understand both your competition and your customer.
Know Your Target Customer
It stands to reason that the Los Angeles jewelry market is always going to be drastically different than the market in Buffalo for example. Differences in demographics like median incomes and style preferences unique to your market should play a vital role in setting prices.
Keep an Eye on the Competition
I see a lot of jewelers make the mistake of pricing their diamonds based on national data, but it really isn’t a good indicator of what’s right in every market. A better pricing strategy is to watch your local competitors. No one wants a race to the bottom, so rather than setting out to beat them, just mimic their pricing to create an even playing field. Better yet, find a way to deliver more value – like offering custom jewelry designs – so you can charge slightly more.
--Michael Indelicato, CEO of RDI Diamonds
To read the original article in National Jeweler visit: https://www.nationaljeweler.com/articles/8566-evaluating-your-inventory-for-success-in-2021
