06012016Wed
Last updateTue, 31 May 2016 9pm

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Understanding Twitter as a marketing tool

*This is the second in a series of six articles about Twitter Social Networking and its use in the jewelry industry

Last month I shared with you an overview of Twitter and explained its uses as a communications platform for your business. Now I'd like to get you thinking about how you could market your business in its own Twitter Space.

The first step to capitalizing on the advantages Twitter can offer is to assess your business strengths. Start by asking yourself, your employees and even your customers this question: What sets your company apart from the competition? Is it your wide variety of merchandise? Your in-house repair shop? The designer lines you carry? Your knowledgeable sales staff and outstanding customer service? Your reputation for exquisite custom work? Your celebrity clientele? Your knack for stocking jewelry in all the price-points?

When did you last review your prices?

When we talk to clients about the key performance areas of any businesses profitability we generally come down to four factors that need to be measured and monitored closely: stockturn, quantity of sales, margins and average retail. There are many factors that can affect these four areas, but if there is any area of a business that is the quickest and easiest to adjust in order to improve the bottom line it would be price. It would also be the area of business that store owners have the most reservations about changing.

How long will it take to sell your old inventory?

If you stopped buying today, how long would your current inventory last you? This is a variation of the old question, if you stopped working how long would your money last, but in this case we’re honing in on the amount of surplus product most store owners are carrying.

Why do this exercise? Because, as we repeatedly tell our clients and anyone else who listens, most stores have a surplus of product sitting around that simply doesn’t perform.

If you don’t put the markup on you can’t bank it

This is one of the first lessons of retailing. Depending on when your financial year ends, now would be a great time to review your markups given that most businesses will have a P&L that shows their expenses and therefore the amount of Gross Profit required. You will either have fresh financials that you can act on to improve this years results or have interim accounts that will give you time to improve your markups over the remainder of the year. If you don’t have either available, your sales by department report should show you what you have been achieving so far.

How to beat your biggest sale

I’m going to give you a challenge – to beat the largest sale your store has recorded!

Sound interesting? Before you say you don’t think you can do it, remember you’ve had a biggest sale before, all you need to do is beat it by $1. That shouldn’t be too difficult.

So what’s your biggest sale? It should stick in your memory, but if not go back to your reports and work out what it was (a clue, it should be in your diamond department!)

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