(NEW YORK) - Jewelers of America (JA), the national trade association for businesses serving the fine jewelry marketplace, has published the 2013 Jewelers of America Cost of Doing Business Report, an invaluable benchmarking tool for retail jewelers. The Report compiles 2012 financial data from a cross section of jewelers and reveals high-profit performance indicators so jewelers can see how their figures compare. The 2013 edition includes more details of key data, such as expanded merchandise categories, advertising channels, demographic location and more.
The Report Reveals Secrets to Higher Profits
The 2013 Jewelers of America Cost of Doing Business Report indicates that effective cost control, especially within operating expenses, can make the difference between gaining higher profits and average store performance. While high-profit jewelers in 2012 did not have greater net sales ($1,178,822 median sales compared to $1,469,168 for the typical firm), they spent 7.4% less on overall operating expenses than the typical specialty jeweler (35.1% compared to 42.5%). By reviewing the Report, jewelers can see specific areas where high-profit jewelers controlled their operating expenses including payroll (37.8% vs 51.2%), occupancy (9.2% vs 11%) and advertising (6.8% vs 8%).
The Report reveals that there are no barriers to high-profit success in the jewelry industry; the only requirement is to identify the areas where high-profit firms perform better and target for that level of performance.
Invaluable Benchmarking Data for Jewelers
Unlike complex finance reports, the Jewelers of America Cost of Doing Business Report makes it easy for jewelers to take a closer look at their balance sheets to benchmark their business operations against those of their competitors. Using the 2013 Report can help jewelers generate greater profits, as comparing individual data can help a store owner or manager judge where opportunities for improvement lie and prioritize them.
It includes more than 200 financial statement variables. The detailed data tables are organized by jeweler category (high-end, mid-range, chains, designer), annual sales (under $0.8 million; $0.8 - $1.6 million; $1.6 - $3.5 million; over $3.5 million) and high-profit firms and include key performance measures such as:
- High-Profit data
- Gross margins
- Sales volumes within store types
- Productivity ratios
- Inventory turnover
- Operating expenses
- Balance-sheet data
- Product distribution
Investigate the Numbers
Profit Planning Group compiled the confidential survey and administered the 2013 Jewelers of America Cost of Doing Business Report using responses of jewelers from across the United States. Jewelers who participated in the survey that informs the Cost of Doing Business Report received a customized Performance Analysis Report – in addition to a free copy of the full Report – that identifies how to improve their profits and cut expenses.