Month: September 2023

Cash is King

The key question is this: Do you want to be drowning in inventory or would you rather be swimming in cash when Cash Is King?

Everything we read about today tells us to be conservative and to hold on to our money. Interest rates are still high, so borrowing is difficult. Financing growth in these uncertain times makes little sense right now. Inflation is still higher than any of us want and we continue to hear news about a possible recession.

Most prognosticators are predicting a soft market over the next 15 months. There are opportunities in every market climate, but it is time to tighten things up, be strategic in buying, and convert aging inventory into cash for that proverbial “rainy day.”

The key question is this: Do you want to be drowning in inventory or would you rather be swimming in cash when Cash Is King?

The way to get the cash you need to weather the storm is to run a major sale event. You will monetize your aged merchandise and secure a solid financial hold on whatever the near-term economy brings.

In challenging times, you need a support system you can rely on. At The Gordon Company, we have helped hundreds of jewelers over many years get back into a position of strength. Let us help you, too.

  Contact us right away for a confidential, no-obligation look at your financial situation. We are happy to provide a free consultation of your needs.

Sincerely,

Jeff Gordon, CEO

What Does the Future Hold?

Unless you’ve been living on a remote island somewhere, you are aware of recent industry and general economic layoffs in the workforce. It was simply a matter of time that the overhang of economic stimulus would subside.

Unless you’ve been living on a remote island somewhere, you are aware of recent industry and general economic layoffs in the workforce. It was simply a matter of time that the overhang of economic stimulus would subside.

Recession has been looming for the past year or more, so the luster of what we all experienced in 2021 and even parts of 2022 has dulled. People are again traveling at all-time highs, so the industry is feeling the effects of a more historically normal (pre-COVID) business climate.

Add to this the confusion that has been caused by the disruptive nature of lab-grown diamonds. We all saw the wave of change coming, but none of us expected it would impact bridal sales like it has. The precipitous drop in prices is affecting the gross profit of jewelers who sell them and it is likely that over-production will cause further price declines.

All of this spells concerns about the future of our industry and how to navigate these uncertain times. It demands both attention and action, especially for jewelers at or nearing retirement age who may be considering a transition plan or exit strategy.

At The Gordon Company we specialize in guiding jewelers through these challenges so they can leave the business with money in their pocket and a well-deserved retirement. If you are at a point of decision-making about the future, contact us right away for a confidential, no-obligation consultation on how we can help you.