Increasingly we are seeing fine jewelers moving to a much more modest level of inventory to reduce their drain on capital and to create more and more custom-design jewelry. This is understandable for two main reasons:
1) No one can afford to make buying mistakes that absorb cash flow and make monetizing unwanted merchandise a huge, long-term problem.
2) Computer Aided Design (CAD) technology has become so prevalent and affordable that customization is no longer a feat for only the vastly experienced hand craftsman.
When you add these factors to the mentality of most Millennials (and also Generation Zers, who are graduating from college and now entering the workforce), who want things “their way,” you have a formula that demands your attention now and in the future.
We are also seeing many long-time brick and mortar jewelers reduce their store footprints and become “by appointment only or private” jewelers, catering to their more exclusive clientele who seek larger, finer goods in a personal setting that provides a richer experience. Sometimes this is done at retail on the ground level, but very often these professionals opt for a nice office in a multi-story building.
Many jewelers aren’t ready to retire, but want to get away from the day to day grind. They want to take advantage of a more relaxed lifestyle while not getting completely out of the business. So becoming a “private jeweler” is very popular today, and reduces the need for excessive inventory, and maybe only a few important pieces that cater to their upscale clients.
The bottom line to all this is that aged and under-performing inventory is not just your problem. It’s an industry-wide cancer that stalls businesses at best, and forces them out of the retail industry at worst.
If I seem to be preaching to the choir and you are in need of help, please give us a call for a confidential, no obligation consultation. We are experts in inventory reduction and we want to help you.