The COVID-19 crisis has devastated our medical community, and in some respects, has had an even greater impact on our economy. As the economy goes, so goes our jewelry industry. We need to get back to growing our businesses as soon as possible.
Here are four ideas to help you emerge stronger from the crisis:
- Understand how excess inventory drains you. Aged and underperforming merchandise is a cancer you must eliminate to get through the difficult period that lies ahead. You must monetize undesirable inventory at all cost, or it will put you out of business. A good goal is to have inventory holdings equal to your annual gross profit. Most stores have double the inventory they need.
- Generate cash and use it wisely. Cash is king today and it will carry you through the challenges that lie ahead. Cut expenses wherever you can and generate revenue in any way you can. Extend yourself to your client base. Help them with encouragement and contact. Remind them of birthdays and anniversaries that are nearing. Return repairs to customer doorsteps. Be present and active. Get things done that you never have time to do.
- Continue to use technology to your advantage. E-tailing has been on the rise for years, and the Coronavirus pandemic will fuel it further. This doesn’t foretell the end of traditional jewelry retailing, but it punctuates the point about combining brick and mortar with effective online promotion and selling.
- Exercise resilience. Above all, stay strong and courageous in these times. Lead your people. Keep them active and working on things. Take each day as a gift and adapt to the changes taking place. Worry only about what you can control. Stay positive.
These are only a sampling of things you can do to restore confidence and strengthen your business as we emerge from this crisis. The most important thing is to stay active and engaged. Don’t wait for things to happen. Make them happen.
If we can help you in any way, please contact us. We want to be your partner in progress because we are experts in adversity.
Jeff Gordon, CEO