We work with upscale jewelers around the country and every client has both similarities and differences. One of the major similarities is in their inventory. One $10,000,000 jeweler told me that the only difference between him and a $1,000,000 jeweler is an additional zero on his inventory level. He’s right.
Another similarity is the aging process. Most merchandise ages and the degree of aging is both disappointing and startling – if not downright scary.
As a case in point, we recently conducted a sale event for a jeweler who had owned inventory totaling $729,027 at cost encompassing a total of 2,964 items. Of the items, almost half of the merchandise was over five years old. Of that, more than one-third of the items were over 10 years old, which included 145 pieces over 20 years old.
I guess I could joke with you and say that this kind of inventory aging only occurs in certain states, but you and I both know better. Unfortunately, this jeweler’s holdings were very similar to what we encounter in most store closings, retirement sales, and going out of business events. It is inevitable that merchandise will age, and a lot of this has to do with your buying habits and an inability to know what to do with unwanted, under-performing merchandise.
We are experts in knowing what to do, so if we can help you as we have hundreds of upscale fine jewelers, please let us know. We would love to assist you.
Jeff Gordon, CEO