Calvin’s Fine Jewelry

Austin, Texas

INVENTORY REDUCTION & CASH RAISING EVENT

 

In 1997 Calvin Smith opened Calvin’s Fine Jewelry and hired his sister Kathy to work in sales. He offered a few jewelry lines to start, but he soon realized that developing relationships with customers would take time. Calvin’s solution was to take on an unusual collaboration by adding a small salon inside his store. The salon was operated by longtime stylist (and the love of his life), Jackie. Jackie’s large clientele loved the store, and as the word spread, Calvin’s grew. Jackie hired contract stylists to take over the salon, while she took over accounting, decorating, and designing for the store. Calvin did everything from simple repairs to complex custom work and Kathy developed a connection with customers and the jewelry they loved.

Why The Gordon Company?

Calvin Smith came to The Gordon Company with a goal in mind to help ensure that his store would continue long into the future for his children. While Calvin’s had conducted successful sales in the past, their most recent sales were not bringing in the revenue and new customers they expected. The results: a surplus of excess inventory, which tied up the store’s precious resources. Calvin needed the help of professionals to get the job done.

The Scope of The Gordon Company Assignment:

Develop and execute an effective sales event strategy that would meet the store’s goals

Conduct an inventory reduction sale that would sell off the store’s dated inventory, but without affecting holiday sales at full price

Generate enough cash to allow the store to pay off long-term bank debts

Maximize the recovery value of the inventory and mitigate any potential adverse impact the sale could have on the company’s upstanding reputation in the community

Attract new customers to the store during the sale and increase the mailing and email lists

Recommend an incremental pricing strategy to maximize cash flow and margin

Design and develop a customized marketing and advertising strategy

Manage and analyze the sale to react to possible changes in local market conditions

“A new customer came in our store and told us that he has lived in this area for 18 years and said he never knew that we were here until he saw our advertising.” – Calvin Smith

The Gordon Company Solution and Accomplishments:

Outperformed the company’s gross margin expectations on its owned inventory by 35.41% and surpassed the projected return on excess original inventory sold by 39%

Acquired 212 new customers, accounting for 41% of the total sales

Expanded the company’s customer base, increasing direct mail and email lists by 10%

In Calvin Smith’s words, “We were shocked at the sales results and number of customers when we opened on the first Sunday of our sale. We have a history of not being open on Sundays. The sale was 33 working days and the biggest month in our history.”