68-85 Feat-Survey Chart · more likely to have invested in advertising, social media, and...

68 ◆ JCK November 2012 jckonline.com

RetaileRSuRvey

2012

68 iNfographics by carl Detorres

The ResulTs ARe In

Our annual JCK ReTAIleR suRvey gives the lOwdOwn in five crucial

categOries Of OperatiOns. hOw dOes yOur business cOmpare?

After three years of putting together the JCK Retailer Survey, we’ve learned a thing or two about how successful jewelers run their stores.

By asking questions about their performance and tactics in five categories of retail operations, otherwise known as the 5 S’s—Store, Stock, Sales, Staff, and Salary—we’ve learned, for example, that custom design remains important to more than half of all retailers. But it’s slightly more important to those who reported higher sales in 2012. We’ve also discovered that diamond-buying is even more important to the higher-sales crowd than gold-buying.

And the biggest finding of 2012? Successful retailers are more likely to have invested in advertising, social media, and promotions than their less-successful counterparts. To put it bluntly, you’ve got to pay to play.

What best desCribes you as a retailer?

other 1.9%

online only 2.4% discounter 0.2%

department store 0.4%

independent 87.8%

specialty/Gift boutique 3%

Jewelry chain 4.3%

hoW many stores do you operate?

online only 2% 1 77.7%

more than 10 4.3%

4–9 4.3%

2–3 11.7%

more thaN three-quarters of you have a siNgle store, coNsisteNt with years past.

the vast majority of you are iNDepeNDeNt retailers—uNDerscoriNg how the jewelry busiNess Differs from other more coNsoliDateD iNDustries.

69jckonline.com JCK November 2012 ◆ 69

STORE

in WhiCh u.s. reGion are you loCated?

northeast17.6%West

27.7%

south29%

midwest20.9%

other4.8%

are your 2012 sales up or doWn from 2011?

sales are flat

compared with 2011

sales are lower than

2011

sales are higher than

2011

53.5%

26%

20.5%

are your 2012 Gross profits up or doWn from 2011?

profits are flat

compared with 2011

profits are lower than

2011

profits are higher than

2011

52.5%

24.8%22.7%

do you thinK the eConomy Will improve in 2013?

last year, 37 perceNt of respoNDeNts saiD yes. this year? optimism is stroNg, but so is uNcertaiNty.

yes

47.4%

no

14.2%

Who KnoWs?

38.4%

What are your annual per-store Gross sales?

9.2%

11.9%

15.3%

21.1%

13.5%

24.9%

4.1%

$3,000,000–$10,000,000

$1,000,000–$2,999,999

$500,000–$999,999

$250,000–$499,999

$100,000–$249,999

under $100,000

more than $10,000,000

more thaN half (57%) of you report sales below the $1 millioN mark. coNversely, 43% of you have riseN above that barrier.

eveN though you’re a homogeNeous buNch, No oNe caN accuse us of regioNal bias. we’ve got the couNtry well-represeNteD.

Nearly three-quarters of you haD flat-to-up years.

oNce agaiN, three of four retailers are seeiNg moDerate-to-better profits thaN 2011.


RetaileRSuRvey

2012

70

STOck

hoW have your sales in the folloWinG CateGories performed?

silver, DiamoND riNgs, aND custom work are oN the rise, but beaDs, golD, aND platiNum are iN DecliNe.

increased decreased percentage of total sales

diamond rings 58.2% 17.6% 26%

other diamond jewelry 35% 29.1% 10%

Gold 20.9% 31.5% 7%

platinum 20.9% 51.5% 2%

silver 63.7% 10.8% 11%

Colored stones 33.8% 22.2% 6%

Custom 51.2% 16.5% 8%

beads 24.8% 31.5% 4%

Watches 31.6% 21.5% 7%

repairs 60.7% 9.8% 11%

finished fi ne jewelry (not diamond)

34.7% 17.2% 5%

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more important

34.2%

less important

65.8%

are manufaCturers’ brands beCominG more or less important to your business?

as custom work grows, off-the-shelf jewels holD less appeal.

Who is your larGest vendor?

stuller is the clear leaDer, scoriNg 2.5 times as maNy meNtioNs as rolex. paNDora rouNDs out the top three, while the rest of the top 10 beloNgs (mostly) to DiamoND jewelry suppliers.

1 stuller (pictured)

2 rolex

3 pandora

4 Quality Gold

5 Gabriel

6 hearts on fire

7 my own line (custom work)

8 Citizen Watch

9 simon G

10 unique settings of new york

hoW important are Custom desiGns to your business?

extremely important 29.8%

25.9%

21%

17.9%

5.4%

important

not very important

very important

not at all important

“Diamonds, particularly engagement rings, have been the highest-selling product of 2012. There has been an increase in diamond sales since 2011.”—Jacquelyn Friedrich, owner, Friedrich Jewelers, Vernon, Conn.

for more thaN half of respoNDeNts, custom is a corNerstoNe of the busiNess. how loNg before the rest of you get iN oN the game?


RetaileRSuRvey

2012

72

STOck

do you buy Gold or diamonds from the publiC?

golD- aND DiamoND-buyiNg remaiN popular retail practices.

yes

71.2% 28.8%

65.4% 34.6%

no

hoW has your Gold-buyinG business been affeCted by the fluCtuatinG Cost of the metal?

50.5%

20.5%

29%Gold buys have remained flat

Gold buys have decreased

Gold buys have increased

the golD price is DowN from last year’s highs, explaiNiNg why oNly half of you are buyiNg more golD iN 2012, compareD with 2011, wheN two-thirDs reporteD aN iNcrease.

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hoW important is buyinG diamonds to your business?


17.5%

26%

17.3%

18.4%

important

not very important

very important

not at all important

Nearly two-thirDs of you say it’s importaNt to purchase DiamoNDs from the public.

not at all important 20.2%

very important 19.6%


not very important 18.7%

hoW important is buyinG Gold to your business?

six out of 10 respoNDeNts coNsiDer golD-buyiNg importaNt.

somewhat important 24.2%


SALES

on What media do you rely most to promote your business?

31.1%

48.5% 33.2%

email broadcast advertising (television, radio)

21%

online advertising

16.5%

outdoor advertising direct mail (including e-newsletters)

34.4%

social media (facebook, twitter, etc.)

34.1%

print advertising

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the neW and improved marKetinG mix

i am moving away from traditional advertising to new media (i.e., face book, twitter, blogging).

True57%

FALSe43%

i am making greater use of public relations.

True70%

FALSe30%

i am putting more dollars toward search engine optimization (seo) and google search.

True43%

FALSe57%

i am making greater use of in-store merchandising strategies (i.e., counter displays).

True65%

FALSe35%

i am making greater use of outdoor advertising.

True29%

FALSe71%

i am making greater use of youtube.

True13%

FALSe87%

““

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RetaileRSuRvey

2012

74

SALES

my advertisinG budGet is more heavily sKeWed toWard…

i don’t have an advertising budget

23.9% print media 53.1%

online media 23%

more than 8 percent 11%

up to 6 percent 25.6%


2 percent or less 27.7%


on averaGe, What perCentaGe of annual Gross sales do you spend promotinG your business?

remember the olD aDage “you have to speND more to make more”? we DiscovereD that retailers who report higher sales Do iNDeeD speND more to promote their busiNesses.

Customization 8.9%

social/environmental responsibility

0.9%

ambiance 1.7%

selection/ quality of diamonds

18.4%

price/value 25.4%

service 28.8%

other 15.9%

What best desCribes your retail brand’s uniQue sellinG proposition (usp)?

retailers reportiNg higher 2012 sales are less DepeNDeNt oN a price/value usp thaN those who report lower sales. both groups, however, profess to excel iN service.

Not oNly are those who report higher sales more likely to have aN aDvertisiNg buDget, they’re also more likely to use New meDia.

“Most of my business is based on referral. Print media is more difficult and expensive for a smaller business in the metropolitan area. I believe that word of mouth and keeping customers happy is the best advertising.” —Dan Dement, owner, Stone Oak Jewelers, San Antonio


RetaileRSuRvey

2012

76

STAFF

“We have maintained the same staff. Even though sales have decreased somewhat, we have been lucky and have not had to lay anyone off.” —Jeff D. Andrus, owner, Andrus Jewelers, Salinas, Calif.

7–10 19.4%

more than 15 6.2%

11–15 9.1%

4–6 30%

1–3 35.3%

hoW many employees do you have, on averaGe, per store?

looks like less is more: a whoppiNg 85 perceNt of you boast 10 or fewer employees.

hourly 21.8%

hourly + commission 23.9%

salary + commission 25.8%

salary only 22.1%

hoW do you Compensate your sales staff?

as iN years past, most of you avoiD the commissioN-oNly approach. but every other methoD of compeNsatioN is fair game.

part-time sales staff 9.5%

hoW lonG has your sales staff been With you, on averaGe?

less than one year 2.8%

18.7%

19.9%

32.8%

25.8%

3–5 years

5–10 years

1–3 years

more than 10 years

the biz has experieNceD its highest highs aND lowest lows iN the past five years—which makes the loyalty of your employees iN that time all the more remarkable.

Commission only 6.4%

77jckonline.com JCK November 2012 ◆

“We use in-store, hands-on training. It’s all about salesmanship and familiarizing yourself with merchandise.”—Frank Goodale, owner, F.D. Goodale Jeweler, Camden, S.C.

STAFF

hoW do you measure your sales staff results?

Closing ratio 34.3%

12%

49.8%

38.5%

6.4%

sales to goal

average sale

add-ons

transactions per hour

hoW often do you run sales inCentives or reWards?

almost never 44.7%

25.5%

13.5%

9.2%

7.1%

Quarterly

semiannually

monthly

Weekly

salary + commission 25.8%

full-time sales staff

31.1%

Jewelers, watchmakers, etc. 1.7%

part-time sales staff 9.5%

manager 17.1%

yourself/owner 40.6%

What perCentaGe of store sales is done by the folloWinG?

store owNers aND full-time sales staff are respoNsible for the bulk of traNsactioNs.

sales to goal aND average sale are the most popular methoDs of measuriNg results, but DoN’t DiscouNt the value of closiNg ratio.

although iNceNtives DoN’t raNk high oN your to-Do lists, you’re offeriNg them more frequeNtly thaN you DiD last year.


RetaileRSuRvey

2012

78

STAFF

What is your primary sourCe for neW hires?

“When I know we need someone with experience, I’ll post on the Gemological Institute of America website. For entry-level jobs, I usually use local colleges as a resource.” —Bruce Chance, owner, WR Chance Diamond Jewelers, Annapolis, Md.

“We train our staff through apprenticeships and through American Gem Society courses. In the past these methods have been very successful.” —Michael Dostie, business operations manager,J. Dostie Jewelers, Lewiston, Maine

compareD with last year, walk-iNs aND oNliNe job boarDs are up, while help-waNteD priNt aDs aND poachiNg are DowN.

hoW do you train your sales staff?

internally 77.1%

5.5%

4.8%

4.5%

4.2%

3.9%

outside sales trainers

seminars at trade events

not at all

trade magazines

other

giveN the iNDepeNDeNt streak that characterizeD most respoNDeNts, it’s No surprise that wheN it comes to traiNiNg, most of you go it aloNe.

help-wanted print ads/posters

19.6%

Career fairs 2.7%

online job board 22.3%

Walk-ins 32.7%

other retailers 22.7%


RetaileRSuRvey

2012

80

SALARy

other 8.6%

full-time salesperson 2.1%

part-time salesperson 0.6%

buyer 5.5%

sales manager 8.9%

owner 74.3%

What is your role in the Company? in What ranGe does

your salary fall?

28%

26%

15.5%

14.5%

7.2%

4.6%

1.6%

2.6%

$200,000–$299,999

$300,000–$499,999

$150,000–$199,999

$100,000–$149,999

$75,000–$99,999

$50,000–$74,999

less than $50,000

$500,000 or more

about the same 36.3%

significantly higher 2.9%

slightly higher 12.9%

slightly lower 24.1%

significantly lower 23.8%

hoW do you thinK your salary Compares With the industry averaGe?

“I work in a family business, which has a lot to do with my job satisfaction. I find great fulfillment knowing that as a jeweler you instantly make people happy when they walk through your door.”—Scott Davis, owner, Seng Jewelers, Louisville, Ky.

owNers DomiNate the survey (though they sometimes prefer to call themselves “hero maker aND visioNary”).

more thaN half of you believe you’re earNiNg the same—or better—pay as your peers.

the raNks of those earNiNg $100,000 or more thiNNeD this year—except for the top category, which grew from 1.9 perceNt iN 2011 to 2.6 perceNt this year.


RetaileRSuRvey

2012

40–49 43.6%

more than 60 15.2%

50–59 21.1%

20–39 17.6%

less than 20 2.5%

What is the averaGe number of hours you WorK per WeeK?

to What deGree are you satisfied With your Job?

extremely satisfied 32.7%

43.9%

18.4%

4.7%

0.3%

somewhat satisfied

not very satisfied

very satisfied

not at all satisfied

SALARy

pay was cut 9.4%

not sure 8.2%

increase 28.4%

no increase 54%

hoW did your salary ChanGe in 2012?

gooD News! you’re Not workiNg quite as maNy hours as you DiD last year.

more thaN 17 perceNt of you reporteD a pay cut last year, compareD with slightly more thaN 9 perceNt this year. most, however, reporteD a salary flatliNe.

all kvetchiNg asiDe, the majority of you are at a miNimum “very satisfieD” with your jobs.

“My salary has generally stayed the same. I would say interacting with customers—especially selling engagement rings to couples— is my favorite aspect of working in the industry.” —Michael Mazzoni, owner, M. Mazzoni Jewelers, Farmington, Mich.

“I get to work with my wife,” said one happily married respondent when asked about benefits. “Hard to answer when you are the owner” and “Parking” said two others. But for all the benefits bestowed on our respondents, far too many answered, simply, “none.”

69.6%

65.6%

59.4%

47.1%

34.1%

33.7%

29%

24.3%

19.6%

14.9%

10.9%

9.4%

dental insurance

disability insurance

educational financial support

life insurance

401(k) plan

paid sick days

merchandise discounts

paid vacation

medical insurance

paid maternity leave

pension plan

other

What employee benefits do you reCeive?

jewelers are harD-presseD to offer every beNefit to their employees, but meDical iNsuraNce is coNsiDerably more commoN thaN, say, paiD sick leave.

SALARy

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RetaileRSuRvey

2012

“Have all the clients misplaced their meds?” was one respondent’s answer to the job-satisfaction question. (You’re joking, right? Right?) “Forty-five years of making people happy,” said another. But the reply that summed it up best: “My store is my baby!”

SALARy

other 10.5%

26.5%

23.4%

18.4%

10.3%

6.2%

5.6%

5.3%

2.2%

0.9%

0.6%

0.6%

salary

relationship with colleagues

Job security

other

flexible time/hours

love of the industry

feeling of accomplishment

relationships with customers

advancement opportunities

travel

benefits

What is the sinGle most important faCtor affeCtinG your Job satisfaCtion?

workiNg with frieNDs aND cherisheD clieNts tops this year’s list—easily beatiNg more taNgible perks such as salary aND beNefits.

85jckonline.com JCK November 2012 ◆

“At the beginning of the year, sales were on the upswing. However, store traffic was slower in the summer. It’s difficult to determine where things will go in 2013. A lot depends on the election.” —Mark Knipe, owner, Mark Knipe Goldsmiths, Concord, N.H.

sufficient operating budget

17.1%

outsourcing 1%Company merger/acquisition 2.6%

Job security 3%

lack of training/ educational support

3.6%

management support 3.6%

other 10.5%

Keeping current with technology 23.7%

sales performance 34.9%

What is your sinGle biGGest on-the-Job ConCern?

SALARy

sure, you waNt to keep up with twitter, facebook, aND all thiNgs electroNic. but you also worry about, well, selliNg jewelry.

68-85 Feat-Survey Chart · more likely to have invested in advertising, social media, and...

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