Those Who Fail to Plan …

By Frank Dallahan, frankdallahan@comcast.net -- JCK Online, 10/1/2007 2:00:00 AM

Technology has changed the way we live in so many ways. A few years ago, a speaker at one of the trade shows said the adoption of technology has become much more rapid today than in previous times. As examples, she noted that the adoption of electricity in the United States took roughly 50 years. Adoption of the telephone took 25 years. Television took 10 years, the personal computer, five. (These, by the way, are not precise times; my memory is not that good.) My point is that adoption of the personal computer was extraordinarily quick by comparison, and, unless I miss my bet, the introduction of the newest technological marvels, the iPod and the iPhone, will continue the pace of change in new and also mundane areas of our lives.

It is interesting, then, to consider how slow many in the jewelry industry are to adopt changes in technology that may offer better solutions to the way business is done. This applies to both the manufacturing and retail segments of the business. Consider e-mail. Today it's the way to communicate quickly, efficiently, and accurately. How many, though, still rely on the fax?

Another example of the slowness of some in the industry was revealed at the August SJTA Show in Atlanta where I moderated a panel discussion on catalog use for retail jewelers. The panel consisted of three providers: Judy Linz, of the Mitchell Publishing Group; Gary Wright, of National Bridal/Custom Catalog Service; and Ken Schulz, of Harmon Catalog. The session started with each giving a presentation of their firm's capabilities. A series of questions followed. The first question attempted to determine the overall advertising and sales promotion budget of a store and the proportion of the budget a catalog should take. To my surprise, only a few in the jeweler audience ventured an answer to either question.

It is fundamental for jewelers to have a budget plan, and within that plan to have some percentage of revenues allocated to advertising and sales promotion. Without this basic element, a business can't achieve specific goals.

Over the past few months, much has been made of the loss of 700 or so independent jewelers from the ranks of the retail community. Is it likely that these stores exited the business for lack of a basic business plan? Technology is terrific in helping a business accomplish more and in a shorter time frame. More important is having a business plan and working the plan. All of the computers, programs, and technology enhancements will mean nothing without the planning process only a human being can do.