Get Higher Returns From Motivated Employees
By JCK Online Staff -- JCK Online, 6/1/2009 2:00:00 AM
Sales per square foot is a key differentiator between high-profit and low-profit stores, according to the 2007 Jewelers of America Cost of Doing Business Survey. Jewelers of America's director of education David Peters says improving sales starts with the right selling strategies.
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For every employee, track (at least weekly) both their average sales and average profit per transaction. By doing this you can quickly identify any employees that are routinely over-discounting.
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Institute a tiered commission system that pays slightly higher commission rates as ticket prices go up.
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Consider switching to a commission system on regular-price merchandise based on an item's profit and not its selling price.
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Pay special spiff bonuses on older merchandise. This won't necessarily improve your sales per square foot, but it will give you needed cash to buy new and hopefully fast-selling merchandise.
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Train staff to focus sales presentations on value and quality rather than price.
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Measure store traffic and conversion rates and survey nonbuyers to find out reasons for not buying.
For more tips from Jewelers of America, sign up to receive the “Tips to Thrive” e-newsletter at www.jewelers.org.
