Staying Afloat Part 3: How are We Doing it?
April 13, 2009
Two people made a comment about my 3 eggs so here’s the reason: I actually do have really high cholesterol (partly genetics partly gained more than a couple of pounds lately). I eat two egg whites and one yellow (the yellow is my healthy fat) and the eggs are in general my morning protein source. Trying to eat as much protein as I can (my trainer is trying to help me loose the pounds and has me eating protein all day).
How Guliani’s is staying afloat in a nutshell:
- The store is closed on Monday’s (our slowest day).
- I reduced the hours of all employees.
- I have negotiated smaller monthly payments with my vendors.
- I reduced my Direct TV package.
- I have always bundled phone and internet (it really does save me money).
- We are trying to sell a whole lot of preventative maintenance when it comes to repairs.
- We heavily promote our lifetime battery program.
- We are heavily promoting Hearts on Fire as 30% off (great cash flow when we sell one of the loose—which we are).
- I am buying gold.
- We are drastically reducing special orders and I am having my employees think outside the box when it comes to an item we don’t have in stock. For example: Customer wanted a mother’s pendant. Instead of ordering a mounting and setting the stones—we sold him a Diamond Heart pendant and mounted the stones inside of it. This way we moved a piece from the case instead of ordering a mounting.
- I am tying my “Sparkling Spring Event” to Mother’s Day hoping to draw in more customers (did take advantage of the lower advertising rates and am promoting the hell out of this event).
- Changed all marketing to include bridal images (my friends with heavy bridal business say they are still doing okay).
- We are emailing every single customer (male and female) for their birthday and anniversary. If we don’t have their email we are sending them handwritten letters and even making phone calls. Emailing significant others pictures of the items their spouses have on their wish list. Offering gift ideas to wives for their husbands (such as cuff links).
- We are clienteling like crazy (which my staff has always been pretty good about) but now they are making sure to contact all customers—even ones whom come to look.
- Of course—the one I’m a little worried about but have done to save money is…I reduced inventory. I am not buying but instead holding on to the money I have because I fear summer is going to be extremely tough. I have also decided to only fill in fast sellers at JCK this year and not buy many new items. Plus the new items I do purchase—I am asking for them to be shipped in November and not earlier.
Any other ideas to stay afloat? Advertising has gotten pretty inexpensive—are any of you spending MORE dollars on advertising? Has it worked?
Posted by Shanu Singh Guliani on April 13, 2009 |
Comments (2)
April 15, 2009
In response to:
Staying Afloat Part 3: How are We Doing it?Laura commented:
Working with vendors for the long term is essential. EVERYONE in
the chain of supplying retailers needs to work generously,
carefully and compassionately towards the future. Those suppliers
that use strong arm tactics will truly be remembered and will
suffer the consequences of loss of relationship. Being supportive
and creative is the solution. Further, suppliers that do not
support retail now with aggressive advertising programs will be
left in the dust. We will be loyal to those suppliers that turned
on the marketing heat to help us and didn't throw us retailers to
the JBT wolves. They extended longer terms, gave us marketing
monies, created new events and helped us to weather this economic
storm. They can see a future in 24-36 months. They don't live in
the shallow end of the gene pool. Those suppliers have vision and
know the value of long term relationship. As retailers we will
simply just change suppliers (even after 6+ years of relationship),
brand our own store heavily and gracefully push these animalistic
predatory suppliers out of our store. Create our own lines of
jewelry. However, to the loyal supportive suppliers.....we continue
to buy and will remember their loyal support and ingenuity during
these tough times forever.
April 14, 2009
In response to:
Staying Afloat Part 3: How are We Doing it?Neil The Jeweler commented:
This may not help you now, but certainly in the future. Remember
what this all feels like. The scrambling, the worry, what it feels
like inside of you to dodge angry calls. When this bust is over,
instead of returning to the way you did things before, think about
how you might change your approach to business. As we all are
finding out a recession can hit quickly... you might not see it
coming. So be prepared next time. Structure your business
specifically to survive the next downturn. Be ready to capitalize
on the boom but be just as ready to survive the next bust(surely it
comes, its just a matter of when and why). As I see it, and I've
been around a few decades and been where you are now, the single
most important aspect of your business is your lease, your
location. Everything feeds off of that. Big space, big rent so you
need a big inventory and staff to handle it. Throw in your
promotion, insurance, etc and it all snowballs quickly. If you're
not careful you may wind up with this machine with an enormous
appetite for cashflow. Which can be quite profitable during good
times. But all booms bust. Another thing...I rarely hear you
mention your in-house service department, I'm not sure what you
have. It might be more glamorous to stock the big names but a well
situated service department will perform for you every day, in
(almost) every economic condition. Build a solid core of repeat
repair and custom business and you will see your merchandise sales
go up along with it. While its true we are in new times(aren't we
always?) certain human responses stay the same.
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