Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
Page 11
Page 12
Page 13
Page 14
Page 15
Page 16
Page 17
Page 18
Page 19
Page 20
Page 21
Page 22
Page 23
Page 24
Page 25
Page 26
Page 27
Page 28
Page 29
Page 30
Page 31
Page 32
Page 33
Page 34
Page 35
Page 36
Page 37
Page 38
Page 39
Page 40
Page 41
Page 42
Page 43
Page 44
Page 45
Page 46
Page 47
Page 48
Page 49
Page 50
Page 51
Page 52
Page 53
Page 54
Page 55
Page 56
Page 57
Page 58
Page 59
Page 60
18 The Jewelry Business Magazine These differences will dramatically change your results. So if you see the units are similar but the averages are very different its time to do some other reports. Run your SummaryDetail report by Vendor and then by Category use the same three year analysis from above to see how each major supplier and category has performed. The obvious differences in your numbers should pop off the page at this point. Lets say your high-end watches or that 150000 diamond you sold last year didnt happen this year. How did this impact your results Reviewing Profit Looking back now at the Stores report youre also going to see these differences not just in Sales and Average Ticket but also in Gross Profit Dollars and GP. Selling many more high-end watches or that one big diamond will usually lower your gross profit so fewer of these sales while having a definite impact on Sales wont have as severe of an impact on Gross Profit dollars. In fact youll likely see your GP increase if those larger sales went away. Note For those of you who have inventory under BULK I typically exclude this from my initial analysis and analyze bulk sales by themselves so these dont have an effect on your averages. Reviewing Inventory After Sales Profit I look at how we have been doing with our inventory management. Two things that you want to analyze How much inventory you ended the year with each year remember to filter just Asset as well as All inventory to see your results with and without Memo Has your inventory been increasing decreasing or is it stable Whats been happening with your Aged Inventory both in dollars and as a percentage of your total inventory Managing your non-performing inventory is a matter of making it important. If you want some motivation to do a better job at managing your aged inventory take a look at this number and then look at how much you owe. I find that the more aged inventory there is the higher debt is. So basically youre using debt bank or trade to fund your aged inventory Its true that some people had exceptional years while some were flat or down. Only a few were down a lot more than 15 but in those cases 2015 followed a very strong 2014 and I recommend comparing the year and December to 2013 for some perspective. In general Sales were up Number of transactions were up In many cases GP was up a point or two I love seeing incremental improvements in GP over time. On the down side high end took it on the chin a bit especially in high-end watch sales 100000 plus sales that didnt happen this year like they did last year. So if this happened to you it wasnt you but the high-end economy. Does this speak to an improving economy among the middle- class which as we all know is the driver of our industry Does it speak to the high-income consumers not doing as well in the stock market this year Ill take an improving middle market any time. Ill take the increases in number of items sold and a better gross margin over six figure sales with no margin every day. We encourage you to give us a call so we can talk through the analysis with you and your team and plan the year. Until then congratulations on a good year and best wishes for a great 2016 Abe Sherman CEO Buyers Intelligence Group infobigjewelers.com Analyze The Year So what did I learn after spending a week doing this analysis Overall this was a good year and December was a good month. How have your Gross Profit Dollars and your GP performed over the past few years You should be more concerned about gross profit than about sales.