How much business do you generate during the holiday season? For most jewelers, the holiday season is a peak sales period. Based on industry trends, approximately 90% of jewelers conduct between 32% and 35% of their annual business during November and December. Typically, 10%–12% of sales happen in November, while December accounts for 20%–25%. If your numbers are lower, it may be due to climate conditions or a tourist-dependent market.
Even if 35% of your business happens during the holiday rush, that means 65% of your sales occur throughout the rest of the year. Maintaining a steady inventory of Fast Sellers ensures you continue generating revenue beyond the holiday period.
Should You Restock Fast Sellers? Absolutely!
The only exceptions are seasonal items such as holiday-themed jewelry, Nativity scenes, and Hanukkah pieces. While you should reorder them, timing is key—plan to restock these seasonal items closer to next September to be ready for the next holiday season.
What You Need to Review
To make informed restocking decisions, gather the following:
- Sales reports (see report instructions below)
- A pen and highlighter
- Annual sales percentages by month (estimated)
Overcoming Overstocking Concerns
Many jewelers hesitate to reorder Fast Sellers due to concerns about overstocking. Let’s break down why this fear is often unfounded:
Running the Right Reports
Generate a (6512) Summary of Previous Years Comparison by Dept F/S Report:
- Report Presentation: (Select Presentation 1)
- Output To: (REPORT PRINT)
- Shop to Report On: (Select 1 - ARMS)
- YTD Period Up To: (Choose the last full month)
- Trading Months: (Default 12.00)
- Dept Details with Totals: (YES)
- Print in COLOR: (YES, if using a color printer)
- Number of Report Copies: (1)
Key Metrics to Analyze
Sales Performance
- Locate the Grand Totals section at the bottom of the report.
- Find the percentage of sales generated by Fast Sellers—typically between 60% and 80%. Many jewelers see numbers around 76%.
Gross Profit Contribution
- Check the Gross Profit section of the report.
- The percentage of Gross Profit generated by Fast Sellers should align with or slightly exceed the percentage of sales. If not, pricing strategies may need adjusting.
Current Inventory Analysis
- Review the percentage of current stock classified as Fast Sellers.
- Many jewelers have only 12% of their inventory as Fast Sellers, yet these items drive the majority of sales and profits.
What Does This Mean for You?
For a typical jeweler, Fast Sellers make up a small portion of inventory but contribute significantly to revenue and profit. If overstocking is a concern, it’s likely due to Slow Sellers—not Fast Sellers.
This analysis shows that the fear of being overstocked with Fast Sellers is F.E.A.R.—False Evidence Appearing Real.
Need Help?
We hope this guide helps you make strategic inventory decisions. If you have questions or need further assistance, reach out to us:
- Email: info@armsusa.com
- Phone: (800) 228-9073
For additional details about the Advanced Reporting Module and its features, contact Kelly at Kelly@armsusa.com or call (702) 990-4100.