JA releases Cost of Doing Business Report

New York--High-profit jewelers manage their profit margins and operating expenses more effectively than low-profit jewelers, according to Jewelers of America’s annual Cost of Doing Business Report.

In 2013, high-profit jewelers had a nearly 12 percent profit margin, three times that of the median for all jeweler firms (4 percent). High-profit jewelers also better managed their operating expenses, which accounted for 33 percent of their total expenses, versus 43 percent for all firms.

This information and more is included in JA’s 2014 Cost of Doing Business Report, a compilation of 2013 financial data from a cross section of jewelers that reveals sales, product distribution and operating trends, as well as high-profit performance indicators so owners and managers can compare their figures and learn how to become more profitable.

The report is available for order on the JA website at $49.95 for members and $199.95 for non-members.

JA will host a free webinar on Wednesday, Sept. 10 at 2 p.m. E.D.T. to reveal more results from the report and show retailers how they can reach realistic profit goals. Registration for the webinar can be found here. 

Included in the report is detailed financial results for participating firms based on income statement, balance sheet and operating data for fiscal 2013. It offers detailed data tables organized by jeweler category (high-end, mid-range, chains, designer), annual sales (under $0.8 million, $0.8 to $1.6 million, etc.) and high-profit firms. 

The tables have more than 200 key performance measures, such as sales volume within store types, productivity ratios, inventory turnover, operating expenses and product distribution, including bridal jewelry sales.

“The JA Cost of Doing Business Report is designed to make it easy for jewelers to take a closer look at their balance sheets to benchmark their business operations,” said JA President and CEO David Bonaparte. “Our goal is to help retail jewelers see where opportunities lie and become more profitable.”