[Jewelry making - Article 00441] - Re: [Orchid] The cost of holding out

[David Geller]

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    Hi Daniel These are not David Geller Formulas; they are business and
    investment formulas. There is a time line and it's a year. In your
    example you mention going from $100 average sale to $1000. Bold move,
    but let's use it. 

    At what time in the future will you either say, "It worked!" or
    throw in the towel on bigger sales? The formulae say to give it a
    year. 

    Your idea will only hold water as long as you can financially
    survive buying, paying for or borrowing money to pay for merchandise,
    which is not selling well. If you can survive it you will do well.
    But if it never really happens at some time in the future you will
    have to realize it didn't work and sell off the losers. 

    If it does work you will probably have debt to pay off. If I
    remember correctly you have a large markup, which will pay for your
    self-financing. Most of these people on Orchid are scared to death to
    charge right. 

    I just left a store doing a million a year in a mall. The owner gave
    me the same talk as some have posted here. His salary is $30,000 per
    year! Why? Because his beliefs about managing JEWELRY (which is
    nothing more than money) is way off base. 

    Going from $100 average sale to $1000 is JUST like opening a new
    business. It's a very unrealistic example I might say being your
    average sale is 10 times normal. But just like opening a new business
    you would for the short term not demand the business make a profit or
    show good numbers. I think you will agree. But there is a date in the
    future of which you, your banker, and your vendors will pull out
    these formulas and say "Time to %# AT  or get off the pot". 

    All of my posting about increasing prices are about repairs. The
    formulas is about inventory. You can have low product prices as long
    as you have higher turn. It's a fact that you can't have low margin
    and low turn. 

    And consumers will not allow a store to send their work to some
    third world country to get it fixed, you folks have a great
    imagination.  :) 

David Geller



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