It would seem somewhat customary to sign off the December issue of Jeweller by echoing the familiar refrain of “It’s hard to believe another year has come and gone.”
This time around, I’ll do no such thing. The past year has been long and demanding for many in the Australian jewellery industry, and I won’t pretend otherwise.
Though it may not have been the year some dreamed of, I hope that, as we enter the new year, the industry will be better equipped to tackle the future and embrace the chances and opportunities that lie ahead.
With this in mind, we have produced another unique issue of Jeweller — not just to bid farewell to 2024 but to welcome the new year with renewed energy and optimism.
This issue features a selection of the most popular and well-read business columns from the past decade, carefully chosen to cover as many areas of the trade as possible.
Whether you’re seeking guidance on sales strategy, pricing principles, digital marketing, staff management, or maintaining focus under pressure, this issue has something to offer.
As I discussed in a recent editorial, I’m drawn to the study of pricing, and this issue includes several columns dedicated to the subject.
From the subtle impacts of discounting to the importance of not letting competitors set your prices, these articles explore the factors influencing how tags are written.
Many of these articles delve into psychology, another fascinating topic that also intersects with sales strategy, which this issue addresses at length and in great detail.
For those keen to explore the practical side, the Digital Dollars section provides actionable guides on creating effective online marketing strategies and loyalty programs and the secrets to acquiring more positive online reviews.
In the same vein, if you're finding it difficult to engage with the youngest generations of customers, this issue includes columns with practical advice on how to approach these emerging consumer groups.
I hope that at least one of these ideas or strategies will resonate with you and your business, helping you build a stronger foundation for the new year.
Achieving more by doing less?
As you read this issue, I encourage you to consider the Pareto Principle, more commonly known as the 80/20 Rule.
This simple yet powerful concept suggests that a small percentage of causes often leads to most outcomes, a phenomenon reflected in business and life.
For example, in everyday life, you probably wear 20 per cent of the clothes in your wardrobe on 80 per cent of days.
Similarly, you might spend 80 per cent of your social time with only 20 per cent of your friends.
It’s a philosophy that’s often applied to business. For jewellery retailers, this could mean that 80 per cent of your revenue comes from just 20 per cent of your products.
With that in mind, you can optimise your inventory, reduce dead stock, improve cash flow, and refine your marketing efforts - all by identifying your best-performing items.
One retailer inadvertently described the principle in a way that perfectly illustrates its impact: “It’s easier for a jewellery store to sell one $5,000 diamond ring than ten $500 rings.”
Similarly, some retailers find that 20 per cent of their customers account for 80 per cent of their sales.
By focusing on personalised marketing and loyalty programs, you can foster deeper connections with those customers who are already engaged with your business.
The Pareto Principle can also be applied to customer service. Often, a small number of recurring issues lead to most customer complaints. There's a simple solution.
Addressing these repeat concerns improves customer satisfaction and offers peace of mind.
Diamond in the rough
Of course, as with any broad principle, the 80/20 Rule is not without its critics! Some argue that it oversimplifies complex business dynamics.
This might lead to a disproportionate focus on the most visible and obvious factors, overlooking other subtle areas that may contribute to long-term success.
Your business might not fit neatly into the 80/20 framework, and that’s perfectly fine. The key is to find balance and apply the principle to suit your specific needs best.
Keep the Pareto Principle in mind as you read this issue. Remember that not every article and idea will apply directly to your business.
If you’re already confident in your store's customer service, digital marketing strategy, or pricing practices, that’s excellent!
But even so, I hope you’ll find something —that elusive 20 per cent — that could make a meaningful difference to your business as you enter the new year.
We all know there is no ‘silver bullet’ when it comes to overcoming challenges in business. Despite what many business gurus, experts and consultants may suggest, there is no such thing as a one-size-fits-all solution.
What matters most is staying proactive, flexible, and open to change — because the world and the jewellery industry will evolve, whether we’re ready or not.
As a former editor of Jeweller once wrote, the key to thriving in difficult times is to "do something.” What that ‘something’ is — a bold new initiative or a series of minor, incremental improvements — is up to you.
You cannot afford to stay stagnant and refuse to evolve because change is inevitable.
One small idea or piece of knowledge could have a major impact on your business.
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