When you run a small business, there’s always something unexpected coming up — sometimes positive, sometimes negative.
And sometimes expensive.
For Big Survey 2016, we drilled down on the surprises that hurt jewelers the worst. Our question: “What unexpected expense has hurt you the most financially?”
Here are the top nine answers, along with the percentage of respondents who named them.
- Building/equipment maintenance (16%)
- Taxes (7%)
- Theft or robbery (8%)
- Insurance costs (5%)
- Legal fees/lawsuits (5%)
- Employee loss/theft/betrayal (5%)
- Diamond loss/breakage (5%)
- Remodel/renovation (4%)
- Fire (1%)
And then there were the really unexpected expenses …
- “A surprise in the generational transfer of assets from the last generation to our current ownership. Mom gave everything to the Salvation Army. We survived, but it was a mess for a while.”
- “A car crashed into our shop in August 2009. We were closed six months. Damages were $800,000, but insurance only paid $700,000, so we were out of pocket $100,000. We’re still suffering.”
- “Vendors cashing checks same day when they agreed to post-dated checks over four months. I had just mailed out checks for rent and sales taxes and to the IRS for about $10,000. I took about $10,000 in diamonds from a vendor with post-dated checks in return. He cashed them the next day. I had to sell the diamonds and scrap out what I had to cover all the checks. Lesson learned: no post-dated checks ever to anyone.”
JEWELER SUCCESS STORIES
When it was time to close its doors, Cranstoun Court Jewellers of Sun City, Arizona chose Wilkerson to handle its liquidation sale. For all involved, the sale “far exceeded expectations.” But it wasn’t the first time Wilkerson helped sell off the store’s aging merchandise. They were there 13 years before, when ownership changed hands. See how Wilkerson can help you when it’s time to liquidate or sell off aging inventory.
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