In the fast-paced jewellery industry, where trends evolve and market demands fluctuate, the strategic management of inventory is a pivotal factor in the success of jewellers and suppliers. First State Auctions (FSA) stands as an ally in this ever-changing landscape. In an exclusive interview with Naz Kadaoghlanian, the vendor program manager at FSA, we unravel the diverse solutions and invaluable insights that the auction house offers, propelling businesses toward success in an industry characterised by dynamism and complexity.
Solutions for Jewellers and Suppliers
FSA’s multifaceted approach to addressing dead stock and aiding the industry in converting slow-moving or redundant inventory into cash demonstrates its commitment. The auction house provides two distinct selling options: the traditional auction channel and an instant purchase feature for those seeking immediate liquidity.
The cornerstone of FSA’s success lies in its well-established commercial vendor program. With a robust track record spanning 30 years, FSA has been instrumental in assisting jewellers, wholesalers, and manufacturers in transforming their business outlook. The weekly auctions including a rapid turnaround from item submission to cash payment create a seamless and efficient process. Moreover, FSA’s inclusivity shines through its acceptance of diverse submissions across several fine jewellery categories.
Competitive commissions, extensive marketing activities across Australia, New Zealand, and internationally, and an impressive online presence, with over 40,000 unique visitors to the FSA website weekly, underscore the auction house’s dedication to maximising exposure for sellers. FSA’s large engaged email database of over 25,000 current customers amplifies potential auction reach and impact.
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Maximising Inventory Value
In the intricate process of inventory management, Kadaoghlanian advocates for a strategic focus on fast-moving stock. “Focus on fast-moving stock—[its] generally preferable to convert stock older than 12 months into cash [then] replace with new items that turnover quicker. Don’t carry dead stock that can harm the business’s financial health. Stock-turns are important,” he says.
Market Trends and Considerations
Kadaoghlanian’s insights into market trends and factors that influence inventory decisions are a compass for jewellers navigating the evolving landscape. “Take into account movement in the market value of gemstones, diamonds and precious metals. If prices are fluctuating, be flexible with selling prices,” he adds.
The advice to be flexible showcases FSA’s commitment to aligning with industry realities. Acknowledging seasonal events, changing customer trends, and macroeconomic conditions further positions FSA as a partner attuned to the market pulse.
Assistance in the Stock Conversion Process
Revisiting the solutions FSA offers, Kadaoghlanian reiterates the discrete nature of the auction house’s approach. Respecting the confidentiality of sellers by not divulging details without permission adds a layer of trust to the relationship. The additional services, such as certificate sourcing and repair facilitation, speak to FSA’s commitment to providing a comprehensive solution for sellers looking to convert their inventory into cash.
Success Stories
The success stories shared by Kadaoghlanian are compelling recounts of FSA’s efficacy in achieving financial goals for jewellers and suppliers. “A chain store—originally came to us due to a cash flow crisis caused by excess slow-moving stock. Some of the items were five to ten years old. [We] sold a large quantity of goods and released funds in less than 10 weeks from the time of submission. The seller regularly monitors slower-moving items and submits them to us before they become a problem,” he says.
Kadaoghlanian describes another successful story, saying, “A Sydney retail store [was] carrying several hundred pieces of jewellery, three years and older. [It was] submitted to auction, clearing the entire consignment within four months with many items selling well above reserve.”
The aforementioned examples underscore the versatility of FSA’s offerings. Kadaoghlanian detailed more cases of a wholesaler achieving short-term liquidity through an instant purchase option and an instant cash second-hand dealer consistently exceeding expectations in FSA auctions further solidifying the auction house’s value proposition.
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Benefits of Jewellery Auctions
Participating in a jewellery auction provides sellers with a platform to clear goods efficiently, selling virtually anything while being exposed to a broad audience. FSA’s specialisation in jewellery and Swiss watch auctions brings trust and authentication to the forefront. The assurance of realistic appraisals, secure storage facilities, and transparent processes, coupled with the confidence that stems from FSA being owned and operated by gemmologists and diamond graders, positions FSA as a market leader.
Practical Advice for Retiring Jewellers
For jewellers contemplating retirement or closing their businesses, Kadaoghlanian’s practical advice serves as a valuable guide. Regarding advice, Kadaoghlanian says, “Talk to your accountant about retirement and closing down options. Cash in the bank is better than dead stock. Be proactive. Don’t be sentimental—make good financial business decisions. Consider all selling options, including a closing down sale. Be pragmatic if the market value has dropped below the original purchase price as you’ll no longer have a retail outlet to sell or clear the items.”
The emphasis on proactive decision-making, prioritising cash flow over dead stock sentimentality, and considering various selling options, including closing down sales, echoes FSA’s commitment to holistic support for businesses in transition.
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Legal and Logistical Considerations
Navigating legal and logistical considerations is a crucial aspect of any partnership. Kadaoghlanian’s emphasis on ensuring rightful ownership and authority to sell, coupled with the importance of thoroughly understanding the contract provided by FSA, underscores the transparency and diligence that underpin FSA’s operations.
Getting Started with FSA
Kadaoghlanian’s encouragement for interested jewellers and suppliers to reach out to FSA’s specialist vendor team through various channels, including online submission, telephone, website contact forms, or in-person submissions, reflects FSA’s commitment to accessibility. The suggestion to explore past sales results on the FSA website and review frequently asked questions provides potential sellers with valuable insights and a comprehensive understanding of what to expect.
First State Auctions is a proud partner for jewellers and suppliers seeking to navigate the intricacies of the jewellery industry. With a rich history, a comprehensive suite of solutions, and a commitment to transparency, FSA emerges and proves to be a leader in inventory management. The success stories, practical advice, and thorough insights shared by Kadaoghlanian demonstrate FSA’s dedication to facilitating transactions and nurturing long-term success for its partners. FSA stands as a reliable guide, providing a fair, competitive, and transparent platform for businesses to thrive.
Website: firststateauctions.com/au
