The average mark-up for jewellers in the US is around 120% but can be several times higher than that for stores selling prestige branded items. This store doesn’t exactly look like it was an authorised outlet for Cartier or Tiffany!
Even if it was operating at an unlikely 200% mark-up (ie selling stock for 3 times what they paid), the annual revenue of $220K (quoted from Dun & Bradstreet) would mean they were paying $73k for their stock and making $147K gross profit.
Some of that profit of course needs to go to salaries and other operating costs with the remainder subject to taxation, and their own living costs supported by the net profit after tax. Even if all of the gross profit were able to be re-invested in the business, for the quoted revenue, it would take 136 years to generate $20 million for purchase of stock.
Something not right, I would suggest.
What bean counters and reality is different.
The normal time factor vs real life.
Family run business that pours profits back into business inventory.
Standard bean counters version of $X amount for salary, $X inventory, $X amount for .....
Then some don't walk the walk or talk the talk.
Friend that got robbed of a $ Million Dollars in jewelry. Less than 10 yrs of being in business. 2 armed robberies, insurance was unattainable in his financial world.
Taking 120 yrs? 🤣
It's so typical of how the world structures the way we operate.
Buy a house for example and most pay a mortgage for 20-35 yrs.
I bought many and I had 2-5yr terms, payed out in the end.
From credit card to retirement in 13yrs.
Yes I am probably not the only person who made their own wheel.
The actual reality of many small operating entities in this world isn't what is deemed normal.
I lived the other example, did it as many others do everyday.
Back to my friend. He was devastated as we all were over his loss. His whole wealth was gone, everything just went.
He was going to close, but his suppliers stepped up.
They supplied him inventory to restock his wholesale business at a no interest rate.
He rebuilt his business and he survived.
Jewelry business isn't the typical certain set %.
Example a large silver necklace. I was wholesaling it $120. High end store retailed it at $400+.
I was making nearly 100% profit. They were probably in the 600% range.
So even if we take a 400% profit off the amount of loss.
Add the years in business = Reality
in LA 
xau.ca
