Andrew Shelly of Andrew Douglas Jewelers in Elizabethtown came to talk about his store and a bit about his experience with business as part of the M&M Mars Lecture series.
Growing up, his father was a business owner, so business was always a part of the conversations at the dinner table. His father owned a print shop, and he worked there growing up, but he never liked it. After working there, his father decided to try something new and got a job working retail at the Park City Center in a store that was going out of business. Because the store was going out of business, they were doing more active selling, which he enjoyed.
He then began working at a jewelry store because he wanted to work a job that would give him commission. He worked part-time there until he got a full-time position at another jewelry store. At this store, he began to gain experience in a more corporate setting. He also learned the processes that went into running a jewelry business. By the time he was 26, he felt that he could not grow any more where he was. Instead, he went into business with his father and opened a jewelry store.
“It’s easier to save a dollar than to make a dollar,” Shelly said. They have been open three years this month. He currently has one full-time employee and two part-time employees. Because his business is small, Shelly has a small budget to work with. He did most of the renovation work himself.
Shelly did not major in business in college, but he learned the responsibilities from starting his business. He also worked a management position in retail.
He discussed his model for operating his business, which includes a lower inventory, prototypes, customization and service. He keeps a lower inventory because he carries “prototypes” that are much cheaper to make. Therefore, people can try on a ring that is made from metal and cubic zirconium, and if they like the ring, they can order it with the more high quality materials.
He also uses a CADD program that allows him to create computer-generated images of rings so that people can decide what they want on the computer rather than having to go through the added cost of making the rings. He also talked about how 80 percent of his transactions are service-based, meaning he does a lot of repairs and watch battery changes and general maintenance services. This makes up a large portion of his sales. “Not many high-end jewelry stores focus on the service aspect, so my business model allows me to have a leg up,” Shelly said.
He discussed benefits and challenges of a small business as well. Some of the benefits included the ability to make your own schedule. He closes his shop Sundays and Mondays in order to enjoy a weekend off. He also closes his shop the weekend of July 4 to allow himself some vacation time. Another benefit is that you are able to bend the rules to meet the needs of some customers. He discussed the importance of being mentally healthy rather than having a wildly successful business.
Some challenges to small business would be that, as a business owner, he is in charge of several aspects of the business and doesn’t always have the means to hire someone for specific roles, such as marketing, advertising, sales and human resources. Shelly added that, at times, being a small business owner required him to perform tasks that do not play to his strengths but no one else could perform.
