Longs Jewelers
Introduction
Bob Longs of Longs Jewelers returned to his store in the spring of 20×5 angry and depressed. “We just lost our lease; I don’t see how we can make it now.” It had been seven years since Bob and his wife, Bonnie, moved their business to Spartanburg, South Carolina. They had struggled, and sometimes excelled. But primarily, through sheer determination, they just survived in the jewelry business to this point. The loss of their lease and prime location could be the final blow that would destroy their business. Bob needed to decide, and quickly, either to fold the tent or give it one more shot.
York Operations
Longs Jewelers originally started in 1978 as Able Jewelry and Music—a pawnshop in York, South Carolina, purchased by Bob’s parents from other family members. Bob helped his mom in the business after his graduation from the University of South Carolina with a major in business in 1989. Wanting to gain more business experience, Bob earned his MBA from Regent University in 1993 and, with Bonnie, assumed ownership of the store on July 1, 1993.
Bob and Bonnie met at the University of South Carolina. She graduated in three years with a major in foreign politics and a minor in Spanish. After college she was also able to get a Para-legal degree in business and real estate law and bankruptcy. Her legal training made it easy for her to find work with a law firm while Bob completed his MBA.
Even though the store was a well-recognized landmark in York, it initially had trouble earning a reasonable profit. After about three years, Bob saw the 80-20 rule in action. The pawnshop generated 80% of the headaches and 20% of the revenue. Bob wanted the store to be more upscale; he eliminated the electronics and musical equipment inventory associated with the pawnshop and changed the name of the store to Longs Jewelers. Over the next four years, sales and profits grew.
Bob and Bonnie lived in Spartanburg where Bonnie grew up, about 30…