Last updateWed, 14 Mar 2018 3pm

David Brown

When did you last review your prices?

When we talk to clients about the key performance areas of any businesses profitability we generally come down to four factors that need to be measured and monitored closely: stockturn, quantity of sales, margins and average retail. There are many factors that can affect these four areas, but if there is any area of a business that is the quickest and easiest to adjust in order to improve the bottom line it would be price. It would also be the area of business that store owners have the most reservations about changing.

How long will it take to sell your old inventory?

If you stopped buying today, how long would your current inventory last you? This is a variation of the old question, if you stopped working how long would your money last, but in this case we’re honing in on the amount of surplus product most store owners are carrying.

Why do this exercise? Because, as we repeatedly tell our clients and anyone else who listens, most stores have a surplus of product sitting around that simply doesn’t perform.

If you don’t put the markup on you can’t bank it

This is one of the first lessons of retailing. Depending on when your financial year ends, now would be a great time to review your markups given that most businesses will have a P&L that shows their expenses and therefore the amount of Gross Profit required. You will either have fresh financials that you can act on to improve this years results or have interim accounts that will give you time to improve your markups over the remainder of the year. If you don’t have either available, your sales by department report should show you what you have been achieving so far.

How to beat your biggest sale

I’m going to give you a challenge – to beat the largest sale your store has recorded!

Sound interesting? Before you say you don’t think you can do it, remember you’ve had a biggest sale before, all you need to do is beat it by $1. That shouldn’t be too difficult.

So what’s your biggest sale? It should stick in your memory, but if not go back to your reports and work out what it was (a clue, it should be in your diamond department!)

The benefits of a Morning Meeting – Part 1

One of the best resources a store-owner can bring to their business is a short morning meeting each day with the staff. Setting yourself up for what you want delivered from your staff can only happen if you know what it is you want and what you need to do to get there.

Unfortunately morning meetings are often one of the hardest things to get store managers to implement. To help we’ve prepared some guidelines and topic headings to cover when holding these meetings:

How to create value in your business

There is an old saying in business that you only truly own a business if you can go three months without going to it and it’s thriving just as well when you return as when you left. Although everyone can appreciate the benefits of this, the mechanics of making it happen can prove rather daunting. In fact, many business owners I’ve spoken to over the years scoff when I tell them this needs to be their objective - they’ve spent so long doing things the way they do them they can’t see any other alternative.