To read Basics of Retail Math (Part 1), please click here. To read Basics of Retail Math (Part 2), please click here. How to Increase Your Margin Obviously, the question here becomes, “How do I increase my margin?” An additional question must be, “How do I increase my margin while still keeping my customers happy and therefore my sales rising?” Relax. There are several different tactics you can use to…
To read Basics of Retail Math (Part 1), please click here. Inventory Turn Turnover of inventory, or turn, is the calculation of how many times you sell and replenish the merchandise in your store over the course of a year. To figure out your turn, divide your annual sales by your average inventory (at retail). For instance, if your sales are $400,000 for the year and your average retail is…
Like many CEOs, Larry Weinberg thought he knew his customer base – and was marketing to it correctly. His award-winning company, BOWA, which for 22 years has built and remodeled luxury homes in the Washington, D.C. area, considered its main customer the architects who were doing design work on a home and needed a builder’s help on the job. “Yet early last year,” says Weinberg “we realized we were marketing…
Are you following up too much? Or, not enough? It’s a constant dilemma for sales, especially someone running a small business. There’s always a fear that perhaps, you’ve crossed the fine line of being persistent, over to the side of being obnoxious. Following up is important but it must be tempered to have the right balance. Without follow-up, you are missing HUGE opportunities. It is one of the best things…
Retailing is all about change, because consumers change and so do their tastes. If you don’t change, you don’t grow. —MARVIN TRAUB, former CEO of Bloomingdale’s Financial freedom. Setting your own schedule. Being your own boss. Take your pick. No matter what your collateral reasons for opening a retail store, the numbers are obviously what drive your decision about whether or not to invest the large and intense amount of…
This post is the last part of a two-part article. Read the first part of the article here. In regards to the lower valuation of deals, we do not have any empirical data that suggests that valuations have increased, but would point out that greater access to credit markets and economic growth may push valuations slightly higher in the near future. In the article last year, we pointed out that…
In these tough times more than ever, it is important to take time out and meet with folks who need career advice. This doesn’t mean you have an opening in your company or even know where other jobs may be; it’s simply about helping friends, family, or colleagues who might need some advice. If you’ve got insight to offer those trying to break into a new job, be the one…
Starting a company is a big undertaking, certainly not to be taken lightly. I consider the commitment on par with getting married and starting a family. I’ve had hundreds of top entrepreneurs share their experiences with me about starting a company from the ground up. From their wisdom, and my own startup experience, I developed this list to take to heart, before you start. There are some clear lessons to…
It is said that before you criticize a man, you should learn to walk a mile in his shoes. There’s a double meaning to that saying when it comes to owning a small business. One relates to actually understanding your own business needs, while the other relates to understanding your customer’s business – a key factor in what will help you maintain a long lasting relationship with them. I have…
Karen Usher credits her advisory board for driving 85 % growth in revenue in 2002 and an additional 35 % in 2003. Frank Holt believes he would have avoided three costly mistakes if he had consulted an advisory board, so he formed one last May. Every major business decision I’ve made has been shaped by my board of advisors. Running a business is simply easier if you have some help…
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