August 22, 2014 § Leave a comment
It is no secret that margins are thin. This is especially true if you operate a private retail store in BC.
It is also true that you nor your staff work in a vacuum and that all actions and efforts will have an effect on your bottom line.
Re-stocking shelves is one of the critical cost centres in your store that is often over looked. How much labour are you putting into restocking shelves? The answer is as simple as this mathematical formula and it could save you thousands of dollars per year in labour and out of stock costs.
Weekly Sales / Shelf Capacity = ReStocking required.
Was this helpful? Either way say so in the comments.
If I can help you determine your restocking costs and how to make your inventory work harder for you, you can reach me at firstname.lastname@example.org or by phone at 250-880-0072
August 11, 2014 § Leave a comment
Are you measuring the right categories for your business?
If you are only measuring the same categories that everyone else is measuring, and not the ones that define you then you are likely not measuring your biggest asset – why customers are coming to you.
Product selection is one of the key things that distinguishes you from all of your competition including the BCLDB, yet most LRS’s have set up their POS systems to collect data on the same categories as everyone else- Beer, Wine, Spirits, Coolers & Ciders.
Ask yourself which product categories are you great at or do you love? Measure those, not to the exclusion of others but in concert with others and you will have a much better handle on how your customers are behaving in relation to your vision and where you are going.
There are literally hundreds of ways to look at a category and break it down. For instance beer maybe 50% of your business and you want to be the go to place for 15 can packs. You can measure both the beer category in general and 15 cans in specific.
Maybe you want to be the source for Single Batch Craft Beers or Russian Vodkas. In order to see if the customer sees you in this light you need to measure those categories.
If you have any questions or would like some help in getting the ‘right’ categories set up drop me a line at email@example.com or contact me through the comments.
August 5, 2014 § Leave a comment
The following is not sexy or glamourous. It doesn’t involve fancy lunches, travel or even snazzy software. In fact you likely have all the ingredients currently at your fingertips.
#1 Weekly Shelf Adjustments to accommodate new products, seasonal transitions, and changing market conditions.
This is definitely not sexy, but has a ton of impact. Studies over the last 50 years have all concluded the same thing. Consistent adjustments can lead to 3-5% increase in your bottom line per year.
#2 Re-organize your data into categories that best reflect your brand and your customers.
Every LRS fills a unique market position and has a different consumer base. Why your customers shop with you should be reflected in the categories you analyze. Looking at your business in the same way as everyone else only tells your staff and your customers that you are no different. Creating clear points of distinction not only creates loyal customers but is also the best way to increase your profits.
#3 Establish timely and simple measurements to stay on top of changes in consumer preferences.
Customers tastes and demands can change on a dime, not responding to these changes means you can’t possibly have the right product, at the right time and at the right price. Establishing simple and timely measurements can point to budding trends and therefore new opportunities to profit.
#4 Re-establish win-win relationships with vendors by managing categories and not products.
New product introductions, promotions, and pricing actions will have impact over entire categories and not just on one product. By effectively managing categories you create situations where the vendor wins, your bottom line wins and, more importantly, your customer wins.
#5 Know which LTO’s to pass along and when.
This is remarkably simple to do and can save you a ton of wasted price reductions. It is amazing how much money is needlessly lost by pushing through price reductions without first understanding how much a product needs to increase its sales to breakeven.
If you would like more details on these just let me know via the comments or by contacting me at firstname.lastname@example.org or calling me at 1-250-800-0072