LRS Operators: Top 5 Ways to Increase Your Bottom Line
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