The Three Step Program for Improved Retail Performance
As a small retailer, you wear many hats and can’t spend all of your time trying to be an analytical genius. We have built a retailing process that is easy to use and gives you the information needed to improve your retail performance and still have time left over to lead a normal life outside of your business. Most Point of Sale (POS) software gives you a variety of lists which mean very little because they don’t tie several important factors together. ProphetLine has taken all the information gathered at the inception of the sale and put it into an easy to understand roadmap for success. We do all the heavy lifting by crunching hundreds of variables and you review and make informed decisions. The biggest task the retailer undertakes is defining the department/class structure and reviewing the department/class comparative report of the inventory. Listed below are the three easy steps for improved retail performance:
- Step number one is to run a department/class comparative that gives you the percentage of your stores inventory in each department/class and the contribution of that department/class to the overall revenues of the business. If twenty percent of your inventory is in department ‘A’, but it only contributes ten percent to the overall revenue, you have a problem which can easily be corrected. You can then drill down to the class level and see which segment of the department is the problem.
- Step number two is do a vendor comparative in the poorly performing department/classes and determine which vendors are giving you a good turn, sell through and cumulative gross profits. You can then bargain with the poorer performing vendors for lower pricing or better terms and if they don’t agree, they can be eliminated. The vendor comparative is the most important review you can do after the department/class comparative, but most retailers neglect this area.
- Step number three is updating your automated open to buy plan and make the adjustments necessary for future purchasing. Because all of the processes in ProphetLine are fully automated, you are never adding in the sales and purchasing data, only making small adjustments where needed. As you sell and purchase inventory, all the data is updated to give you the Three Steps to Improved Retail Performance. You now have a road map to make good decisions on how much inventory should be in each department/class and which vendors are preferred. If you are a busy specialty retailer that wears many hats, you can appreciate the ease of use and precise reporting. ProphetLine allows you to do what you do best, sell your products without having the hassles of being a technical guru.
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