Easy Recommendations for Retailers to Increase Profit
Retailers all have the same basic path to success. That is, we must increase sales and reduce expenses in order to improve profitability. The goal is the same but how we achieve each milestone may vary. Take a look at the following ways to better your business.
You may believe detecting and preventing employee theft and shoplifting aren't a problem in your business, but simple pricing mistakes can also cost retailers quite a bit.
The average shrink percentage in the retail industry is about two percent of sales. Learn to identify and reduce sources of shrink.
Add New Products or Product Lines
One way to keep customers returning to your shop is by offering new and exciting products.
When adding new products or expanding product lines, keep in mind that not only should there be a demand for the item, but it must also be profitable and something you enjoy selling.
Buy From Vendors With Best Value
The vendor who sales an item at the lowest price isn't necessarily the vendor you want to buy from.
When selecting a supplier, consider shipping, terms of sale and other factors to determine the vendor with the best value. These small details may erode a retailer's bottom line.
How often have you said you can't afford to advertise right now? Maybe once business picks up you'll place an ad. Or maybe you're holding those advertising dollars until the holiday shopping begins.
Either way, you could be losing potential customers right now. Begin tailoring your marketing to your target market. If you don't spread the word, no one will know you exist.
Add One New Time or Money Saving Piece of Technology
Every time we invest in a new piece of technology, we're always amazed at the results and wonder how we lived without it for so long.
Find one new money or time-saving piece of technology to implement in your store this year. For example, if you are using manual cash registers, consider a POS system vs a cash register.
Provide Training for Staff
Once you've determined how to best implement the nine ways to better your business listed above, pass that information on to your staff.
Your retail employees are the ones on the front-line every day and should be trained to reduce shrink, improve customer service and increase sales opportunities.