Five main areas to consider to fully leverage your profit potential
When everything’s going well and your top-line sales are growing, it can be easy to forget to keep an eye on your actual profitability. I hardly need to remind you that the last few years have been, in a word – turbulent, and the current economic climate is by no means balmy and pleasant, with rising costs and low customer confidence abound.
Despite all this instability, some businesses have seen real growth. But as retail conditions continue to change and in some cases begin to stabilise, many business owners might notice a shift in their pace of growth and a consequent shift in their profits.
In today’s episode of The Resilient Retail Game Plan, I want to take a look at the profit potential of your business and the five main areas that make up those very profits. We’ll discuss your ‘in-margin’ and the pressures impinging upon it, your ‘out-margin’ and how to avoid eroding it, the concept of ‘turning stock’ and, in turn, the need to actively plan out and analyse the productivity of your inventory, as well as identifying and managing your fixed costs.