What are the OWNER-ONLY responsibilities?
SURVIVAL of the business
Define COMPETITIVE EDGE
ASSET Management (Yes, all three kinds of assets!)
see more in The HUB and the "What COULD we do?" Owners Resource Collection.
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From the Co-Founders of The Retail Owners Institute.Tips | Tactics | Insights on the Business of Retailing.
The High Costs of Excess Inventory
As a retail owner, one of your primary goals is to boost profit margins—right?
You know that good inventory management is essential to producing top-notch profits.
You also know that bad inventory management can cause big problems with profit.
However, do you know there is a cause-effect chain reaction on your profits of carrying too much inventory?
Quick: Who are your major competitors? Amazon? Target? Wal-Mart? Other specialty store retailers in your market?
Yes, all those and more.
But, what about the "stealth competitors" affecting every retailer – whether you are selling apparel, furniture, motorcycles, books, smart phones, or whatever? Stealth competitors; they are out there.
These competitors are hiding in plain sight. And, in our view, they significantly impact – and reduce – retail sales by skimming off discretionary spending.
The typical Profit & Loss Statement is really not meant for retailers.
It is meant for accountants and bookkeepers; those folks who are into details (to the penny!) Arghh!
You’ve heard about 3D printers, right? They are computer devices that use a blueprint (a “digital model”) of an object and produce (“print”) one or more copies of that object by painstakingly building up layer after layer of its form.
Essentially anything that is manufactured can be replicated, one by one, with a 3-D printer!
And, be ready. It is coming to a store near you very soon. Shouldn't it be your store?
"Big Picture" Tools for Busy Retailers
Whether you’re looking for better control of expenses, profit, inventory, or cash, these are the “big picture” tools for you.
The ROI’s online "projecting calculators"
Nothing to download or install.
Just add your own good judgment!
Built exclusively for retailers, and retail situations.
Dedicated to projecting, not accounting or bookkeeping.
For looking ahead, playing "what if...?".
We are living in unsettling times of rapid change, magnified by news cycle drama.
Maybe it’s the latest natural disasters or the uncertainty of international conflicts. Or closer to home, aging parents, unexpected expenses, or just trying to open a new bottle of aspirin, life can seem more out of control than normal.
This anxiety and frustration can be unsettling to many folks, some of whom undoubtedly are your customers.
And frankly, as the frustrations grow of having less control, some people will seek more control wherever they can.
Where would that be? That’s right. Your stores. You and your staff must be ready.
"Retirement" looming? Ready to reduce hassles and worries, but not really ready for a rocking chair?
Here’s a variation on a “mixed use development” that could offer a great transition plan to retailers.
We just heard about a new kind of “mixed-use development” (you know, retail shops on the ground floor, residences up above.) Some of the new townhouses being sold in a planned resort community come with a first-floor retail shop. The owner of the townhouse owns the shop space as well!
Sound merchandise management is crucial for the survival and prosperity of your retail business.
For example, say you’re currently keeping about $150,000 tied up in inventory
You discover that a carefully-monitored merchandise management (or “Open-to-Buy”) plan can cut that by 10 percent
That means you’ve just freed up $15,000 in cash for more prudent investment!
Chances are you have slack of at least 10% in your inventory right now! (And remember, the same math applies if your inventory is $1.5 million, or $15 million, or more! How much cash does 10% of that represent?)
A new consumer study by First Insight* confirmed: “Today’s consumers expect discounts every time they shop.” The documentation of this phenomenon – what we often refer to as “NPR: Never Pay Retail” – is not surprising. But it is quite sobering.
And then there is this (why do we need to be reminded?): In the battle to deliver "what the customers want", discounts offered have to be real!
Yes, even if your name is Amazon!
Pat Johnson and Dick Outcalt, The Co-Founders of The Retail Owners Institute®, have been called "The Zen masters of retail finance!"
Since 1999, they have been assembling their proprietary content into a unique self-help website. The Retail Owners Institute is an unmatched resource that assists retailers worldwide with basic financial training, assistance and easy-to-use tools.
Their engaging and empowering how-to resources about the financial levers in retailing are informative, fun(!), and retailer-friendly. Their promise: "Everyone will 'get it'!"
Pat and Dick are recognized experts in strategic retailing. Working only as a team – Outcalt & Johnson: Retail Strategists, LLC – they have been consulting, publishing, and speaking professionally throughout North America since 1990.
They focus exclusively on retail, or wherever retail is involved. They work with CEOs, CFOs, boards and owners of retail operations, as well as manufacturers or wholesalers expanding into retail.
Since 1999, empowering retailers and store owners to "Turn on your financial headlights!"
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-- Pat & Dick, Co-Founders