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Patricia M. Johnson & Richard F. Outcalt
Retail Strategists and Retail Turnaround Experts
Co-Founders, The Retail Owners Institute® • Business Strata:G®
So, here are a few of The ROI's "attention to detail" reminders (aka "fun facts" in today's vernacular) that you may want to have at the ready for your next staff meeting.
But be careful – music should always be selected to appeal to the customer, not the staff.
If you offer only "just the facts" basic information (which is fine for your returning, loyal customers) you may lose those first timers.
Take advantage of graphics and signage to educate about your merchandise, and to persuade why your store should be preferred.
Take advantage of that tendency; pair older merchandise with new arrivals.
What happened? They ran out of cash as their creditors ran out of patience.
Look beyond that top-line sales number; focus on your cash flow. (👀 Your inventory is a good place to look for that cash.)
Even right off of the display!
You are not running a museum (are you?)
Studies show that only 20% of customers are true price hounds who always chase the lowest price.
The other 80% care more about what else your store offers. What value can you deliver to these folks?
Besides total sales volume, monitor total number of transactions and items per transactions, both for your total operation as well as by category.
Tips • Tactics • Strategic Insights • Commentary
FYI, each week's From The Co-Founders commentary is posted on The ROI site: Perspectives: The Co-Founders.
These short but pithy musings are all very quick reads. You know, retailer-friendly!
Available online, 24/7, free for all. ➡️
Most retailers are constantly in and out of the debt market to finance daily operations. Having a reliable lender is vital to your success.
Given the more restrictive lending practices of banks and the proliferation of "alternative financing," there are more choices than ever for retailers to consider.
Here is a quick recap of the pros and cons of different types of financial partners you might approach.
Want to know more about what goes into a loan proposal? Go here in The ROI's OWNERS Center. (Access Privileges required.)
Oops! Not a Member? Go here to get immediate access.
Meet The ROI's SPEEDY HEADLIGHTS. Online, FREE, 24/7, helping Owners plagued by worrisome questions.
All it takes is you and your good judgment!
You make just a few entries, and SPEEDY immediately shows you what the financial outcomes would be.
Sales & Profits: The "Bottom Line"
Monthly Ending Inventory – how does that look?
Resulting Cash Shortfall/Surplus each month (remember, cash is not the same as profits)
See? SPEEDY focuses on the important "Owner's info"...and the "controllables."
In moments, SPEEDY's "what if...?" power enables retailers to compare the outcomes of different assumptions, in advance. All on their own, privately.
And The ROI provides it FREE!
Why free?
Because The ROI knows that any retailer who can see ahead will make appropriate adjustments.
We want to empower EVERY retailer to "Turn on their financial headlights!" and take control of their own future.
See more about SPEEDY Headlights in this lively webinar with Pat Johnson and Dick Outcalt, Co-Founders of The Retail Owners Institute.
Then, go here to use SPEEDY Headlights for yourself.
RetailOwner.com
Avoid mistakes • Seize opportunities • Look ahead now
First question: "Does it move?" That's easy. Answer Yes or No.
The next question is key (and spoken like a true professional): "Should it?" Again, answer either Yes or No.
That incisive analysis then leads us to the appropriate choice among three potential remedies:
Duct tape, to stop it from moving.
Or , WD-40, t o get it moving.
Or , if neither remedy is required, a cold beer!
What an elegant (and entertaining) summation of a workflow. There is much to admire, actually. Its clarity, and ease of use. Just answer "Yes" or "No."
Appealing, isn't it? (Sounds like a great AI solution.)
Of course, business owners must make decisions beyond operational maintenance issues. Here’s an elegant process for clarifying issues that are more strategic.
For instance, how might three ingredients - milk, flour, eggs - be combined to make breakfast?
A Venn diagram is the tool for the job.
Here’s the key: It doesn't try to tell you what to cook.
Instead, it shows the outcomes of the different ways you could combine those ingredients.
Combine the flour ...with the milk ? Get batter .
Combine the egg ...with the flour ? Get pasta .
Combine the milk ...with the egg ? Get an omelette .
Combine all three ? Pancakes!
For a business owner, the maintenance flowchart may be very useful for fixing things that are broken. But when Owners must make more strategic decisions, or choose what opportunities to seize going forward, the insights and perspective quickly provided by a Venn diagram can be far more useful.
Food for thought…
The fear of “What if...?” can keep you up at night. But what if those worries aren’t as bad as you think?
With The ROI’s 3-in-1 INTEGRATED Calculator, you can project different scenarios—testing even your most difficult assumptions—and see the numbers for yourself.
In minutes, you’ll know the potential impact on profit, and inventory, and most important - on cash flow. Get clarity and peace of mind when you need it most. Maybe things won’t be as bad as I feared.
The interactive "What if...?" feature makes it easy to compare options and make better decisions.
Every tweak you make updates the numbers instantly. It’s a powerful tool, replacing uncertainty with insight. Built specially for busy owners.
Have questions? Tap into the built-in tips or schedule a free Zoom session with the Co-Founders.
Economic uncertainty doesn’t have to mean sleepless nights. The 3-in-1 Calculator helps you take charge of your future, giving you clarity and peace of mind when it matters most.
The ROI’s 3-in-1 INTEGRATED Calculator is your go-to tool for staying proactive and in control. see more
👀 If you evaluate merchandise lines and vendors on sales volume or margins (or the relationship with the rep), this definitely is for you!
All retailers want to increase productivity – of their stores, their employees, their advertising, their technology, etcetera. Right?
But, how about increasing the productivity of your largest asset? You know, your inventory!
"How?" you ask.
By using GMROI to help guide your decisions.
The ROI regards GMROI - Gross Margin Return on Inventory Investment - as the #1 Inventory Productivity Tool in retailing.
To learn more about why and how to use GMROI in your retail operation, be sure to take advantage of this lively – and free – Webinar of the Week with Pat Johnson and Dick Outcalt, Co-Founders of The ROI.
GMROI – The #1 Measure of Inventory Productivity
The ROI’s Key Financial Benchmarks for 2021–2025 are here!
Yes, Pre-Tax Profit % and Gross Margin % are most everyone's first stop.
However – the Debt-to-Worth Ratio and Current Ratio are the most significant regarding your financial strength!
And Turnover and GMROI help to explain why the other four are what they are.
For perspective. Calculate these ratios for your own business, and then see how you compare to your retail industry segment.
Set your own target ratios for the next year.
Seeking a bank loan for your business? The bankers will look at these industry benchmarks as they assess your store's performance.
Go here to check out the ones for your retail segment. ➡️
The Retail Owners Institute® has been empowering owners since 1999 to "Turn on their financial headlights!" Our tools and resources are trusted by thousands of independent owners to help grow financially stronger and resilient businesses.