From the Co-Founders of The Retail Owners Institute.Tips | Tactics | Insights on the Business of Retailing.
All of the content, how-to resources and tools of The Retail Owners Institute® have been developed by and are the proprietary and copyrighted intellectual property of Outcalt & Johnson: Retail Strategists, LLC. Patricia M. Johnson and Richard F. Outcalt, the principals of OJRS, are The ROI's Co-Founders.
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?
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!
"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"
All online.
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...?".
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?)
Top 5 Killers of Retail Business
People who get their understanding about retailing from the popular press or from political rhetoric often believe that declining sales - “Comp store sales are down” - is the death knell of retailing.
While that is a popular view, it is not accurate.
Retail business owners are conditioned from day one to "have a profit" and "improve the bottom line".
Yet, sadly, most owners aren’t sure exactly "Why?"
What IS profit?
Where does it go?
Why is it important?
10 Tips to Turn Your Inventory Into Cash – FAST!
Sometimes retailing doesn’t quite turn out as you had planned.
Did last year fail to live up to what you predicted—and budgeted for?
Did you overestimate the popularity of your generous order of a particular product?
Are there areas of your inventory brimming with overstock?
Relax! There is a way out of this mess.
Considering a multi-store launch?
Opening additional locations?
Testing a new retail concept?
Launching a robust e-commerce site?
Any one of these approaches to growth requires that you develop your plans, explore real estate or web hosting opportunities, evaluate systems, identify mid-management talent, line up financing, and so on.
But wait! Before you get too far down the road on any of these areas, you first must decide: What is your fundamental growth strategy? That is, HOW do you want to grow?
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. And they also are Retail Turnaround Experts.
Since 1999, empowering retailers and store owners to "Turn on your financial headlights!"