From the Co-Founders of The Retail Owners Institute.Tips | Tactics | Insights on the Business of Retailing.
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!
Why do that? To get control of all the money that's moving in and out of your business! HOW to do that? With The ROI's "Bucketizer". (Yes, that's a technical term!) The Bucketizer is online and free to use. And it's an essential step for understanding and managing "the Big Picture" of your retail business.
Here's the Problem
The typical accounting package lists expenses in alphabetical order. From Advertising, to Auto Expenses, then Bank Charges, and so on. Lines and lines of separate expense items, all detailed to the penny.
How useful is that?! Is this designed to inform? Or, to confuse and confound?
No wonder few retailers will spend much "quality time" with their financial statements.
And Here's the Solution!
But, there IS a simple trick that will let you make sense of all that data: simply re-organize the individual expenses on your P&L into 5 "buckets" (categories) of expenses.
That simple step transforms all that accounting data into management information.
At The ROI, we call this process the “Bucketizer” (also known as the PROFIT Finder.) And, to make it easy for you to quickly do that for your own P&L, we have put the Bucketizer online, where you can use it for free.
Go here for more about this, and to use the Bucketizer for yourself. Be sure to watch the short 5 minute video on that page that shows how easy it is to use it.
"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...?".
Most shoppers prefer to shop in stores, not online.
But – gulp! – there's a catch!
Despite the ease and convenience of online shopping, “the majority of American consumers still choose brick-and-mortar stores over e-commerce.” Why? According to Retail Dive’s Consumer Survey* of 1,425 U.S. consumers, there are three main reasons:
Refreshing, isn't it? Shoppers want a shopping experience, in a real store. And it confirms that Amazon is nowhere close to being the only game in retailing. (If only everyone would quit hyperventilating.) But, there is a far more sobering message here about today's very demanding shoppers.
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.
A data analytics firm has identified four types of holiday shoppers, and advises marketers to have an appropriate strategy for each one.
Well, of course, none of this is news to retailers! But we think it could make a good topic for your next manager’s meeting. (And, it might be news to some of them!)
Doing retail has always been a challenging and fascinating and evolving exercise. As the old Chinese proverb states, “It’s easy to open a store. However, it’s tough to keep it open.”
And today, seemingly more than ever, people are drawn to retailing. Consider:
Every minute, some shoppers in your market are checking the weather forecast on their smart phone.
But here's the deal: Immediately, that inquiry is being captured by The Weather Company, which now turns this mass of Big Data into usable information (that it sells, of course.) And here's what that means for those smart phone users:
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!"