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Retail Finance How-To Articles



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Cash Flow Planning

That Cash-Inventory-Profits Connection

Shape Up Your Inventory


Coping with a Cash Crunch


Retail STRATA:G® Wheel


Costs of "Excess" Inventory


Cost vs. Retail Method of Accounting

GMROI Basics


GMROI by Customer Category(!)


Buying Plan ("Open-to-Buy") Basics

How to Cut Inventory...


Retail Financial How-To Tips

Short (10-15 minute) how-to videos by the Co-Founders explaining retail financial fundamentals.

Fast-paced, lively, informative...and fun!  Online, on-demand, 24/7, in the Members-Only Collection. ROI Members can watch them all! Unlimited access. 

 Retail Owner's "Dashboard"    Basics of Open-to-Buy Planning    Four-Part Open-to-Buy Formula
 "Cruise Control" for Ending Inventory    Raise Turns...and Raise Cash!    How to SURVIVE This Financial Crisis
 Cause-Effect, Cause-Effect "Big Picture"    Projecting a Retail P&L    "Where Are We Now?"


The ROI's Projecting Calculators

The Retail STRATA:G®  proprietary online calculators are for projecting, looking ahead. Not accounting, that (sigh) only looks backwards.

These "power tools" have been specially built for retail owners and decision-makers.

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Need to Know It NOW! Bundles

Fast-track collections of how-to articles, webinars, and eLearning Kits

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BUYER'S Bundle 





"And much more..."

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ROI GUIDES for Retailers


GMROI Guide 


GLOSSARY of Retail Financial Terms



Targeted Turnover


Start Now! 
Follow these 5 steps.  Drive your inventory to a targeted, well-conceived ENDING INVENTORY level at the end of each month.

  1. Determine precisely what annual inventory turnover rate your store(s) should have to be profitable and provide an adequate cash flow. (For free guidance, find your segment under the "Retail Benchmarks" tab.)

  2. Next, convert that turnover rate into "days of supply"; i.e., 4.3 turns divided into 365 days in a year equals 85 selling days (of supply) or "one turn's worth of inventory".

  3. Now, simply guesstimate your reasonably expected sales volume for the 85-day period from April 1st forward, in this example, through June 24. Got it?

  4. That sales number now becomes your targeted inventory level (at retail, not cost)  for the end of June. Now you've got a goal, a definitive number to shoot for which is based on going forward safely.

  5. But it's only as good as your ability to hit that target. Therefore, with just a limited number of selling days left before the end of June, you can, and must, reduce prices, cut orders, give spiffs to your staff...whatever it takes to drive down your inventory to hit that ending inventory goal. Now that you know what to do, we know you can do it.

And remember: Survival, without profit, through this recession is like halitosis; it's better than no breath at all!

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