Think one per-cent!!!
The challenge when assessing the changes you want to make that will improve your bottom is setting goals you can achieve. A number of years ago we developed an approach that could result in achievable goals, think one-percent. Focus on three of four key numbers that drive profits and try to positively affect them by 1%. Here a few suggestions:
Cash control: In addition to paying closer attention to reconciling your cash drawers scan your transaction detail to spot unusual discounts or refunds. By simply letting your cashiers know you paying attention they’ll be more careful and in cases honest..
Gross margin: Increasing your gross margin by 1% can have a dramatic effect on your profitability. That 1% falls right to the bottom line. Start by looking at your best selling items and those are somewhat exclusive and tweak the price. Secondly run a report and indentify any items in a department that have a GM% below the department average to be sure there not mispriced.
Life extension of your customers: Twenty five to thirty per-cent of customers who stop shopping at your store do so because they were dissatisfied with some aspect of your service or store polices. Bring your staff together and evaluate all store policies but importantly listen to their collective input on how they feel they can deliver better customer service. Policies developed by the staff have a significantly better chance of being implemented. This is inexpensive and can yield a lot. Remember two these things about your customers: It’s a totally at will relationship and they determine when they end it.