Chapter 5: Retail is a Numbers Game
An Insider’s Guide to Running a Successful Retail Store
Chapter 5: Retail is a Numbers Game
Nobody likes to talk about math but I'm here to tell you that math is probably the second most important thing in running a store. It's also the second reason why people will go out of business. You need to know your math.
When it comes to retail math, it's 90 percent of the game. It's something that you can't live without knowing.
Video Highlights:
0:24 Formulas you need to know: retail mark up, the turnover, the sales to stock ratio, the sales per square foot, the open to buy and return on investment
1:26 Case study: Lingerie store in a conservative town in Virginia
3:24 Loss leader - we’re not making money on it, but it attracts people.
4:12 The problem with keystone pricing
4:30 What is my customer willing to pay for this?
4:52 Minimum margin in today’s retail standards.
5:20 Negotiating orders.
This video is a part of Shopify's Ecommerce University's 11 part video series on running a successful retail store. Watch all 11 free videos » http://bit.ly/103EZbF
For more free videos, ebooks, tools, and guides on ecommerce, marketing, check out Shopify's Ecommerce University » http://bit.ly/1FVxHrx
