Tips for Success by Expert Accounting
Watch those margins!
Margins act as a measurement tool that can help assess how well a retailer is doing at minimizing costs while remaining profitable. For many companies, margins are one of the most important facets of their business. They also serve as an important form of data for management teams who to keep their company on track with its projects and goals.
Are you constantly achieving or even surpassing industry margin KPI’s? If not, here are a few thoughts.
- Buying right is always of importance as is ensuring that all goods are being entered at proper landed costs. Landed costs are defined as the total costs incurred in getting a good from its place of production to the destination market, including all freight and duty or tariff expenses. With margins becoming tighter, understanding why they vary is critical.
- Having in-store policies that support and promote a Price Guarantee will help eliminate margin erosion through negotiations and lowering prices to “get the deal.”
- Generating accurate sales reports will help with measurement metrics ensuring margin goals are being achieved. Claiming all available manufacturers STA’s and vendor rebates will also contribute to increased profitability.
Accuracy is crucial for measuring margins and keeping up with business goals. With several years of operating experience in the home furnishing and appliance retail industry, Expert Accounting understands your business like no one else out there and is a valuable partner in your day-to-day retail operations.
