Business Calcium Blog

Basics of Retail Math (Part 3)

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To read Basics of Retail Math (Part 1), please click here. To read Basics of Retail Math (Part 2), please click here. How to Increase Your Margin Obviously, the question here becomes, “How do I increase my margin?” An additional question must be, “How do I increase my margin while still keeping my customers happy and therefore my sales rising?” Relax. There are several different tactics you can use to…

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Basics of Retail Math (Part 2)

basics-of-retail-math-part-3

To read Basics of Retail Math (Part 1), please click here. Inventory Turn Turnover of inventory, or turn, is the calculation of how many times you sell and replenish the merchandise in your store over the course of a year. To figure out your turn, divide your annual sales by your average inventory (at retail). For instance, if your sales are $400,000 for the year and your average retail is…

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Basics of Retail Math (Part 1)

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Retailing is all about change, because consumers change and so do their tastes. If you don’t change, you don’t grow. —MARVIN TRAUB, former CEO of Bloomingdale’s Financial freedom. Setting your own schedule. Being your own boss. Take your pick. No matter what your collateral reasons for opening a retail store, the numbers are obviously what drive your decision about whether or not to invest the large and intense amount of…

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Finance Your Business: You Can Do It

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Starting your own business may be a dream come true. Paying for this dream may be an entirely different story. How you structure the finances for your business will have long term effects on your entire life. Unless you are wealthy enough to finance your new store with no financial strain, raising the money you’ll need may prove to be one of the toughest challenges you’ll ever face. A word…

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The Art of the Buy: Dealing with Vendors

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Are you are launching a retail business? One key part of your business puts you on the other side of the counter, as a buyer of the merchandise you will be selling to your customers. There is a saying in retail that ‘Money is made in the buy’ – the decisions you make as a buyer will determine not just how much you pay for your stock, but the items…

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