Planning For Success In 2012
By Steve Pruitt, Founder, Blacks Retail
Now that we’re into the new year, it is time to start planning how you can make the most of 2012, despite the uncertainty of the economic climate.
Blacks Founder Steve Pruitt
As we all know, consumers’ buying habits have changed with the economic tides, and this is probably altered the consistency of your financials. So now more than ever it is critical to have key planning strategies in place that can give you a comprehensive view of your inventory positions, markdowns, margin goals, and cash flow rates, as well as tell you how all these pieces come together to meet your financial goals.
With Blacks’ expert planning services you gain insight into the following areas:
• Markdown Strategies
Take the guesswork out of markdowns. You’ll learn what the best time in the season is for your operation to start marking down, and at what level you need to markdown and still retain margin.
• Margin Goals
You will have clear insight into the rate at which you are building margin into your business and if your IMU (initial markup) is planned correctly. Setting monthly margin goals will provide you with better insight into future profits.
• Sales/Inventory Relationships
Know how your inventory affects sales and understand the relationships that exist between them. This is key to driving growth.
• Cash Flow Analysis
See the rate at which you’re generating cash, or your cash on-hand, at any one point. Knowing this rate gives you a better overall picture of how your operation is performing.
• Financial Goals
Of course, the reason that we do such a close analysis of the previous areas is to make sure that you are meeting your financial goals. We help you set realistic goals and help you make the necessary adjustments to your business to enable you to meet those goals.
In addition to these essential components of inventory planning, Blacks also offers custom-made analytics. Analytics are technologies that allow you to investigate past performance to gain insight and drive future business planning. They allow you to set goals and measure your ongoing performance in ways that an inventory system cannot.
So, before you begin 2012, consider the advantages of expert merchandise planning plus the power of analytics. A relatively small investment in strategic planning can make a big difference.
For more information on our services contact: info@blksretail.com
