How To Increase Revenue

Author: Barry Knights   Date Posted:23 June 2016 

How To Increase Revenue

Without Radically Increasing Costs

 

Profile of a Typical Retail Store:

  1.  Open 9 am to 5 pm, 5 days a week
  2. Possibly open on Saturday from 9 am to 1 pm
  3. Closed on public holidays
  4. Pays around $2200 a month in rent before any sales are made
  5. Employs a part-time staff member at $2,500 a month
  6. Pays $500 a month in utilities, phone and outgoings
  7. Spends an average of $500 a month in advertising and marketing
  8. Holds around $100,000 worth of stock
  9. Loses around $200 a month in shop-lifting and theft
  10. Sales are limited to local, walk-in traffic

In the end, this retailer will spend more than $5,000 a month BEFORE he or she even opens the door.

With a 30% mark-up, this retailer needs to sell $6,500 worth of goods, just to break even!

Two Ways to Increase Revenue by 30%

Sell More Stock Open A Second Store Open An Online Store with Global Store Solutions

1. Requires an increase in stock holdings

2. Requires more paid staff

3. Requires increased spend on advertising and marketing

4. Probably requires more space

5. Probably requires an upgrade of sales IT such as POS, inventory management and accounting software.

6. Probably requires an increase in security in order to prevent theft

 

 

1. Requires an increase in stock holdings

2. Requires more paid staff

3. Requires increased spend on advertising and marketing

4. Probably requires more space

5. Probably requires an upgrade of sales IT such as POS, inventory management and accounting software.

6. Probably requires an increase in security in order to prevent theft

7. Doubles spend on rent, phone, unilities and outgoings

1. NO stock holdings

2. NO extra staff needed

3. All marketing and advertising included in a monthly fee

4. NO shop-lifting or theft to deal with

5. NO extra rent, phone, utilities or outgoings

6. Your store sells 24 hours a day, 7 days a week, 365 days a year

7. Your store has a global audience AND drives more traffic to your physical store

Cost = $3,000 a month Cost = $5,000 a month Cost = $1,100 a month

With a 30% mark-up, this retailer only needs to sell $1,500 worth of goods, to break even!

With the same amount of online sales as in-store sales, ($6,500) this retailer is now in profit!