Stock Sales

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Stock Sales

Market researching products to sell

POS SOFTWARE

Your POS System can tell you what has sold well in a department and it will tell you what has sold well with another product. This is all good stuff for upselling. The problem is that you are looking at is what was in your store, which is only a tiny subset of the products available plus it is only telling you what *WAS*. What you need to know is what is *NOW* and what will *BE*!

Here is a tip to help you to do this which you can do.

In Amazon Australia, you will find the best seller's list here

Now pick a department say "Pet Supplies" and out will pop all the top sellers here 

These are the top-selling items updated hourly, so it is current information.  

Now go through the items and see which ones appeal to you. You will see the sales ranking. If you click on the items, you will see a lot of details, including what people think about these items.

I am sure it will give you a lot to think about them.

The best part about it is these are local products.

Now if you wanted to see what people in the US were buying, after all, they are not that different to Australian consumers, you can check the US website here

Be careful as although many think, that the US market is more advanced than ours. I am no so sure of this in my experience. It is an odd combination of being more advanced and more behind us plus its a different market with different cost, benefit and requirements so be cautious about using it. Still because of its Winter/Summer being reversed there many of you will get many goods ideas of where the market is moving.

 

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Impulse marketing

POS SOFTWARE

I was reading an article in better retailing here. It certainly gave me something to think. Pepsi has a Head of Impulse category, and he explained how the PepsiCo system works and that in one trial it increased sales by 17%.

Well, it is straightforward to do with our system, will not take you very long to set up, and if it works why not try it?

And its easy in our point-of-sale system to do it.

Go to Register reports.

 

 

Now select "Top N Stock Sales for a Given Period."

 

 

You will want about 40 items with say the last three months of sales so on our listing which will look like this.

 

Checked that the top 40 items are right in the front with good facing, so they are noticeable by the public.  

Give it a shot and see how you go. 

If it works, I would suggest going over each department and making sure that the top 40 of each department are with good facing. 
 

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Margin on eCommerce

POS SOFTWARE

I attended yesterday, the New Retail ’19 which is Australia’s largest retail gathering. It brought together over 2500 retail leaders and learners for a three immersive day to explore omnichannel retail, fulfilment strategy and partnerships. Some of the stuff was an eye-opener, and it is going to take me a while to digest much of it. 

New Retail 19

The first point I wish to discuss is the margins required for e-commerce with some real data supplied at the show. I will explain it point by point to give you a professional appreciation of how these people think plus give you a feel of how it works and what sort of product you require.

What happened was a company decided to advertise a product using keywords in Google advertising. These are the advertisements that you see on the top, left and bottom of the screen when you look up something up in google. So they put in an advertisement into Google. This is the result

 

  Raw figures Calculated figures
Metric     
Impressions 2,165,947  
Clicks 161,756  
Click through rate (CTR)      7.47%
Cost per click (CPC) $0.35  
Marketing costs   $56,752.24 
Orders 4,303  
Revenue $295,322.70  
Effective revenue share (ERS)     19.17%

 

The raw figures are the ones that they put in, and the calculated values are the ones that they derived.

Impressions: This is the number of times that the advertisement was shown.  In this case, it was shown over 2 million times.

Clicks: Is the number of times that someone went to the advertisement. 

Click through rate (CTR): Is the percentage of how many times the advertisement is clicked compare to how many times it is shown. This is very important as if this is low then Google shows your advertisement less so even if you are prepared to pay Google will not show it. What Google says is that your advertisement is less relevant to their users' requests so they will give their users more relevant information. 

Cost per click (CPC): Is how much this person paid every time someone clicked the advertisement.  

Marketing costs: Is the amount that was paid for the advertisement.

Orders: This is the number of orders the company got 

Revenue: This is how much the orders added up to, I am not sure if this includes shipping costs and other products that were sold by them.

Effective revenue share (ERS): This is the line I wanted to get too. What this is, is the cost of the advertising to revenue. In this case, it was 19.17%. 

The point here is that this particular item, putting aside all other costs requires 19.17% of the revenue to pay for the Google advertisement, that does not include many other costs, e.g. website, storage, etc. You need to pick your product.

 

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Sales targets that are challenging and believable

POS SOFTWARE

A major problem with setting up sales targets is that 

1) If they are too high soon, no one pays attention

2) If they are too low, then its no challenge, what people tend to do here is once they make the budget to stop.

What you need are sales targets that are challenging and believable?

Well, our clients have an automatic system that can do that now. It is the focus number. It will give you a reasonably good idea of what sort of movement you can expect from every item in your shop. It is a weekly budget.

Here is how you set it up.



It is easy to set up, and use for details click here.

With effective software, you can assess your stock sales better. You can see what you did right and what you did wrong this week.

For details on how to do this, please, click here

 

 

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The years 10 busiest shopping days are here

POS SOFTWARE

Studies in the US  which I believe are valid here show that 45% of all shopping traffic in bricks-and-mortar shops in the Christmas season occurs on the following ten days. 

  1. Friday, November 23 – Black Friday (Today - Less important then in the US but rapidly growing)
  2. Saturday, November 24
  3. Saturday, December 1
  4. Saturday, December 8
  5. Saturday, December 15
  6. Friday, December 21
  7. Saturday, December 22 – Super Saturday
  8. Sunday, December 23
  9. Wednesday, December 26
  10. Saturday, December 29

Peak shopper times are between 2:00 p.m. and 4:00 p.m.

 

Looking at the list, it seems like a lot of Saturday work coming up.

These days are the ones that you need to plan and have your rosters, stock and signage right.

Warning

It is also a good idea to have someone special doing security on those days too; I am a great believer in the theory that much of the security problems in retail can be solved by having grandmother greet everyone personally that comes into the shop.

 

 

 

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Stock Performance Reporting by supplier

POS SOFTWARE

It is said that "The devil is in the detail."

In retail, its the item that sells not the category or the department! 

A supplier rep is coming to see you, no doubt they are a friendly person. They have been briefed, they have an excellent overview of the market for their product, the odds are they know how their stock is moving in your store better then you do and they know your shops potential for their product better than you but they also have an agenda to get you to sell more of their product.

So what you need to be is briefed too and with a point of sale software, you can and should be able to look at this supplier's range in your shop and see exactly to the item level what is selling. How fast their items are selling? Which items are making the money?  So you can determine which of their items are worth investing.

Your stock performance report helps to answer such questions. 

What I will do here is take you through a review on one such report and what you can learn from this report.

Go to register reports>Suppliers>Suppliers sales trend, see the arrow in green

 

Supplier sales trend menu

There are the ad-hoc, excel and OpenOffice import which please ignore for the time being although I do suggest later using it to produce summary reports.

Now the options, I picked are here.

Supplier trend options

I picked an arbitrary supplier FAS. Again ignore the extra options for now and press view report. 

Supplier sales trend report

Here’s how it goes:

Look at the arrow in red, you have 19 of this item now, but you never sell any of these items. It is a worry.

Conversely look at the item in blue, you have none in the shop, and you have sold heaps of these items, what gives here?

Now in green what you will see is that one of the stock items is in negative. This is not a good sign as it shows your stock quantities are not entirely right. 

It all comes down to this

By looking at these items in detail, you can see which items are selling well. You can bring up this with the rep as you now have a clearer idea of what you need and what to order. 

 

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Make an event - marketing tip

POS SOFTWARE

Cosmopolitan magazine

I was stunned when I was informed today that Bauer Media is cutting Cosmopolitan Australia in December, as commercially it is no longer viable. In the process another eleven jobs have are gone, and another restructuring and centralisation are underway.

This magazine was an icon, and many will have many good memories of this product so why not make an event if you sell a product like this to get people to come into the store for an impulsive purchase of the last couple of editions.  While supplies last, the final edition, get your copy... collector's item (which I am sure it will be) ... 

Maybe when they come into the shop to buy this product, they will buy more too? All you need to try it is a small sign on the window to make an event.

 

 

 

 

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Stock know your 1%

POS SOFTWARE

There is a rule that seems to show up all the time that 1% of the population participate, 9% occasionally participate and the other 90%  do nothing. It is called the 1% rule although a lot of people call it the 90/10 rule. 

We see something like this is stock.

Here is a graph of a reasonable size shop with sales in order of the top selling items to the worst selling items based on retail turnover.

Top selling stock lines in ranking order

The shop sold in a year exactly 20,060 different stock lines.

Here are some figures, slightly less then 1% actually the top 220 stock lines did 50% of shop sales. But it does down further out of the top 220 stock lines, the top 10 stock lines did about 33% of the shop sales and the top two lines did just over 15% of the shops' trade.

When I first saw this, it hit me like a brick

I think you would have to admit that this is quite amazing. Now what the retailer should do is concentrate most of there efforts on the items that are really making the money.

Now let us find your top 1% stock lines.

Go to register reports and select the top stock report as marked with the red arrow here

You will get this screen

Now select your criteria, note there is also a tab called "More Criteria" which has more options plus the traffic (which is people in the shop) option but we will discuss that later.

I do suggest that you do this by overall shop sales and then research in depth for each department.

Here I used the stationery department. In red, I put in 32000 to make sure I get everything and as I like to get a long-term view, I selected a whole year as small periods can have major fluctuations.

Then you will get a report with all the figures.

It’s that simple

It can be done in less than a minute.

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Scan rate in retail

POS SOFTWARE

The more you are scanning on your POS system the better.

Consider this

Typically a person working a cash register manually entering each transaction makes one mistake for every 300 characters typed. It is not surprising as working a point-of-sale terminal is often extremely hectic. Plus for many cash register operators by the end of the day, they get tired of answering questions,  processing transactions counting cash and giving change. Mistakes go up. The time to process an item, count money and issue change are all measured in seconds.

Consider an automated the point-of-sale process.

A POS barcode reader is recorded giving about one error for every 394,000 to 100.5 million characters scanned.

Scanning an item with a barcode reader takes a fraction of a second. 

At this point you realise

A POS system is much more efficient and faster.  This translates to customers being serviced much faster and better.

How to solve it

So what I suggest you do is look at your scan rate. It is consider to be one of the most important retail KPIs in retailing today.

This KPI tells you where you are scanning and the more you are scanning the faster and more efficient you are on your point of sale counter.

To get this KPI, please go to cash register reports

Then go to sales

 

 

Once there select

Dissection Sales / Profitability for a Given Period.

Now run the report with a year of data.

What you will see is a column with %Scan, the higher the better. Now if you look through this list, the problem department is marked with a green arrow.

 What have you got to lose by acting on this?

 

 

 

 

 

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Stock that is not performing

POS SOFTWARE

Do you have some slow-moving stock items?

Maybe you can cut back on their space to make more room for your profitable products?

I suggest that we do this in two stages. 

To begin with

Firstly let us find the items that are the slow movers

Go to Register reports > Stock > Slow moving Stock lines

 

Now call it up here

As you can see I am looking at the stationery department over a twelve month period for anything that I have sold less than $100 and am now stocking something.

Now out pops a report in this case of 81 pages of detailed information of all the items that match this condition in this case, we have almost $80,000 worth of worthless stock.

Now check them out, pull out what you do not want to keep and put in your sales area.

Once you’ve got this done

I suggest that you do a report of your top selling stock items and at those items that are selling well. A rule of thumb in retail is double the space of an item increases its sales by 50%. So the idea here is we are going to replace the marginal items with those that sell well.

Go to Register reports

Now select "Top N Stock Sales for a Given Period."

Now the following comes up.

Now put an appropriate period the default here of a day is not enough for this but I just wanted a quick report for illustration.

Out comes a report with the top sellers

Now, these products need to be checked that you have the right display for each of these products.

Note anything, not on this list you also need to look at as they are marginal..

The bottom line is this

You do not want to pay to a landlord for the space to stock items that do not sell.

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