This week we continue our look at the key areas in your business that could provide improvements in your gross profit and bottom line. 

4. Increase your average sales $ per customer

In fashion retail encourage customers to experiment with coordinated accessories when buying clothing items. Look to place these in a high traffic location, and especially adjacent to cash registers. Bundle products or services together, and look for complementary products from suppliers to add value without sacrificing your profit margin.

5. Increase you margins

Revisit your core product and consumable costs, and your expenses. Then negotiate with suppliers to decrease them e.g. insurances through bundling with one supplier. Relook at your loans and interest rates, and what is currently on offer for
refinancing. One of our advisors suggested to a fashion shoe shop that they shop around for better deals on merchant fees. Three hours of investigation saved them over $7,000 per year.

Let’s look at an example of applying the 10% rule: 

Thus, increasing each of the five key areas by 10% has resulted in a 62% increase in gross profit.