As we visit trade shows this season, we wish to share some top tips to increase sales and profits in your business and focus with you on Brand and Retail Management.
Looking for a sounding board to make the right decision for the Brand?
Looking to grow sales and profits this year or next year?
Worried about making the wrong decisions for your business?
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Now, let's share what are the top tips to boost sales this year? Ask yourself these key questions.
TOP KEY QUESTIONS TO ASK YOURSELF
How important is sharing your vision and values when trying to motivate your staff and partners?
Do you believe that staff performance can be improved by setting up a job description with measurable goals?
What is the maximum markdown percentage (total discounts / net sales) that you shoud accept in each mono brand store? (e-commerce business)
Which solution will guarantee that you overperform in the USA market? Working with an FOB or a Delivered Duty Paid (DDP) price list?
ANSWERS & EXPLANATIONS
Sharing your vision and values with the staff is critical. It ensures you make the staff understand the "big picture".
We want to dream and see where the business is going in the next 3/5/ or 10 years.
Every time, our clients share this with the staff, the staff are re-energised and see interest in their jobs. They own their job instead of renting it. You will see them more committed and giving you the extra mile.
Attaching measurements to the job description produces extraordinary results. The employee can know on his/her own whether he/she has well performed even before you say anything.
Doesn't that make your performance review easier? It does!
You know your business inside out so it will be easy to start putting some relevant KPIs (key performance indicators) on the job description.
If you raise the standards, you raise the performance.
As a mono brand store, you should not accept that your markdown percentage is more than 25/30%.
Good retailers could be working at 18 or 20% especially if they ship fresh goods to each store every month.
HOWEVER, if you have decided to open a multilabel store then our clients have a markdown percentage not exceeding 10 to 15%.
If your net sales are £500 000 then you should not be giving away more than £50k/ 75K in discounts over the 12 months period.
NB. The discounts given away are all the reductions in price whether the goods are being sold through the loyalty card, in the sale or if the goods finish at a discounter, given away for free or for the Press at 70 or 90% off.... All the above are part of the discounts lost.
Markdown percentage = Total discounts over a 12 months period / Net Sales
To calculate your markdown percentage, read this article.
COMMON ERROR - Retailers feel good when the markdown percentage is low. They should however they need to be worried if the average stock represents MORE THAN 2/3 months worth of sales.
DDP of course. Read more on FOB vs DDP here.
To better understand the opportunities and challenges in the USA, read our article in our blog section "USAWorkshop". You will see how it will increase sales 2,5 or even 10 times when you will sell with an FOB price list.
FOR ANY OTHER QUESTIONS, OPPORTUNITY OR CHALLENGE, CALL OR EMAIL US.
GFM VALUES & VISION
We offer our 25 years' experience and advice with honesty and transparency.
We bring Brand and Retail Management expertise from Strategy to Execution.
As we care about execution and we want our work to be about progress and newness, we are happy to extend the #GFMChallenge where YOU will decide what our advice and operations know how is worth.
If you submit a specific opportunity or challenge, we commit to give you very practical and quality advice in less than 20mn.
CLIENTS EXPERIENCE WE SHARE
Sharing experience from Designer Brands (Calvin Klein, DVF, Monnalisa, Moschino, Paula Ka, Smalto, Versace …) to
SME’s and Young Designers (Akong London, Cococa Cashmere, Harlow & Fox, Jamu, Jianhui London, John Charles, Kitten D'Amour, Lipsy, Miss Mandalay, Penfield, Pomodoro, Queen of Darkness, Talulah Australia, …),
Government Agencies (Inves Trinidad and Tobago, Thai Trade, UK DTI …),
Business and Fashion Schools (HEC, Inseec, LCF, Modspe) and
Fashion associations/trade shows/ trade press … (Bubble, Futura, Journal du Textile, L'Essentiel, Magic, Moda UK, Pure London, Stitch Menswear, Drapers, TRT World, WWB-MWB, Whos Next …).