25
Jun
2018
0
turn is magic

Achieve Turn in a Retail Business

“Turn Is Magic” because it is a reflection and result of so many activities that are happening right or happening wrong. A good turnover rate is a rate that is appropriate for whatever product, merchandise, or service you’re dealing with—that is, it generates sales and profit at a very healthy rate. Fruit would have a fast turn, Persian carpets would have a slow turn, and shoes would turn somewhere in between.

To achieve the appropriate turn in a retail business, this is what you have to do:

  1. Select or create the right product to begin with.
  2. Have it in the right quantities.
  3. Mark it down or throw it out if it does not sell.
  4. Analyze what sold and what did not.
  5. Then reinvest the money that you did get into more of the inventory that will sell. (One former boss used to say, “This is a very simple business. Only buy what sells.”)

Excerpted from “The Five Laws of Retail” – coming 2019.

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