RanceLab Profit Session

How to increase profits in your store with business apps?


What do you want from your store?


What do you want from your store?

“More Customers will bring you more sale, more sale will bring you more profits, and more profits will bring you more growth”.


First thing first, know your customers.

Who is a better customer for your store? A flying customer X who buys chocolate worth Rs.2500 V/S Mr. Agarwal who buys Rs.2500 grocery every month.

You will never know this if you do have a customer list.


Customer is the biggest assets of retailer. What are the challenges you face to create a list?

To give a personalized card or not. Some store owner asked us to make photo cards. This never works. Will give a card only if you buy more than X amount. This also does not work.

The system should generate blank cards and the first sale should be recorded with the card. It should also take minimum time at point of sale.


You need to know what your customers want


They want good assortment and fresh products.


They do not want to buy near expiry and old products. Use the “No Sale Report” Should consider the last 30 days, not a calendar month Category wise & Company wise There are 780 SKUs available in bath soap category alone But one should not keep more than 200 SKUs. If a SKU is selling less then 5 pcs per month then consider

removing it. Just liquidate the Item by either self use, promotions or

returning to supplier. After liquidating - just mark them inactive.


They want to check the prices of things.


As soon you are done with purchase entry you should be able to print a rack label and a product label.

They love to see the items on promotion - its give them the feeling of saving.

Use the slow moving and fast moving report to create a mountain of sku’s.


They love good pricing. It makes them feel saving NOT spending.


Use Price Verification Report (Every day) Stock in and pricing is a high volume transaction per day. There

are chances of pricing error. Your application should be able to produce a “price verification

report” to list the item with margin percentage. Filter out the SKUs with lower and higher margins. In FMCG

the average margin is 17% and for grocery its 10%.


They do not like “No Have” or “out-of-stock”.

Consumer surveys consistently identify “we-don’t-have” or “out-of-stock" as the issue that irritates customers most about shopping.

Out of stock is worst than having excess inventory.

It a dual loss - you lost a customer and you lost revenue.


Use Stock Out report Non Active items should not come in this report Make a policy to not to sale item less which sells below X units

in a month. For example we recommend 10 units as minimum if the monthly

sale is of a super store is 1 crore.


They do not want to wait in queue for billing.

Using the thermal printer billing and barcode is the best thing.

In fast food using the code based billing is fastest.

Make sure to use the “purchase basket” method to ensure 100% scanning of barcode.

Invest in good barcode scanner.


They want to feel special when they buy things time and again.

Customer is God. And as we offer some of our

earning to God as prescribed by our religion, we should offer some to customer.

Scheme like buy grocery worth Rs.2500 for 11 months and take one months grocery free.

Buy 12 pair of shoes and get 1 pair free.

Third dinner will get 25% off in a restaurant.


They love innovation (useful). The green bag

Recently I went a superstore to buy grocery. I regularly do that. I bought goods worth Rs.1600/- and they charged me for 2 carry bags @ Rs.5 each. This Rs.10 has pinched me a lot.

And at another store which sale reusable bags for a refundable amount of Rs.15/-.

Its clearly displayed in the store “Bring the carry bag back in whatever condition and take full refund”.

I paid Rs.15 but it never pinched me, though I have never returned the bag.


They love innovation (useful).The change coins

One of our customer noticed that they are paying 10-20% premium for the change & coins. So she started a scheme “bring Rs.900 in coins and change and buy goods worth Rs.1000/-”.

This is innovative but surprisingly very few customers was able to availed this scheme. The report showed him the effectiveness of the scheme.

So she adjusted the scheme to “Bring Rs.90 coins and buy good worth Rs.100". To my surprise the sale jumped by 7%.

Learning: Innovate and make it useful for people.


Measure whatever you do.


6 take away for this session1. Increase your customers. Everything will be managed by itself.

2. Once you know your customer figure out what they want. Consider reading the book “What your customer wants you to know” from Ramcharan.

3. For good pricing - use the “Price Verification Report”

4. For good assortment and fast inventory turn - use the “Stock Out Report” and “No Stock Report”

5. Implement useful and innovative ideas on regular basis. Measure the effectiveness. Repeat the correct thing.

6. Remember correct categorization is mother of all MIS and too much of MIS is no MIS.


Thanks

RanceLab Profit Session

Technology

Transcript of RanceLab Profit Session