Ways to squeeze more profit out of your Retail business

When you have a retail business of your own, it’s purpose is to give you profit by bringing in more customers.

In case of retail store like every type of business to make sure that your business gets more profit there are certain rules which you can learn about briefly, here below:

1. Learn about this industry

Read as much as possible about the retail business and retail market. If you do not yearn for more knowledge there is no way you will learn and get the idea about the market updates about retail business.

There are particular points which the retail business fails to see and they are:

• Lack of vision
• No proper marketing strategy
• No proper goals
• No industry knowledge
• Inadequate capitalization

2. Know your customer

The customer service and management is one of the main things in retail business that will get you more buyers. Customer satisfaction and customer service must be the noted carefully as the word of the mouth goes around and if you have good reviews then you will have no problem in getting more customers or in getting loyal customers.

Educate your employees on how to behave and respond to the customers, teach them briefly about the products so they can help the customers with doubts. In case there are complaints always apologize to the customer regardless of what the matter is and then confront them and solve their issue as fast as possible.

Reward your loyal customers in their anniversary with your business and keep your store fun and welcoming to visit. For example; reward your loyal customers on 5 years with your business or even a year with your business and give away coupons or gifts. Or bring in offers and free gifts to keep the customers interested in shopping with you.

Find out what your customers like so you know what to keep in stock which will help you in having better business and will pull more crowd to your store.

3. Keep track of everything

Track all the expenses and all the purchases keep a strict account of everything in your business so there is no possible way of theft or fraud. Good financial records are extremely necessary so you know where you have spent and not keep wondering later about how you miscalculated your budget.

Keeping an accounting software that can track all your expenditures and purchases so you are aware of how much you have spent, how much is being spent on purchase and how much sales you have been making.

Also track your highest selling products, highest valued customer and best sales executive.

4. Build your brand image

Brand image plays a major role in getting your more customers which will lead to more profit.

Take help of advertisement and marketing and keep your quality strong so the buyers will not be disappointed. The right ways of marketing and goodwill with your customers can keep your image high.

Make sure that your products match the quality that you are making the buyers expect. Try something different from your competitors when it comes to advertising and marketing, make it stand out and make it exciting and attractive so the customers feel the need to drop in.

5. Price it for profit

You must learn how to extract profit while pricing the product depending on how much you have spent on its purchase and transport, inventory related costs and business costs. Calculate the exact amount and carefully place your profit margin for the product so it is sensible. You cannot price a product as you like but keep in mind that you are not going to sell it like a wholesaler as in retail business the pricing matters alot since it is not the products that you have manufactured and there are other costs involved that you need to do justice to.

6. Control your inventory

Inventory is the area where your business starts. Therefore you need to learn how to control it. Be careful of wastage, damage, unnecessary amount of items and stock level.

Manage the inventory using an inventory management software so you can correctly track the inventory level and know when to get the items before you run out of stock.

Controlling your inventory can save a lot from your budget and you will not be spending unnecessarily on the products that are not being sold.

You will also have better sale as it makes you aware of which products are in demand and which are not.

Reach Accounting software is a cloud based software that customize with your business. It is accessible from anywhere and is mobile friendly.

Reach accounting software tracks all your expenses and purchases. It integrates with other software easily and is user friendly. Its dashboard brings out the best sales executive, highest selling product, highest value customer and profitability graphically.

Its features include:

• Dashboard
• Billing
• CRM
• Repair
• Accounting
• Purchase and expenses
• API

For queries and more information click on Contact us. For 15 days free trial of Reach Accounting software click on >> Demo

Sumathi

I’m a tax expert with over 10 years of professional experience. I’ve gained practical insights on GST and other Taxes during my tenture as a Tax expert and GST Trainer in Reach Accountant.