A number of key moments in the Product Life Cycle determine the Profit Margin achieved in any sale.
SalesStream provides tools and reports to accurately manage each of the lifecycle events.
Simply adopting the SalesStream ‘Left to Right’ principle of retail (as seen above) will ensure you achieve the profit margins you deserve.
Learn more: Protecting profit margins.
Start protecting YOUR Profit Margins today by calling us on 0333 247 0123 or visit our Contact Page
Managing profit margin is crucial to your sucess as a retailer.
The product life cycle is the period between your agreement to purchase an item from Supplier at a given cost price and the moment the item is sold.
Understanding each stage is surprisingly simple yet so often over looked.
Stage 1 – Purchase Order.
Using the SalesStream purchase order system means you have raised a formal agreement of purchase, quantities, cost price and delivery schedules.
This ensures that when stock is delivered to you, invoice descrepancies will be picked up – so you pay what you agreed to pay and that stock is delivered in the trading periods you need it. There is no use buying winter jumpers in the Autumn and they turn up in the spring – without an agreed Purchase Order this could well happen.
Stage 2 – Receiving goods into stock and distributing goods.
Using the SalesStream Goods inward and Inter Branch Transfer systems, items can be moved around branches securely meaning they are on the shelves sooner and sold sooner, meaning less valuable cash flow / financing is used up.
SalesStream’s powerful stock database allows you to determine not just the retail price, it allows you to determine prices at different points when your store is in sale. This means that you know the expected profit margin at all times of year.
Strong retail reporting allows a quick glance to spot any items that have been sold at lower margins along with individual, store and date and time.
SalesStream manages returns of faulty or unsaleable items that have been returned to the supplier. Items remain on your stock until a credit note (Refund) is or replacement has been receievd stopping returns loss erroding you profit margin.