| Here are the actual results from Lonnie B's Western Wear store: |
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Sales increased by 7% From $416,000 to $446,000 |
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Gross Margin increased 1.70 percentage points Due to having dollars to spend in-season for special buys and marking down goods less because there was not excessive amounts of inventory. |
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This translated to $19,192 additional Gross Margin. | |
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Stock Turn Rate increased by .24 turns Stock Turn Rate was 1.47 and it increased to 1.71 |
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The inventory reduction was $18,027 at cost (based on this client's 54% IMU). This was used to reduce his debt and saved $1,442 annually in interest expense (@8%). |
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The Store's TOTAL Net Profit increased by $20,634 |
Before OTB |
After OTB |
Change % |
Change $ |
Net Profit |
|
| Sales Volume | $416,000 |
446,000 |
+7.00% |
$30,000 |
|
| Gross Margin % | 38.70 |
40.40 |
+1.70 points |
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| Gross Margin $ | $160,992 |
180,184 |
+11.92% |
$19,192 |
$19,192 |
| Stock Turn Rate | 1.47 |
1.71 |
+0.24 points |
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| Average Retail Inventory | $282,993 |
$260,819 |
-7.84% |
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| Average Cost Inventory | $173,475 |
$155,448 |
-10.39% |
$18,027 |
*Paid to debt |
| Saved Interest (annually) | $1,442 |
+$1,442 |
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| INCREASE IN NET PROFIT | $20,634 |
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