The Retail Management Advisors
(formerly Gerald H. Smith & Assoc.)

NEW SERVICE ANNOUNCEMENT!!!
SWAP (PEER) GROUPS
Click here for further information

Celebrating Our 31st Year in Business!

Web site updated 02 October 2007

 

What Results Can You Expect?

Here is an average "real world" example from one of our clients: 

Sales increased by 7%
        From $416,000 to $446,000

Gross Margin increased 1.70 percentage points
   
     Due to having dollars to spend in-season for special buys and marking down goods less because we
        do not have excessive amounts of inventory.

This translated to $19,192 additional GM

Stock Turn Rate increased by .24 turn
   
    
Stock Turn Rate was 1.47 and it increased to 1.71

The inventory reduction was $18,027 at cost   (based on a 54% IMU)
        
This was used to reduce this retailer’s debt and saved them $1,442 annually in interest expense 
        < @8% >. You may choose to use the money as additional NET PROFIT!

TOTAL Net Profit increased by $20,634

= A  418% return on Their investment!
        Considering TRMA’s  Processing Fees for Comprehensive Open-To-Buy Service : 
        OTB Annual Fee  $ 4940  (@ 40 Classifications)

 

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

 

 

 

Gross Margin $

   160,992

   180,184

+ 1.12%

$ 19,192

+ $ 19,192

Stock Turn Rate

   1.47

   1.71

+ 0.24 points

 

 

Average Retail Inventory

   282,993

   260,819

- 0.92%

 

 

Average Cost Inventory

   173,475

   155,448

- 2.12%

$ 18,027

→ Paid to debt

Saved Interest (annually)

 

 

 

$  1,442

+ $  1,442

Increase in Net Profit

 

 

 

 

$ 20,634

OTB Annual Fee*

 

 

 

 

-  $  4,940

TOTAL PROFIT TO BOTTOM LINE  =

                 +$15,694

Call our toll-free number at 1-877-206-1299 now to get started

 

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