Royal Flush Sales

The Best Hand in the Business

Feast or Famine Fall/Winter

This is a follow up to a previous post (Feast or Famine, May 2013) about gearing up for Spring and Summer sales. I would strongly suggest you go back and read the original post, since there is  good information that is relevant during the fall/summer season too.

Now is the time to look at what worked, at what didn’t, at what could have been done better, and at new techniques to improve customer service and to add to the bottom line with higher profits.

What were your best selling items? Did you make any money on those items, or did you miss out on higher profits by promoting the wrong items or for not buying into specials that manufacturer’s offer from time to time? In this new retail environment, it is more important than ever to figure out how to get more profits out of what you are selling.

There are many manufacturer’s that are offering profit margins between 40 and 50%- YES that’s right KEYSTONE- every day. Some manufacturer’s offer even deeper discounts if you can take advantage of forward buying or if you bring in new item distribution. Many times, these deals come with extended dating that allow you to bring the product in and sell it prior to paying for it. Why beat yourself up each day trying to make money purchasing from manufacturer’s or distributors who can  only offer 25 to 35% margins? So what if a distributor can get product to you the next day- wouldn’t you, and shouldn’t you, have the product in stock to make the sale today? There are not guarantees that customer is going to come back tomorrow.

Yes, this may take some time to research, but it can be well worth the work if you can find items that have higher profit margins, that fit your customer’s needs. Careful, forward buying can pay big dividends. As I said, now is the time to work on next spring and summer buying. The majority of dealers are slow between November and April. This gives needed time to explore what’s out there.

Now is also the time to survey the items that you have on the floor, and decide what you will not carry forward into the next year. Take advantage of the season, and mark these items as “sale” items for the holidays. If you have several items under $50 put them in a section for gift giving under $50. Stocking higher profit items allows you to maintain your profit goals, and may leave you some room for marking down and clearing out this merchandise so you have room for the new stock after the first of the year. Be sure to ask your  manufacturers representative for stock rotation or in-store markdown credit too. As long as you are purchasing new product from the same manufacturer,they are usually willing to help with a credit towards that new product to cover stale or discontinued product.

Royal Flush Sales is proud to work for manufacturer’s that offer higher than average profit margins. Most of the lines listed on this website have 32-50% margins every day, with special pricing that takes profits upwards of 62% during promotional timing.

 

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Posted on: Tuesday, December 3rd, 2013 at 5:57 pm

Posted in: ATV &UTV accessories, Best Practices for Business, Motorcycles & Scooters, Uncategorized

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