How to use reports from your EPoS system to make more net profit
Question from a new retailer
There are lots of ways to answer this question. I will look at one of the direct ways in which to utilise this information.
When talking with suppliers, many retailers fail to ask for discounts because they don't feel like they have the leverage of the big boys. In many cases, that's simply not true. They just need to ask. The worst the supplier can say is no. Reports can help you ask in a factual businesslike manner, they provide a rationale for getting a lower price.
For example, you could call your supplier and say, "I'm looking at the reports in my EPoS software and analysing the profit margins for my business. I see that you're one of our top suppliers, but our margins on your products are towards the bottom. In fact, they're 9% lower than our top two suppliers. We really like your products and we would consider ordering even more, but we simply need to make more money. What can you do about better discounts on a permanent basis?"
This is so much more effective than simply saying, "Can I get a discount please?"
You'd be amazed how just asking for better prices from your suppliers can knock off a big chunk of your stock costs. This goes directly to net profit, so even a small price reduction from your main suppliers can mean big positive swings in net profit. Having actual data in front of you makes it easier get what you want.
David Mackley writes articles on retail technology for several leading retail trade magazines. This Q&A was published in Gift Focus magazine.