How a shop makes money.
WHAT DRIVES REVENUE
How many people enter What proportion buy What they spend How often they return
WHAT THOSE FOUR ARE
The levers available to you.
WHY THAT FRAMING HELPS
It tells you where to act when sales fall.
WHAT TO ESTABLISH
Which lever is weak.
HOW
Count people entering, and compare against transactions.
WHY COUNT
Most retailers know sales and nothing about traffic.
WHAT CONVERSION TELLS YOU
Whether the problem is attracting people or serving them.
WHAT LOW TRAFFIC WITH HIGH CONVERSION INDICATES
A visibility or location problem.
WHAT HIGH TRAFFIC WITH LOW CONVERSION INDICATES
Range, price, presentation or service.
WHAT GROSS MARGIN IS
The difference between what you pay and what you sell for.
WHY IT MATTERS MOST IN RETAIL
Fixed costs are substantial and margin is what covers them.
WHAT TO CALCULATE
Break-even sales per day.
HOW
Fixed costs divided by margin proportion, divided by trading days.
WHY PER DAY
It is the number staff can actually understand and work toward.
WHAT COSTS DOMINATE
Stock Rent Staff Power
WHAT MOST RETAILERS UNDERESTIMATE
Cash tied up in stock.
WHAT TO TRACK
Sales, margin and stock, weekly.
