Five Buying Tools To Maximize Revenue

The Casual Furniture Industry Has experienced steady growth over the past several years. As a business owner, it’s important to understand how that macro growth has translated to your personal business. Your retail so ware can serve as a wealth of information about your biggest merchandising successes and a guide for what you shouldn’t re-buy at your next market.

Here, we outline five of the best buying tools to maximize your merchandise performance and keep pace for strong growth in 2017. A er all, every dollar should be put toward generating the greatest gross margin return on investment.

80/20 Analysis

Some “rules” have universal application and the 80/20 rule is one of them. If 80% of your sales are generated by 20% of your products, you want to know exactly what that 20% is and how to maximize your gains. An 80/20 analysis allows executives and buyers to determine their inventory all-stars based on a variety of benchmarks: bestsellers, top revenue generators and highest margin holders.

Product Performance

Key product metrics help balance the intuitive and artistic side of buying. Product performance snapshots aggregate data to compile key metrics such as gross margin return on investment (GMROI), cost, selling price and sales history, all in real time.

Collection Analysis

Buying collections can be a substantial investment, yet it’s an important merchandising strategy in the casual furniture industry. Analyzing your collections by overall profitability can help you determine what lines to reinvest in, or what trends to look for when purchasing a new collection.

Sales to Inventory Ratio

This tool provides a high-level look into your merchandising strategy. It shows each product’s total on-hand inventory value and the percentage it represents of your total inventory. This is complemented by the product’s annual sales revenue and what percentage of your total sales each product represents. Comparing inventory to sales is key to analyzing the effectiveness of your assortment planning.

Purchase Recommendations

Finally, we believe a buying analysis is best supported by actionable recommendations. This tool provides an overview of your current inventory, open purchase orders and sales trends by product. This helps your buyers effectively plan overall inventory. They can even automatically generate a purchase order to quickly respond to demand.

At Storis, these tools have contributed to 3-5% margin growth just in the first year post conversion for many of our newest retail clients. Whether it’s through your current retail technology or by expanding your analysis with new technology in the future, make sure your buying team has the tools to maximize your merchandise’s performance.

Research Store

Web Directory Search
Search for Products/Companies

Featured Video

  • Casual Friday: Furnitureland South's expanding outdoor showroom

    Camera Icon More Videos

Subscribe to
Casual Living eWeekly
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Exterior Design

Exterior Design Fall 2017

A new season means a fresh look at outdoor luxury in the fall issue of Exterior Design. From the Hollywood Hills to the penthouses of New York, we explore the most opulent outdoor spaces, products and designs. The Fifth Room has arrived in high style, and you don't want to miss it! See the latest issue!

November Digital Edition

NovemberDigitalIssue

Don't miss the November digital edition of Casual Living! In this month’s issue, we look to the future of retail with a spotlight on technology. Assistant Editor Alex Milstein breaks down the basics of artificial intelligence (AI) and augmented reality (AR) and how they’re changing the furniture shopping experience. We also explain how building engagement on social media channels can boost business for retailers. 

Universe Study

You’ve waited two years, and it’s finally here! Casual Living’s biennial Universe Study offers a comprehensive snapshot of the outdoor category, highlighting its growth across all segments from furnishings to shade to grills.

Also in This Issue:

• Designer Viewpoint: A Beverly Hills backyard gets a glam makeover, thanks to renowned designer Christopher Grubb.

• Market Report: Our editors give you the inside scoop on all the new outdoor introductions at the High Point Market. Can you say Cobonpue?

• Casual Insights: Kathy Wall of The Media Matters offers insight on refreshing your brand.

 

November Digital Edition