GO BIG or GO HOME! A Retail Cheer! A life motto….

This is my retail mantra. GO BIG or GO HOME! Actually it is my life mantra!
 
Usually associated with NCAA basketball time and March Madness, it accurately describes the entrepreneurial life.   All these teams get one shot.  If they lose – they go home.  If they go big, they advance.
For you, to advance means to increase your profits, right?  So how do you go big?  

In order to go big, let’s start by going small.

Let’s look at one class.  How would it change your perspective if you only had one chance – ONE MONTH – to make a class work?  

This theme comes up with my clients.  They are frustrated with a slow month and want to talk about the BIG picture.  I know for certain that the only way to solve the BIG picture is to start small.  Elephants are big, right?  There is an old adage that goes: How do you eat an elephant?  One bite at a time.

Start with just ONE class… How do we go BIG in a class?  On your OTB, that planned inventory number for the month means that you must have that amount of new, fresh, good merchandise in order to make your sales goal for the next month.  Allow me to repeat that.  The key words are “new, fresh, good” merchandise.  You have the benefit of the FF – freshness factor.  Look at how much you have received at retail in the last 90 days.  Divide that number by your total amount of inventory in that class.  That is your FF90 percentage.  It tells us how much is fresh inventory has been received in the last 90 days.

Now, how to go big in a class and get the most profit out of it… For most of you, for most classes, the FF90 MUST be 100%.  Because if it is, that means that you are bringing in exactly what your customers want… then you are selling it… and then you are bringing it in again… selling it and bringing it in…

I challenge you to look at your sales from last month and see what classes are increasingly up over last year.  Now look at the FF90 percentage.  There is always a direct correlation. Always.  Because you are bringing in exactly what your customers want… then you are selling it… and then you are bringing it in again… selling it and bringing it in…

So the strategy to go BIG on a class:

1. ID your dogs – go BIG on them – mark them down today – deeper than you are comfortable with – get rid of them now.  This will create more cash for you by the end of the month.

2. ID your best sellers – go BIG on them – order deeper than you are comfortable with.  Push yourself out of your comfort zone.  Don’t overbuy your total OTB. But go deeper in it.  

3. Include your team on this strategy – get their input.

What class will you choose?  Now review it next month…and the next month…  Watch the progress.  GO BIG!

(Guess what?!  Tealula, a fabulous tea shop and one of my remarkable clients, made a special ‘Go Big or Go Home” green tea blend!  You need it!).

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