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KNOW THE IMPORTANT METRICS
KNOW THE IMPORTANT METRICS
GROSS MARGIN ROI TURN RATE
GMROI =
Gross Margin
Average Inventory Cost
TURN RATE =
Cost of Goods Sold
Average Inventory for a Given Period
Before you can effectively expand cash flow, you
need to understand two important metrics:
USE THE BEST SELLING STRATEGIES
USE THE BEST SELLING STRATEGIES
Knowing that inventory is a huge factor in seeing positive (or negative)
cash flow, it’s important to evaluate your selling strategies.
HEAT-MAPPING: The practice of identifying your
hot selling spots in your store. It’s a great tactic
for moving low-performing inventory quickly.
TIP: PRACTICE HEAT-MAPPING
PAY ATTENTION TO YOUR EMPLOYEES
PAY ATTENTION TO YOUR EMPLOYEES
Every store needs to look at employee performance every
quarter so you can identify which employees are crushing
it and which might need more help or training.
TIP: EMPLOYEE REVIEWS
For the full guide, visit
ricssoftware.com
CLICK HERE
OR
ricssoftware.com
800.654.3123
@ricssoftware

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Cash Flow: How To Use Inventory Management to Make More Now

  • 1.
  • 3. KNOW THE IMPORTANT METRICS GROSS MARGIN ROI TURN RATE GMROI = Gross Margin Average Inventory Cost TURN RATE = Cost of Goods Sold Average Inventory for a Given Period Before you can effectively expand cash flow, you need to understand two important metrics:
  • 4. USE THE BEST SELLING STRATEGIES
  • 5. USE THE BEST SELLING STRATEGIES Knowing that inventory is a huge factor in seeing positive (or negative) cash flow, it’s important to evaluate your selling strategies. HEAT-MAPPING: The practice of identifying your hot selling spots in your store. It’s a great tactic for moving low-performing inventory quickly. TIP: PRACTICE HEAT-MAPPING
  • 6. PAY ATTENTION TO YOUR EMPLOYEES
  • 7. PAY ATTENTION TO YOUR EMPLOYEES Every store needs to look at employee performance every quarter so you can identify which employees are crushing it and which might need more help or training. TIP: EMPLOYEE REVIEWS
  • 8. For the full guide, visit ricssoftware.com CLICK HERE OR ricssoftware.com 800.654.3123 @ricssoftware