The document discusses strategies to increase profits in retail stores using business applications, emphasizing the importance of understanding customer preferences and maintaining inventory. Key recommendations include creating a customer list, monitoring stock levels to prevent out-of-stock issues, implementing effective pricing strategies, and innovating promotions to enhance customer satisfaction. Additionally, it suggests measuring the effectiveness of new ideas to ensure continuous improvement.

1. How to increase
profits in your
store with
business apps?

2. What do you
want from your
store?
How to increase profits in your store with business apps?

3. What do you
want from your
store?
“More Customers will bring you
more sale, more sale will bring you
more profits, and more profits will
bring you more growth”.
How to increase profits in your store with business apps?

4. First thing first, know
your customers.
Who is a better customer for your store? A flying
customer X who buys chocolate worth Rs.2500 V/S Mr.
Agarwal who buys Rs.2500 grocery every month.
You will never know this if you do have a
customer list.
How to increase profits in your store with business apps?

5. Customer is the biggest assets of retailer.
What are the challenges you face to
create a list?
To give a personalized card or not. Some store owner asked us to
make photo cards. This never works. Will give a card only if you buy
more than X amount. This also does not work.
The system should generate blank
cards and the first sale should be
recorded with the card. It should also
take minimum time at point of sale.
How to increase profits in your store with business apps?

6. You need to
know what your
customers want
How to increase profits in your store with business apps?

7. They want good assortment and
fresh products.
How to increase profits in your store with business apps?

8.  They do not want to buy near expiry and old products.
 Use the “No Sale Report”
 Should consider the last 30 days, not a calendar month
 Category wise & Company wise
 There are 780 SKUs available in bath soap category alone
 But one should not keep more than 200 SKUs.
 If a SKU is selling less then 5 pcs per month then consider
removing it.
 Just liquidate the Item by either self use, promotions or
returning to supplier. After liquidating - just mark them inactive.
How to increase profits in your store with business apps?

9. They want to check the prices of
things.
How to increase profits in your store with business apps?

10.  As soon you are done with purchase entry you
should be able to print a rack label and a product
label.
 They love to see the items on promotion - its
give them the feeling of saving.
 Use the slow moving and fast moving report to
create a mountain of sku’s.
How to increase profits in your store with business apps?

11. They love good pricing. It makes
them feel saving NOT spending.
How to increase profits in your store with business apps?

12.  Use Price Verification Report (Every day)
 Stock in and pricing is a high volume transaction per day.
There are chances of pricing error.
 Your application should be able to produce a “price
verification report” to list the item with margin percentage.
 Filter out the SKUs with lower and higher margins. In FMCG
the average margin is 17% and for grocery its 10%.
How to increase profits in your store with business apps?

13. They do not like “No Have” or
“out-of-stock”.
 Consumer surveys consistently identify “we-don’t-
have” or “out-of-stock" as the issue that irritates
customers most about shopping.
 Out of stock is worst than having excess
inventory.
 It a dual loss - you lost a customer and you lost
revenue.
How to increase profits in your store with business apps?

14. Use Stock Out report
 Non Active items should not come in this report
 Make a policy to not to sale item less which sells below X units
in a month.
 For example we recommend 10 units as minimum if the
monthly sale is of a super store is 1 crore.
How to increase profits in your store with business apps?

15. They do not want to wait in
queue for billing.
 Using the thermal printer billing and barcode is
the best thing.
 In fast food using the code based billing is fastest.
 Make sure to use the “purchase basket” method
to ensure 100% scanning of barcode.
 Invest in good barcode scanner.
How to increase profits in your store with business apps?

16. They want to feel special when
they buy things time and again.
 Customer is God. And as we offer some of our
earning to God as prescribed by our religion, we
should offer some to customer.
 Scheme like buy grocery worth Rs.2500 for 11
months and take one months grocery free.
 Buy 12 pair of shoes and get 1 pair free.
 Third dinner will get 25% off in a restaurant.
How to increase profits in your store with business apps?

17. They love innovation (useful).
The green bag
 Recently I went a superstore to buy grocery. I regularly do that.
I bought goods worth Rs.1600/- and they charged me for 2 carry
bags @ Rs.5 each. This Rs.10 has pinched me a lot.
 And at another store which sale reusable bags for a refundable
amount of Rs.15/-.
Its clearly displayed in the store “Bring the carry bag back in
whatever condition and take full refund”.
I paid Rs.15 but it never pinched me, though I have never
returned the bag.
How to increase profits in your store with business apps?

18. They love innovation (useful).
The change coins
 One of our customer noticed that they are paying 10-20%
premium for the change & coins. So she started a scheme “bring
Rs.900 in coins and change and buy goods worth Rs.1000/-”.
 This is innovative but surprisingly very few customers was able to
availed this scheme. The report showed him the effectiveness of the
scheme.
 So she adjusted the scheme to “Bring Rs.90 coins and buy good
worth Rs.100". To my surprise the sale jumped by 7%.
 Learning: Innovate and make it useful for people.
How to increase profits in your store with business apps?

19. Measure whatever you do.
How to increase profits in your store with business apps?

20. 6 take away for this session
1. Increase your customers. Everything will be managed by itself.
2. Once you know your customer figure out what they want. Consider
reading the book “What your customer wants you to know” from
Ramcharan.
3. For good pricing - use the “Price Verification Report”
4. For good assortment and fast inventory turn - use the “Stock Out Report”
and “No Stock Report”
5. Implement useful and innovative ideas on regular basis. Measure the
effectiveness. Repeat the correct thing.
6. Remember correct categorization is mother of all MIS and too much of MIS
is no MIS.
How to increase profits in your store with business apps?

21. Thanks 
How to increase profits in your store with business apps?