ASK THE EXPERT: WHAT ARE MY MOST IMPORTANT WEEKLY AND MONTHLY FIGURES?

Q: “I wear a lot of hats in my business, but I’m trying to get better at spending time with my sales figures and really understanding what’s going on in my business. Which numbers do you suggest that I focus on each week and month?”

A: Understanding your sales numbers is crucial for making informed decisions. Let’s delve into the concept of balance analysis and explore which numbers you should focus on each week and month.

1. Balance of Sales by Classification

• Start by examining the balance of sales within specific classifications. For instance, consider the Clothing department, which may have subcategories like Suits, Sportcoats, Blazers, and Dress Pants.
• Setup a report that calculates the balance of sales for each classification. Compare the balance for the last month, the last 90 days, and the last 180 days.
• Look for trends: Are certain classifications growing while others are declining? For example, are Sportcoats gaining popularity while Suits are decreasing in sales?

2. Balance of Inventory by Class

• Next, analyze the balance of inventory within the Clothing department. Is it aligned with the changing balance of sales? If Sportcoats are selling well, do you have sufficient inventory to meet demand?
• Consider factors like stock levels, turnover rates, and replenishment cycles.

3. Balance of On-Order

• Include the balance of items that are on-order, but not yet in inventory. Are there pending shipments or backorders?
• Ensure that the balance of on-order items aligns with sales trends and inventory levels.

4. Regular Review

• Save this report and review it at least once a month. Regular monitoring allows you to spot patterns and make timely adjustments.
• Adjust your on-order quantities based on the balance analysis. If Sportcoats are selling well, consider increasing orders for that category.

By closely monitoring these balances, you’ll not only improve sales, but also enhance your margin. Remember that consistency and attention to detail are key.

If you need more help, you know where to find me: At BlacksRetail.com.

Photo by Andrea Piacquadio.