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Here are the actual results from
Lonnie B's Western Wear store:

  • Sales increased by 7% - From $416,000 to $446,000
  • Gross Margin increased 1.70 percentage points
    Due to having dollars to spend in-season for special buys and marking down goods less because there was not excessive amounts of inventory.
  • This translated to $19,192 additional Gross Margin.
  • Stock Turn Rate increased by .24 turns
    Stock Turn Rate was 1.47 and it increased to 1.71
  • The inventory reduction was $18,027 at cost (based on this client's 54% IMU). This was used to reduce his debt and saved $1,442 annually in interest expense (@ 8%).
  • The Store's TOTAL Net Profit increased by $20,634
 
Before OTB
After OTB
Change %
Change $
Net Profit
Sales Volume
$416,000
446,000
+7.00%
$30,000
Gross Margin %
38.70
40.40
+1.70
Gross Margin $
$160,992
180,184
+11.92%
$19,192
$19,192
Stock Turn Rate
1.47
1.71
+0.24
Average Retail Inventory
$282,993
$260,819
-7.84%
Average Cost Inventory
$173,475
$155,448
-10.39%
$18,027
*Paid to debt
Saved Interest (annually)
$1,442
+$1,442
INCREASE IN NET PROFIT
$20,634


(Following a successful career in retailing, Lonnie has happily retired in East Texas.)
The Retail Management Advisors is a BBB Accredited Management Consultant in Allen, TX

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