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Making More Money in Your Business Sterland Building Solutions Business Improvement Division

Making More Money in Your Business Sterland Building Solutions Business Improvement Division. Making More Money in Your Business Sterland Building Solutions Business Improvement Division. Welcome Members. Bill Gates;. “We’re now entering the velocity age”

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Making More Money in Your Business Sterland Building Solutions Business Improvement Division

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  1. Making More Money in Your Business Sterland Building Solutions Business Improvement Division Making More Money in Your Business Sterland Building Solutions Business Improvement Division Welcome Members

  2. Bill Gates; • “We’re now entering the velocity age” • “ Business at the speed of thought” Prosperity is all encompassing. Successful people start a project expecting success.

  3. Technology is expensive I have pressure on my sales & margins It costs money to keep up to date The market is declining I can’t keep up with the big boys How do we stay competitive when...?

  4. What’s in your future? The Daily Telegraph • “Small retailers will become history” • “7,000 independent operators will disappear in the next nine years” • “Industry experts predicting thousands of small businesses will be crushed in the coming price war” The AustralianJune 3 2011 • “The managing director of the Wesfarmers-owned Bunnings hardware chain, John Gillam, said yesterday he would go ‘very, very hard’ in defending its position”

  5. How will you fight back? The first Masters stores will open at Gregory Hills, near Narellan, and Rutherford, near Maitland. The next six will come in • Ballina • Hoxton Park • St Marys • Warwick Farm • West Gosford • Wagga Wagga if rezoning and council approval is successful.

  6. Arrow indicates 2011 - 2012 Continued slight decline to 2013 Flat line thereafter Then a gradual increase expected in 2014-15 & onwards Long Term Forecast 2011 - 2019

  7. Examples of the impact of turns The increased stock turn, less than ½ a turn – and no other changes – has produced $150,000 in extra profit for this business

  8. The impact of turns + GP The increased stock turn, less than ½ a turn – and 1% increase in GP with an increase in stock holding – will produce >$215,000 in extra profit for this business

  9. Adding velocity to your stock • Quick supplier deliveries • Fast receiving - Electronic • Fast delivery scheduling • Improve customer pick ups • Display all merchandise quickly • Efficient customer service • Nail down showroom items during trial periods • Proper displays that aid sales • Signage – uniform, professional clear & large • Best seller recognition

  10. Know your best sellers, they’re your gold! On the bottom you can see that 2,000 items are dogs. They represent $180,000 in inventory invested that produce $0. The definition of a dog is an item that produces zero or even negative gross margin dollars

  11. More tools to fix your turns... • Buy new merchandise at the right time • Get your staff up to speed as efficient salespeople • Modern purchasing – EDI • Purchasing follow up – back orders • 100% inventory accuracy – Bar coding • Delivery & Pick up efficient • Track & Analyse everything • Correct costings on stock (including freight) • Continuously review • Burn your dogs

  12. Example of a target stock aging table

  13. Inventory Management List

  14. Thank you kindly for your attention “The more you blame forces outside of yourself for your situation, the more your are dominated by them” Further information will gladly be provided to any Plumbtec member in this room. Simply contact Mark or betterbusiness@sterland.com.au

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