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31 Cards in this Set
- Front
- Back
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(GOOD) SHOPPERS MUST BE: |
1. LOYAL 2. WILLING TO RETURN AGAIN 3. WILLING TO BUY REGARDLESS OF LOW OR HIGH PRICES |
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LARGE SPECIALTY STORES HAVE BROUGHT IN SPECIALIST WHO HAVE: |
1. CLEANED UP THE CLUTTER 2. MOVED ACCESSORIES TO THE MAIN ENTRANCES 3. NOT DEPEND ON PRICE TO WIN CUSTOMERS 4. BROADENED MERCHANDISE LINES |
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RETAIL FINANCE: MONEY IN --> MONEY OUT --> |
MONEY IN --> REVENUE MONEY OUT --> EXPENSES/COSTS |
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MONEY OUT IS DIVIDED INTO WHAT 2 MAIN CATEGORIES: |
1. START UP COSTS 2. OPERATING EXPENSES (variable) and (fixed) |
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WHAT ARE 6 START UP COSTS: |
-OPERATING INVENTORY -FIXTURING AND RETAIL STORE DESIGN REQUIREMENTS -RENT DEPOSITS -UTILITIES DEPOSITS -START-UP ADVERTISING EXPENSES -EQUIPMENT PURCHASES (IT, CASH SYSTEMS, ETC) |
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INSURANCE: |
-PROPERTY PROTECTION -LIABILITY INSURANCE -CASUALTY INSURANCE -FIDELITY INSURANCE |
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EXAMPLES OF MONEY IN: |
-CASH SALES -RECEIVABLES COLLECTED (MONEY OWED TO YOU) -LOAN PROCEEDS -PERSONAL INVESTMENTS -SALE OF ASSETS |
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CHARACTERISTICS FOR SUCCESS: |
DRIVE OR ENERGY, AND WILLINGNESS TO TAKE RESPONSIBILITY AND RISKS, MAKE DECISIONS, AND ACCEPT THE CONSEQUENCES |
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95% OF BUSINESS FAILURES ARE CAUSED BY LACK OF COMPETENCE AND MANAGERIAL EXPERIENCE. EXAMPLE: |
-POOR PLANNING |
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ROI - RETURN ON INVESTMENTS: |
PROFIT RETURNING, AFTER OVERHEAD |
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FACTORS THAT AFFECT ROI (5): |
1. EXPENSES - OVERHEAD 2. NET PROFIT - TOTAL EARNINGS, AFTER TAXES AND DEDUCTIONS 3. ASSETS - RESOURCES THAT ARE FULLY OWNED 4. LIABILITIES - SOMETHING THAT THE OWNER OWES 5. CURRENT ASSETS - ASSETS CONVERTED INTO CASH WITHIN A YEAR |
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AVERAGE TRANSACTION FORMULA: |
SALES / # OF TRANSACTIONS = AVERAGE ex. $90,000 / 5,500 = $16.36 AVERAGE |
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DEFINE CONVERSION RATE: |
MEASURES HOW WELL YOU "CONVERT" SHOPPERS TO BUYERS |
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WAYS TO INCREASE SALES (4 WAYS): |
1) SELL MORE OF CURRENT PRODUCT TO CURRENT CUSTOMERS 2) SELL CURRENT PRODUCT TO NEW CUSTOMERS 3) SELL NEW PRODUCT TO CURRENT CUSTOMERS 4) SELL NEW PRODUCT TO NEW CUSTOMERS |
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SALES PER SQUARE FOOT (FORMULA): |
SALES/TOTAL SELLING AREA = SALES PER SQUARE FOOT ex. $350,000 per year / 1,000 square feet = $350 per square foot |
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WHAT IS TURNOVER: |
SALES / AVERAGE INVENTORY PRICE AT RETAIL = TURN OVER HOW OFTEN YOU TURN OVER THE SALE |
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WHAT ARE THE BENEFITS OF STOCK TURN OVER: |
-COVER INVENTORY INVESTMENTS -COVER INVENTORY RISK -LESS SPACE -ROOM FOR FRESHER PRODUCT -ALWAYS HAVE NEW PRODUCT TO SHOW CUSTOMERS |
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SELLING COST AS A % OF SALES: |
-MEASURES PRODUCTIVITY OF SALES PEOPLE -USED TO COMPARE PERFORMANCE -USED TO ESTABLISH SALARY RANGES |
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SHOPPERS DRUG MART ANALYSIS: |
-DOING RENOVATIONS -NEW LOCATION AT MARINE (CAP MALL) |
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5 OBJECTIVES OF STORE DESIGN: |
1) DESIGN IS CONSISTENT WITH STORE IMAGE AND STRATEGY 2) DESIGN SHOULD POSITIVELY INFLUENCE CONSUMER BEHAVIOUR 3) DESIGN SHOULD CONSIDER VERSUS VALUE (low price vs high price designs) 4) DESIGN SHOULD BE FLEXIBLE 5) DESIGN SHOULD RECOGNIZE NEEDS OF DISABLED |
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SPACE PLANNING DECISIONS - WHAT TO CONSIDER?: |
-HOW PROFITABLE IS THE MERCHANDISE -HOW FAST WILL THE PRODUCT TURN OVER -HOW CAN MERCHANDISE BE DISPLAYED -WILL LOCATION DRAW CUSTOMERS INTO THE STORE -WHAT ITEM DO YOU WANT TO FEATURE |
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WHAT TO CONSIDER WHEN ALLOCATING LOCATION OF PRODUCTS: |
-IMPULSE PURCHASE PRODUCTS (front of store for quick purchase) -SEASONAL PRODUCTS (flexible place) |
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4 TYPES OF DISPLAY PRESENTATIONS: |
-IDEA OR IMAGE -STYLE/ITEM -COLOUR -PRICE |
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DIFFERENT TYPES OF STOREFRONT SIGNAGES: |
-MOST POPULAR TYPE OF SIGNAGE IS CUSTOM (inexpensive) -NEON (expensive) -BLOCK LETTERS -SPAGHETTI |
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WHY IS COLOUR CHOICE IMPORTANT IN SIGNAGE?: |
CONSISTENT WITH CORPORATE IMAGE |
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WHAT ARE THE 2 TYPES OF ENTRANCE DISPLAYS: |
-CLOSED (cannot be seen through windows) -OPEN (able to be seen through windows) |
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WHAT IS IMPORTANT TO KNOW ABOUT FLOORING: |
-CARPET NEEDS TO BE CLEANED -HARD WOOD CAN SCRATCH -TILE IS SLIPPERY |
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WALL TREATMENT: |
GENERAL RULE IS TO PUT AS MUCH AS POSSIBLE AROUND WALLS AS POSSIBLE TO DISPLAY TO CUSTOMERS |
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WHAT ARE THINGS TO CONSIDER ABOUT PRODUCT DISPLAYS?: |
-SIZE -CLASS -PRICE |
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HOW CAN TRAFFIC FLOW BE DETERMINED:
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BY THE LAYOUT |
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COSTS ASSOCIATED WITH FRANCHISES: |
1. INITIAL 2. FRANCHISE FEE 3. OPENING COSTS 4. WORKING CAPITAL 5. PREMISE COSTS 6. SITE EVALUATION FEE 7. ROYALTIES 8. PROMOTION COSTS |
