Clothing Shops Must Learn: Ways To Improve Store Profits

First, the profit calculation method of clothing shops.

We can see from the above analysis that the cost and profit of clothing shops can be explained by the fact that the cost of the shops along the street is more related to the selected market and location, and the cost of the shops is relatively fixed.

It is determined by the level of turnover.

The profit of the shops along the street is equal to the gross profit of the goods minus the operation cost, which requires the dealers to choose in advance.

When it comes to shops, it is necessary to assess whether the basic fixed operating cost matches the location and strength of the selected brands, followed by how to improve gross profit of goods sales.

The profit of a department store is equal to that of actual sales multiplied by net interest rate.

Net interest rate = average sales discounts - (purchase discount + VAT invoice deduction + shopping mall deduction + staff salaries account for turnover ratio + miscellaneous fees).

As we can see from this formula, if our net interest rate is close to zero, the annual sales volume is 1 million yuan or 200 yuan yuan, and the difference of profit is small.

Therefore, in our department store operation, it is very important to consider the promotion of turnover, but it is more important to consider how to increase the sales profit rate than to increase the turnover.

Two, clothing stores can not save two costs

In the cost control, we should consider whether we can increase the payoff of certain expenditures.

Clothing stores have two costs that need to be reinvested.

One is the wages of employees.

Shop display, service, health, management, until the final sales are generated by the staff, the wages of employees to a certain extent determines the work mentality of employees, thereby affecting the quality of work.

One is the cost of decoration.

Nowadays, consumers are pursuing a pleasant, high-grade service and shopping environment. Although the shop decoration image is not the only factor determining the sales performance of the store, the quality of the decoration image has a direct impact on the entry rate and the consumer's impression of the brand.

Clothing shops are generally divided into two categories, along the street shops and department stores. For the shops along the street, the profit of the shops along the street is the gross profit of goods sold minus the operating cost of the shops, while the operating cost is basically fixed, so the profit and loss of the shops along the street will depend more on the gross profit margin.

First of all, in terms of purchase.

Some Brand Company have two ways to purchase goods, one is the order discount is less than the replenishment discount; the other is the buyout discount, which is lower than the returnable replacement discount. We should improve the quality of the order, replenishment, sale and storage quality through the accurate quantity order management and replenishment management, and improve the profit contribution rate of the goods.

The second is to save electricity and telephone charges, freight and so on.

The department stores and the shops along the street profit calculation method is different, the use of the button mode of department stores are based on the discount price difference to get profits.

The cost of deciding department stores is turnover and brand rather than shopping mall, so we should make more choices in choosing brand and sales discount.

The first is the choice of brand.

In the operation of department stores, we should choose stronger brands. Such brands can generally get lower buckles and better positions. Secondly, we choose brands with low discount.

Next is sales discount.

There are two main factors that affect sales discounts, one is sales promotion arranged by shopping malls, the other is inventory pressure.

The second is the way of deduction.

Some bazaar stores have their own bottom points. If sales do not reach the bottom sales, they will be buckled according to the bottom sales. If the sales exceed the bottom sales, the excess part will enjoy a lower deduction.

Of course, the choice of purchase discount mode and the way of advertising cost should be considered in order to minimize the cost of operation and maximize the sales discount, so as to enhance sales profits.