Retailers Chasing Profits!
Business Advisory Services Updates
A common question that accountants hear from retailers is “Why, if we are selling so much product, aren’t we making a profit?”
In my presentation to the Accounting Business Expo on Tuesday 17th November at 1.30pm AEDT (12.30pm AEST) I’ll briefly discuss this very important question. Register for your FREE ticket to the Accounting Business Expo - https://secure.terrapinn.com/V5/step1.aspx?E=10138&p=1&_ga=2.139956148.680047742.1604884253-2119313395.1604884253
In most instances, retailers purchase a variety of products from various suppliers and they then mark-up those products to a price that they believe will enable them to compete with their competitors.
Accountants utilising “ESS BIZTOOLS’ Retail Product Package” can analyse the business to advise retailers on product mix and mark-ups.
The key components of this analysis includes the:
- Labour Costs
- Overhead Expenses
- Targeted Profit
These figures will enable a calculation to be made on projected gross profit and sales. An analysis then needs to be made on the various products that are going to be sold to determine whether the various products, with different mark-ups, can be so configured that the overall result will generate the profit that the owner requires.
