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By The Numbers: The Discount Balance

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By The Numbers: The Discount Balance

MOST JEWELERS FIND it difficult to resist a request for a discount; it’s part of the to and fro of retailing, and strategically it’s often necessary to get slow sellers out of the store. Still, it’s crucial to get the balance right as the impact on your bottom line can be surprisingly large. Here, see what happens when a typical $1.3-million retailer reins in his price-cutting by just 10 percent, both in terms of the size of the discount, and on the number of items being discounted. These figures are for July. Over a year it ads up to an extra $37,000 in gross profit!

By The Numbers: The Discount Balance

This story is from the October 2008 edition of INSTORE.

David Brown is the President of The Edge Retail Academy (sister company of The Edge), who provide expert consulting services to help with all facets of your business including inventory management, staffing, sales techniques, financial growth and retirement planning...All custom-tailored to your store’s needs. By utilizing the power of The Edge, we analyze major Key Performance Indicators that point to your store’s current challenges and future opportunities. Edge Pulse is the ideal add-on to the Edge, to better understand critical sales and inventory data to improve business profitability. It benchmarks your store against 1100+ other Edge Users and ensures you stay on top of market trends. 877-569-8657, Ext. 001 or [email protected] or www.EdgeRetailAcademy.com

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