Download retail math formulas cheat sheet and more Cheat Sheet Retail Marketing in PDF only on Docsity! 7/22/2011 2 Bob@WhizBangTraining.com | www.WhizBangTraining.com | 616-842-4237 Items per Sale number items / number of transactions 127 items / 39 transactions = 3.2 items per sale Low items per sales probably indicates that the employee isn’t consistently adding on. Employee Equations Bob@WhizBangTraining.com | www.WhizBangTraining.com | 616-842-4237 Average Sale total dollars sold / total number of transactions $1083 / 39 transactions = $27.76 avg. sale Low average sale usually means- • the employees isn’t adding on • OR is not selling higher priced goods, • OR both! Employee Equations 7/22/2011 3 Bob@WhizBangTraining.com | www.WhizBangTraining.com | 616-842-4237 Sales Volume Per Hour total sales / total hours worked $1083 / 7.75 hours = $139.74 per hour • Low SVPH along with low items per sale and low average sales means poor selling skills. • Low SVPH with HIGH items per sale and average sale means not enough time spent selling! Employee Equations Bob@WhizBangTraining.com | www.WhizBangTraining.com | 616-842-4237 Sales Per Sq. Foot total sales / selling sq. footage $632,546 / 1281= $493.79 per sq. ft. • Measure of efficiency/productivity • Compare departments, vendors • Can be used with linear feet Sales Calculations 7/22/2011 6 Bob@WhizBangTraining.com | www.WhizBangTraining.com | 616-842-4237 Cost of Goods Sold Inventory Calculations Beginning Inventory + Purchases - Ending Inventory $320,347 + $90,853 – $310,295 = $100,905 • Purchases includes freight • Can evaluate by dept, by vendor Bob@WhizBangTraining.com | www.WhizBangTraining.com | 616-842-4237 Gross Margin Inventory Calculations Sales – Cost of Goods Sold $32,826 – $14,739 = $18,087 7/22/2011 7 Bob@WhizBangTraining.com | www.WhizBangTraining.com | 616-842-4237 Initial Markup Inventory Calculations Profit% + MD% + % Expense ÷ 100 + MD% 8% + 15% + 37% = 52.2% 100% + 15% Bob@WhizBangTraining.com | www.WhizBangTraining.com | 616-842-4237 Gross Margin Return on Inventory (GMROI) Inventory Calculations $ Gross Margin ÷ Average Inventory @ Cost $240,000 ÷ $100,000 = 2.45 • For every $1.00 you invest, you get back $2.45 • Compare departments, vendors 7/22/2011 8 Bob@WhizBangTraining.com | www.WhizBangTraining.com | 616-842-4237 Current Ratio Financial Calculations Current Assets ÷ Current Liabilities $472,002 ÷ $385,638 = $1.22 Bob@WhizBangTraining.com | www.WhizBangTraining.com | 616-842-4237 Quick Ratio Financial Calculations Current Assets - Inventory ÷ Current Liabilities $472,002 – 52,185 ÷ $405,638 = $1.03
