Summer is coming and all the signs are 2017 is going to be a great year for golf retailing. Indeed, stats from the market review presented in this month’s webinar how on-course has grown by 12.6% over the last year, and off course by a whopping 23.8%
Don’t get left behind! At Crossover Technologies, we believe that the secret of retail success lies in great stock management.
Here are the three core pieces of advice that we give our customers:
- Focus on profit not turnover
While you may have already made the majority of your buying decisions, the pressure will still be on from sales reps. But remember, the decision on what stock to buy and related discounts shouldn’t be based on guess work. Excess stock is the biggest issue in the golf industry. The average Pro is sitting on £16 k of stock they don’t need. Don’t let this be you! The important thing to remember is that it’s a lot easier and cheaper to improve your profit than your turnover.
- Set weekly meetings
Communication is key. With Skype and other similar platforms there really is no excuse not to hold regular weekly meetings with your team. The ”Sales Analysis” report from our XPOS system, is a great place to start with any team meeting, and helps to focus your mind and plan. With our XPOS, you can run a report on sales analysis which shows gross profit for each product category – a great way to prioritise your efforts. So, what margin should you be aiming for? Taking market averages, at Crossover we believe a Poor margin is less than 28%. Average margin is 28 – 31%, Good is 32-34%, Very good is 35% +Which category do you fall into? The worst position is not to know.
This is a key consideration for good stock management. Strategic decisions on discounting need to be made in June, when footfall is highest, not September/October as a panic strategy.
As a general rule, golf retailers should try to avoid an over-reliance on an annual sale. It’s much more effective to run a flash sale in June – perhaps for one weekend only. This will generate higher returns.
For users of our XPOS system, we recommend running the “Unpopular Products” report. This will give you a true representation of the products you really need to shift in order to free up your cash flow to invest in other more profitable products.
We will be co-hosting seminars with golf partners, TGI and Foremost, over the coming months, so if you’re a member come and learn some top tips and advice. Keep an eye on our twitter account to find out more @crossovertec