With so many golf courses suffering from a myriad of trying economic circumstances, it is important that every profit center function as efficiently as possible. One area that is often overlooked is the financial success of the golf shop.
Alan Fisher, noted retail expert for golf shops and other retail stores, has joined Pellucid to help golf shops increase profitability and decrease inventory investment. “With limited information on key performance indicators available to golf shops, it is little wonder that these businesses suffer from low profits and low stock turnover rates”, states Alan, who has spoken frequently to groups of PGA professionals and golf shop buyers over a 25-year span.
By working with an Open-to-Buy and reacting to trends, the typical retail shop should experience gains in profits of 3 to 5 percentage points and reductions in inventory of 10-20%. For every $100,000 in sales, this represents $3,000-$5,000 additional profits. With a 10% cost of carrying inventory, the reduction in inventory can be an additional $1,000-$2,000 annually for a shop carrying $100,000 in inventory.
The approach is to develop a category-level sales plan and then apply the projections to the Open-to-Buy formulas to develop a sound buying plan. Each month, Alan provides an analysis to spot trends in turnover rates, cumulative profits and inventory reduction success. This allows for proactive steps to be taken to prevent unwarranted purchasing while maximizing the success of exceptional performances.
Sharper Retail is $200 per month for up to 10 categories of merchandise. Larger shops with more categories will be quoted.