FrontofshopFRONTOFSHOP
What do you want from 2015?
As another golf season is about to embark, what improved results are you looking to create for your business in 2015?
sat down and reviewed 2014 with a British PGA Professional as part of the process of planning 2015. I wanted to see a number of very high-level metrics first:
I
• Total Sales • Average Gross Margin • Stock Turn • Number of Members • Number of Rounds
‘Rounds’ were a little tough to get, but
eventually the club provided a sensible guess and we looked at the following:
What do you think spend per round should be? It is up to you as the retailer to define your own
target. But please have a target, because without a target you’re highly unlikely to set up your processes and systems to improve that figure.
The impact of just one glove per fourball With a previous customer we had them add a
target to sell an additional 1 glove per fourball WITHOUT increasing stock. So what’s the impact of selling just a quarter of a glove per round? At the transaction level that’s about £1.50 per
round (£6 per glove) creating an additional 42p profit per round.
Before you read on, just plug in your numbers here. And then do the following calculations:
How does that explode our figures if that is achieved WITHOUT additional stockholding?
A boring old topic but a fixed link I know that I go on about the lost opportunity
with Fast Moving Consumer Goods (FMCG) items, but once again the average stock holding here is inflated by the stock position of golf balls and gloves. Last month we included a link (which was broken – my apologies). Please try again at
www.retailtribe.com/fastmoving. If you have a problem with your stock turn with golf balls and gloves (it ought to be 6 at a minimum), please fix it in 2015.
Just adding a ¼ of a glove sale to each round has
an enormous impact on two key figures: gross profit of course, but also FREE CASH. We went from generating just enough profit to cover the cash in the stockholding, to having about £10,000 in surplus. So what are you doing to sell extra gloves in 2015? If this is too simple for you, then I’m sorry. But I
sat and watched over 100 golfers pass through a check-in process and not once did the Assistant ask the golfer whether they needed golf balls or point out the new all-weather gloves. I’m not sure the display was thought out in
terms of how to inspire a golfer to buy a new glove, or in fact making it easy, once they’ve made that decision, to go ahead and buy a new glove. Yet the impact on the performance of the retail operation would be huge. Lenn Flanagan, PGA Professional, gave this a
go and increased his sales of gloves for a single month by over 400%! So I’d get hold of my FootJoy rep if I was you and talk about what you both can do.
My Retail suggestion for 2015 Each week choose a product you are going to
With this analysis, two things scream out at
me: no free cash is being created (avg. stockholding investment is about equal to gross profit over the year), and spend per round is less than a sleeve of Pro V’s per golfer (on average).
18 SGBGOLF
‘actively sell’ to every golfer playing at your facility. Set a real sales goal. One week it could be to sell a glove to every second golfer. Another week it could be to sell a GPS device to every 20th golfer. Then train your staff with the goal and the
script and set the daily measure (which you must review). Change the display. Promote (without a discount) the product in your shop. And sell.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44