Recent Articles

Retail

Retail standards include financial performance and levels of production contingent upon the market. There is no set standard, but guidelines and tools to maximize the business.

Inventory Management – Specific Identification Method

12/17/2014

There are several methods used to manage and track inventory in retail.  One of the most accurate inventory management tools is the specific identification method.  In this system each piece of inventory is monitored and tracked throughout the [...]

Point of Sale System – Introduction

12/03/2013

Almost all retail based operations require a Point of Sale (POS) System to properly record the customer and product activity.  So what is a Point of Sale System?  How is it set up?  What information should we get from this system?  How does a [...]

How is Cost of Goods Sold in Retail Determined?

02/16/2013

Each industry is different in determining costs of goods sold or cost of services rendered.  Retail uses two distinct methods to calculate costs of goods sold.  The first is called ‘Specific Identification’ whereby each item sold is [...]

An Explanation of Inventory Turnover

01/03/2013

A relationship exists between inventory and sales.  This is referred to as ‘Inventory Turnover’ or ‘Turnover Ratio’.  It is simply the number of days it takes to turn over the dollar value of the inventory.  This relationship is important [...]

What is the Difference between Markup and Margin?

12/08/2012

Mark Up Calculator It is amazing how one simple formula can be so confusing to the average business owner.  The formula is markup.  It is defined as the dollar amount or percentage of the cost of the item added to the item to equal its sales [...]

Retail Sales: There Are No Rules

11/29/2012

I credit my education to two men.  They taught me more than the graduate professors in college.  One was a self-made man, the other a hard core business man.  The later was involved in retail and it’s his principles of business that this [...]