A friend of mine who wants to remain anonymous (I get quite a few of those) sent me an email the other day and had an interesting point to make about gross margin for brands who owned retail stores. When a brand opens retail stores they do it at least in part because they expect […]
Gross Profit Margins; How to Think About Them for Brands with a Big Retail Presence Read More »
My youngest son and I went out to get our Christmas a week or so ago. I headed towards our usual lot, expecting to pay something like $60 for a tree when we spotted a sign that read, “Christmas Trees: $29.95.” Never one to turn down a deal, I followed the signs to the lot where, indeed,
A True Christmas Retail Tale Read More »
About a week ago, SIA published a really good article on why production costs in China are rising. If you haven’t read it you can, and should, here: http://www.snowsports.org/SuppliersServiceProviders/SIANewsletter/NewsletterDetail/Contentid/1272/#top. The article is pretty tactical in nature, and I thought a little bit of the longer term social and political perspective might be interesting to you.
SIA Article on the Rising Costs of Chinese Production Read More »
Janet Freeman, owner of the small but well established women’s snowboard apparel brand Betty Rides, has a problem. On October 17th, she told me, “It’s weird but Betty Rides has ALREADY been getting lots of re-orders for snowboard jackets and pants. We cut to order, and are sold out on most things.” Naturally, I was sympathetic to
Inventory Risk and Inventory Management; Our Own Version of Musical Chairs? Read More »
Since last fall, as our new economic reality has evolved, I’ve had a few things to say about what to do. They’ve included building your balance sheet, controlling your inventory and other expenses, focusing on the gross profit line, looking at gross margin dollars as well as percentages, and making good use of your management accounting
Gross Margin Return on Inventory Investment A Tool for Our Times Read More »
I always looked first at gross margin percentages when I was running a business. Before revenue, before anything. Because those percentages were what determined how many dollars I had to pay all the salaries and operating expenses. Higher had to be better. It just had to be. Except that I was never dealing with major price differences in
Margins- Percentages and Dollars; Where to Focus? Read More »
That’s actually the way he put it to me. Many years ago, the CEO of a company that had been in deep financial trouble and had clawed its way out said, apparently in frustration with my failure to understand his concept, “You don’t understand, the cash flow is a living, breathing thing.” Now I know he
A Living, Breathing Thing; Cash Flow Management Read More »
For a while now, I’ve been carrying around in my back pocket the National Sporting Goods Association’s 2004-2005 Cost of Doing Business Survey. I have no idea why they call it that since it obviously doesn’t contain any numbers from either 2004 or 2005. Well, never mind. They do it every other year and collect
“Hey Look! Real Retailer Numbers!” What’s to Learn From Them? Read More »
Two issues ago, I suggested one possible future for the skateboard industry that I really don’t want to see happen, but which we all have to consider. Last issue, I suggested some questions you needed to ask to figure out the financial impact on your company. This issue, let’s drill down one more level and
By the Numbers; The Impact of Price and Margin Changes Read More »
In previous articles, going back to when skating was growing like the proverbial weed, I’ve talked about issues related to a downturn. Things like expense control, if you should sell your business, characteristics of a maturing market, cash flow management, the impact of a recession, and the potential impact of foreign competition. Given the continuing, current conditions
How to Survive a Downturn And Take Advantage of the Opportunity It Represents Read More »