Rescission-Proof Your Retail Store

les newsConsumers' spending habits directly affect the profits and ultimately success of a retail store. And during the nation's recent economic hurdles, thousands of retail stores were hit. Some businesses went completely under, while others are generating less profits. While there's no way to completely avoid the effects of a rescission, there are steps you can take to help guide your business through dark economic times. To learn more about rescission-proofing your business, keep reading.

Know Which Products Are Generating The Highest Margins

One important tip for beating the rescission is to identify products in your store which are generating the highest margins. For instance, an apparel store might spend $10 on a wholesale jacket that they sell for $30. This is a solid $20 profit margin per sale, which can quickly add up if customers are interested in it. If you haven't done so already, go through your store's inventory and make an itemized list sorted with the highest margins first. Next, make a note next to the item stating how many units you sold last month.

Once you've identified high-margin products in your store, you should increase their visibility by setting some up on display. The more attention you can draw to these items, the more sales you'll make. Placing that same $20 margin leather jacket on a window display is bound to increase your sales. Just remember to focus on high-margin items that customers are actually buying.

Buy Smarter

Are you buying product for your retail store without asking questions or trying to negotiate with the distributor? Sure, it's probably easier to accept their their offer and sign your name to a purchase agreement, but chances are you're wasting money in doing so. Instead, talk with your distributors and manufacturers to negotiate a lower purchasing price. Most reputable companies will be more than willing to reduce their prices if you purchase in bulk. For instance, a pair of jeans that are normally $10 might cost $9 per unit if you purchase 100, or even $8 if you purchase 200. Talk with your distributors and manufacturers to negotiate better product prices.

Reduce Your Bills

Of course, you can also save on 'operating expenses' by analyzing and making adjustments to your monthly bills. Depending on your store's physical location, you might have several different options when it comes to power, gas and water. If so, call around to receive different quotes from each of these utility companies. When you are finished, call them back for a second time to inform them of the lowest quote. Some utility companies may lower their prices down even further just to keep you from going to their competitors.

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