I’m continually asked by merchants as well as the retail media about how to achieve this goal. Everyone in our industry wants to know how to growth-hack and here’s the answer:
Stop worrying about revenue.
And to do that, you need to go all the way down to the basics of effective pricing.
Well-developed businesses use key performance indicators to plan inventory investments, like a retailer’s assortment plan or a manufacturer’s production plan, that support planned revenue. These plans in turn are based on the nitty-gritty skills of inventory management and stock control.
However, before inventory management, investment plans, or KPIs, we must start with truly understanding pricing and profit to ensure our business is scaling successfully rather than problematically.
THIS is where the obsession with cash flow begins — with pricing and profit.
As you listen to this 16-minute tutorial, listen for these important practices plus one hot tip about how to unlock these decision making tools:
- Examples of quantitative data that small businesses use in day-to-day business
- Storytelling nature of qualitative data
- Well described trends vs. statistically significant trends
- Why the human element in buying and selling requires both art and science
- The key to data-driven growth and comparing apples to apples
- Challenges that arise in the absence of metrics, specifically key performance indicators
- Common misunderstanding of the relationship between sales and inventory
- Review of the three stages of growth from profitability through forecasting
- Tutoring and professional development support at MerchantMath.com
Take some time to reflect right now then comment below!