1. GOLF SHOP: The chart above is the very first
shop to use OTBW. In 1999, they transitioned from a good
spreadsheet to OTBW. At this ($500,000/Year) shop, the increased margins
amount to ($25 - 40K/Year)! Nothing else changed. Same
management, same buyer, same physical shop. The chart ends when
the buyer retired in 2006.
Looked at another way - $25 -40K/year had been the annual COST of the "free" spreadsheets they had been using before automation.
How much input time was required? About 18 hours/year. Was that time well spent?
$36,000/18 hours = $2000/Hour.
How can an inventory plan make such a large difference in gross margins? OTBW optimizes inventory in every classification and updates o-t-b calculations dynamically with every entry. You never have too much or too little in any classification. This reduces markdowns to minimum levels, which improves sales, profits, return on investment and every other measure of good retail management.
2. BOUTIQUE: ACTUAL PERFORMANCE RESULTS BY A FASHION BOUTIQUE IN 2015:
This Shop Owner plans her Turns at (5), COS at (45%) and aggressively
marks down anything that has not sold in 60 days.
With a 628% GMROI she does not retain merchandise that is not
moving. Her other
reports are just as impressive.
Actual is very close to Plan.
The OTB Report shows only very small Plus and Minus numbers
because her Purchase Orders approximate the otb amounts on the report.
When she registered less than a year ago with OTBW, her Sales
budget was $386K and it has since improved to $475K.
Fresh, fast moving merchandise improves sales! She makes an
appointment with us every three months to review and improve her plan.
Achieving excellent shop results doesn't
just happen. It is a
(Golf Shops are similar but can conservatively plan (4) Turns with customized COGS)