RETAILS ABCD..
Cost
Price (C. P.)
MRP (Maximum Retail Price) Gross Sale Net Sale Gross Margin Gross Margin % Mark up Mark Down Flat Price
MAX TRAINING PROGRAM
COST PRICE (C.P.)
Is the price at which the merchandise was bought from the vendor.
MAX
TRAINING PROGRAM
MRP ( MAXIMUM RETAIL PRICE)
Is the price at which the merchandise is sold at store OR Is the price customer pays to buy a merchandise
MRP = GROSS SALE VALUE
MAX
TRAINING PROGRAM
NET ON TAX (NOT) or NET SALE VALUE
Price after deducting taxes (sale tax , VAT, service tax) and discounts (if applicable)
FORMULA : NOT = GROSS VALUE TAX VALUE
Eg. If MRP = Rs. 499 , Taxes = 10% Tax Value = (499 * 10)/100 =Rs. 49.9 NOT = 499 49.9 = Rs. 449
MAX
TRAINING PROGRAM
GROSS MARGIN Overall margin or profit made on a merchandise. Formula : Gross Margin = MRP CP or Gross Margin = Gross Value Cost Price
Eg. : If C.P. = Rs. 240 , MRP = Rs. 400 Gross Margin = 400 240
= Rs. 160
MAX
TRAINING PROGRAM
GROSS MARGIN % Overall profit% made on the merchandise Formula : Gross Margin % =
MRP - CP C. P. 100
Eg. : If C.P. = Rs. 240 , MRP = Rs. 400 400 -240 Gross Margin % = 240
MAX TRAINING PROGRAM
100
= 66.6%
KEY PERFORMANCE INDICATOR (KPI)
Walk-
ins
No. of Bills (NOB) Conversion % Average Cash Memo (ACM) Average Basket Size (ABS) Per Piece Value (PPV) Sales Per Square Foot (SPF)
MAX
TRAINING PROGRAM
WALK INS
Total number of customers walking inside the store.
MAX
TRAINING PROGRAM
NUMBER OF BILLS (NOB)
Total cash memos / bills / invoices made in a day.
MAX
TRAINING PROGRAM
CONVERSION % % of customers who purchased from the store . Formula : Conversion % =
NOB Walk - ins 100
Eg. : If NOB = 200 , Walkins = 500 200 Conversion % = 500
TRAINING PROGRAM
100 = 40 %
MAX
AVERAGE CASH MEMO (ACM) Average bill value per customer Formula : ACM =
Sale Value NOB
Eg. : If sale value = Rs. 42000 , Walkins = 70 42000 ACM % = 70
TRAINING PROGRAM
= Rs. 600
MAX
AVERAGE BASKET SIZE (ABS) Average quantity sold per customer Formula : ACM =
Sale Value NOB
Eg. : If sale value = Rs. 48000 , Walkins = 60 48000 Avg Basket Size % = 60
TRAINING PROGRAM
= Rs. 800
MAX
PER PIECE VALUE (PPV) Average price of each merchandise Formula : PPV=
Sale Value Qty Sold
Eg. : If sale value = Rs. 48000 , Qty Sold = 160 48000 Conversion % = 160
TRAINING PROGRAM
= Rs. 300
MAX
SALES PER SQUARE FOOT (SPF) Sale value generated on per square foot Formula : SPF=
Sale Value Area
Eg. : If sale value = Rs. 7200 , Qty Sold = 360 7200 Conversion % = 360
TRAINING PROGRAM
= Rs. 20
MAX
TARGET SETTING
Contribution%
ROS/Day Trading Days
MAX
TRAINING PROGRAM
WTD
(Week Till Date)
MTD
(Month Till Date)
YTD STD
MAX
(Year Till Date)
(Season Till Date)
TRAINING PROGRAM
CONTRIBUTION % % Contribution of each department Formula : Contribution % =
Store Sale Value Department Sale Value 100
Eg. : If Dept Sale Value = Rs. 51000 , Store sale value = Rs. 170000
51000 Contribution % = 170000
100 = 30 %
MAX
TRAINING PROGRAM
RATE OF SALE (ROS) Average qty sold on each day Formula : ROS =
Total Sold Qty Days
Eg. : If Sold Qty = Rs. 156 , Days = 12 156 Conversion % = 12
TRAINING PROGRAM
= 13
MAX
HOW STOCK REACHES TO THE STORE
VENDOR
MRDC Mumbai Regional Distribution Center
MGRN Manual Goods Receipt Note
Inspection Process
GRN Goods Receipt Note
STN Stock Transfer Note
LR Lorry Receipt
Inwarded at Store
MAX
TRAINING PROGRAM
Stock n Sale Performance Indicators
Closing Qty Sold Qty MRDC Qty STN Date Trading Days Sell Through Cover Days Effective Options Effective Qty Effective Cover Days FMS SMS
MAX TRAINING PROGRAM
Sold Qty =
Total qty sold in a month/ season
Closing Qty =
Remaining Qty available in the store
MRDC Closing =
Qty available in warehouse
MAX
TRAINING PROGRAM
STN DATE
Is the date on which merchandise arrived in store
MAX
TRAINING PROGRAM
Trading Days
Refers to number of days the merchandise is on floor Or. Number of days since 1St STN Date
Formula : Trading Days =
Current Date STN Date
Eg. : If STN Date = 20th July 09 , Current Date = 28th July 09 Trading Days % =
28th July 09 - 20th July 09
= 8 days
MAX
TRAINING PROGRAM
Sell Through% % of qty sold of the qty received Formula : Sell Thru% =
Sold qty Sold qty + Cls Qty 100
Eg. : If sold qty = 200 , closing = 300 200 Conversion % = (200 + 300 )
MAX TRAINING PROGRAM
100 = 40 %
Cover Days
Number of days in which the stock quantity on floor will get finished .
Formula : Cover Days =
Closing Qty ROS
Eg. : If Closing Qty = 258 , ROS = 6 258 Cover Days = 6
TRAINING PROGRAM
= 43
MAX
Effective Option
If no. of pcs available in an option is 50% of prepack qty or more.
For Eg.
option A
Prepack qty = 12 Cls qty = 8
option B
Prepack qty = 12 Cls qty = 4
Effective qty Effective option
MAX TRAINING PROGRAM
Effective Closing Qty
Closing Qty of all effective options
For Eg.
option A
Prepack qty = 12 Cls qty = 8
MAX
TRAINING PROGRAM
Effective Cover Days
Number of days in which the effective cls quantity on floor will get finished .
Formula : Cover Days =
Effective Closing Qty ROS
Eg. : If Eff Closing Qty = 258 , ROS = 6 258 Cover Days = 6
TRAINING PROGRAM
= 43
MAX
Count how many apples are there in the basket You eat 5 apples a day, in how many days you will empty the entire basket
MAX
= 40 =8
TRAINING PROGRAM
MAX
TRAINING PROGRAM