Let's say we have three products: high margin and low volume, low margin and high volume, and low margin and fast selling. Which product do you want to sell as an entrepreneur? Generally, the most common answer is that we should sell the highest margin product. But, from an Return on Investment (ROI) or Return …
Continue reading High margin, High volume, High velocity – Which do you prefer?
Retail management is all about the rotation of capital. To emphasize the importance of rotations, let us take an example: Let's say I have Rs.10,000 to invest in my business and I am reasonably good at making sofas. So, I invest my Rs.10,000 in raw-material and labor and make a sofa costing me Rs.10,000 (exhausted …
Continue reading Head & Tail Categories – Selection, Turnover (GMS), Margin and Rotations
Retail excites me a lot because it is a simple business of buying and selling goods and yet it covers almost every complexity under the sun. It has a complex supply chain from raw material to finished goods, yet seeming so simple and convenient when we add items to our shopping cart in offline and …
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