Today i’m happy to introduce Margo Kopman, owner of Insight Retail Solutions.  Margo works with retail businesses to help provide tools and strategies to grow your business by helping you tackle your inventory.   For those of us who opened a shop because we have a passion for what we sell – but don’t necessarily have retail training – this could be a huge help in creating greater profits.

 Without further ado – here is Margo’s story and “pitch”…..

 Most of us (I would say all, but that wouldn’t be fair) retailers sprint in to the business because of passion, creativity and desire to share our vision with the world around us.  The art of retailing isn’t hard work because it is what we love to do – buy and sell.  It’s not a “job” really, but a lifestyle.

 As I approached my 4th year in business, I hit a brick wall.  Taking the business to the next level was what I wanted to do, but just how in the world was I going to do that?  My “budget” was right on, my expenses in line.  I had an amazing mailing list and devout following, national and local press galore, what else did I need?  

 It is funny to look back and remember the times when I was so afraid to talk to other retailers in my area because I didn’t want them to know the good, bad and the ugly.  Once I opened up and started yapping, this bright light came in and my life has never been the same. 

 “Do you not use a consultant to help you with your open-to-buy?” she asked.  Um, no –  what in the heck is that and where would I find a retail consultant?  And, how in the world could I have been winging this for so long? 

 Quickly, I learned that there was not enough time in a day to do all of the things that I needed to do to analyze what was making the most profit in my business and how to move forward (meaning, buy more of what is selling at a maintained mark-up above my breakeven point) based on the demand from customers and overall trend information in the industry.  A little thing we like to call in the retail business – balance and flow.  Mine was out of whack.  What was my markdown strategy?  When I need cash – have a sale.  Wrong answer.  What were the profit centers inside my 900 square foot shop?  Well, jackets for the season were generating the most sales – so jackets.  Wrong, again.  Apparently, there is a science to this thing we call retail – who knew!?!?!

 Fast forward two years and voila – a well oiled, fine-tuned machine.  All I could think about was, why don’t people in the industry that know about these consultants and planners, share the good news with the independent retailers in this world? 

 That’s when I decided to share the wealth and go through training with the company that holds the key to more profits and cash – Management One®.  I was going to do both, be the shopkeeper and the voice of reason for other shopkeepers but, the passion I had for retail completely shifted – I started to LOVE the numbers – the science, if you will.  A big decision had to be made.  The shop went up for sale and 4 months later, I gave the key to the eager young buyer and said good-bye to my baby.

 In a time like today where business is tough for everyone, we hear the word consultant and think, if my business is doing ok and I can pay the bills and get new inventory, then I don’t need one.  I say, wouldn’t it be fabulous to GROW the business?  And for those who are having a tough time paying bills on time, and getting new inventory, they “can’t afford it.”  Let me assure you, you can’t afford NOT to know how to prioritize every single penny you spend on inventory and expenses. 

 The ability to take a boutique owners passion for the buying and the selling and turning that knowledge into profits and cash is undeniably the most rewarding part of what I do every day. 

 Ask yourself – as a retailer, do you have the ability to:

•  Predict the sales in each classification (most months with greater than 94% accuracy.)?
•  Establish the right inventory level in each classification?
• Create specialized reporting for multiple and chain store use?
• Create a dynamic cash flow management tool?
• Diagnose the data and predict suitable actions to take including markdowns, transfers etc?
• Create new marketing strategies and promotional ideas?
• Analyze expenses and make changes that will HELP cash flow, not hurt it?

 We can no longer fly by the seat of our pants.  The science of retail is a crucial part to the business, and one that often gets overlooked.  I do not replace a POS system or your accountant – but I work with both to get the information needed to generate an OTB budget and action plan each and every month. 

One of my clients has been in business for almost 7 years.  Her business (sales) is down 25% from her biggest year – but get this, her PROFITS are greater than ever.  Yup, that’s right, she’s making more money now than she ever has which is allowing her to open her second location in mid-October.

Margo Kopman works with independent retailers of all different sizes and types all over the country.  For a free business analysis consultation please contact her at margo@insightretailsolutions.com or 314.503.2607.