PROFITsystems is excited to announce that Sylvan Furniture recently selected RETAILvantage as its retail management system!
As a rapidly growing full-line bedding and Mattress 1st store, Sylvan Furniture decided it was time to take a more critical look at the software supporting its business. The company needed a system that could provide more visibility into, and control over, their vast inventory, and realized its current system could no longer meet the growing needs of its operation. As Sylvan’s began looking for a new provider, it narrowed its search to focus only on those companies which could provide the exhaustive inventory reporting, extensive financial data and integrated accounting tools it wanted.
With multiple solutions to choose from, Sylvan Furniture turned to members of its performance group for trusted guidance. “We get a lot out of our performance group. Being on the system they all use and love will make it easier for us to share data, benchmark our business, and share ideas,” said Karen Shaul, Sylvan Furniture store owner.
“We’re excited to be able to access inventory and financial reporting in a timely manner. Inventory control has been an issue for us, and we’re very excited to take advantage of features such as auto-markdown and the bestsellers report to become more efficient in how we discount and buy inventory,” Sylvan Mattress General Manager Rachel Rinard said. “We also love that your system integrates with Dispatch Track and DoorCounts as we use both of those services.”
“Our strong commitment to helping full-line independent retailers achieve higher profitability, matched with Sylvan Furniture’s 70-plus years in the industry serving the local community, makes this a perfect partnership,” said PROFITsystems General Manager Joanne Gulnac. “It’s exciting to work with such a progressive retailer and we are thrilled to have Sylvan’s join the PROFITsystems family!”
PROFITsystems clients gain extra pricing perks with Podium to increase their store traffic through positive online reviews
COLORADO SPRINGS, CO (May 9, 2017) – PROFITsystems, a HighJump product and leading provider of solutions for home furnishings retailers, today announced a new partnership with Podium, offering a special rate for Podium services to PROFITsystems clients. Home furnishings retailers currently associated with PROFITsystems gain discounts and benefits in their access to Podium’s online review management software, which is designed to help retailers increase in store foot traffic with positive online reviews.
“By partnering with Podium, we’ve given our clients the opportunity to increase their in-store traffic by increasing their positive online reviews” said PROFITsystems General Manager, Joanne Gulnac. “We’ve negotiated a discounted rate on Podium’s software specifically for PROFITsystems customers, and those who have seized this opportunity are already reporting an uptick in store traffic. We’re always looking for more ways to help customers become more competitive and profitable, and we’re excited to work with Podium to help our retailers achieve the results they’re looking for!”
A leading provider of online review management software, Podium enables businesses to collect valuable feedback from customers in real time. Podium’s efficient mobile process makes it possible for businesses to collect hundreds of reviews on sites like Google, Facebook and the like, giving them full visibility into consumer wants and needs. This visibility empowers retailers to tweak their customer experience per the feedback received, ultimately increasing foot traffic and profitability as a result.
“As part of our partnership with PROFITsystems, we’re excited to help their clients increase foot traffic to their stores by offering them preferred pricing on our software” said Podium Strategic Accounts Manager, Chris Allen. “We encourage all of them to take advantage of the full Podium experience at this special discounted rate.”
Podium is a leading provider of online review management software that enables businesses to collect valuable feedback from customers in real time. Podium’s efficient mobile process makes it possible for businesses to collect 100s of reviews on sites like Google, Facebook, and many more.
For additional information on Podium, please visit their website at www.podium.com
About PROFITsystems, a HighJump product
PROFITsystems is a complete retail management solution for the modern home goods retailer. Key components include enterprise software, consulting, performance groups, advanced education, eCommerce integration and business intelligence. PROFITsystems features real-time inventory management, customer relations management, point-of-sale and accounting systems.
For additional information on PROFITsystems, please visit the website at www.profitsystems.com.
In almost every industry, buyers are becoming more fickle, and more demanding. For logistics executives, effectively meeting buyer needs has become a relentless quest for speed and agility. Traditional supply chain solutions – siloed, complex and hard-to-implement – no longer suffice, as competitors find ways to deliver goods faster and more profitably.
In today’s “now” economy, HighJump helps you stay agile, with adaptable, connected solutions that harness the power of your trading partner community. From the warehouse to the storefront, from the desktop to the driver’s cab, we can help you achieve new levels of supply chain responsiveness, performance and profitability.
HighJump’s suite of warehouse management, business integration, transportation management and retail/DSD solutions form a complete, powerful and adaptable platform that allow you to drive growth, customer satisfaction and revenue. HighJump: supply chain accelerated.
For more information, visit www.highjump.com.
Payroll is expensive no matter which way you slice it. Between paying everyone their salaries and annual benefits, you wind up shelling out a significant chunk of change just to keep the people necessary to run your business employed. Does it have to be that way, though? From your warehouse to your sales floor, there are various opportunities to significantly cut costs and lessen the massive strain that payroll puts on your bottom line.
In the Warehouse
Keeping salaried employees on payroll within the warehouse, particularly during slower periods, is both costly and unnecessary. To break it down into simple terms: The busiest times within a warehouse are generally when shipments are delivered. Outside of those deliveries, the amount of work to be done is fairly minimal. Therefore, paying a full-time warehouse employee for a 40 hour work week, when there is realistically only about 15 hours of truly productive work to be done, is (very expensive) overkill. To cut the cost, make the switch to part-time employees. This will not only relinquish you of the obligation to pay an annual set salary (and benefits!) but also improve your efficiency tenfold, due to only scheduling employees when their help is actually required.
On the Sales Floor
When it comes to the sales floor, utilizing part-time employees is equally as beneficial for your bottom line, but for different reasons. Losing the cost of the salary and benefits of any employee is obviously one selling point of switching to part time help. Beyond that, it should also be noted that part-timers have been proven to average a higher RPU (Revenue Per Up) than salaried employees due to higher reported job satisfaction – which is significant.
To illustrate this point, let’s look at an example from an actual retail operation:
This particular operation had three “top” salespeople. Roy, a part-time employee, greeted 116 people during a month and made $66,559 in sales. Therefore, Roy’s RPU was $574 ($66,669 / 116). Don, one of the stores full-time sales associates, had an RPU of $389. Finally, Alan, another full-time employee, had an RPU of $338.
When you look at these numbers, it’s clear that Roy is the best salesperson out of the three, but the question then becomes why. Because Roy is in the store for a shorter period of time, his energy and drive to greet and help every person who walks through the front door is sky-high. He’s fresh, excited, and in a time crunch to make the most out of his limited hourly shift. On the other hand, Don and Alan are at the store every single day for 8 hours. They’re burnt out, slightly less motivated than Roy, and their drive to make sure every person is greeted at the door is likely less due to being on salary.
To conclude: add a higher RPU for every part-time sales employee on the clock at any given time, while subtracting the cost of employee benefits and salaries. Then, subtract the salaries and benefits of your full-time warehouse employees, while adding increased efficiency due to making converting those employees to part time. What do you get? A recipe for significantly lessened payroll burden, increased cash flow, and a much happier work environment to boot.
In this fast changing world of the “new economy”, we frequently still hear home furnishings retailers steadfast in their commitment to keep doing things the way grandpa did. In my years of onsite consulting it would astound me how many times users coming to PROFITsystems from other retail POS software were buried in paper. The tedious processes connected with doing things manually are a huge burden to any business.
If you’re an owner or office manager, I invite you to think about your processes: close your eyes and imagine a Macy’s store, Target, Walmart or similar retail giant going through the steps of purchasing, receiving, merchandising, selling, delivering and paying for product. Now granted, we’re not all going to turn into Target, but the processes they follow every day, as well as those tactics they’ve implemented to get where they are, do not include piles of paper and people touching everything over and over. There’s a glass ceiling attached to this kind of “we always did it this way” thinking. As a business grows, the costs in the office increase right along with the number of transactions. In addition, office and warehouse overhead remain in lock step with sales growth; therefore, the anticipated economies of scale in growth are, in part, lost.
Let’s walk through an example. One firm I managed in the late 90’s involved three separate entities. Two with one fiscal year; the third with a separate fiscal year. Although not a huge firm, we processed heavy special order in all three businesses at volumes varying from $7 to $10M annually. The office entered all sales, generated and sent all PO’s, processed all receivings, scheduled deliveries, and managed heavy A/R for one of the entities (which we handled in house as well). This work was done by the equivalent of 2.5 full-time office staff. Oh, and we did payroll internally as well.
How can that be? The mantra “Systems Define Outcomes” drove our process. We rethought the entire paper flow and daily velocity of transactions. Then, we prioritized transactions by ‘real order of importance’ and pushed every single one through our software so we didn’t have to revisit the paper ever again.
I call it pawing through the drawers. If you find yourself earning your paper cut merit badge searching file cabinets to look things up, then you could probably benefit from a review of current practices. There are an amazing number of benefits from getting “out of the old and into the new” way of cataloging your business. These benefits include instant answers for customer service questions, easy research of anything from what she bought to how she paid for it.
The major benefit, as we’ve outlined in a number of webinars, of having all of your data in the software means your accounting bills should plummet. Creating financial reporting does not take an outside or expert accounting person. If I’m entering everything into the software, we automatically should get back a detailed financial statement acceptable to any bank or vendor. Now, accounting folks do need to help us with balance sheet issues, such as depreciation, etc., However, your P&L should already be there waiting for you to press “Print”.
Maybe it’s time to take a look at your processes and see where you can truly streamline your business. The paybacks are huge.
As the owner of a retail operation, you are acutely aware of all things relating to and affecting your business. Right? Take a second to ask yourself the following three questions:
If you answered “YES!” to any of the above, do you have the data and insights to back yourself up?
Many retail store owners don’t have the right systems in place with the reporting capabilities needed to adequately measure their advertising return on investment (ROI), the success of their sales team, or the effectiveness of their staffing. Without that data, you can’t improve your marketing, make sure every customer gets the attention they deserve, or train your sales staff to sell more effectively.
In order to validate your answers to any of these three questions, you need a complete and accurate understanding of two metrics:
1. Traffic counts: How many people are coming into your store? Do you count the mail man? Do you know what your benchmark traffic count is? Can you effectively measure traffic waves above and below average when a marketing campaign hits the market? What are your store’s traffic patterns throughout the day?
2. Sales analytics: What’s your Revenue per Up (RPU)? Is your sales team maximizing every opportunity (customer who comes through the door)? Are you appropriately staffed so that no customer is left unserved?
A recent white paper we prepared helps you think through how an accurate traffic count, in conjunction with sales analytics, can help you make better business decisions. Get it here now to learn more about how answering these questions and measuring the right performance indicators can help your bottom line.
For over 40 years, the Retail Performance Report served as the benchmarking standard for the home furnishings industry. With the help of PROFITsystems, the North American Home Furnishings Association (NAHFA) is now bringing the report back in 2015.
The new Retail Performance Report is designed exclusively for the home furnishings industry to aid retailers in evaluating their performance relative to top performing and average firms. The metrics in the study represent critical performance indicators and aim to help retailers improve strategic planning, goal setting, and tactics. The survey will poll operational and financial data from retailers across North America.
The resulting report will be organized by Key Performance Measures that impact your profitability and productivity. Here are some of the highlights of the report:
The survey should only take approximately 20 minutes to complete online. The results will be compiled over the next few months. The final report will be released to each participant approximately around the time of the 2015 NAHFA Conference in May 2015.
Please do not wait to take the survey. The success of this study is important for the Home Furnishings Industry. Your participation is necessary for the betterment of both your company and the industry at large. You cannot get this complete industry specific information that you need anywhere else.
PROFITsystems clients who take part in the 2015 NAHFA Retail Performance Report survey will receive the 2015 NAHFA Retail Performance report free (a $199 value).
For $99 you will also receive personalized benchmarking (a $299 value), your performance metrics with results compared against average and high profit results.
Want more? For $199 you will receive customized feedback with your personalized benchmarking data (a $399 value).
David McMahon and Wayne McMahon, PROFITsystems certified management accountants and furniture industry management consultants, will provide advice and opinions on how to take actions of improvement specific to your store.
Call us today at 800.888.5565 or fill out the form below.
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