TRAINING PROGRAM MAX RETAIL’S ABCD….. Cost Price (C. P.) MRP (Maximum Retail Price) Gross Sale Net Sale Gross Margin Gross Margin % Mark up Mark Down Flat Price
TRAINING PROGRAM
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RETAIL’S ABCD…..
Cost Price (C. P.)
MRP (Maximum Retail Price)
Gross Sale
Net Sale
Gross Margin
Gross Margin %
Mark up
Mark Down
Flat Price
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COST PRICE (C.P.)
Is the price at which the merchandise was bought from the vendor.
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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
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NET ON TAX (NOT) or NET SALE VALUEPrice 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.
49.9NOT = 499 – 49.9 = Rs. 449
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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. 400Gross Margin =
400 – 240
= Rs. 160
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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
100 = 66.6%
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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)
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WALK – INS
Total number of customers walking inside the store.
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NUMBER OF BILLS (NOB)
Total cash memos / bills / invoices made in a day.
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CONVERSION %
% of customers who purchased from the store .
Formula : -
Conversion % =
NOB
Walk - ins100
Eg. : If NOB = 200 , Walkins = 500 200
Conversion % = 500
100 = 40 %
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AVERAGE CASH MEMO (ACM)
Average bill value per customer
Formula : -
ACM =
Sale Value
NOB
Eg. : If sale value = Rs. 42000 , Walkins = 70
42000ACM % =
70 = Rs. 600
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AVERAGE BASKET SIZE (ABS)
Average quantity sold per customer
Formula : -
ACM =
Sale Value
NOB
Eg. : If sale value = Rs. 48000 , Walkins = 60
48000Avg Basket Size % = 60
= Rs. 800
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PER PIECE VALUE (PPV)
Average price of each merchandise
Formula : -
PPV=
Sale Value
Qty Sold
Eg. : If sale value = Rs. 48000 , Qty Sold = 160
48000Conversion % = 160
= Rs. 300
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SALES PER SQUARE FOOT (SPF)
Formula : -
SPF=
Sale Value
Area
Eg. : If sale value = Rs. 7200 , Qty Sold = 360
7200Conversion % = 360
= Rs. 20
Sale value generated on per square foot
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TARGET SETTING
Contribution%
ROS/Day
Trading Days
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WTD (Week Till Date)
MTD (Month Till Date)
YTD (Year Till Date)
STD (Season Till Date)
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CONTRIBUTION %
% Contribution of each department
Formula : -
Contribution % =
Department Sale Value
Store Sale Value
100
Eg. : If Dept Sale Value = Rs. 51000 , Store sale value = Rs. 170000
51000Contribution % = 1700
00
100 = 30 %
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RATE OF SALE (ROS)
Average qty sold on each day
Formula : -
ROS =
Total Sold Qty
Days
Eg. : If Sold Qty = Rs. 156 , Days = 12
156Conversion % = 12
= 13
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HOW STOCK REACHES TO THE STORE
VENDOR
Inspection Process
MRDC
Mumbai Regional Distribution Center
MGRN
Manual Goods Receipt Note
GRN
Goods Receipt Note
STN
Stock Transfer Note
LR
Lorry Receipt
Inwarded at Store
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Stock n Sale Performance IndicatorsClosing Qty
Sold Qty
MRDC Qty
STN Date
Trading Days
Sell Through
Cover Days
Effective Options
Effective Qty
Effective Cover Days
FMS
SMS
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Sold Qty =
Total qty sold in a month/ season
Closing Qty =
Remaining Qty available in the store
MRDC Closing =
Qty available in warehouse
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STN DATE
Is the date on which merchandise arrived in store
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Trading Days
Refers to number of days the merchandise is on floor
Or.
Number of days since 1St STN DateFormula : -
Trading Days =Current Date – STN Date
Eg. : If STN Date = 20th July 09 , Current Date = 28th July 09
28th July 09 - 20th July 09Trading Days % =
= 8 days
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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 )
100 = 40 %
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Cover Days
Formula : -
Cover Days =
Closing Qty
ROS
Eg. : If Closing Qty = 258 , ROS = 6
258Cover Days = 6
= 43
Number of days in which the stock quantity on floor will get finished .
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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 option
Effective qty
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Effective Closing Qty
Closing Qty of all effective options
For Eg. option A
Prepack qty = 12
Cls qty = 8
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Effective Cover Days
Formula : -
Cover Days =
Effective Closing QtyROS
Eg. : If Eff Closing Qty = 258 , ROS = 6
258Cover Days = 6
= 43
Number of days in which the effective cls quantity on floor will get finished .
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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
= 40
= 8
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