I need to write a report on increasing profitability?

Question

I have no idea where to begin. I am the manager of a bookshop and my area manager wants at least 5 points on how to increase profitability in the store including staff turnover. Can you give me some ideas?

Answer 1

Since I don't know what type or size book shop you manage my opinion would be of the general nature. Points to increase profitability are ideas you may have to improve the image of the store by marketing or creating a niche to encourage customers to come back. Start a poetry club one night a week. During the afternoon or week-ends, have a childrens reading club, after that reading session hand out bookmarks and or discount cards for children's books, create a frequent reader card. such as purchase six books get your seventh free from a designated clearance section. Create a membership club. As far as turnover, be honest about what the job entails when interviewing. Match the job with someone who enjoys to read and likes people or someone who has bookstore or library experience.

Answer 2

Minimize shortage and damaged goods, includes theft.

Continually check for books out of place. If inventory is low on an item and misplaced in the wrong category/shelf, a sale is lost

Be observant of low stock on best sellers.

Be sure that all new merchandise is opened immediately and displayed in the "hot spot", the most noticeable area in any store.

Be aware of "customer wants/requests". Items requested and not stocked. If it is requested often, then maybe it should be stocked.

Observe waste of supplies.

Above all, assist every customer who may look bewildered in searching for an item. Some customers may know what they are looking for, and may know in what category it can be found. Few know this.
Approach every customer and learn their needs, then guide them.

We've all experienced browsing until we get disgusted and just walk out. Time is important to everyone. Many shoppers buy on a lunch hour, 1/2 hour. Help speed things up.

A phone should not ring more than 3 times. You can excuse yourself with a customer, answer the phone and if no one or no time to help, get a number and call the customer back. Don't neglect it.
A customer may have an open phone book.
Look, yourself, at how many places there are in a phone book, to buy books. They will not hesitate to call your competitor.
Look now!

Answer 3

Just as a start, I would look at two sides of the equation; things you can do to increase sales (revenue) and things you can do to decrease expenses (utilities, employee costs, including turnover, etc.)

Many websites in this area. I would start with those listed in the search below...