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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COST PRICE (C.P.)

Is the price at which the merchandise was bought from the vendor.

TRAINING PROGRAM

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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

TRAINING PROGRAM

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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

TRAINING PROGRAM

MAX

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

TRAINING PROGRAM

MAX

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%

TRAINING PROGRAM

MAX

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)

TRAINING PROGRAM

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WALK – INS

Total number of customers walking inside the store.

TRAINING PROGRAM

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NUMBER OF BILLS (NOB)

Total cash memos / bills / invoices made in a day.

TRAINING PROGRAM

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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 %

TRAINING PROGRAM

MAX

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

TRAINING PROGRAM

MAX

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

TRAINING PROGRAM

MAX

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

TRAINING PROGRAM

MAX

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

TRAINING PROGRAM

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TARGET SETTING

Contribution%

ROS/Day

Trading Days

TRAINING PROGRAM

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WTD (Week Till Date)

MTD (Month Till Date)

YTD (Year Till Date)

STD (Season Till Date)

TRAINING PROGRAM

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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 %

TRAINING PROGRAM

MAX

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

TRAINING PROGRAM

MAX

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

TRAINING PROGRAM

MAX

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

TRAINING PROGRAM

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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

TRAINING PROGRAM

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STN DATE

Is the date on which merchandise arrived in store

TRAINING PROGRAM

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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

TRAINING PROGRAM

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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 %

TRAINING PROGRAM

MAX

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 .

TRAINING PROGRAM

MAX

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

TRAINING PROGRAM

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Effective Closing Qty

Closing Qty of all effective options

For Eg. option A

Prepack qty = 12

Cls qty = 8

TRAINING PROGRAM

MAX

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 .

TRAINING PROGRAM

MAX

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

TRAINING PROGRAM

MAX