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Are You Profitable?

Many retail businesses believe they are healthy if their sales are high and inventory is right, but the real bottom line is the profit and cash flow generated from operations.

At RMSA, we make life more profitable for independent retailers. For more than 60 years, we’ve helped clients master every aspect of inventory management and open-to-buy – and we do it by using powerful analytics and technology, combined with hands-on retail experience. RMSA helps take the emotion out of open-to-buy and inventory management.

Take the survey and get a clear view of your retail profile, then give RMSA a call to see what RMSA can do for your business.

SCORE YOUR PROFITABILITY

SCORE VALUE
1
2
3
4
5
Score
What were your markdowns last year? (%of Sales)
Over 16%
13 to 15%
9 to 12%
6 to 8%
Under 5%
How much net profit did you produce last year?
0%
1 to 3%
4 to 6%
7 to 9%
Over 10%
What are your operating expenses? (% of sales)
Over 40%
37 to 40%
33 to 36%
29 to 32%
Under 28%
What is your average turnover rate? (at retail)
1 turn or less
2 turns
3 turns
4 to 5 turns
6 turns or more
What is your initial markup
Under 40%
41 to 43%
44 to 46%
47 to 50%
Over 50%
How saleable is your current inventory?
Less than 40%
50%
70%
90%
100%
What was your stock shortage last year? (% of total sales)
Over 4%
3%
2%
1%
Under 1/2%
How often do you mark-down unsalable merchandise?
Seldom
Once a year
Twice a year
End of season
Monthly
What is your maintained markup after markdowns?
Under 39%
40 to 41%
42 to 43%
44 to 45%
Over 45%
Do you revise your open-to-buy based on last year's sales?
No
Sometimes
Yes
Is your open-to-buy based on last year's sales?
No
Sometimes
Yes
Do you transfer specific items from a non-selling store to a selling store?
No
Sometimes
Yes
Do you know the beginning, peak and ending selling time for classification by season?
No
Sometimes
Yes
Calculate

YOUR SCORE:

You are maximizing your profit potential

5% of your revenue is being unnecessarily lost each year

Your profit margins are not as strong as they can be

You are giving away 10% of your revenues in lost cash flow

Positive cash flow is not being achieved

Recalculate

Let us help you