There are two essential numbers to help you understand whether you have the right amount of stock and if you’re selling it at a reasonable price: Stock turn and percentage margin.
"If you sold an extra glove for every five sales, this would add £7,000 to your profit at the end of the year"
If you can’t get these key figures from your ePos system, you’re probably relying on an annual update from your accountant. You may also find yourself second-guessing which products to buy and winging it for the rest of the year.
In 2022, the average stock turn across the golf retail industry for on course shops was 3.1 and the average profit margin was 34.4%. This data is taken from hundreds of Xpos point of sale systems dotted around the UK and is a fantastic gauge of retail performance across the market.
But Why Should The Independent Retailer Sit Up And Take Notice?
Comparing your stock turn and profit figures against the industry’s own is a fantastic metric, and an awareness of where your business sits will help you feel in control.
In the past, stock turn was as low as 1.8 and margins below 30% in the industry. Says Xpos Business Development Director and golf retail expert, Mark Hopkins, “A lot has changed in the marketplace over the last 10 years. Gone are the days where you had to make a path through the second-hand equipment to get to the counter and we’ve noticed vast improvements among our own customers. One retailer we work with improved his average margin from 32% to over 40% across his entire store in just two years by using Xpos to buy better and highlight to his staff where product was not selling”.
Increase your margin and you’ll make more money. Your margin is the ultimate yardstick to measure the shop’s success and a good ePos system will enable you to stay on top of profit across the categories.
"The average turnover for UK pro shops is currently £175,000 p/annum. If you use your ePos system to make better buying decisions, and increase your margin from 30% to 35%, you’ll see an increase of £9,000"
Money facts not to be sniffed at.
The average Xpos user saves thousands of pounds thanks to better stock and margin control. Xcodes alone has proven to save retailers up to £5,000, compared to other ePos systems, by reducing the amount of time it takes to create and manage products.
When it comes to choosing your ePos solution, be sure to compare apples to apples.
For more information on Xpos, visit us here or email email@example.com