Profit Potential Calculator
Knowing your potential profit is very important for a retail business to succeed.
You need to understand your inventory to properly calculate your profit potential and get an idea not just about how much revenue you are going to bring in, but the actual profit it is going to create for your bottom line.
Canadian Retail Solutions clients know the amount of profit they can expect based on their inventory levels.
A typical CRS client receives the following:
- Increased profit.
- Inventory maximization.
- Sales training.
- Merchandise planning.
Do you want to gain an understanding of the profit you can expect by working with CRS?
See real numbers from real CRS examples below.
Under the examples, fill out the Profit Potential Calculator to learn about how much your business can grow. CRS does not share these numbers with anyone!
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Store Profile: Outdoor Retail, Multi Location (3), Eastern Canada
After planning with Canadian Retail Solutions, this Eastern Canadian outdoor retailer saw:
- An increase of 19% gross profit dollars
- A $0.71 change in cross margin return on investment
- A 19% decrease in average inventory at cost
See below for the full example… after one year of working with Canadian Retail Solutions.
| Key Metrics | November 2017 | After 1 Year | Change |
|---|---|---|---|
| Annual Sales | $2,803,470 | $3,479,500 | $676,030 (24%) |
| Initial Markup (IMU) | 47% | 47%% | 1% |
| Markdowns | 7% | 5% | -2% |
| Maintained Markup (Gross Profit Percentage) | 43% | 45% | 2% |
| Gross Profit Dollars | $1,202,689 | $1,553,249 | $350,560 (19%) |
| INVENTORY | |||
| Average Inventory @ Retail | $1,930,709 | $1,575,525 | $350,560 (19%) |
| Annual Sales Divided into Average Inventory (Turn) | 1.45 | 2.21 | 0.76 |
| Average Inventory @ Cost | $1,020,612 | $828,411 | -$202,201 (-19%) |
| Gross Margin Return on Investment | $1.17 | $1.87 | $0.71 |
Store Profile: Men’s Fashion, Single Location, Western Canada
After planning with Canadian Retail Solutions, this Western Canadian men’s fashion retailer saw:
- An increase of 31% gross profit dollars
- A $1.24 change in cross margin return on investment
- A 49% decrease in average inventory at cost
See below for the full example… after one year of working with Canadian Retail Solutions.
| Key Metrics | September 2017 | After 1 Year | Change |
|---|---|---|---|
| Annual Sales | $673,770 | $682,260 | $8,490 (1%) |
| Initial Markup (IMU) | 51% | 56% | 5% |
| Markdowns | 25% | 15% | -11% |
| Maintained Markup (Gross Profit Percentage) | 39% | 50% | 11% |
| Gross Profit Dollars | $260,008 | $340,516 | $80,508 (31%) |
| INVENTORY | |||
| Average Inventory @ Retail | $685,548 | $385,985 | -$299,563 (-43%) |
| Annual Sales Divided into Average Inventory (Turn) | 0.98 | 1.77 | 0.78 |
| Average Inventory @ Cost | $335,850 | $168,753 | -$167,097 (-49%) |
| Gross Margin Return on Investment | $0.77 | $2.02 | $1.24 |