By Chip Averwater
Turns out your math teachers were right: You do need this skill to survive in the real world. And that’s especially true for business owners.
You need to have a clear idea of the costs of every sale, service, and activity your business engages in. After all, that information helps you to decide what to stock, what to promote, where to channel your store’s investments and efforts, and of course, to set prices!
Pricing is more an art than a science, so you’ll never have a totally accurate ‘feel’ for costs. Businesses simply have so many expenses that we chronically underestimate them!
Regularly sit down with a spreadsheet and divide the whole list of expenses across your product sales and services. Only then will your costs become truly clear. HBM
For more information, please visit www.retailtruths.com.
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