Margin Growth

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MERCHANDISING, Cost, Price and Promo STRATEGIES for Margin Dollar Maximization

As merchants, we are responsible for producing the dollars that run the company; gross margin is what remains once a product is sold to the customer and the product costs are subtracted.

Methods of increasing margin dollars include:

  • Lowering costs -  working with suppliers and internal manufacturing to reduce component and finished product costs, reducing shipping cost and freight damage, optimizing payment terms, negotiating additional support and rebates from supply chain, and developing lower cost versions of your products for new and existing channels.
  • Optimizing price - choosing a price that will maximize demand is a never-ending challenge, because the market is dynamic.  Prices should be chosen blending demand testing, competitive analysis, margin requirements and promotional needs.  Pricing strategies can become complex when selling various quantities to a variety of channels.
  • Promotion - if your company branding, product and marketplace is promotion driven, prices need to be set to accommodate discounting.  Promotions can be used to create urgency and to provide a variety of  value propositions to your customers over time without changes to your actual pricing. Testing various promotions, which can be percentage-based, dollar based, tiered, stack-able, brand-driven or Buy X Get X to name a few!

Karin Jeske has been held responsible for the forecast and delivery of company margins as an employee and as a consultant, for both retailers and manufacturers, and works closely with marketing, finance and business intelligence to ensure the company goals are met or exceeded.

We LOVE helping companies grow their margins.  Whatever the size of your challenge, we are here to help.  Please contact us at 951-781-3000 or to discuss your merchandising goals and needs with us.