The high cost of shrink can be staggering!
| Think Shrink |
| If you own or manage a snack shop or food mart, the high cost of
shrink eats away at our gross profits and restricts our ability to attain desired gross
profit percentages. The following example shows how little things can become big. |
Using an average weighted gasoline margin of .09 cents:
- One candy bar lost @ .43 cents our cost = your profit on 4.8 gallons gasoline.
- One bottle soda pop @ .65 cents our cost = your profit on 7.2 gallons gasoline.
- One road map @ $1.05 our cost = your profit on 11.7 gallons gasoline
- One pack cigarettes @ $3.50 our cost = your profit on 39 gallons gasoline.
- One pair sunglass @ $3.80 our cost = your profit on 42.2 gallons gasoline.
The High Cost Of Shrink
If you loose just one pack of cigarettes per day:
- @ $3.50 our cost x 30 days = $105.00 per month
- times 12 months = $1260.00 per year
- divided by .09 cents per gallon weighted margin
- = 14,000 additional gallons gasoline needed to break even.
| By implementing vendor receiving policies, shift journal tape
audits, cash controls, and shift check out reconciliation procedures (that require high shrink item unit
counts with cash reconciliation), you will minimize inventory and
cash losses and add to the profitability of your business. |
Improve your sales & profits!
 JLZ Business Consulting |
 |
|
