Regardless of your brand’s goals, it needs money to survive. Nonprofits focus on humanitarian objectives while raising funds to keep operations going. Many resale shops also have goals of supporting the local community, but they’re businesses first and foremost. If your main goal is to make money and provide for your family, there’s nothing wrong with that. The following tips can help you have greater success.
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Expect Fair Profit Margins
The first thing you need to do is recognize that you deserve to make a decent living. Even if you run a small business, you work hard and should see the benefits from your labor. How much is a fair profit margin?
The average gross profits in the U.S. are about 50% for many goods. Some industries have higher margins and others are somewhat lower, but the majority fall in this range.
What if you’re currently only marking up goods 25-30%? You’re probably selling yourself short. You’re making life harder on your business without realizing it.
The gross profit margin refers to your revenue minus the direct cost of the goods you sell. It doesn’t include costs related to running your business. By aiming for 50%, you can cover expenses, reinvest in your business and still take home a healthy profit.
Invest in a Modern Point-of-Sale System
If you’re still rocking that old credit card machine and cash register from the turn of the century, it’s time to upgrade to something modern. Today’s point-of-sale systems do more than allow you to accept credit card payments. They help you run your business effectively and bring online integration to the table at the same time.
Even better, you can find POS systems designed for specific industries. They can make your life much easier as a business owner. For example, a pos system for resale shop operations includes features related to inventory management, online payments, consignment transactions and more. You can even set up self-serve kiosks where people can arrange drop-offs online and get receipts.
Having everything available at the touch of a button means much less work for you and your store personnel. That way, you can run your resale shop with a small staff, keeping overhead costs down and improving profitability.
Take Advantage of Online Opportunities
One of the best ways to improve your profits is to expand your operations online. Investing in a website can provide many benefits for your business.
Low Overhead Costs
E-commerce websites have a cost, but compared to in-person stores, they’re extremely affordable. Customers can order products 24/7 from a website, providing more opportunities for making sales. Instead of selling only to the people who visit your store location, you can suddenly offer products to the entire local community. Growing your customer base is the first step in growing your overall profits.
Positive Reputation and Ratings
The internet also has the potential to make your business more popular. People of all ages enjoy shopping online via smartphones, tablets and computers. When they start to discover the incredible deals your business offers, they’re likely to mention your website to friends, family members and coworkers. Before you know it, you have one of the most popular places in the area for purchasing clothing, sports equipment, building materials, furniture and other items.
Convenience and Customer Satisfaction
When you provide online sales, many people are more likely to buy from you. Individuals these days have a busy life. Between work and caring for a family, consumers don’t always have time to spend hours shopping. With e-commerce, people can browse items from the comfort of their homes and make purchases effortlessly.
What if you sell bikes, musical instruments or other items that people want to test in person? Your website is still valuable. Many shoppers like to browse online first to narrow down their choices to a few options. That way, they can save time at the store because they already have a rough idea of what they want.
Make Decisions Based on Data
A final way to improve your profitability is to make important decisions based on solid financial data, not gut feelings. Resale stores can save money by reaching large-volume purchase agreements with manufacturers, but only if the items sell. Before signing on the dotted line, check your sales records to see previous sales trends.
