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Listen "#007: The #1 Step to Take to Increase Your Profits"
Episode Synopsis
Are you leaving money on the table by overlooking the most powerful profit-boosting metric in retail?
In this episode of The Richer Retailer Podcast, Cathy reveals the single most impactful and overlooked metric for increasing retail profitability: the Initial Markup (IMU). She explains what IMU is, why it’s crucial for retail success, and how to measure and optimize it to ensure your store thrives financially. Cathy also dives into pricing strategies for handling customer objections and balancing profitability with exceptional customer service.
What You’ll Learn in This Episode
What IMU is and why it’s a key driver of profit in retail.
How to calculate your IMU and identify areas for improvement in your pricing strategy.
Customer pricing psychology tips to set prices that maximize revenue without alienating your ideal customers.
Key Moments
[00:03:10] Increasing your IMU by even a few percentage points can result in significant additional revenue for every transaction.
[00:13:22] Pricing for profit is not gouging; it ensures your store can thrive and continue providing excellent customer service.
[00:14:15] Focus on serving your "thumb customers" - the top 20% who drive 80% of your sales - and worry less about pleasing every bargain hunter.
Resources & Links
Pricing for Profit Chart by Cathy Donovan Wanger
Follow us on social media for more updates! Facebook / Instagram
Join the community with ambitious store owners in our Richer Retailer Facebook Group
Listener Action Steps
Never miss a moment, subscribe to Richer Retailer on your favorite podcast platform!
Loved this episode? Leave us a 5-star review to help more retailers find us!
Join the Retail Mavens community at retailmavensfb.com to brainstorm ideas and gain support from fellow retailers.
In this episode of The Richer Retailer Podcast, Cathy reveals the single most impactful and overlooked metric for increasing retail profitability: the Initial Markup (IMU). She explains what IMU is, why it’s crucial for retail success, and how to measure and optimize it to ensure your store thrives financially. Cathy also dives into pricing strategies for handling customer objections and balancing profitability with exceptional customer service.
What You’ll Learn in This Episode
What IMU is and why it’s a key driver of profit in retail.
How to calculate your IMU and identify areas for improvement in your pricing strategy.
Customer pricing psychology tips to set prices that maximize revenue without alienating your ideal customers.
Key Moments
[00:03:10] Increasing your IMU by even a few percentage points can result in significant additional revenue for every transaction.
[00:13:22] Pricing for profit is not gouging; it ensures your store can thrive and continue providing excellent customer service.
[00:14:15] Focus on serving your "thumb customers" - the top 20% who drive 80% of your sales - and worry less about pleasing every bargain hunter.
Resources & Links
Pricing for Profit Chart by Cathy Donovan Wanger
Follow us on social media for more updates! Facebook / Instagram
Join the community with ambitious store owners in our Richer Retailer Facebook Group
Listener Action Steps
Never miss a moment, subscribe to Richer Retailer on your favorite podcast platform!
Loved this episode? Leave us a 5-star review to help more retailers find us!
Join the Retail Mavens community at retailmavensfb.com to brainstorm ideas and gain support from fellow retailers.
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