To help me measure how much a product is costing us in occupation and running costs I have designed myself a ruler that shows me this. My challenge is driven by my need to understand which products are working for us and which are failing. The solution I wrote about here requires me to check how much shelf space each product takes up. I then calculate the cost of that space per week using our EPoS system, which is able to provide line-by-line profit performance as a ten-week average weekly figure.

I have realised that I need to simplify the process and with the use of a spreadsheet and desktop publishing program I have created my rule. As we have fixtures with different shelving profiles my rule has costings for between 5 and 10 shelves. I can now instantly check the weekly cost of the space for each product against how much profit it achieves.

I think that I now have the tool kit to help make our confectionery space more profitable. Time will tell just how much more successful!

Bay ProfileWeekly cost per shelf5cm10cm15cm20cm25cm
5.00£7.00£0.35£0.70£1.05£1.40£1.75
6.00£5.83£0.29£0.58£0.88£1.17£1.46
7.00£5.00£0.25£0.50£0.75£1.00£1.25
8.00£4.38£0.22£0.44£0.66£0.88£1.09
9.00£3.89£0.19£0.39£0.58£0.78£0.97
10.00£3.50£0.18£0.35£0.53£0.70£0.88