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!
||Weekly cost per shelf