Are Your Vendors Performing for You?

Transcription

1 Are Your Vendors Performing for You? Presented by: Tracy Moffatt K & K Consulting AGM Education Team The Educational Voice in Golf Merchandising Since 1989 All AGM educational materials are protected by U.S. Copyright and cannot be reprinted or used without the expressed written consent of the Association of Golf Merchandisers.

2 Are Your Vendors Performing for You? Presented by: Tracy Moffatt AGM Education Team K&K Consulting

3 Vendor Selection & Analysis Vendor Analysis Vendor Profitability Factors Pre-books and Programs Choosing Vendors Factors to consider Vendor Analysis Analyze ALL Vendors Yearly Focus on business not programs and personal relationships Business analysis will remove you personally from equation if tough decisions need to be made Information gathered will be used for Sales Forecasting and planning future deliveries Analysis Areas Cost of Sales Gross Margin Turnover Stock to Sales Ratio Shipping Quality of Merchandise 1

4 Other Analysis Areas Comparison Shop Know industry trends Survey your members Review number of vendors in each classification Can you use one vendor to supply multiple classifications of merchandise Gathering the Information POS Reports Vendor Analysis Supplier Analysis Margin Analysis Sales Analysis SKU Analysis Sales by Vendor Sales by Category Clearance Rack Markdown Log On-Order Log Jonas Supplier Analysis Report 01 - Quail Creek Country Club GOLF - Golf Inventory Supplier Analysis for Nov01/05 to Apr30/06 Summary Report Opening Balance On Purch & Adjs Sales Inventory Hand Actual COS Margin Turn Avg Supplier Units $ Units $ Units $ M/D $$ % Units $$$ $$ $$$ $$ Ratio Days Adidas , , ,394 2,910 1, Albert Ross , , , Ashworth , , ,201 2,116 1, Ben Hogan 40 1, , , ,896 3,585 1, Boast 85 1, , , ,738 3,227 2, , Bugatatchi Uomo , , ,915 2,656 1, Carnoustie , , , Cutter & Buck , , ,219 1, Fairway & Greene 29 1, , , ,128 3,376 1, Ping 39 1, , ,815 1,030 3,785 2,775 1, , Robert Trent Jone ===== - ====== - ===== 49 ====== 2,146 ===== 42 ====== 2,974 ====== 377 ====== 2,597 ====== 1,839 ====== 758 ====== ===== 7 ====== 307 ====== ===== 15 === ==== === ==== === ==== ==== ==== ==== ==== == === ==== == == Total Men's Shirt 251 8, , ,749 4,568 38,180 25,432 12, ,

5 Jonas Detailed Sales Report Quail Creek Country Club GOLF - Golf Inventory Detailed Sales Report as of Aug31/06 Gross Net SKU# Description On Hand Value Info: Qty $$$ Cost Profit % M/Downs % Profit % 40 - Men's Headwear Ahead Men's Cap This Year 67 1, Amer Ndle Label Cap This Year Amer 229 2, This Year 155 2,747 1,432 1, , Needle Cap Amer Needle Visor This Year Anniversary Cap This Year 118 2,323 1,003 1, , Anniversary Bucket This Year Texace 25th Anniv Cap This Year TT Mesh Back Cap This Year TT Visor This Year TT Bucket Hat This Year TT Straw Hat 0 0 This Year TT Panama Hat This Year , Total Category 040 This Year ,310 7,036 7, , Jonas Comparative Annual Amount Report Annual Amount Report by Categories (Sep Aug 2006) 01 - Quail Creek Country Club GOLF - Golf Inventory SKU # Description Last 12 % Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Months 10 WOMEN'S SHIRTS WOMEN'S SHORTS WOMEN'S CAPRIS WOMEN'S PANTS WOMEN'S SKIRTS/SKORTS WOMEN'S SWEATERS/VESTS WOMEN'S OUTERWEAR WOMEN'S LEISUREWEAR WOMEN'S HEADWEAR WOMEN'S SOCKS WOMEN'S BELTS WOMEN'S HANDBAGS MEN'S SHIRTS MEN'S SHORTS MEN'S PANTS MEN'S SWEATERS/VESTS MEN'S OUTERWEAR MEN'S BLAZERS/TIES MEN'S HEADWEAR MEN'S SOCKS MEN'S BELTS CHILDREN'S CLOTHING ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= TOTAL: Jonas SKU Analysis Report Quail Creek Country Club GOLF - Golf Inventory SKU Analysis as of Sep 2006 Last Last On Units Sep Aug Jul Jun May Apr Mar Feb Jan Dec Nov Oct SKU Description Rec't Sale Hand Sold Callaway HX HOT May23/06 Aug13/ Callaway HX Pearl Apr21/06 Aug29/ Callaway HX TOUR May23/06 Aug31/ Pond Balls Dec15/05 Aug26/ Precept Laddie Feb27/05 May11/ Precept Lady May16/06 Aug12/ Bridgestone Tour S Oct19/05 Mar14/ Bridgestone Tour Jan17/05 Jul13/ Bridgestone E5 / E6 Apr21/06 Aug27/ Maxfli Noodle May09/06 Aug25/ TLT NXT Distance Apr30/06 Aug13/ TLT NXT Tour Jun30/06 Aug13/ TLT Pro V1 Jun30/06 Aug26/ TLT Pro V1 X Jun30/06 Aug08/ TLT DT SoLo Apr30/06 Aug05/ Crystal Apr12/06 Aug25/ Logo Ball May24/06 Aug27/

6 Vendor Analysis Example Total Men s Vendor A Vendor B Vendor C Cost of Sales $ Cost of Sales % 67.0% 57.0% 73.3% 68.0% Gross Margin % 33.0% 43.0% 26.7% 32.0% Turnover Vendor A: Strong performer for this season - gross margin much higher than the department s gross margin Turnover for vendor A was high which could indicate some business was missed Definitely a vendor to go forward with Vendor Analysis Example Total Men s Vendor A Vendor B Vendor C Cost of Sales $ Cost of Sales % 67.0% 57.0% 73.3% 68.0% Gross Margin % 33.0% 43.0% 26.7% 32.0% Turnover Vendor B: Did not perform well especially in turnover This vendor should be scaled back or eliminated from future buys. Vendor Analysis Example Total Men s Vendor A Vendor B Vendor C Cost of Sales $ Cost of Sales % 67.0% 57.0% 73.3% 68.0% Gross Margin % 33.0% 43.0% 26.7% 32.0% Turnover Vendor C: A new vendor this season - gross margin number below the department but extremely high turnover indicates the merchandise sold through very quickly A lot more of the product could have been sold Business was missed with this vendor - definitely continue with vendor on next season s plan 4

7 On-Order Log Track all vendors in an On-Order Log Plan delivery timing Plan floor presentation Challenge if delivery dates are not met Great tool for reacting to open-to-buy needs Use records for choosing vendors next season Use for dealing with tough buying decisions next season On-Order Log MONTH JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC Current Month's Planned Cost of Sales + Next Month's Planned Inventory - Current Month's Planned (or Actual) Inventory = Cost Buy Plan (planned OTB) - Current On Order - Reserve & Special Orders Actual Open to Buy Ship Date Vendor Date R'cd Description JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC Vendor A 3/20 Navy/Purple/Teal /1 Khaki/White 3000 Vendor B 2/20 1/26 Green/Yellow /15 Red/Black /25 Tech Pastels 3000 Vendor C 3/1 Grey/Black /15 Blue/Yellow /15 Red/White/Blue 1800 Vendor Profitability Factors Value-added services Invoice Dating Payment Terms Invoice Discounts Wholesale Discounts Return Programs Merchandise on wheels Markdown Assistance 5

8 Vendor Profitability Factors Value-added services Free Freight Free Logo Trunk/Fashion Shows Product Demos Merchandising Aids Signage Co-op Advertising Fixtures Vendor Profitability Factors Value-added services Sales Training Private Labeling Close-outs Off price offerings Net Down Assistance Pre-Books & Programs Vendor Profitability Factors Pre-books and Programs Benefits Payment Terms Invoice Discounts Rebates on purchases Demo Clubs at reduced cost Convenience - Buys all done at once Suggested order done by rep 6

9 Vendor Profitability Factors Pre-books and Programs Risks Suggested order based on units shipped not units sold Discounts and terms not taken Excessive Inventory Lower turnover Increased markdowns Change of product line mid season Vendor Profitability Factors Planning with Pre-books and Programs Use previous SALES records and adjust to trend Be prepared have your own numbers Spend only dollars in buy plan Challenge monthly and adjust orders Ensure all terms and discounts are received Programs don t sell merchandise the right product, price, and people do!!! Jonas SKU Analysis - Excel SKU Analysis for Specific Vendor Customize Report in Excel Quail Creek Country Club GOLF - Golf Inventory SKU Analysis as of Sep 2006 On Units Sep Aug Jul Jun May Apr Mar Feb Jan Dec Nov Oct SKU Description Hand Sold Totals TLT NXT Distance TLT NXT Tour TLT Pro V TLT Pro V1 X TLT DT SoLo Totals

10 Vendor Selection Why is Vendor Selection so important? Choosing the right vendors will allow you to have the right merchandise at the right time and at the right price. Sell-through and turnover will improve resulting in higher PROFITABILITY! Knowing your customers and ideal merchandise mix will help you to choose the best vendors. Vendor Selection In each merchandise classification you will have two kinds of vendors: Core Majority of sales in classification Continuity in Golf Shop Peripheral Smaller representation Variety in Golf Shop Seasonally placed Key Vendor Considerations What is their profit margin in your shop? Do they offer the right product? Is it a product your customers desire? Do they fit your pricing structure? Do you feel comfortable working with this company? 8

11 Key Vendor Considerations Do they understand the unique elements of your business? Your seasonality What is the depth of the category selection this vendor offers? Can you fulfill multiple needs with this vendor Vendor Shipping Information Can they ship on time and complete? Beginning or end of shipping window? Will you be billed for shipping on backorders? What location will your shipments come from? Will they drop ship special orders Vendor Shipping Information Do delivery dates fit your selling season? Are shipping dates same for all regions? How many lines do they produce annually? How many lines do they produce annually? Will you be able to receive merchandise in the month prior to your desired selling month? Will you be able to stagger deliveries throughout your selling season? 9

12 Vendor Shipping Information Are special orders readily available? Is there a cost minimum on re-orders? What is charge if under that minimum? What is the turnaround for stock items? Are basics easily and quickly replenished? What is minimum quantity to logo? Vendor Customer Service What are their return policies? Restocking fees? Is Customer Service readily available? A person and not a messaging system Will they provide assistance with problems? Do they have order cost or quantity minimums? Vendor Customer Service What are their Logo charges? What is the minimum quantity for logoing? Do they have a local sales rep? How often will you see them? Are they available for trunk/fashion shows? Will they provide training for staff? 10

13 Vendor Customer Service Do they have a catalog? Do they have a website? PGA Retirement Plus? AGM Vendor Partner? VGM Vendor Partner? Can you negotiate with them? Vendor Business Practices Do they offer a personal use discount? Do they offer off-price and closeouts? Do they offer co-op op advertising and promotional assistance? How overly distributed are they? Do they have a local store? Outlet? Vendor Business Practices How do they liquidate excess inventory? Do they sell to liquidators with outlets in your area? Are they financially stable? Who are the principal owners of the Company? Where is the product manufactured? Do they support charitable causes? 11

14 Keys to Choosing Vendors & Increased Vendor Profitability Know your Customer Plan an appropriate Merchandise Mix Select Vendors to meet YOUR needs Analyze ALL Vendors annually Presented by: Tracy Moffatt AGM Education Team K&K Consulting For More Information: Association of Golf Merchandisers All AGM educational materials are protected by U.S. Copyright and cannot be reprinted or used without the expressed written consent of the Association of Golf Merchandisers. 12

15 Jonas Supplier Analysis Report 01 - Quail Creek Country Club GOLF - Golf Inventory Supplier Analysis for Nov01/05 to Apr30/06 Summary Report Opening Inventory Purch & Adjs Supplier Units $ Units $ Units $ M/D $$ Actual $$ COS $$$ Margin $$ Balance On Hand % Units $$$ Adidas , , ,394 2,910 1, Albert Ross , , , Ashworth , , ,201 2,116 1, Ben Hogan 40 1, , , ,896 3,585 1, Boast 85 1, , , ,738 3,227 2, , Bugatatchi Uomo , , ,915 2,656 1, Carnoustie , , , Cutter & Buck , , ,219 1, Fairway & Greene 29 1, , , ,128 3,376 1, Ping 39 1, , ,815 1,030 3,785 2,775 1, , Robert Trent Jone ===== - ====== - ===== 49 ====== 2,146 ===== 42 ====== 2,974 ====== 377 ====== 2,597 ====== 1,839 ====== 758 ====== ===== 7 ====== 307 ====== ===== 15 === ==== === ==== === ==== ==== ==== ==== ==== == === ==== == == Total Men's Shirt 251 8, , ,749 4,568 38,180 25,432 12, , Sales Turn Ratio Avg Days

16 Jonas Detailed Sales Report Quail Creek Country Club GOLF - Golf Inventory Detailed Sales Report as of Aug31/06 Gross Net SKU# Description On Hand Value Info: Qty $$$ Cost Profit % M/Downs % Profit % 40 - Men's Headwear Ahead Men's Cap This Year 67 1, Amer Ndle Label Cap This Year Amer Needle Cap 229 2, This Year 155 2,747 1,432 1, , Amer Needle Visor This Year Anniversary Cap This Year 118 2,323 1,003 1, , Anniversary Bucket This Year Texace 25th Anniv Cap This Year TT Mesh Back Cap This Year TT Visor This Year TT Bucket Hat This Year TT Straw Hat 0 0 This Year TT Panama Hat This Year Total Category 040 This Year ,310 7,036 7, , ,668 33

17 Jonas Comparative Annual Amount Report Annual Amount Report by Categories (Sep Aug 2006) 01 - Quail Creek Country Club GOLF - Golf Inventory SKU # Description Last 12 % Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Months 10 WOMEN'S SHIRTS WOMEN'S SHORTS WOMEN'S CAPRIS WOMEN'S PANTS WOMEN'S SKIRTS/SKORTS WOMEN'S SWEATERS/VESTS WOMEN'S OUTERWEAR WOMEN'S LEISUREWEAR WOMEN'S HEADWEAR WOMEN'S SOCKS WOMEN'S BELTS WOMEN'S HANDBAGS MEN'S SHIRTS MEN'S SHORTS MEN'S PANTS MEN'S SWEATERS/VESTS MEN'S OUTERWEAR MEN'S BLAZERS/TIES MEN'S HEADWEAR MEN'S SOCKS MEN'S BELTS CHILDREN'S CLOTHING ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= ======= TOTAL:

18 Jonas SKU Analysis Report Quail Creek Country Club GOLF - Golf Inventory SKU Analysis as of Sep 2006 Last Last On Units Sep Aug Jul Jun May Apr Mar Feb Jan Dec Nov Oct SKU Description Rec't Sale Hand Sold Callaway HX HOT May23/06 Aug13/ Callaway HX Pearl Apr21/06 Aug29/ Callaway HX TOUR May23/06 Aug31/ Pond Balls Dec15/05 Aug26/ Precept Laddie Feb27/05 May11/ Precept Lady May16/06 Aug12/ Bridgestone Tour S Oct19/05 Mar14/ Bridgestone Tour Jan17/05 Jul13/ Bridgestone E5 / E6 Apr21/06 Aug27/ Maxfli Noodle May09/06 Aug25/ TLT NXT Distance Apr30/06 Aug13/ TLT NXT Tour Jun30/06 Aug13/ TLT Pro V1 Jun30/06 Aug26/ TLT Pro V1 X Jun30/06 Aug08/ TLT DT SoLo Apr30/06 Aug05/ Crystal Apr12/06 Aug25/ Logo Ball May24/06 Aug27/

19 On-Order Order Log MONTH JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC Current Month's Planned Cost of Sales + Next Month's Planned Inventory - Current Month's Planned (or Actual) Inventory = Cost Buy Plan (planned OTB) - Current On Order - Reserve & Special Orders Actual Open to Buy Ship Date Vendor = Cost Buy Plan (planned OTB) Date R'cd Description JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC Vendor A 3/20 Navy/Purple/Teal /1 Khaki/White 3000 Vendor B 2/20 1/26 Green/Yellow /15 Red/Black /25 Tech Pastels 3000 Vendor C 3/1 Grey/Black /15 Blue/Yellow /15 Red/White/Blue 1800

20 Jonas SKU Analysis - Excel SKU Analysis for Specific Vendor Customize Report in Excel Quail Creek Country Club GOLF - Golf Inventory SKU Analysis as of Sep 2006 On Units Sep Aug Jul Jun May Apr Mar Feb Jan Dec Nov Oct SKU Description Hand Sold Totals TLT NXT Distance TLT NXT Tour TLT Pro V TLT Pro V1 X TLT DT SoLo Totals