Category contribution margin

R295

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In 35 minutes you will work out a category’s contribution from its gross profit and the store’s. You will also read contribution next to the share of floor space the category uses. And you will base shelf space decisions on profit per metre of floor, not on sales.

SKU: PL-MCB-RET-18
Category:

Description

Who it’s for: Anyone in a store or a retail head office who has to answer one question: Which aisles are really carrying your store’s profit?

What happens in it: Watch the idea unfold: a busy aisle, the gross profit it really earns, and the number that shows its share of the store’s profit. In Your call you make the decisions in a real case: I’m reviewing which categories deserve more shelf space in our upcoming remodel. Our beverages category sold R1,600,000 with COGS of R1,120,000. The store’s total gross profit for the period was R4,000,000. Then, in the boardroom, you make the case to Vernon, the commercial director, in three questions.

How it works: five scenes in about 35 minutes: the data film, the lesson, Your call, practice with fresh numbers that mark themselves, and the boardroom. Finish all five for your certificate. It is course 2 of 6 in the Margin and profit season of the Retail series.

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