Retailers are being urged to cut costs while the retail market remains flat in Australia, with experts predicting the subdued retail trading that plagued the Christmas lead up to continue.
“Now is the time to take control of non fixed costs and get them down to a minimum” Jack said.
This means having a good hard look at your payroll and stock levels.
“Don’t carry dead stock or unsold Christmas stock for another 12 months,” he said.
“Get it out on the floor, even if this means discounting; it is more cost effective than having it take up stock room floor space until next year.”
“Too many business take action after the horse has bolted.”
“If a business trading at $800K per annum finds out at tax time that wages are over by 4% and stock is over by 7% the unfortunate reality is that $88K has been lost and in most cases that money cannot be retrieved,” Jack said.
“It can be the difference between a good business and a great business!”