Episode 1

The Power of New
A retailers financial health is in direct proportion to the percentage of his inventory that is New. Paul will discuss Pareto’s Principle and how a retailer can accumulate old inventory without even realizing it, and that any inventory has hidden costs when it sits. A follow-up question discusses the distinction between “Fresh” and “New”.

Episode 2

The Paradox of Inventory
We all know that too much inventory is a problem. Paul will discuss why having too little inventory is actually worse than having too much, and how today’s customer reacts when stock turnover rate isn’t quite right. Understand the challenge of the largest asset on your balance sheet, and the role of the buyer in managing this paradox.

Episode 3 NOW PLAYING

Inventory Turnover
Turnover is the hidden factor in your P&L statement - the time measurement of how quickly you sell your inventory. Paul discusses the importance of improving turnover to increase cash flow and net profits. He proposes an alternative concept to turnover (week's and month’s supply) and short vs. long term sell-through goals. The follow up question discusses the danger of turning over inventory too quickly.

Episode 4

Initial Markup
It’s important to understand the most fundamental concept in retailing. Paul will discuss how even a minor change in initial markup, when paired with a comprehension of psychological pricing, can dramatically affect bottom line profits. A follow up question covers identifying items that can take a higher initial markup.

Episode 5

Markdowns
While markups (Episode 4) are the most fundamental concept in retailing, Markdowns may be one of the most misunderstood and misapplied. Part 1 covers Paul’s Seven Rules of Markdowns - watch and create a more successful and profitable strategy for moving product through your store. Part 2 explores the ‘Danger Point’ of markdowns. Are you using Rx for Profit for team training? A group discussion question and homework assignment are included at the end of Part 1.

Episode 6

Merchandising by Classifications
The importance of structuring our merchandise into a hierarchy of departments and classifications. End use examples. Looking at merchandise through the customers eyes. How events shape shopping patterns.

Episode 7

Cash Flow
It’s that time again! The spring 2011 buying shows are upon us…will you and your buyers fall prey to “cheaper by the dozen” and wind up with more inventory than you need? When confronted with great deals, savvy salespeople, and tantalizing new merchandise, your business’ cashflow must remain your number one priority. Tune in to learn some quick rules of thumb for buying and optimizing cashflow for a healthy spring season ahead!

Episode 8

Paper Profits vs Cash
In this day and age of tighter credit lines, understanding the difference between cash on hand and paper profits is key to success - especially in a seasonal business. Join Paul as he articulates some of the basic principles (and dangers) of profits on paper: while they may look good, you can’t eat them or pay the bills with them.

Episode 9

GMROI
You've heard it called "JimRoy" and "GIMRoy" -- but however you say it, G.M.R.O.I. (Gross Margin Return on Investment) is the most important measurement of inventory productivity in retail. It is critical for everyone on the team to understand the concept of the return we are making on our inventory investment, and how it's calculated. GMROI is the great equalizer: you can sell fast and low margin, or slow on high margin -- but first you need to understand how to calculate it. Step into the classroom with Paul on this critical topic and learn through simple examples how to break down your total profits into GMROI, taking turns and costs into account.

Episode 10

Sell and Buy
All retailers want to go to RETAIL HEAVEN! Retail heaven is where the retailer sells the merchandise first and pays for it later. Paul examines turning stock before invoices come due by capitalizing on manufacturer dating programs. These are the steps you need to get to after life bliss!

Episode 11

Merchandise Planning & Open To Buy
You are in the business of selling inventory, not owning it. How do you determine how much inventory to stock and how much to buy? Your open-to-buy is a budget that helps you create a plan to meet sales, profit and inventory-turn targets. Paul describes how this tool can help you plan your merchandise levels to stay liquid and maximize cash profits.

Episode 12

Six Mistakes To Avoid at a Trade Show
Trade shows can be the most stressful event of the year for retailers. Here are six mistakes many retailers make when attending and how to avoid them. They include overbuying, deciding too quickly, using the vendors’ purchase orders, delivery windows and negotiation.