[Revised Mar 02]
The 'Best/worst items' report shows Return on Investment (ROI). ROI takes into account both stock turn (number of times the stock turns over in a year) and the markup.
- Product groups with a ROI over 200% are good. Some groups can manage 400%, and those should be given 'star' treatment... window displays, general promotion, multiple shelf facings and in fact every opportunity to generate extra return. 'RxOne' will do this automatically, unless prevented by the buyer overriding the suggested orders saying "We don't need 3 dozen of those!".
- Any product group or supplier's products with a ROI less than 125% is not pulling it's weight and the stock levels should be reduced if possible. 'RxOne' will also do this itself unless prevented by someone altering the quantity saying "Not enough, we always buy those in dozens!".
- Anything less than 50% ROI is a 'dump'. While this is better than you get from the bank, you're loosing money on it after paying the cost of displaying it, keeping it clean, suffered the shrinkage (which will be considerably as it dies on the shelf) and worst of all the loss of opportunity to display stock that IS selling. 'RxOne' will automatically drop the stock of these items to one and keep it there (it will never discontinue), once again unless overridden.
Related topic
Stockturn report