Ravel , president of Karavel Shoe Comfort Center , earned his bachelor ’ s in business administration and served for six years on PFA ’ s board , 10 years as a member of its government affairs committee and has been a volunteer for over 20 years at the Indigent Foot Care Clinic at Brackenridge Hospital . There is no doubt this man understands the retail shoe industry .
In times of a down turn we ’ re advised to “ tune up ” our operations . That doesn ’ t mean an across the board slash and burn , but to examine day to day operations on a more minute level .
The presentation covered all the basics ; location , salaries , staffing , inventory , freight , credit card processing , advertising , profit and loss statements . In case that sounds like a bad thing , or was boring , think again . This presentation was jam packed with the dos and don ’ ts of running retail shoe stores in the most profitable way .
We all know that the first thing you do is write a business plan before starting any new venture . Choosing a good location is vital , especially for retail and especially in this new economy . A strip mall with an anchor store like a major department store is going to provide the best foot traffic . As Pedorthic practitioners , your professional skill-set will have a positive affect by boosting your business overall when coupled with retail . Keep in mind that Pedorthic skills vary from practitioner to practitioner just as business acumen , so if you ’ re great at both you ’ re sure to be successful .
In 2006 , many independent retailers caught scent of the impending recession and took measures to prepare for it ; they decreased their expenses and inventory and that allowed them to weather the current economic climate in a positive way . In times of a down turn we ’ re advised to “ tune up ” our operations . That doesn ’ t mean an across the board slash and burn , but to examine day to day operations on a more minute level . Among the items to review are your shipping expenses , credit card processing , business and liability insurance , etc . Are you getting a better deal than the ones offered through PFA ? Those are just some of the benefits you are provided by belonging to this organization , so take advantage of it . Ravel said that “ an expense decreased by 2 % could result in a 60 % increase in net profitability ”. That ’ s a lot of extra cash to keep you in the black and even prepare you for future growth .
Lest you think it was all sunshine and roses , we did learn about wages and salaries . Rick pointed out that “ while it may look good on paper that salaries decreased from 23.8 % to 22.9 % over a two year period , those numbers also included the owner ’ s salary taking a hit . Productivity is key , and not only from your employees , but also from your space . Nationwide rents have decreased approximately 20 % due to the recession , so negotiate your best price .
Advertising and promotional expenses went up by 3.3 % over the same two year period following the economic crash . It ’ s vital to look carefully at opportunities to increase sales and decrease costs at the same time . For instance , regarding advertising , evaluate who your audience is and if what you are currently doing is working . If not , reallocate funds to another advertising medium .
We all know that the first thing you do is write a business plan before starting any new venture .
Rick stressed that he learned a lot of lessons just by looking at his profit and loss statement and his balance sheet and comparing them . His advice was to check them often , and once a year is too little too late . He provided three points to enhance profitability :
1 . Operating expenses need to be planned , budgeted , measured and adjusted as necessary ;
2 . Pricing strategies should be based on the value of the product , not just on its cost ; and
3 . Markdowns : It isn ’ t what is sold that counts , but , what hasn ’ t sold is also critical . Every slow mover is a drain on earning potential . Excessive markdowns are a result of little or no planning . Timing of markdowns is key .
The longer you wait once you know of a problem , the costlier it will be to remedy .
So , now thanks to Mr . Ravel , I have a lot to think about before I make any decisions on launching the retail side of my practice , but without the information from this session it would have been like going in to wrestle an alligator blindfolded . ■
Rob Sobel , C . Ped ., started his pedorthic career as a technician at an orthotics and prosthetics facility . With more than 25 years of patient care experience , Sobel is now the owner of his own pedorthic practice in New Paltz , N . Y .
Current Pedorthics May | June 2012 23