What is the single most important metric to track in your shop?


#1

What is the single most important metric that you track in your shop? If I missed one, select other and let me know in the reply.

  • Gross Margin
  • Stock Turn
  • Sales Per Hour
  • Conversion rate
  • Customer lifetime value
  • Average order value
  • Other

0 voters


#2

What customers ask for us to carry. This helps greatly in customer lifetime value.


#4

Thanks! Do you just have it in a spreadsheet tracker?


#5

We go old school :joy: write it down. We set up in a small town for the locals
so it’s pretty simple if Sally keeps asking for a specific coil we order it
in rather than selling her a tank we carry coils for etc. Seems to be
paying off quite well establishing a loyal customer.


#6

Imagine that. Give the customers what they want, and they reward you with a purchase.


#7

I know right? Super easy. It’s a shame j see a lot of shops try to make a
bigger sale rather than just ordering what they need to convert a maybe
customer into a committed and loyal one.


#8

Do you find yourself having to deal with a lot of different suppliers?


#9

Unfortunately yes. It’s difficult to find a one stop shop in the states that has a solid return policy and the right pricing. We do our best to order state side as well so that’s part of it.


#10

Conversion rate is critical, it points to the effectiveness of your staff. Your Sales per Hour says a lot about your marketing.


#11

Its hard because the metric will change based on your need. When the shop is was slow I focused on transactions per day when the shop was busy I focused on hardware turnover and carried what was moving the most. Focusing on gross product margin with nobody walking through the door is a bad idea.

Assuming the store is busy I would want to see what is moving. Many times I was about to cut a product because I thought it was not popular only to find out its been a very quiet stable mover.


#12

Great lesson here: you almost made a gut move that was refuted by numbers. Trust your gut, verify with numbers.