Although I sold
Newcastle Hardware in 2007, I can testify that Optemizer’s Scientific Buying program
enabled the store to reach performance goals that far exceeded the industry standards
(according the National Retail Hardware Association). Specifically, those measurements
were:
Newcastle Hardware (2006)
Industry Average (2006)
Inventory Turns
4.0
2.0
GMROI
268%
136%
Profit/Sq’
$80
$59
GM%
40.2%
39.9%
The bottom line is
that Scientific Buying kept my inventories at optimum levels - I neither overspent on
excess inventory,
nor lost sales due
to too little inventory. The result was a highly flexible inventory investment that was
created by understanding the trends in my store’s sales history. Not to mention an
inventory that was far more profitable than most retail hardware stores ever enjoy.
However, the new
owners of Newcastle Hardware chose to utilize a different system in their store after they
purchased it from me.
As such, my
suggestion to any retailer considering an Optemizer POS system would be to talk to that
store owner, and ask him to produce reports that demonstrate specifically how well the new
system is managing his inventory - and to compare them with the numbers above. If those
numbers don’t compare, you’ll have your answer as to which system has the best
return on the investment.
