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The ROI's GMROI Calculator

Gross Margin Return on Inventory Investment

Compare your inventory productivity BEFORE you place the order!

 

 

Enter your planned sales and margins - by store, by department, by vendor, even by customer group! - and immediately see the GMROI for each one. 

Quickly compare and contrast the relative productivity of each grouping. Which ones are providing a good return on your inventory investment? Which ones are lagging behind in productivity?


"What would happen if I...?"

Then, make some changes. Increase margins? GMROI goes up. Hmmm....Increase turns? GMROI really goes up!  Or, increase both, and see what synergy is all about! 

Now, you have a plan. You can focus your buying - and your negotiations with your vendors - where you will get the best return on your investment.



The Retail Owners Institute® has been empowering retailers since 1999 to "Turn on their financial headlights!"
Our tools and resources are trusted by thousands of store owners to help grow profitable, resilient businesses.

3 MAY
2019

GMROI Calculator (screen shot)

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In the dark gray boxes, you would enter the numbers you know: planned sales, margins & turns for whatever category you want to analyze and compare: departments, stores, classifications, even vendors!

For each one, the GMROI Calculator immediately shows what the GMROI would be. 

And the Gross Margin dollars. 

And the Average Inventory @Cost. 

Plus, it totals it all at the bottom.

Make adjustments to sales, margins, and/or turns. Immediately see the impact.

What a great way to test out buying strategies before you place the order!

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