Step #1: Determine Your Missed Transactions Based on Closure Rate
Missed Transactions Assumptions:
- The store didn't stock the product the customer wanted and the entire sale was abandoned.
- The customer couldn't find the product they needed and left the store.
- The store was out of stock on a product and the customer couldn't wait until it was restocked. Therefore, the entire sale was abandoned.
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Your Store
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Typical Hardware Store
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High-Profit Hardware Store
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Daily Transaction Count
(Based on being open 360 days/year)
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221 *
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270 *
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Closure Rate
(If unsure, input your best guess)
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%
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85 % **
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85 % **
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Daily Customer Count
(Total number of people entering store)
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260
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318
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Number of Customers Not Making a Purchase
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39
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48
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Average Transaction Size in $
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$
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$ 20 *
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$ 22 *
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Gross Margin %
(After rebate)
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%
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41 % *
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42 % *
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Daily Missed Sales
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$
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$ 780.00
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$ 1,056.00
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Daily Missed Gross Profit
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$
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$ 319.80
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$ 443.52
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Annual Missed Sales
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$
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$ 280,800.00
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$ 380,160.00
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Annual Missed Gross Profit
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$
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$ 115,128.00
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$ 159,667.20
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Step #2: Determine Out of Stock/Missed Item Per Transaction Impact
Lost Item Sales Assumptions: Store was out of stock and lost sales on one item per transaction.
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Your Store
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Typical Hardware Store
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High-Profit Hardware Store
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Average Number of Items Per Transaction
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4 ***
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4 ***
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Average Retail Per Item
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$
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$ 5.00
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$ 5.50
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Missed Item Impact %
(Customers purchasing 1 less item due to Out of Stock)
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%
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15 % **
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15 % **
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Missed Item Daily Sales Impact
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$
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$ 165.75
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$ 222.75
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Missed Item Daily Gross Profit Impact
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$
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$ 67.96
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$ 93.56
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Missed Item Annual Sales Impact
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$
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$ 59,670.00
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$ 80,190.00
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Missed Item Annual Gross Profit Impact
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$
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$ 24,464.70
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$ 33,679.80
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Total combined results of Step #1 and Step #2
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Your Store
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Typical Hardware Store
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High-Profit Hardware Store
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Annual Potental Sales Impact
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$
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$ 340,470.00
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$ 460,350.00
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Annual Potential Gross Profit Impact
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$
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$ 139,529.70
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$ 193,347.00
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