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The rule of space to cost

To help me measure how much a product is costing us in occupation and running costs I have designed myself a ruler that shows me this. My challenge is driven by my need to understand which products are working for us and which are failing. The solution I wrote about here requires me to check how much shelf space each product takes up. I then calculate the cost of that space per week using our EPoS system, which is able to provide line-by-line profit performance as a ten-week average weekly figure.

I have realised that I need to simplify the process and with the use of a spreadsheet and desktop publishing program I have created my rule. As we have fixtures with different shelving profiles my rule has costings for between 5 and 10 shelves. I can now instantly check the weekly cost of the space for each product against how much profit it achieves.

I think that I now have the tool kit to help make our confectionery space more profitable. Time will tell just how much more successful!

Bay Profile Weekly cost per shelf 5cm 10cm 15cm 20cm 25cm
5.00 £7.00 £0.35 £0.70 £1.05 £1.40 £1.75
6.00 £5.83 £0.29 £0.58 £0.88 £1.17 £1.46
7.00 £5.00 £0.25 £0.50 £0.75 £1.00 £1.25
8.00 £4.38 £0.22 £0.44 £0.66 £0.88 £1.09
9.00 £3.89 £0.19 £0.39 £0.58 £0.78 £0.97
10.00 £3.50 £0.18 £0.35 £0.53 £0.70 £0.88

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