A Business Calculator is a tool for the accurate counting of indicators in retail
The data-driven approach in retail involves the calculation of a huge number of indicators and metrics. They can justify management decisions, and make them more efficient and effective.
To make the process of calculating retail metrics easy for you, the Datawiz team has developed an online Business Calculator.
This powerful tool will instantly and accurately count the basic metrics for decision-making. The margin calculator will become a reliable assistant for category managers, marketers, and chain owners.
Benefits of Online Business Calculator
The main advantages of the online calculator from Datawiz:
- Fast Calculation - you can calculate the necessary retail metrics in a matter of seconds.
- Accurate Calculation - with the help of a calculator, you can be sure of errorless calculation of retail metrics.
- It prevents you from complex routine calculations - the calculator takes on routine and monotonous tasks and allows you to focus on more important management tasks.
- It gives answers to strategically important questions: at what price to sell products? What is the margin level of products in the chain? How quickly does the product sell?
- The calculator helps you in business negotiations - you do not need to remember complex formulas in decisive and stressful moments, the calculator will calculate everything instead of you and provide the exact values of the indicators.
- It facilitates the management process - calculated metrics and indicators allow you to make effective and data-driven management decisions, getting rid of intuitiveness and groundlessness.
Features of the Business Calculator
The Datawiz calculator contains three tabs:
- Selling price determines at what price you need to sell to get the desired margin. By specifying the expected cost and margin values, the calculator counts the markup, selling price, and profit.
For example, if the cost of a product is $54, and the desired margin for the chain is 20%, then the calculator will offer to sell for $67.5, charge a markup of 25%, and receive a profit of $13.5 per item.
- Margin/Markup determines the amount of margin and markup that the chain receives when applying a certain selling price. The input data for the calculation are the cost price and the selling price, and the calculated indicators are profit, margin, and markup. With this information, you can evaluate the chain profitability and, if necessary, change the selling price or look for other suppliers with lower purchase prices (costs).
For example, if a product is sold for $20, with a cost price of $14, then the chain receives a profit of $6, a margin of 30%, and a markup of 42.86%.
- Inventory Turnover determines how quickly products are sold in the retail chain. When calculating, you will find out how many turns the products perform during the selected period and how long one turn lasts.
For example, if a product sold for $1,500 in 30 days, and its average inventory costs $250, then the calculator will calculate the speed of product distribution in the chain:
- Inventory turnover ratio (time interval from the purchase of products to their sale) - 6 turns;
- Days sales in inventory are 5 days.
Note! The greater the value of the turnover ratio, the more popular the product for the chain. It quickly generates income, does not need additional storage costs, and does not freeze funds in circulation. Therefore, it is worth periodically doing express diagnostics for store products.
The margin calculator will allow you to quickly calculate the necessary indicators that are important for making decisions or developing strategies. You do not need to remember complex formulas or apply analytical platforms, just enter the necessary values and instantly get ready-made indicator values. Use convenient business tools from Datawiz and facilitate the management process.