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McMahon's Retail Finance & Inventory Articles

Financial management and inventory control articles for furniture stores by retail consultant David McMahon.

Funnels and Paths

Funnels create customer experience paths that boost retention, generate positive word of mouth marketing and turn more customers into repeat customers.

Operations: Organize Your Service Experience

Why is there a huge variation in the open service per million dollars in sales volume metric among furniture retailers? And, what can be done about it?

Fourteen Ways to Find & Retain Employees

Most retail businesses have systems in place to attract external customers. Why should processes to attract and keep employees be much different?

CXM Workflows Defined

Retailers use CXM to automate sales and service processes. Automation triggers save time and produce meaningful results quicker.

Customer Experience Management

CXM is a tool that will help you to grow your furniture business and outperform competitors large and small.

12 Ways to Avoid the Coming Cash Flow Trap

Twelve cash flow enhancing ideas for managing your retail furniture store pipeline in these chaotic times.

Customer Journey Lead Management

Guide non-physical leads into a funnel of care that will deliver the highest level of service you are capable of providing.

New Front Doors: Customer Journey Management

The new front door was not invented during the pandemic; however, it has become critically important for furniture retailers over the past few months.

The Power of Family Product Reporting

Here's how one retailer adopted product family reporting to seize control of its inventory and increase GMROI.

Coaching And Mentoring

How one retailer used the GROW and Cascade of Change models to improve sales performance.

The Turnover Challenge

Tracking employee turnover will lead to greater sales and profit.

Case Study: Marketing Effectiveness Metrics

Retailer "A" has a bigger ad budget. Retailer "B" uses more digital media. Which one gets better returns?

The North Star of Retail: Average Sale

How one retailer grew sales volume by creating a strategy and a company-wide laser-focus based on average sale improvement.

What's Your Store Worth?

Why a formal valuation process can help to maximize long-term value.

How to Choose the Right Supplier

30 Supplier Criteria that should be considered for potential suppliers.

Planning For Uncertainty in 2019

Downturns can be times of opportunity, and it's best to prepare for uncertain economic times.

Warehouse Improvement Metrics

Here are the metrics every home furnishings retailer needs to use to improve warehouse facilities and processes.

Warehouse Improvement Checklist

Scores of ideas to help furniture retailers improve facilities, processes and warehouse metrics.

Increase Gross Margin Seven Ways - Part 2

Field-proven ways to maximize your realized gross margin.

Find Your Top Line Performance

Does your total Gross Margin after deducting Cost of Goods Sold give you a full performance picture?

Case Study: Written & Delivered Sales

Attention to written & delivered sales increased annual cash flow more than $100,000 for this average sized retailer.

Inventory and Sales Performance Metrics 2018

If you are a furniture retailer who wants to continuously improve, but needs to know where to start, this article is for you!

SWOT Analysis

Knowing your strengths, weaknesses, opportunities and the threats facing your business allows you to focus.

Seven "Magic" Traits Of Successful Sales Managers

The seven traits of the most successful sales performance managers, plus tips on how to develop them.

Expanding GMROI

Here's how one retailer used Expanded GMROI, a team approach, to grow GMROI 16% from 2015-2016.

Investing In Retail: Running the Numbers

Which opportunities should you invest in to get the best return? How do you know if costs will be covered?

Kaizen Blitz

A short-term Kaizen Blitz event will increase furniture store efficiency and effectiveness in 2017.

People Management Challenge 2017

Traditional layers of management are focusing more on task-accomplishment rather than people-management.

State of The Industry

David and Wayne McMahon talk about furniture retailer profitability and ways they can do better.

A Recipe For Maximum Gross Margin

Ten major ingredients in a tasty recipe that you can use to maximize your store’s gross margin.

Price Right!

Earning the right to sell more at higher prices is the way the best retailers generate sustained profits and cash flow.

Lean Techniques Part 5: Case Study

See how LEAN techniques took one retailer from losing money to more than 10% profit.

Lean Techniques Part 4: Inventory

Every furniture store needs a strategy for implementing LEAN and applying it to inventory. Here’s how.

Lean Techniques Part 3: Marketing

Every furniture store needs a strategy for implementing LEAN and applying it to the marketing. Here’s how.

Lean Techniques Part 2: Lean Sales force

Every furniture store needs a strategy for implementing LEAN and applying it to sales force management.

Lean Business Practices: An Introduction

LEAN practices allow businesses to realize their potential. First of a multi-part series.

What To Do When The Competition Enters Your Market

Retailers across the country are asking what they should do to prepare for well known chain stores and others that are entering their marketplaces. Here’s the answer to those questions.

Seven Performance Indicators You Should Track

Here are seven indicators you can use to know your business better, plus how you can use this information to surpass your unfocused competitors.

Improve Merchandise Performance Using GMROI

Willingness to use GMROI as a tool is one factor that separates best performing stores from their peers.

Dealing With Retail Bottlenecks

The difference between operations that run smoothly and those that are chaotic is often the number and severity of operational bottlenecks.

Eight Secrets of Successful Retailers

In this issue, David McMahon speaks about eight practices that separate successful home furnishings retailers from their struggling competitors.

Business Intelligence & Mobile Dashboards

No matter which software system you are running, you have thousands of report queries available. How you sift through this data and make sense of it all is the purpose of business intelligence or “BI”.

Gross Margin Is In Your Head

David McMahon presents proven strategies that can produce 50 to 60 percent gross margins even in highly competitive markets.

Think Profit! - Part 3: Cash Flow

An in-depth look at how to analyze one of your three critical financial statements: your statement of cash flow.

Think Profit! -Part 2: Your Balance Sheet

An in-depth look at how to analyze one of your three critical financial statements: the Balance Sheet.

Think Profit!: In-Depth P&L Analysis

An in-depth look at how to analyze one of your three critical financial statements: the Profit and Loss.

iPad and App Revolution Coming To Furniture

99% of furniture retailers will have their own app within 5 years.

Flexible Budgeting For Furniture Retailers

Flexible Budgeting lets you ‘Flex’ your top line and observe the resulting operational effects on your P&L and operating income.

Setting Minimum Standards for Sales Performance

Why is everything you ever thought about commissions, and the things that motivate salespeople to perform, probably wrong? Poor performing salespeople don’t need disciplinary actions or warnings, they need help, and they need coaching. To coach you have to have a game plan, a strategy, a plan, just like sports teams have.

Retail Break Even Analysis

This article will demonstrate how to calculate your break-even point of sales. It also provides real world examples of ways smart retailers can reduce their break-even points and level of risk.

Five Smart Steps To e-Tail Inventory Management

Today, consumers initiate their shopping experience. If they find you through Google, you have a chance to get their business. Here’s how to manage your e-tail inventory to make the most of an initial website contact. Included is a 12-step process that will help to make their buying decision easier.

Get Furniture Store Employees to Do What YOU Want

Using rewards as enticements and threats of punishment are approaches aimed at obtaining obedience and compliance, but they can overpower, rather than empower.

Pay For Performance!

A prime reason why top performing companies out perform their average performing peers is because they pay people extra when they perform better. Here is how to go about taking this path to success.

Let's Simplify Your Inventory

David McMahon shows you the core practices that the most profitable businesses follow to achieve the highest return on their inventory investment.

Eight Techniques to Boost Profit in Tough Times

Some retailers seem to always manage to perform well. In this article David McMahon takes a close look at what those successful retailers do to cut costs during lean times and achieve maximum returns. Specific steps to cut fixed costs and make retail operations more responsive to cost cutting measures are examined.

Measure Gross Margin Return On Inventory

Track this inventory metric to understand your customer’s buying patterns, establish a more relevant product mix, satisfy more people and sell more.

7 Common Characteristics of Profitable Furniture Businesses

What are the characteristics that separate the best operations from the worst?

Harness The Power Of e-Marketing - Part 2

Old media techniques broadcast a campaign that is the same for everyone. Here’s how to target specific groups with messages they want to see, when they want to see them.

Boost Cash Flow & Generate Sales Now

This article tells the story of a furniture store owner in St. Augustine who used fresh tactics to beat last year’s numbers in November, December, and January. How he did it is instructive and worth your attention.

Boost Cash Flow & Generate Sales Now

This article tells the story of a furniture store owner in St. Augustine who used fresh tactics to beat last year’s numbers in November, December, and January. How he did it is instructive and worth your attention.

You Can Harness The Power of e-Marketing

New media is uncharted territory for many furniture retailers, but with a bit of knowledge you can be one of the first in our industry to do it right.

Modern Ways To Increase GMROI - Part 2

Part 2: Old school ways to increase this critical measure are just not enough anymore!

Modern Ways To Increase GMROI - Part 2

Part 2: Old school ways to increase this critical measure are just not enough anymore!

Markdown Strategies That Work!

Part 4 of the Dynamic Inventory Management Series presents the Five Golden Markdown Steps. This efficient markdown system has a considerable impact on profitability and cash flow because it greatly increases turns, improves gross margin, sales and cash flow.

Why 20% Inventory Is Too Much!

You can escape the excess inventory trap before you become too entangled, or avoid it altogether if you understand the reasons why so many otherwise good companies get caught.

Dynamic Inventory Management - Part 3

Buyers, who aren’t involved in the inventory management process, produce lower GMROI. It is, therefore, critical that they become expert inventory managers and that their duties don’t end with the filing of a purchase order.

Dynamic Inventory Management - Part 2

This series looks at tools and techniques you can use to measure and improve the health of your inventory over time.

Are You Inventory Rich And Cash Poor?

Increasing furniture inventory turns and velocity is critical to business profitability and survival. Reducing inventory and preventing buildup of unnecessary inventory is not a quick fix.

Dynamic Inventory Management - Part 1

A two-part series that looks at tools and techniques you can use to measure and improve the health of your inventory over time.

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