AWESOMEWhen a customer spends $50 in your store is their purchase worth $50 to your business? The answer is that it depends. Below are five points you must consider.


If Gross Sales    =  $50

If Gross Margin  = 50%

Gross Profit         = $25

Next, you need to subtract your fixed and variable costs. The end result is that your initial $50 sale may only be worth $20 in net profit! More on retail maths in future editions.


If the same customer is delighted with your awesome customer service and their purchase and they return three times over the next year and make a similar purchase:

If net profit = $20

Sales             = 3

Net Profit  = $60


If the same customer is “blown away” by your awesome customer service and they rave about your business to just two of their friends who also make similar purchases:

If net profit = $20

Sales             = 9

Net Profit  = $180


Let’s take this scenario one step further and assume that because of your consistently awesome customer service, your two referred customers each also refers two more friends who go on and make similar purchases:

If net profit = $20

Sales             = 15

Net Profit  = $300


  • What is the cost to your business if for any reason your original customer is merely satisfied but never returns?
  • What is the cost to your business if for any reason at all your original customer is dissatisfied and tells their friends about their bad experience?

A dissatisfied customer will tell 9-15 people about it. And approximately 13% of your dissatisfied customers will tell more than 20 people about their problem. Source: the White House Office of Consumer Affairs, Washington, DC.

To your abundant success,

Leon Skaliotis – Founder, Retail Fundamentals.

leon 2Successfully helping retail owners in Melbourne Australia apply the most effective principles ever discovered, to create highly profitable businesses.

Take the next step… If you want to know how to attract more customers to buy from you, get on board my individually tailored retail programs. If you want to build a  retail business with more loyal customers, now is the time to build momentum and make this year your best ever. You will be ecstatic at how easy it can be to attract and keep more customers.

The fast working principles from my exclusive programmes, My Retail Success and The Outside In Method come with a 100%  SATISFACTION GUARANTEE! Discover quickly and easily how to :

  • Attract and Keep more Customers
  • Substantially increase your Profit
  • Increase the Value of your business
  • Free more of your Time

To receive your complimentary copy of “Retail Secrets Every Owner Should Know” click: www.retailfundamentals.com.au

You can contact me direct on (+61) 0425 83 3344  or email: leon@retailfundamentals.com.au