For distributors, wholesalers, and retailers of merchandise to create a consistent and desirable profit, it is imperative that tools be in place to control the cost of the merchandise being sold.  Only by pinpointing low profit and unprofitable items, addressing options for monetizing surplus items, and a thorough examination of a purchasing program that is aligned and compatible with the maximum use of working capital can a system be put in place to ensure that no idle inventory or dollars are left lying around.   To ensure ongoing support and effectiveness of a cost control strategy, the need for balanced sales must be addressed which includes a basis for establishing a proper and equitable compensation plan for profit production.  

When these measures are taken, greater profit will be achieved that includes an acute awareness of the most effective item and personnel contributors to the profit.  Some of the benefits of having a business with a Merchandise Cost Control program are:

  • Supplies marketing executives with the information needed in the planning, direction and control of distribution effort




Merchandise Cost Control

  • Standards are established for the measurement of distribution, performance and costs

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Business Performance Optimized

  • Enables an answer to such questions as what, when, where and how to sell at what price
  • Programs for the future are developed bearing predetermined and reasonable profit
  • Sales effort is pointed in the most profitable direction
  • Unproductive efforts can be eliminated