Loading...
Answers
MenuHow do I determine my average margins after implementing a Kohls cash back rewards program at my retail stores?
I own a few retail stores and need to start offering some discounts to be more competitive with my competitors. I've decided to use cash back coupons as a guide for the discounts. My plan is to offer cash back on every transaction (except for transactions when a customer redeems their rewards). The cashback will be 7-10%. Let's use 10% for the purpose of this example. If my average gross margin right now is 50%, would my future margins simply go down to 40% after the rewards are added into the equation?
Answers
Yes.
Let's assume:
CURRENT
Gross Sales $30.00
Cost of Goods $15.00
Net Profit $15.00
Profit Margin 50.00%
NEW DISCOUNT PROGRAM
Gross Sales $30.00
Discount $3.00
Cost of Goods $15.00
Net Profit $12.00
Profit Margin 40.00%
Related Questions
-
How to promote a paid iOS app to increase downloads ?
Your best bet to get traction quickly in USA is to advertise on mobile ad networks. You may need to advertise on CPM/CPC basis instead of CPI if you have a paid app so make sure you understand your user lifetime value and watch conversion rates closely so you don't overspend. That said, depending on what your niche/vertical is, there are many other ways to market non-gaming apps.SR
-
What are average profit margins in Ice Cream store business?
Hi! I am owner of an ice crean chain with 45 stores in Chile. We have stores in shopping centers, streets and also karts that you can put in events and parks. The average cost margin of ice cream (depends on the amount of materials you use in producing the ice cream) is around 40%. This is italian gelatto where you serve the ice cream without a specific measurement so your costs can vary due to the size of each portion you serve. About the brand you should focus on your unique value proposition and what kind of ice cream you are selling. We import the pastry from Italy and the fruits and milk from our country. Your ROI depends on your sales price and costs. If you focus on high market ice cream you can charge high and keep costs down.MF
-
How does my startup hire an affordable marketing expert?
I don't even know how to answer this. Do you know what the difference between McDonalds and the local burger joint that is filing for bankruptcy is? It's marketing. McDonalds is worth billions of dollars not because of the quality of their food, but because of their marketing. Marketing is not an expense. A janitor is an expense. Your computer is an expense. Marketing is an INVESTMENT. Would you shop around for the cheapest heart surgeon? Of course not. Because you would likely end up dead. Why, then, do you shop around for a marketing expert? Are you ok with your company going bankrupt? Is that worth the small savings to you? No. Of course not. Hire someone who is good at marketing. Hire someone who knows what they are doing. Buy yourself a Lamborghini with your profit the first quarter. Get a beach house in hawaii. Grab a yacht. Or, try to find your business the cheapest heart surgeon you can and then spend the next five years wondering why such a solid business idea failed in the first 6 months. I'm passionate about this exact topic because all those statistics you read about "70% of businesses failing in two years" are solely because of horrible marketing.AM
-
What is the most creative way to introduce myself (and therefore my service) to 100 key decision-makers without selling or pitching anything?
You've answered your own question. Reach out to your prospects with the question, such as "How would you...". Ask what people want then give it to them if you can with integrity and thoughtfulness.DI
-
How can I go about finding a business partner for my startup?
Hello! Aside from the typical website platforms, I would recommend using Twitter's hashtags and user handles. Try following and using the ones that your potential prospect or otherwise ideal partners would be following and start sharing about your work, your progress, and outreach for a potential partner. If possible try to be local when doing so. But obviously, some to use include Startups.co, Basecamp, Inc 500, yesPHX, BetaBulls, MPV, Lean Startup, Lean Methodologies, TechCrunch, etc.HV
the startups.com platform
Copyright © 2025 Startups.com. All rights reserved.