COR-BrandedMarketPerformanceReport

COR-BrandedMarketPer - Branded Revenue-Cost-Profit Performance Explanations of Numbers Suggestions and Tips for Using the Report Consulting this

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Branded Revenue-Cost-Profit Performance Explanations of Numbers — Suggestions and Tips for Using the Report Consulting this report regularly is absolutely essential if your company's management team is to (1) know which geographic markets are most profitable, least profitable, or even losing money as concerns online sales and branded sales to retailers and (2) do a good job of running the branded footwear portion of the company's business — which is, most likely, your company's "core business" as opposed to private-label footwear. This report, the Benchmarking data on p. 6 of each issue of the Footwear Industry Report regarding private-label statistics, and to a lesser extent the Plant Operations report are your three most valuable tools for crafting and executing a strategy to make money in branded footwear. This Help page consists of three sections. The first deals with understanding where all of the cost numbers come from and seeing what the operating profits and operating profit margins on Internet sales and wholesale sales to retailers were in each geographic region in the report year. The second section presents some suggestions and tips for using the information in this report to good advantage in enhancing the profitability of your company's branded operations. The third explains the details of how the exchange rate adjustments to the Gross Revenue numbers on this report are calculated. Understanding the Numbers on the Branded Revenue-Cost-Profit Report This report contains a comprehensive rundown on your company's branded sales operations — both those in the online or Internet segment and those involving wholesale to retailers. Internet Market Performance. This section of the report provides geographic details and a companywide summary of the unit sales, revenues, operating costs, and operating profits and profit margins for online sales of branded footwear at the company's Web site. A brief discussion and explanation of each of the lines of numbers reported in this section is presented below: Revenues from Internet Sales — Revenues are calculated by multiplying the online price (which is the same across all four geographic regions — see the $/pair number) by the number of pairs sold in each region and companywide. The number of pairs sold in each region and companywide is reported on the first line of the Market Statistics data grouping in the last portion of this section of the report. Customer-Paid Shipping Fees — Any receipts from customer paid shipping fees (which are set at $10 per pair sold online) are calculated by multiplying the number of pairs sold online by $10. These fees will be 0 in those regions where you opted for free shipping on online orders. If shipping fees are customer-paid, all of the amounts collected and shown in the Customer-Paid Shipping Fees line are ultimately used to cover the associated warehouse expenses — the company realizes no profit margin from customer-paid shipping, since the full $10 per
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This note was uploaded on 08/19/2011 for the course INTBUS 211 taught by Professor Daniel during the Winter '10 term at Auckland University of Technology.

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COR-BrandedMarketPer - Branded Revenue-Cost-Profit Performance Explanations of Numbers Suggestions and Tips for Using the Report Consulting this

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