#007: The #1 Step to Take to Increase Your Profits

In this episode of the Richer Retailer Podcast, Cathy reveals the single most impactful and overlooked metric for increasing retail profits: the Initial Markup (IMU). She explains what IMU is, why it’s crucial for retail success, and how to measure and optimize it to ensure your store thrives financially. Cathy also dives into strategies for handling customer pricing objections and balancing profitability with exceptional customer service. 

What You’ll Learn in This Episode:

• What IMU is and why it’s a key driver of profit in retail.
• How to calculate your IMU and identify areas for improvement in your pricing strategy.
• Customer pricing psychology tips to set prices that maximize revenue without alienating your ideal customers.

Key Takeaways:

• [00:03:10] Increasing your IMU by even a few percentage points can result in significant additional revenue for every transaction.
• [00:13:22] Pricing for profit is not gouging; it ensures your store can thrive and continue providing excellent customer service.
• [00:14:15] Focus on serving your "thumb customers" - the top 20% who drive 80% of your sales - and worry less about pleasing every bargain hunter.

Resources & Links

• Download the free Pricing for Profit Chart by Cathy Donovan Wagner
• Ready to coach up? If you’re already at 6 figures and ready to scale up to 7 figures, watch our free class: 3 Steps to Maximize Profit & Reduce Overwhelm. If you’re newer and not there just yet, watch: How to Increase Your Sales So You Can Consistently Pay Yourself & Your Staff. Together, we'll help you build the profitable, sustainable business you've always dreamed of – one that lets you sleep better at night knowing your retail dreams are becoming reality.
• Follow us on social media for more updates! Facebook / Instagram 
• Join the community with ambitious store owners in our Richer Retailer Facebook Group

Have questions? Reach out via email!

Listener Action Steps

1. Never miss a moment, subscribe to Richer Retailer on your favorite podcast platform!
2. Loved this episode? Leave us a 5-star review to help more retailers find us!
3. Join the community with ambitious store owners in our Richer Retailer Facebook Group

Millie Moment
Stay true to your pricing strategy despite objections from bargain-hunting customers. By focusing on the customers who value your products and your mission, you can build a profitable and sustainable business! Do what Cadence does - get busy raising that IMU whenever the store is slow!

Remember, you deserve to be a richer retailer. Embrace these strategies, take action, and know that you are absolutely fabulous. You are loved. Happy retailing!