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Direct Product Profitability

Power to the Retail Dealer

ReliaSale Direct Product Profitability (DPP) is a powerful analysis tool providing insights to the inventory centric retail dealer:

  • Reveals any product’s real profitability – by percent and most importantly by the total number of profit dollars
  • Identifies which models, categories, brands, sales people, store locations, and sales channels are really bringing in the most profit
  • Shows the management team where to channel the companies resources to produce the greatest profit for the company

An Introduction to Direct Product Profitability for the Inventory Centric Retail Dealer

What is Direct Product Profitability (DPP)? It is the answer to the question every inventory centric retail dealer wants to know: "How much money am I really making on my product sales, and what can I do to make more?" For some time now complex-market, independent, inventory centric retail dealers (appliances, furniture, home electronics, etc.) have had difficulty determining what products were really making money, what products were really reducing profitability, or whether to increase the exposure of certain products. The “incentives” being offered by buying groups and manufacturers, the timing of incentives and expenses, and the complexity of incentive systems created by the dealers themselves, has made it nearly impossible for dealers to determine which models are really the most profitable (creating the most profit dollars for the company and the dealer) thus deserving more marketing and commission support.

DPP is simple: take your item sales amount and subtract all expenses and other costs (inventory cost, commissions, freight, delivery, shop services, etc) and then add in all your credits (trailing credits, truckload discounts, spiffs, SPA's, EOM's, and Instant Rebates) and you have the real profit, the direct product profit earned on that item. It may sound simple but actually collecting all the actual costs with the different incentives for each model and brand in an organized manner is difficult enough but then accounting for time based promotions put the effort way beyond the capability of the vast majority of retail dealers, their teams and business management systems.

Until now. Reliable Softworks point-of-sale system, ReliaSale, captures all the actual costs, credits, and expenses associated for all models while the retail dealer is recording normal business operations. With version one of ReliaSale DPP the independent retail dealer will have captured the data necessary to create the direct product profitability for models, categories, locations, brands, and sales staff; providing the dealer with critical pieces of information that many of the largest retailers don’t have.