CASE STUDIES

Union Tattoo Supply

The Problem

The client’s main issue was inventory management. With multiple locations carrying stock, they had little to no visibility at the item level of what was in stock and what items were truly making up the sales. They needed a tactical approach to inventory management and Incentive Planning for their sales team.

The Process

Phase 1

Inventory Control

Full inventory management strategy to forecast needs, analyze on hand stock, and manage cost across four locations
Full SKU set up in POS system for all locations
Weekly Cycle Count practice implemented
Safe/Reorder levels set for all inventory products
All products barcoded

Phase 2

Standardized Workflow

Weekly purchasing practice streamlined with custom stock evaluation tool
Cycle counts performed weekly outside of normal business hours
Sales team scanning products to sell

Phase 3

Profit Focused Leadership

Margin Contribution analysis on all items
Revenue & Expense plan set
True Cash Breakeven point clarified
Incentive structure built for sales team

Phase 4

Performance to Plan Management

Key metric dashboard built and shared with key staff
Structured weekly check points and monthly financial meeting

The Deep Dive

Our Deep dive revealed several large opportunities including establishing ﬁnancial plans, correcting inventory & purchasing process, and implementing a weekly P2P check in with established performance and ﬁnancial metrics.

The Work

Financial plans set
Retail/Service pricing validated
Understanding of Breakeven/Proﬁt Points
Staff Compensation structure aligned with Breakeven Point
Inventory Control Process established and Weekly Purchasing systemetized
Key Retail Metrics established for tracking

The Results

Retail % increased from 9% to 16%.
Inventory process implemented
Reorder levels set for all inventory products and weekly purchasing practice established
Retail Pricing analyzed and corrected to cover expenses and ensure proper margin contribution from each sale. ($9k additional gross proﬁt through year one)

Ongoing Support From Nercher

Financial Planning and Goal Setting
Weekly expense Review
Decision support and Financial validation
Pop up Inventory Audits
Monthly Financial Meeting
Bookkeeping Services
Nercher Quick View Dashboard

Key Results

>99%

Inventory Accuracy

40%

Profit Margin  
(up from 28%)

+$13k

Monthly Gross Profits

The Deep Dive
The Big 3 Blueprint

The Client

“Nercher is amazing! Jake is a great guy with a ton of knowledge. My business was fighting with rocks and sticks, Nercher gave us nuclear weapons! Jake’s custom designed inventory system gave us the ability to see every mistake we didn’t even know we were making. Nercher has given us the ability to accomplish more than I thought possible.”

Chad O.

Owner
Union Tattoo Supply