Controlling cost of goods sold (COGS) is a function of two things: Your buying strategy and how well you stick to your pricing formulas in the design process.
The trick? Getting a handle on both.
A good sales analysis won’t solve all of your cost problems, but when used properly, an analysis can prevent you from over-buying product. The best news? You can quickly get this report from your point of sale (POS) system and customize your analysis for one day, week, month or year. Most systems will create a report for any date range. The bad news? Most florists underutilize this valuable tool — and, as a result, profitability suffers.
This month in Floral Management, Paul Goodman, CPA, PFCI, discusses best practices for creating and using a sales analysis and explains why the tool is so critical for controlling both COGS and payroll.
