It is often said that we have to spend money to make money, but we also have to save money to make money. Running a retail store involves a lot of recurring expenses. In order to keep the store functional, retailers have to set aside money to pay rent, inventory, salary and many more. With increasingly low profit margins, retailers are continuously in search of ways to cut costs. Although expenses cannot be eliminated completely, it is not impossible to reduce them. In this blog, we will be discussing how planograms play a significant role in overall cost reduction in retail.

Planograms are diagrammatic representations of the store layout that assist retailers in deciding a store’s merchandise display strategy. It shows where and how products should be placed for better product visibility and sales. A well-designed planogram is proven to increase revenue, improve customer’s shopping experience and reduce overall costs. Given below are the cost saving benefits of planogram.

1. Days Of Supply analysis

Days Of Supply refers to the number of days it will take for a retailer to sell out his current stock on shelf. Since stock is an important expense for retailers, unsold stock can increase overall cost and interest while generating no profit through sales.

Stock related costs can be efficiently reduced by using data-driven planograms. Based on the data fed into planograms it generates sales reports and space reports that give insights into the stock requirement of individual products. With Days Of Supply analysis, planograms can precisely tell when current stock will run out and when new stock needs to be replenished. This not only helps in reducing cost associated with stock, but also ensures visually appealing shelves that are fully stocked.

2. Eliminate mock-up cost

Retailers generally undertake mockups to know how the created fixtures will look. However, such mockup software are not only expensive compared to the output they generate, such tasks are time consuming and labor intensive too. Now-a-days, leading retailers are turning into planogram software that not only eliminates the need of mockups but also provides several other useful features. It includes:

· Standard and customizable templates: Modern planogram software includes standard and customizable templates that allow users to easily create realistic fixtures and planograms. This eliminates the need of mocking up fixtures thereby saving on cost.

· No cost for changes: Retailers who use mock-up software or consultancy services will have to pay additional charges every time a fixture or store plan is modified. Moreover, it also involves sharing company discussions with a third party. In such situations, in-house planograms are great time and cost savers.

3. Reduce training cost

While it is true that space planning software can do wonders to a store’s success, adequate understanding is required to correctly design and implement them. That being said, training users on complex space spanning software can be challenging for retailers both in terms of time and cost involved. In contrast to this, cloud-based planogram software that requires no installation and comes with an easy user interface allows users to start creating planograms without any prior training.

Planogramming with Nexgen POG

Nexgen POG is a powerful cloud-based planogramming solution. It is a user-friendly software that comes with an array of features like customizable templates, bulk upload of images, multi device compatibility, report generation, easy compliance and much more. Its interface is extremely easy which enables anyone from an expert to novice to quickly create store specific planograms. Nexgen POG ensures easy compliance reporting through a single online platform, standardized reporting system and efficient feedback system. In case of any non-compliance issue, just raise a ticket, report the non-compliance in detail, and get them solved. Its affordable pricing and licensing model ensure full value for your money. In fact, the cost of unlimited licenses of Nexgen POG is less than the overall cost of a single license of other sophisticated planogramming software.

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