Fundamentals of Retail Math
Numbers drive a business. No one will question that. But business owners, to make sound decisions, use fundamental tools which include:
- basic retail math formulas
- forms and reports in which the numbers are used
- technology used to integrate the numbers into logical, easy-to-use formulas
The basic retail math formulas are driven by fundamentals of fractions, decimals, dozens, and rounding in order to work with and use percentages as a means of comparison. For example, in merchandising we speak in fractional terms all the time, but when working out problems, we have to write the decimal equivalent of the fraction. Most calculators don’t have keys for working with fractions, and software programs like Excel require that you are able to write the decimal equivalents of fractions so you can solve retail math problems. This allows merchants to calculate something as simple as taxes, or the number of pieces of merchandise to transfer or to compare this year’s sales to last year.
Learn more about determining the percentage of sales increases or decreases just by reading Lesson 1 in the Math for Merchandising Retailer’s Handbook.