[et_pb_section fb_built=”1″ fullwidth=”on” _builder_version=”4.16″ background_color=”rgba(0,0,0,0.29)” global_colors_info=”{}”][et_pb_fullwidth_post_title meta=”off” featured_placement=”background” text_color=”light” _builder_version=”4.24.2″ title_font=”|700||on|||||” title_text_color=”#ffffff” title_font_size=”30px” background_color=”rgba(0,0,0,0.15)” background_enable_image=”off” background_position=”top_center” background_blend=”color” vertical_offset_tablet=”0″ horizontal_offset_tablet=”0″ text_orientation=”center” custom_padding=”15%||15%” z_index_tablet=”0″ title_text_shadow_style=”preset5″ title_text_shadow_horizontal_length_tablet=”0px” title_text_shadow_vertical_length_tablet=”0px” title_text_shadow_blur_strength_tablet=”1px” meta_text_shadow_horizontal_length_tablet=”0px” meta_text_shadow_vertical_length_tablet=”0px” meta_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” text_shadow_style=”preset2″ parallax_effect=”on” module_bg_color=”rgba(255,255,255,0)” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”][\/et_pb_fullwidth_post_title][\/et_pb_section][et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”4.16″ global_colors_info=”{}”][et_pb_row admin_label=”row” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_padding=”0px|0px|18.95px|0px|false|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Preamble” _builder_version=”4.27.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” vertical_offset_tablet=”0″ horizontal_offset_tablet=”0″ hover_enabled=”0″ z_index_tablet=”0″ text_text_shadow_horizontal_length_tablet=”0px” text_text_shadow_vertical_length_tablet=”0px” text_text_shadow_blur_strength_tablet=”1px” link_text_shadow_horizontal_length_tablet=”0px” link_text_shadow_vertical_length_tablet=”0px” link_text_shadow_blur_strength_tablet=”1px” ul_text_shadow_horizontal_length_tablet=”0px” ul_text_shadow_vertical_length_tablet=”0px” ul_text_shadow_blur_strength_tablet=”1px” ol_text_shadow_horizontal_length_tablet=”0px” ol_text_shadow_vertical_length_tablet=”0px” ol_text_shadow_blur_strength_tablet=”1px” quote_text_shadow_horizontal_length_tablet=”0px” quote_text_shadow_vertical_length_tablet=”0px” quote_text_shadow_blur_strength_tablet=”1px” header_text_shadow_horizontal_length_tablet=”0px” header_text_shadow_vertical_length_tablet=”0px” header_text_shadow_blur_strength_tablet=”1px” header_2_text_shadow_horizontal_length_tablet=”0px” header_2_text_shadow_vertical_length_tablet=”0px” header_2_text_shadow_blur_strength_tablet=”1px” header_3_text_shadow_horizontal_length_tablet=”0px” header_3_text_shadow_vertical_length_tablet=”0px” header_3_text_shadow_blur_strength_tablet=”1px” header_4_text_shadow_horizontal_length_tablet=”0px” header_4_text_shadow_vertical_length_tablet=”0px” header_4_text_shadow_blur_strength_tablet=”1px” header_5_text_shadow_horizontal_length_tablet=”0px” header_5_text_shadow_vertical_length_tablet=”0px” header_5_text_shadow_blur_strength_tablet=”1px” header_6_text_shadow_horizontal_length_tablet=”0px” header_6_text_shadow_vertical_length_tablet=”0px” header_6_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n
Published: April 24, 2024<\/p>\n
Updated: May 28, 2025<\/p>\n
Inflation, stock overages and outages, rising labor costs, and constantly changing prices make maintaining margins challenging for retail businesses today. How are retailers coping with these issues? A new report from Simbe and Coresight Research shows that retailers are turning to technology to help them improve store performance and protect their fragile margins.<\/p>\n
\u201cA lot of stores are being hurt by eroding margins in these dynamic times. Margin protection is more important than ever, and the right technology can help,\u201d says Dan Nesmith, founder and president of Paladin Data Corporation, a leading provider of point-of-sale and retail management solutions.<\/span>\u00a0<\/span><\/p>\n Nesmith says maintaining healthy margins is the result of many business practices and Paladin technology helps simplify those practices.<\/span>\u00a0<\/span><\/p>\n [\/et_pb_text][et_pb_blurb title=”Intelligent ordering with electronic data interchange (EDI) and inventory management can eliminate dead stock and keep shelves optimally stocked.” use_icon=”on” font_icon=”||fa||400″ icon_color=”#cc6633″ icon_placement=”left” admin_label=”Blurb – Intelligent ordering” _builder_version=”4.27.4″ _module_preset=”default” animation_style=”slide” animation_delay=”1000ms” global_colors_info=”{}”][\/et_pb_blurb][et_pb_blurb title=”Daily monitoring of inventory pricing information from suppliers lets retailers keep prices current. ” use_icon=”on” font_icon=”||fa||400″ icon_color=”#cc6633″ icon_placement=”left” admin_label=”Blurb – Daily monitoring” _builder_version=”4.27.4″ _module_preset=”default” animation_style=”slide” animation_delay=”1000ms” global_colors_info=”{}”][\/et_pb_blurb][et_pb_blurb title=”Regularly reviewing the performance of inventory \u2013 what is selling and what margins are on those products.” use_icon=”on” font_icon=”||fa||400″ icon_color=”#cc6633″ icon_placement=”left” admin_label=”Blurb – Regularly reviewing” _builder_version=”4.27.4″ _module_preset=”default” animation_style=”slide” animation_delay=”1000ms” global_colors_info=”{}”][\/et_pb_blurb][et_pb_blurb title=”Setting minimum margins by department or storewide.” use_icon=”on” font_icon=”||fa||400″ icon_color=”#cc6633″ icon_placement=”left” admin_label=”Blurb – Setting minimum” _builder_version=”4.27.4″ _module_preset=”default” animation_style=”slide” animation_delay=”1000ms” global_colors_info=”{}”][\/et_pb_blurb][et_pb_blurb title=”Offering discounts that respect minimum margins.” use_icon=”on” font_icon=”||fa||400″ icon_color=”#cc6633″ icon_placement=”left” admin_label=”Blurb – Offering discounts” _builder_version=”4.27.4″ _module_preset=”default” animation_style=”slide” animation_delay=”1000ms” global_colors_info=”{}”][\/et_pb_blurb][et_pb_text admin_label=”Why technology?” _builder_version=”4.27.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” vertical_offset_tablet=”0″ horizontal_offset_tablet=”0″ z_index_tablet=”0″ text_text_shadow_horizontal_length_tablet=”0px” text_text_shadow_vertical_length_tablet=”0px” text_text_shadow_blur_strength_tablet=”1px” link_text_shadow_horizontal_length_tablet=”0px” link_text_shadow_vertical_length_tablet=”0px” link_text_shadow_blur_strength_tablet=”1px” ul_text_shadow_horizontal_length_tablet=”0px” ul_text_shadow_vertical_length_tablet=”0px” ul_text_shadow_blur_strength_tablet=”1px” ol_text_shadow_horizontal_length_tablet=”0px” ol_text_shadow_vertical_length_tablet=”0px” ol_text_shadow_blur_strength_tablet=”1px” quote_text_shadow_horizontal_length_tablet=”0px” quote_text_shadow_vertical_length_tablet=”0px” quote_text_shadow_blur_strength_tablet=”1px” header_text_shadow_horizontal_length_tablet=”0px” header_text_shadow_vertical_length_tablet=”0px” header_text_shadow_blur_strength_tablet=”1px” header_2_text_shadow_horizontal_length_tablet=”0px” header_2_text_shadow_vertical_length_tablet=”0px” header_2_text_shadow_blur_strength_tablet=”1px” header_3_text_shadow_horizontal_length_tablet=”0px” header_3_text_shadow_vertical_length_tablet=”0px” header_3_text_shadow_blur_strength_tablet=”1px” header_4_text_shadow_horizontal_length_tablet=”0px” header_4_text_shadow_vertical_length_tablet=”0px” header_4_text_shadow_blur_strength_tablet=”1px” header_5_text_shadow_horizontal_length_tablet=”0px” header_5_text_shadow_vertical_length_tablet=”0px” header_5_text_shadow_blur_strength_tablet=”1px” header_6_text_shadow_horizontal_length_tablet=”0px” header_6_text_shadow_vertical_length_tablet=”0px” header_6_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]<\/p>\n Retail technology is designed to help businesses accomplish all those goals.<\/p>\n The report surveyed 150 retail decision-makers throughout the country to discover how they are addressing business performance pain points. The responses showed that inefficient operations in stores reduced revenue by <\/span>roughly 4.5%<\/span>.<\/span><\/span>\u00a0<\/span><\/p>\n Inventory mismanagement was responsible for most of the losses. [\/et_pb_text][et_pb_blurb title=”Managing out-of-stocks” use_icon=”on” font_icon=”I||divi||400″ icon_color=”#cc6633″ icon_placement=”left” admin_label=”Blurb – Managing” _builder_version=”4.27.4″ _module_preset=”default” animation_style=”slide” animation_delay=”1000ms” global_colors_info=”{}”][\/et_pb_blurb][et_pb_blurb title=”Incorrect pricing and promotions” use_icon=”on” font_icon=”I||divi||400″ icon_color=”#cc6633″ icon_placement=”left” admin_label=”Blurb – Executing incorrect” _builder_version=”4.27.4″ _module_preset=”default” animation_style=”slide” animation_delay=”1000ms” global_colors_info=”{}”][\/et_pb_blurb][et_pb_blurb title=”Nearly 20% of retailers reported mispricing rates of 15% or higher” use_icon=”on” font_icon=”I||divi||400″ icon_color=”#cc6633″ icon_placement=”left” admin_label=”Blurb – Nearly 20%” _builder_version=”4.27.4″ _module_preset=”default” animation_style=”slide” animation_delay=”1000ms” global_colors_info=”{}”][\/et_pb_blurb][et_pb_text admin_label=”The report shows” _builder_version=”4.27.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” vertical_offset_tablet=”0″ horizontal_offset_tablet=”0″ z_index_tablet=”0″ text_text_shadow_horizontal_length_tablet=”0px” text_text_shadow_vertical_length_tablet=”0px” text_text_shadow_blur_strength_tablet=”1px” link_text_shadow_horizontal_length_tablet=”0px” link_text_shadow_vertical_length_tablet=”0px” link_text_shadow_blur_strength_tablet=”1px” ul_text_shadow_horizontal_length_tablet=”0px” ul_text_shadow_vertical_length_tablet=”0px” ul_text_shadow_blur_strength_tablet=”1px” ol_text_shadow_horizontal_length_tablet=”0px” ol_text_shadow_vertical_length_tablet=”0px” ol_text_shadow_blur_strength_tablet=”1px” quote_text_shadow_horizontal_length_tablet=”0px” quote_text_shadow_vertical_length_tablet=”0px” quote_text_shadow_blur_strength_tablet=”1px” header_text_shadow_horizontal_length_tablet=”0px” header_text_shadow_vertical_length_tablet=”0px” header_text_shadow_blur_strength_tablet=”1px” header_2_text_shadow_horizontal_length_tablet=”0px” header_2_text_shadow_vertical_length_tablet=”0px” header_2_text_shadow_blur_strength_tablet=”1px” header_3_text_shadow_horizontal_length_tablet=”0px” header_3_text_shadow_vertical_length_tablet=”0px” header_3_text_shadow_blur_strength_tablet=”1px” header_4_text_shadow_horizontal_length_tablet=”0px” header_4_text_shadow_vertical_length_tablet=”0px” header_4_text_shadow_blur_strength_tablet=”1px” header_5_text_shadow_horizontal_length_tablet=”0px” header_5_text_shadow_vertical_length_tablet=”0px” header_5_text_shadow_blur_strength_tablet=”1px” header_6_text_shadow_horizontal_length_tablet=”0px” header_6_text_shadow_vertical_length_tablet=”0px” header_6_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]<\/p>\n The report shows that approximately half of retailers are addressing these issues with investments in digital store solutions to help them better manage inventory control.<\/p>\n Stores running on sophisticated point-of-<\/span>sale<\/span> systems automate much of the tedious retail work and make inventory management and margin control more efficient. These systems provide vital sales data that help stores <\/span>identify<\/span> what items are selling and what <\/span>aren\u2019t<\/span>, which allows retailers to <\/span>eliminate<\/span> nonperforming (dead) stock and free up shelf space for more profitable products.<\/span><\/span>\u00a0<\/span><\/p>\n Properly used, sales data can also remove the weekly chore of placing orders and changing prices. Inventory management programs in point-of-sale systems can utilize this data to place suggested orders with a store\u2019s suppliers, without walking the sales floor to identify empty shelves. EDI ordering automates cost and price changes and make it easier to keep up with price updates.<\/span>\u00a0<\/span><\/p>\n Electronic shelf labels (ESLs) can further simplify pricing changes. Instead of manually changing prices throughout the store, a tremendously labor-intensive process, they can be done in minutes at a computer keyboard through an ESL-integrated point-of-sale system.\u00a0<\/span>\u00a0<\/span><\/p>\n Pricing is directly affected by purchasing. The goal is to purchase at low prices and sell at high prices. However, how quickly sales occur after stores purchase also affects margins. An item could move quickly off your shelves but be a poor investment. While another item could have a poor margin or anemic sales but still be a great investment. This depends on how those products are purchased.<\/p>\n Stock depth should be enough to meet expected demand for two to four order cycles and nothing more, Nesmith says<\/span>.\u00a0<\/span> Purchase cost contributes directly to <\/span>margin<\/span>, but <\/span>it\u2019s<\/span> not the most <\/span>important factor<\/span>.<\/span> How fast products move off the shelves is equally important. Retailers <\/span>shouldn\u2019t<\/span> be lured by low prices if they must buy <\/span>large quantities<\/span> to get those price breaks.<\/span><\/span>\u00a0<\/span><\/p>\n Another study by Wakefield Research and\u00a0Bossa\u00a0Nova Robotics shows that 73% of retail professionals say that inaccurate forecasting is a consistent issue at their stores. Other key findings include:<\/p>\n [\/et_pb_text][et_pb_blurb title=”66% say inaccurate pricing is a constant problem.” use_icon=”on” font_icon=”I||divi||400″ icon_color=”#cc6633″ icon_placement=”left” admin_label=”Blurb – 66%” _builder_version=”4.27.4″ _module_preset=”default” animation_style=”slide” animation_delay=”1000ms” global_colors_info=”{}”][\/et_pb_blurb][et_pb_blurb title=”65% struggle with inventory tracking.” use_icon=”on” font_icon=”I||divi||400″ icon_color=”#cc6633″ icon_placement=”left” admin_label=”Blurb – 65%” _builder_version=”4.27.4″ _module_preset=”default” animation_style=”slide” animation_delay=”1000ms” global_colors_info=”{}”][\/et_pb_blurb][et_pb_blurb title=”87% think inaccurate inventory is a larger contributor to revenue loss than theft.” use_icon=”on” font_icon=”I||divi||400″ icon_color=”#cc6633″ icon_placement=”left” admin_label=”Blurb – 87%” _builder_version=”4.27.4″ _module_preset=”default” animation_style=”slide” animation_delay=”1000ms” global_colors_info=”{}”][\/et_pb_blurb][et_pb_text admin_label=”These numbers” _builder_version=”4.27.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” vertical_offset_tablet=”0″ horizontal_offset_tablet=”0″ z_index_tablet=”0″ text_text_shadow_horizontal_length_tablet=”0px” text_text_shadow_vertical_length_tablet=”0px” text_text_shadow_blur_strength_tablet=”1px” link_text_shadow_horizontal_length_tablet=”0px” link_text_shadow_vertical_length_tablet=”0px” link_text_shadow_blur_strength_tablet=”1px” ul_text_shadow_horizontal_length_tablet=”0px” ul_text_shadow_vertical_length_tablet=”0px” ul_text_shadow_blur_strength_tablet=”1px” ol_text_shadow_horizontal_length_tablet=”0px” ol_text_shadow_vertical_length_tablet=”0px” ol_text_shadow_blur_strength_tablet=”1px” quote_text_shadow_horizontal_length_tablet=”0px” quote_text_shadow_vertical_length_tablet=”0px” quote_text_shadow_blur_strength_tablet=”1px” header_text_shadow_horizontal_length_tablet=”0px” header_text_shadow_vertical_length_tablet=”0px” header_text_shadow_blur_strength_tablet=”1px” header_2_text_shadow_horizontal_length_tablet=”0px” header_2_text_shadow_vertical_length_tablet=”0px” header_2_text_shadow_blur_strength_tablet=”1px” header_3_text_shadow_horizontal_length_tablet=”0px” header_3_text_shadow_vertical_length_tablet=”0px” header_3_text_shadow_blur_strength_tablet=”1px” header_4_text_shadow_horizontal_length_tablet=”0px” header_4_text_shadow_vertical_length_tablet=”0px” header_4_text_shadow_blur_strength_tablet=”1px” header_5_text_shadow_horizontal_length_tablet=”0px” header_5_text_shadow_vertical_length_tablet=”0px” header_5_text_shadow_blur_strength_tablet=”1px” header_6_text_shadow_horizontal_length_tablet=”0px” header_6_text_shadow_vertical_length_tablet=”0px” header_6_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]<\/p>\n These numbers demonstrate the importance of inventory management and how it can make or break a retail business. Allowing technology to assist in ordering helps savvy retailers thrive.<\/p>\n Ross Martin, owner of Caledonia Village Ace Hardware, uses just such a tool \u2013 Paladin\u2019s Suggested Order\u2122. He says it has allowed his store to keep an in-stock percentage of 97% to 98%, which he says helped him earn Ace Pinnacle status as a top-performing store multiple times.<\/p>\n \u201cOur store uses Suggested Ordering 100%. Ace considers 95% really good and we\u2019re always above that,\u201d he says.<\/p>\n Some POS systems also allow stores to order from multiple EDI suppliers, which s<\/span>hop the best price, direct orders given price advantage<\/span>s<\/span>, and keeps shelves stocked<\/span>.<\/span><\/span>\u00a0<\/span><\/p>\n Rising costs of manufacturing, labor and shipping lead to higher ticket prices. This all leads to many stores struggling to manage their inventory and maintain their profit margins.<\/p>\n POS systems allow for real-time price updates with each incoming order and can also schedule regular adjustments. This enables stores to <\/span>optimize<\/span> profit margins on existing inventory\u2014an especially valuable capability in the face of rising prices.<\/span><\/span>\u00a0<\/span><\/p>\n \u201cEvery single night, Paladin picks up all the price changes from their suppliers. You press a few keys on your keyboard, and you pick up all the new retail prices,\u201d Nesmith says of Paladin Point of Sale. \u201cThat one function helps you protect your margins. It\u2019s hard to keep up on all the price changes without having access to all those changes.\u201d<\/p>\n Every market is different. Some stores face stiff competition from big-box stores or online retailers. Other stores offer the only game in town. Their environment affects their pricing strategies.<\/p>\n Independent stores often struggle when trying to compete with larger stores on pricing. They can price products higher than larger competition and offset these prices with lower margins on faster-moving items and by offering convenience, personalized customer service, and ancillary services. This is an area where POS data can help.<\/p>\n POS systems <\/span>highlight<\/span> sales trends by <\/span>identifying<\/span> products that move quickly and those that <\/span>don\u2019t<\/span>. Prices can be adjusted accordingly. They also provide <\/span>reporting tools to <\/span>identify<\/span> price changes from suppliers. <\/span>This allows stores to quickly adjust pricing to <\/span>maintain<\/span> margins.<\/span><\/span>\u00a0<\/span><\/p>\n Rosedale Town & Country began as a feed, grain and sawmill nearly 75 years ago and for most of those years served the farming community of central New Jersey. As those family farms turned into more residential housing, the store\u2019s clientele and product line changed. To help better manage the change, the store\u2019s management turned to retail technology to help them maintain their inventory, margins and profits.<\/p>\n The store\u2019s business has improved from roughly $3.4 million in annual sales seven years ago to around $5 million in 2022. It has been using Paladin for six of those seven years.<\/p>\n \u201cWe\u2019re using Paladin reports to find out what\u2019s selling and what isn\u2019t. That helps us improve our product lines and our profit. We\u2019re really working on improving our product pricing and margins,\u201d says Elizabeth Schreiber, the store\u2019s manager.<\/p>\n \u201cTechnology is one of the most important investments you can make in the success of your business. You must think of technology as an investment that drives more business rather than an expense. Retail technology allows you to increase efficiencies, maintain better inventory control, and drive more customers to your store, all of which contribute to the growth and profitability of your business,\u201d says Charles Owen, chief experience officer at Paladin Data Corporation.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Author” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]<\/p>\n Author<\/span> [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" Inflation, stock overages, rising labor costs, and constantly changing prices have retailers turning to technology to protect their margins.<\/p>\n","protected":false},"author":13,"featured_media":29708,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[3,75,16,4],"tags":[165,290,93,288,267],"class_list":["post-29706","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-posts","category-grow-your-business","category-how-tos","category-industry-news","tag-caledonia-village-ace-hardware","tag-margin-protection","tag-paladin-data-corporation","tag-phils-ace-hardware","tag-rosedale-town-country","et-has-post-format-content","et_post_format-et-post-format-standard"],"yoast_head":"\nWhy technology?<\/h3>\n
<\/span><\/span><\/p>\nProtecting margins starts with intelligent buying<\/h3>\n
Keeping prices current<\/h3>\n
Create your own pricing plan<\/h3>\n
Let technology work for you<\/h3>\n
Technology is an investment but also an opportunity<\/h3>\n
brian bullock\u00a0<\/span><\/h3>\n