Description

Welcome to Episode 69: A Retailer’s Guide to Margins.

In this episode, Cathy Wagner dives into the simplest shift that can dramatically increase your cash flow: understanding gross margin (maintained markup) and raising your initial markup so you keep more money from every sale without working harder.

What You’ll Learn in This Episode

• The difference between gross margin (maintained markup) and initial markup (IMU) and why retailers mix them up
• The exact “$11.60” math that shows how a few margin points can turn into tens of thousands a year
• How to raise your average IMU (even if some products can’t be marked up much)

Key Takeaways

• [02:23] The Importance of Gross Margin in Retail
• [03:34] Maximizing Profitability Through Initial Markup
• [07:57] The Impact of Initial Markup on Cash Flow
• [10:28] Strategies for Increasing Initial Markup

Your Millie Moment:

This week, act like your CFO because you are.

• Pick one category that can handle a higher markup and raise pricing strategically
• Review the inventory you brought in this month and calculate your average IMU
• Make it a habit: monthly IMU review so you stay on target and protect profit

Resources and Links:

• Learn what Initial Markup (IMU) is and how raising it increases profit fast. #007 – The #1 Step to Take to Increase Your Profits
• The fix-before-you-scale checklist, including pricing toward 60% IMU. #029 – Want to Scale Your Retail Business? Fix This First
• Stop gut-pricing and use a simple formula to protect margin. #033 – The Silent Profit Killer: Gut-Based Pricing Is Costing You Thousands
• Want expert guidance to get the full Retailer’s Guide to Margin? Apply for your free Gameplan Call, where we’ll identify your growth opportunities and map out the most profitable next steps to elevate your visibility, attract the right customers, and scale with confidence.
• Want a behind-the-scenes look at how our top clients grow profit without burning out? Our free training, Beyond Busy: 3 Shifts to Reclaim Your Time and Boost Store Income, walks you through the exact method we use in our Profit Club, focusing on your role as CEO, CIO, and CFO to grow a business that’s both profitable and sustainable.
• Follow us on social media for more updates! Facebook / Instagram

Join the community with ambitious store owners in our Richer Retailer Facebook Group

If you’re new, begin with a cash flow foundation episode or start with an inventory-focused:

• Cash flow help: #013: How to Stay Ahead of Retail Cash Flow Challenges: 2 Strategies for Success
• Inventory that supports profit: #051: Too Much Inventory, Too Little Profit? Find Your Goldilocks Zone

💚 Remember: You are not “bad at retail” because profit feels hard. You’re building something real for your community, and you deserve a business that takes care of you, too. Every time you price with intention, protect your margin, and lead with numbers instead of fear, you’re choosing freedom, one smart decision at a time. You are worth that extra $11.60. You are worth rest. You are worth profit. And you are loved.