financial aspects of retailing fitness products

Cover All Your Financial Bases Before Jumping Into Retail

Retailing in your gym should be a rewarding experience for you and your clientele. It’s a convenience for members who need something to ease sore muscles, take with them traveling or keep them fueled, and it’s a boom for your bottom line. But, before you go jumping into the deep end, there are a few important financial aspects of retailing fitness products that you should cross off your to-do list:

  1. Make sure you’ve got all the proper paperwork filed. Have your checklist handy? You can’t order goods from a distributor for resale without an EIN (Employer Identification Number), also known as a tax ID, issued by the IRS. You may also need a business license and a resale certificate—the latter of which allows you to buy tax exempt items from manufacturers and distributors. Lastly, health or zoning permits vary across the country so you may want to call your state or local government agencies just to be sure. See, that’s not so bad!
  2. Where are you putting all that stuff? You’ll need to have a good idea where you plan to store your inventory and how safe it will be. If you have space on-site, great! But if not, ELIVATE™ can help with inventory control. Contact an ELIVATE™ sales representative at 800.537.5512 or send us an email to learn more.
  3. Taxes are inevitable. How your business is structured, whether it’s an LLC, etc., will determine how you file your taxes. But inside your store, do you know how much sales tax to charge? How to collect it and how to pay it back to the government? Talk with your tax advisor and make sure you’re set up for success.
  4. Have set polices. What will you do when a customer tries to return or exchange a product? Establish your policies before putting any merchandise on the floor.
  5. Watch out for sticky fingers. Shoplifting of retail goods is a concern for any business owner. So how do you prevent it? There are a couple things you can do: Don’t keep items near the door and lock up expensive items, such as heart rate monitors and activity trackers, in display cases.
  6. Hardware and software. It’s important for you to track retail money that’s coming and going. There are several POS (Point of Sale) systems available to you. You can learn more about choosing a good POS systems here: http://pos-systems-review.toptenreviews.com/. You can also look at simple methods like setting up an Apple Retail Store on your iPad®.
  7. Display it. So you get everything you need, including inventory, and you’re ready to go. Now, where to put it? You’ll want to make sure you have attractive racks, shelves, and packaging for the optimal in-store experience.
  8. Make a profit. When ordering products, keep price in mind. Order products that are in a comfortable price point for your clients, while making a little profit for yourself, too. This will help you keep a healthy bottom line.

Whether you need advice about choosing the best merchandise to retail or storing, displaying or pricing your inventory, ELIVATE™ can help you with all of the financial aspects of retailing fitness products. Give us a call today at 800.537.5512 or send us an email to learn more about how we can help you retail fitness products in your club.

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