{"id":190227,"date":"2025-04-18T05:11:28","date_gmt":"2025-04-18T05:11:28","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/investing\/strategies-to-protect-your-margins-management-one-inventory-planning\/"},"modified":"2025-04-18T05:11:28","modified_gmt":"2025-04-18T05:11:28","slug":"strategies-to-protect-your-margins-management-one-inventory-planning","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=190227","title":{"rendered":"Strategies to Protect Your Margins \u2014 Management One Inventory Planning"},"content":{"rendered":"<p> <br \/>\n<br \/><img decoding=\"async\" src=\"https:\/\/images.squarespace-cdn.com\/content\/v1\/5f3d8d99622807202f05888e\/1744838499800-LD1LE3QHB4UYOY4BC73L\/pexels-artempodrez-5716001.jpg?format=1500w\" \/><\/p>\n<div>\n<p class=\"\" style=\"white-space:pre-wrap;\"><a href=\"https:\/\/www.management-one.com\/blog\/hidden-costs-of-tariffs-how-retailers-are-absorbing-the-shock\"><span style=\"text-decoration:underline\"><strong>With new tariffs likely to increase costs, independent retailers must make smart, strategic adjustments to maintain profitability and stay competitive.<\/strong><\/span><\/a><\/p>\n<p class=\"\" style=\"white-space:pre-wrap;\">In a recent webinar, <a href=\"https:\/\/www.linkedin.com\/in\/danecohen\"><span style=\"text-decoration:underline\">Dane Cohen<\/span><\/a>, Director of Retail Strategy at <a href=\"https:\/\/www.management-one.com\/\"><span style=\"text-decoration:underline\">Management One<\/span><\/a>, sat down with retail industry expert and Management One co-founder <a href=\"https:\/\/www.linkedin.com\/in\/marc-weiss-53498711\"><span style=\"text-decoration:underline\">Marc Weiss<\/span><\/a> to discuss real-world tactics for navigating <a href=\"https:\/\/www.management-one.com\/blog\/adapting-your-retailbusiness-to-a-policy-of-tariffs\"><span style=\"text-decoration:underline\">tariff-driven cost increases.<\/span><\/a><\/p>\n<p class=\"\" style=\"white-space:pre-wrap;\"><strong>From pricing moves to vendor negotiations and sales-boosting ideas, here are the three strategies for independent retailers to turn economic pressure into opportunity \u2014 using data, focus, and adaptability.<\/strong><\/p>\n<blockquote>\n<h4 style=\"white-space:pre-wrap;\"><em>\u201cThere\u2019s nothing like having these disruptors in history to realize that there\u2019s always a win if you look for opportunities of success, rather than focus on the losses.\u201d &#8211; Marc Weiss<\/em><\/h4>\n<\/blockquote>\n<h3 style=\"white-space:pre-wrap;\"><strong>Strategy #1 : New Pricing strategies That Protect Your Margins<\/strong><\/h3>\n<p class=\"\" style=\"white-space:pre-wrap;\">When faced with rising costs, a retailer\u2019s instinct is to absorb them \u2014 cutting margins to avoid passing prices on to customers. But that\u2019s unsustainable.<\/p>\n<p class=\"\" style=\"white-space:pre-wrap;\">For instance, price increases during Covid ranged from 23% to 30% at the retail level \u2014 and up to 60% in luxury \u2014 yet customers kept shopping. <a href=\"https:\/\/www.management-one.com\/blog\/consumer-reactions-are-higher-prices-driving-customers-away\"><span style=\"text-decoration:underline\"><strong>The key is not to underestimate your customer\u2019s willingness to pay, especially when they see real value.<\/strong><\/span><\/a><\/p>\n<p class=\"\" style=\"white-space:pre-wrap;\">Here are actionable tips that you can implement to protect your margins :<\/p>\n<ul data-rte-list=\"default\">\n<li>\n<p class=\"\" style=\"white-space:pre-wrap;\"><strong>Maintain strong initial markups (IMU%)<\/strong> to offset cost increases. If your COGS go up 10%, your IMU needs to follow.<\/p>\n<\/li>\n<li>\n<p class=\"\" style=\"white-space:pre-wrap;\"><strong>Evaluate price elasticity<\/strong>: keep pricing firm on inelastic or exclusive items, adjust where volume is more sensitive.<\/p>\n<\/li>\n<li>\n<p class=\"\" style=\"white-space:pre-wrap;\"><strong>Use pricing strategies like bundling, tiered pricing, or value-added offers<\/strong> to protect margins.<\/p>\n<\/li>\n<li>\n<p class=\"\" style=\"white-space:pre-wrap;\"><strong>Implement gradual increases<\/strong> to avoid price shock.<\/p>\n<\/li>\n<li>\n<p class=\"\" style=\"white-space:pre-wrap;\"><strong>Focus messaging on value over price<\/strong>: emphasize quality, service, exclusivity.<\/p>\n<\/li>\n<li>\n<p class=\"\" style=\"white-space:pre-wrap;\"><strong>Use loyalty programs and psychological pricing<\/strong> to cushion increases.<\/p>\n<\/li>\n<li>\n<p class=\"\" style=\"white-space:pre-wrap;\"><strong>Have a strong class structure<\/strong> so you know where price changes make sense\u2014and where they don\u2019t.<\/p>\n<\/li>\n<li>\n<p class=\"\" style=\"white-space:pre-wrap;\"><strong>Ensure your team understands the \u201cwhy\u201d behind your pricing.<\/strong><\/p>\n<\/li>\n<\/ul>\n<blockquote>\n<h4 style=\"white-space:pre-wrap;\"><em>\u201cThe buyer\u2019s job is to make sure that the people in the store are educated and understand why the buy was made and why it\u2019s important, so that they have the words and music to sell it well.\u201d &#8211; Marc Weiss<\/em><\/h4>\n<\/blockquote>\n<\/div>\n<p><script>!function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod?n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.agent=\"plsquarespace\";n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window,document,'script','https:\/\/connect.facebook.net\/en_US\/fbevents.js');window.facebookPixelRequiresConsentUpdates = true;(function(){let squarespaceCookies = {};if (window.getSquarespaceCookies) {  squarespaceCookies = window.getSquarespaceCookies();}if (squarespaceCookies.marketing !== 'accepted') { fbq('consent', 'revoke'); }})();fbq('init', '772258265056009');fbq('track', \"PageView\");<\/script><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>With new tariffs likely to increase costs, independent retailers must make smart, strategic adjustments to maintain profitability and stay competitive. In a recent webinar, Dane Cohen, Director of Retail Strategy at Management One, sat down with retail industry expert and Management One co-founder Marc Weiss to discuss real-world tactics for navigating tariff-driven cost increases. From [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":190228,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[96],"tags":[18961,5984,62047,10922,1409,11124],"dealstore":[],"offerexpiration":[],"class_list":["post-190227","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","tag-inventory","tag-management","tag-margins","tag-planning","tag-protect","tag-strategies"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Strategies to Protect Your Margins \u2014 Management One Inventory Planning - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=190227\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Strategies to Protect Your Margins \u2014 Management One Inventory Planning - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"With new tariffs likely to increase costs, independent retailers must make smart, strategic adjustments to maintain profitability and stay competitive. In a recent webinar, Dane Cohen, Director of Retail Strategy at Management One, sat down with retail industry expert and Management One co-founder Marc Weiss to discuss real-world tactics for navigating tariff-driven cost increases. 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