Hours of operation are a crucial part of any retail business. Unfortunately, it’s one that is often overlooked. Many small retailers are missing out on revenue by not evaluating when they should be open. Fortunately, it doesn’t require as much research as one might think. In today’s age, the right retail POS system should be able to provide you with all the data you need to figure out if you need to adjust your hours. In the following, I will explain what statistics you can use and provide some prime examples that indicate when there is action required.
Let’s take a look at the weekday comparison from KORONA. This retailer opens Monday through Friday and is closed on Sundays. Now it doesn’t take much to see that the weekend means business. Judging from this statistic Sunday could potentially be the second best day of the week. In this particular case, the retailer is likely losing out on over 10,000 in revenue per week.
In fact, this is probably the most common mistake small business owners make. The second chart is another business which keeps doors open on Sundays. In this case, it is even their busiest day of the week in the number of visitors and revenue.
Hours per Day
Most retailers just stick to one schedule fits all and keep the same hours for each day. In many cases, this makes sense in order to make it simple for the customer. However, some stores might be missing out on revenue or spending unnecessary operating costs. Again, we are using a KORONA statistic as an example. This one is called revenue per hour. You can run this report for any time period and even filter the result by day of the week to figure out which hours are most profitable on what day of the week.
In this example, the retailer opens at 8 AM and closed at 7 PM. Looking at the statistic we have to ask: Is it profitable to keep the doors open between 8 AM and 10 AM? If so, we should probably consider extending hours until 8 PM and evaluate again.
Please keep in mind that every business is different and probably every business owner has their reasons. However, if your decisions are based on just experience and gut feelings it is probably worth backing up your opinions with solid data. Of course, no point of sale system can assist you better with that than KORONA.