Title: Unlocking Retail Expansion Tagline: Unlocking Retail Expansion: How the Jacksons Leveraged GMROI to Predict $75,000 Profit Increase from New Product Line Problem: The Jacksons, owners of "Jackson's Jams & Jellies," a small artisanal food business, are considering launching a new line of gourmet pickles. Initial market research is promising, but they're hesitant due to the significant upfront investment in ingredients, jars, and marketing. They need to accurately predict the profitability of this new line before committing a substantial portion of their savings. Their current business yields a GMROI of 1.8. Competitors in similar product categories have GMROIs ranging from 2.0 to 2.5, indicating potential for improved efficiency and profitability. They have $50,000 earmarked for the pickle line and want to be sure it's a sound investment, especially with three college tuitions looming. Solution: By utilizing the Golden Door Asset GMROI Calculator, the Jacksons can input their projected gross profit for the pickle line (estimated at $95,000 based on sales forecasts) and their planned average inventory cost ($50,000). The calculator quickly reveals a projected GMROI of 1.9. This provides a clear benchmark for profitability. Furthermore, by strategically analyzing areas for cost reduction identified through comparing their GMROI to industry benchmarks, they refined their sourcing and packaging processes. ROI: Based on the calculator results and subsequent adjustments to improve efficiency, the Jacksons confidently launched the pickle line. The increased GMROI of 1.9 projected an additional profit of $45,000 over their initial investment. By identifying potential cost savings and efficiency improvements using the calculator, they further boosted this to a $75,000 profit increase within the first year, strengthening their financial position and college fund contributions. This is a 50% ROI. Description: See how the Jacksons, juggling family finances and entrepreneurial dreams, used GMROI analysis to make a data-driven decision about expanding their artisanal goods business. Optimize your inventory strategy and maximize your return on investment with our GMROI Calculator. Category: Client Service