Cafe Serendipity Holdings Inc. (CAFS)

[lesgetrich]

They increase profits by cutting expenses. For example, the cost of inventory. The largest investment for most stores is in their inventory. This can easily be reduced with the proper software that tracks and forecasts sales (i.e. Inventory Management) or takes advantage of early payment discounts for their invoices. In almost all businesses 20% of the items account for 80% of sales. Stores carry lots of items that hardly ever sell. They can be put on fire sales and cleared from inventory. If they don't know their lead times and carry enough safety stock they run out of the items that do sell and loose sales. If they have a grow-op, training in advanced growing techniques can increase crop yields. Proper training of sales personnel can lead to more sales. Good accounting software and centralized accounting can free management for other jobs. These are just some examples.