ThreeBuckets.com Formula Sheet

  • Average Price = Dollar Sales/Unit Sales

  • Dollar Sales = Unit Sales * Avg. Price

  • Sales Increase % = (TY – LY)/LY

  • Initial Markup = (R – C)/R

  • Cost Complement = (1 – IMU)

  • Markdown % = MD $/Sales$

  • Maintained Markup = IMU – [MD(CC)]

  • Retail Turn = Annual Sales/Avg. Retail Inventory

  • Cost Turn = Cost of Goods Sold/Avg. Cost Inventory

  • Unit Turn = Unit Sales/Avg. Unit Inventory

  • Weeks of Supply = 52/Retail Turn

  • Weeks of Supply = On Hand Inventory at Retail/ Weekly Sales at Retail

  • Sell-Through = Units Sold/ (Units on Hand + Units Sold)

  • GMROII = Gross Profit/Cost Inventory

  • GMROII = (Turn/CC) * MM

**This is not a comprehensive list.  Just a few of the formulas we’ve received multiple requests for over the years.  If you have a request for a specific formula, please leave a comment or email me, and I will try to include it.

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2 thoughts on “ThreeBuckets.com Formula Sheet

  1. Mame

    Hello There,
    can you please give the definition of acronyms used inthe formula sheet?
    Also what is Gross profit? is it the same than Gross margin?
    Thanks

    Reply
    1. Nicole_Cox

      Hi Mame,

      Here’s a short key for you:

      LY – Last Year
      TY – This Year
      R – Retail
      C – Cost
      IMU – Initial Margin
      MD – Markdown
      CC – Cost Complement
      MM – Maintain Margin

      Hope this helps!

      Nicole

      Reply

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