Retailer Profitability Model for Vendors: 06. Items per Customer

The Retailer Profitability Model, or RPM, explains how a retailer makes profit and it's fairly simple. Retailers generate both revenue and expenses. Expenses are subtracted from revenue to get profit. Revenue is made up of traffic multiplied by transaction size, and transaction size is made up of price per item and items per customer. In this course, we'll take a look at items per customer and specifically, how these numbers can impact profit, and how to increase these customer purchases.