The major convenience store in the town is 7-Eleven chain. Its products include mainly the goods of everyday use that can be purchased quickly and conveniently in a store near a home. 7-Eleven has various costs that can be associated with the product, such as delivery of goods, their storage, customer service, maintaining its stores, store cleaning, etc. In order to compete with large supermarkets, 7-Eleven can cut some of its costs.
The major type of cost to cut is advertising cost because the chain does not need much advertising. It has stores all over the US and people use them mainly due to their convenience and being located close to homes and offices. There is no need in attracting customers with advertisements located everywhere. 7-Eleven can just provide advertisements related to current discounts and special propositions, as they help to attract more customers.
Convenience stores can use various accounting software tools that can help to identify non-profitable products. The possible software to use includes SalonTarget, Acme Point of Sale, iRetail, CashOrCardPOS and others (Software Advice, 2019). iRetail is among the best software tools because it is suitable for businesses with many stores in a chain. It helps to assess an item’s profitability because it shows all costs and revenues for each item sold.
I think it is beneficial for 7-Eleven and other convenience stores because it has many functions and can be applied to many stores in a chain. In my career, I had a situation with unnecessary costs in a fast food restaurant where I worked. The manager cut costs by analyzing all costs for each product purchased. He found out that some of menu items had high costs but did not bring high revenues because they were rarely ordered and often spoiled. They were removed from the menu.
Reference
Software Advice (2019). Retail Accounting Software. Web.