You can’t sell what you don’t have.
That is why proper inventory management is essential to any small business looking to keep a steady sales flow. Whether it’s disappointing customers who cannot find their favorite and trending items on the shelves, or overstocking merchandise that takes up needed space. Poor inventory oversight of your items will drive patrons to your competitors.
Smart inventory management allows small businesses to keep fast-selling items available and avoid ordering slow-moving goods. Through astute analysis and use of efficient inventory management tools, merchants will see maximized sales.
Some Point of Sale companies offer digital inventory tracking methods, including remote order capability. This feature allows merchants to control orders from anywhere. Business owners who hand tally items and populate a spreadsheet risk the very real possibility of costly human error.
Small business owners also must research sales trends. If items are flying off the shelves, by all means reorder a good supply. But be weary of trends regarding certain items that likely will not last. This way, you can be cautious and avoid overordering. Inventory management is especially critical for preserving produce and other perishable items. Any product with an expiration date cannot be marked down or put on clearance. They go straight to the trash, along with your potential profits.
In addition, keep the seasons in mind when deciding on your inventory for certain products. For instance, sunscreen is a sure bet during the summer. But be sure to analyze how much you’ll need for the warm weather. Otherwise, you may be stuck with an out-of-season, dust-gathering item.
Product placement is also key. Fast-moving items should be on endcaps and other noticeable areas, such as near checkout. Clearance sales should also be positioned in high-trafficked areas.
Sometimes, slow-moving inventory comes to a dead stop. At that point, there may be no choice other than commencing with a clearance sale or markdown. What appears to be useless items to shoppers can become more attractive when they are $10 dollars off or marked down by 25%. Do not be afraid to take in less money in the short-term. Effectively clearing these items to make way for fast-moving sellers can make you whole or even turn a profit.
If your physical establishment is boosted by an online store, inventory management is essential to increasing profits. Hot items will sell both on the web and in the brick-and-mortar location. Ensuring that you have those products in stock in both areas will keep customers happy, whether they enjoy shopping in a physical store or prefer online purchases.
Potential new or existing patrons will be frustrated if they visit your store, physical or online, and come away empty handed. Some may find it absolutely unacceptable. Time management now more than ever is a significant aspect of daily life. Consumers will ignore the come again sign in your brick-and-mortar or virtual store if they think they may be wasting their time.
By understanding the importance of inventory management and implementing best practices, small business owners will be well on their way to making wise decisions and bolstering ROI.
