5 Ways to Boost Profits With Proper Inventory Management
How you manage your merchandise can mean the difference between smooth sailing, and missing out on sales; between having a healthy amount of stock, or running out of space and cash because you bought too much. Managing inventory perfectly is an art form, but with the right tools, it can be reduced to a science. Here are 5 ways a POS can help you get it right.
1. Get Rid of Slow Movers
Sometimes what you thought would be a white-hot seller ends up sitting untouched for weekstaking up valuable space and the opportunity to sell something better.
To identify , run a sales history report to see what has sold in the last week versus the last month. Items with a low sell-through percentage are the low performers, and need to be moved quickly to free up shelf space for merchandise with a more future.
What to do once you’ve identified a low-performing item? We suggest marking them down with fairly deep discount (starting at 30% off)or a buy-one-get-one promotion.
2. Reduce Shrink
Shrink meaning lost, stolen, or should be calculated at the end of each season.
With a luetooth scanner, you can easily, then run an inventory report to determine the discrepancies between your original , and the physical count.
Tip: In LightSpeed (Pro and Cloud) you can find the Shrinkage tab within the Inventory Count feature. Once the Inventory Count has been reconciled, the Shrinkage section will let know what was lost due to shrinkage. More info here!
3. Set Reorder Points
Since you can’t sell what you don’t have, making sure your merchandise is replenished on time is crucialespecially for hot ticket items.
Once you’ve gotten the hang of analyzing your sell-through, you can determine your reorder points. LightSpeed Pro and Cloud allow a user to d
in Cloud, or “Products to Reorder” in Pro, that
4. Be Efficient When You’re on the Road
Tradeshows and buying appointments at showrooms can sometimes be exhausting or confusing. When you have your entire inventory with you on a tablet or mobile phone, it’s easier to make sound decisions.
Have boots been selling well, or are there dozens of pairs still sitting in the stock room? What about a certain brand you bought last season were the shirts hot performers, or maybe the sweaters? information at your fingertips will help you purchase the when you’re out buying, instead of getting persuaded into buying too many units.
Tip: A buying appointment would be a great time to brose your Grouped Sales Totals reports. Cloud them for Category, Tag, Vendor, Manufacturer etc.
5. Be Kind to Your Accountant
Carefully tracking your inventory is crucial to generating accurate balance sheets. If you the Assets Report in Cloud (or “Inventory Valuation” in Pro), you can find out how much stock you have, and how much you currently worth. For tax and accounting purposes, help you and your accountant make the most of your finances, not to mention avoid a nightmare audit experience!
Do not underestimate how much time and money you can save by using a POS to track your merchandise, help you buy the right products, and sell-off slow movers.
For more information about managing inventory, check out our Inventory Management Best Practices guide.