Keeping Out of Inventory Trouble It's that time of year where you may be on inventory overload. You're ordering at trade shows, and bringing in exciting new products for the new year. While more products may sound like more sales, this can cause over-crowding leading to slower sales.
The best way to balance inventory is to follow a plan and not overbuy in the first place, but that is easier said than done!
Four suggestions to keep inventory balance:
1 Always try to get exclusivity in your region so that you have unique product. Ideally you do not want to be shopped on an “apples to apples” comparison basis because this may slow down your sales. If you cannot get total exclusivity, then try to get the first few months exclusive to you. Even if you can get different packaging that will make it look less like the others, it can work.
2 Nurture your loyal customers. Send thank you cards and maintain close relationships with those good customers. Help them by creating gift registries and remembering important dates for them, become more than an item provider in their life. Add value to what you do for them.
3 Set up your store to guide customers through the total store and tempt them with your latest high profit items before they see the markdowns. Always keep your markdown items at the back of the store where the customer has to search to find them. DO price them to move to make room for fresh inventory.
4 Remember, the price you paid for the item has nothing to do with the selling price. If you take too much of a markdown (and NEVER take a markdown without knowing the cause) and the item sells out immediately, do not regret the fast sale. Pat yourself on the back: you paid your tuition and do not make the same mistake again!
A critical analysis of your current inventory and a plan for new buying in the upcoming trade show season can and will increase not only your profitability, but also your customer service levels. Good Luck!
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Reference/Source: http://www.aadatacompany.com/, http://www.yudesigns.net/inventory-logo/