Tuesday, 11 June 2013

Tip of the Week

Do you have inventory that is over a year old?  It could actually be costing you money. It does so by taking up space that profitable product could be using and by requiring regular movement.

A store's display full of aged inventory re-mixed and ready to sell! 

Sometimes, as a shop owner, it can be difficult to let go of merchandise because we know how much it has cost and how much work we have put into selling it already. Unfortunately, the time comes where that merchandise starts costing us money. The general rule of thumb is that merchandise shouldn't hang around your store for more than a year, so you need to consider clearing out aged inventory to make room for newer, more profitable items.

How is it costing us money? Aged inventory takes up space and ties up inventory dollars that could otherwise be spent on new, more profitable merchandise. It can also add clutter to the store or space, inhibiting sales of new product. Once you consider that, consider also how many times you've paid someone to move that product or moved it yourself. Not only is their time worth money, but so is yours! What could you have been doing to make the store money instead of moving aged merchandise?

Okay, that's great, but what are some solutions to this problem? Sign up to receive the tip of the week, sent directly to your inbox, and receive the answer plus a special bonus tip this week!  (You may have noticed that I got a little busy last week and was unable to keep up with my tips.)  All you have to do to sign up is click here!  Is that not working for you?  Send me an email and I'll add you manually.

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