What is inventory control for independent retailers? The moment goods arrive in your store, they are getting old. Follow these seven steps to get them sold through. This is the first post in a series brought to you by Max Retail and Retail Smart Guys. Watch and learn.
Inventory doesn’t get better with age.
Those of us in the world of retail inventory control have a saying about inventory. Mine is, “Inventory is neither wine nor cheese, and it doesn’t get better with age.” What does that mean for you? It means that at the moment goods arrive in your store, they’re getting old, and so you’ve got to make sure you’re doing what you can to get sold through.
What can I do to turn inventory faster?
But what if the inventory isn’t turning fast enough? Here are seven things you can do:
1) Relocate them in the store.
You may know this trick but moving them from one spot to another might wake up your customers and get some sales out of those goods.
2) Incentivize your salespeople.
Use a SPIFF (sales performance incentive fund) to put their attention on the product you want them to sell through.
3) Call some clients who might want to buy this and make them a deal.
Usually that deal is going to be less expensive than a big markdown
4) Get on the phone with the vendor.
I tell them the things I did: I relocated it. I gave my salesperson a SPIFF. I called up specific clients I thought might buy it—it didn’t work. Maybe they would like to take it back and swap you out?
5) Take your first mark down.
Take and promote your first mark down.
6) Go on sale.
7) List it on Max Retail.
If you’ve discounted the product up to 50 percent and it still isn’t sold, let’s get it sold! Do whatever you can to get your cash out of those goods once you have identified that they are a problem.
