Go To Market Money Guided by POS Software Reporting
I’m going to market and buy my summer line and I have a $50k budget. No sooner do I arrive than I turn into a binge buyer and buy everything I like and would like to wear myself. Pretty bad decision. You buy what you know sells and especially in these fragile times, leave the hard to sell items alone. Detailed sales and inventory planning may seem tedious and time consuming, but when you’re running low in a key item and can’t get your next shipment in before you run out altogether, you’ll wonder why you didn’t take the time to plan ahead when it could have made a difference. And when you’re taking your clearance markdowns, remember that excessive markdowns are frequently a function of inadequate sales and inventory planning months earlier. What happened to that open to buy plan your POS Software prepared for you?
Unsold inventory is a problem for most every small retailer at one time or another. When you find you have a large supply of unsold inventory the key to protecting your profitability is to act quickly, mark the dead inventory down and do whatever it takes to get rid of it. Typical retail inventories lose between 20% and 50% of their market value per year. The time is now to clean up your excess inventory, because the longer you wait, the bigger the markdown will have to be. Use your POS Software best/worst list by net and replenish the items that have always been a winner in the past.