Inventory Management – One key to retail success.

So often I will visit a retail company who thinks that they can just “eyeball” their inventory. Wrong. Yes, you can see that you have “enough” inventory to sell, but you don’t have any idea of how quickly it will sell.

Basically, retailers need to think of their inventory not as “things to sell” but rather an investment in something that will either earn them revenue or provide opportunity cost.

Retailers need a system to help them understand what sells, what doesn’t and with that, the wisdom to understand how to manage it. You may have a truly awesome green lamp for sale, but if nobody buys it, you might as well put it in your closet. If you have to dust it, lower the price and get rid of it.

For more help on understanding inventory, I’ve come across an article that might come in useful from the Retail Owners Institute. I highly recommend that you check it out and apply the wisdom here to your retail store.

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