Now that you’ve read Rebecca Schwarz’s story on ‘Taking Stock of Your Inventory’ from the Feb/March issue of Canadian Florist, it’s time to look at what you are doing to keep your inventory in check. We’ve compiled some tips you need to consider when deciding how much product you should keep on your shop shelves.
Analyze your sales – Look at what products have been selling over the past year, as well as what products haven’t been. Compare seasonal statistics, turnover rate and sales patterns. Take this information into account, along with your sales predictions for the coming months. Don’t forget to consider the minimum stock you need to run your shop, as well as how much time you need to reorder items.
Constantly review – Take a look at your inventory on a regular basis – not just once a year. Consult your point-of-sale to gauge how your sales are going. Use this information to readjust your earlier inventory predictions if need be.
Stick to your buying plan – When you visit shows or open houses, it’s easy to get excited and impulsively buy without thinking. Go to these events with an action plan and a budget and try not to stray without doing proper research. If you do see a product that you must have, talk to other retailers who have tried the product or outline where you would put the item in your store and who would buy it. If you can justify the product and afford the small risk, only then should you make the purchase. Buy a small quantity if you can, define a trial period and keep a close eye on how the item performs in your shop.
Be consistent when storing product – Designate certain areas for products and stick to it. It will keep your shop tidy and organized and save you and your employees time searching high and low for lost or misplaced items.
Don’t keep old and damage stock around – If some of your stock has been in your shop longer than most of your employees, it’s time to go. Chances are that product is costing you more money to store it and move it around your shop than it would to just throw it away. Give your products a ‘birthday’ – if it doesn’t sell by a year from when you purchased it, then discount it, give it away in a design or promotion or toss it.
Examine your shipments – When you receive a shipment, compare the products your receiving to the list of products you ordered. Develop an order-receiving checklist or system so that each of your staff members can receive products using the same procedure. Look for damage to the products or the packaging and work to get the stock put away as quickly as possible and as stated above, in the proper place.
Consult your customers – If you made changes in your product selection, talk to you customers about the changes. Ask if they miss any particular item or if they’d like to see you try something different. In the end, your customers are the ones who are affected by any changes you make so keep the lines of communication open.
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