Inventory is so important, but easily overlooked. What are some simple ways businesses can get a grip on their inventory?
Oftentimes, owners and managers forget that they can boost their bottom line and cut back on overhead by properly maintaining inventory. Having product on your shelves isn’t enough; to capitalize on your inventory, you must analyze its performance as well as implement inventory best practices.
Having too much product can do more harm than good. The money you spend to purchase more product than you sell in a given time period could be used toward other initiatives. There is no reason to have product sitting on shelves or in your back room if it isn’t going to sell. Regularly performing inventory counts allows you to determine a realistic amount of inventory to order.
The product you have that does not sell becomes “dead stock”. However, just because your dead stock won’t sell on its own, doesn’t mean you can’t sell it. In Millennium, we have the “Inventory Wizard” which automatically helps identify slow moving products and allows you to automatically put them on sale. You should also believe in the power of bundling. Some ways to help move your dead stock are: bundle several of your dead stock items and sell them at a discounted rate, bundle one of your best sellers with dead stock and sell it at a discounted rate, or offer a dead stock product at a discounted rate with the purchase of a service.
Not many people have “counting inventory” on their list of favorite things to do, but it’s a task that must be done. Take advantage of the inventory features and reports that your salon software offers. Use inventory counting features and reports to compare with your on-hand count. Make it a priority to perform daily or weekly inventory counts so that you can monitor which items are moving, any possible theft, and the need to reorder. To help make counting inventory even easier, schedule automated inventory reports to be sent to you so you always have a pulse on your products. You can also automate your ordering to make the process more streamlined and simple.
For more tips and information on best practices for managing your inventory, check out this free guide. While inventory isn’t the most enjoyable part of running a business, it is certainly a crucial task that could really make a difference in your bottom line.
Millennium Systems International, Founder and CEO
About: John Harms, Founder & CEO of Millennium Systems International, creator of Millennium Software, has been designing industry leading salon scheduling software and educating the beauty & wellness industry since 1987. Today Millennium is utilized in thousands of businesses in over 38 countries and operating with approximately 150+ employees worldwide. Millennium currently runs its corporate headquarters out of New Jersey and its international office is based in the U.K.