Inventory levels can be a tricky proposition especially during the holidays. On one side you want to avoid having too much and consequently being forced to heavily discount to move items and on the other you don’t want to run out of an item. So what do you do? You lean on your core inventory and carefully watch current trends.
Your core inventory is one of the lynch pins of your operation ad inventory management. You must know what the core items that sustain your store are and you must keep them in plentiful stock…especially during the holiday season. If you use Bookstore Manager you can pull a core report [IVCR] and evaluate the items you should carry. Other POS solutions should also have some type of core or key sellers report that you can use. If you do not have this type of POS you are going to have to rely heavily on empirical data and sales records you have compiled.
are dealing with seasonal When you items that you carry like ornaments, gift items or other specialty items you have to keep your eye on these and determine what your “breaking point” is. While you will need to set minimum re-order points the question always come back how much more do I get. Be sure that you make that decision with these three thoughts in mind
- What is the return policy for the item(s)? Are there restocking fees?
- What are the average weekly sales of the item so far?
- How many do you currently have in stock?
- How much time do you have to sell?
- Does the item have a sales life after the season?
After considering these things make a decision and see how it goes.
Here’s an example for you to consider:
I had a Christmas ornament that sold very well. I was surprised by the success of the item. I knew I needed more so I considered:
- I could not return the item, so if it didn’t sell I was stuck with it.
- There were only two weeks left until Christmas, so my selling days were limited.
- We had 6 on the shelf
- We were averaging about 12 sales per week but had seen a slight drop off in sales.
- And outside of discounting for after Christmas sales there was no potential for additional sales
What would you have done? Tell us and win a Personally Branded Commercial for your store. Simply post your ideas in the comment section below. The store with the best answer wins. We will select the winner on Friday November 20, 2009. Post away!
David McIntyre
KVI
View other articles in this series
#1- Starting Holiday Merchandising and Promotions To Late
#2- Not Marketing To Your Church
#3- Failing To Capture Customer Information
#4- Not Maintaining Good Stock Levels
#5- Not Keeping Your Store Looking Fresh
