How to Inventory a Quilt Shop
Inventory management is a must in any business, but it should be at the top of the list for quilting shops since you need to stock so many different items. Think of your quilt shop inventory as your cash flow because what doesn't sell by the end of the year is considered part of the company's assets.
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Instructions
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Take inventory either by hand or with the use of inventory management software; there are some very user-friendly ones out there. Whichever method you choose, even if you have an online quilt shop, it has to be accurate and timely.
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Divide your inventory into three categories: fabrics by theme and by maker; tools like hoops, frames and cutting mats; and notions like needles, pins, thimbles and thread. Calculate your total inventory value including storage, insurance and taxes.
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Decide which items are quick turn-around items, like straight pins and needles, and get rid of obsolete and slow moving merchandise, like outdated books and things on sale. List your top sellers, your next best sellers and items that have sold the least.
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Balance inventory by knowing your inventory turnover rate. Find this number by dividing the cost of goods sold annually, by your average annual inventory investment. This will keep you from becoming overstocked, which makes taking inventory more difficult and increases your financial risk.
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Tips & Warnings
Take digital photos of your inventory and store the photos on a separate disk.
Keep a hard copy of your inventory as a backup to the digital record.
