How to Control Inventory In Small Retail Businesses

Keep track of everything in your inventory.

Inventory control is the most important aspect in any retail business, and a smart inventory strategy is particularly critical or a small retail business. Your inventory can make you a great deal of profit or a great deal of loss. Having the correct amount of inventory, a smart display method and detailed tracking is key in helping your small retail business succeed.

Instructions

1. Factor in shipping cost, shrinkage and damages. These costs affect small retail businesses much more than larger retailers because of sales volume.

2. Stop thinking that the more inventory you have, the more you will sell. If you have to much inventory, your customers will not be able to shop all of the items. Start with a small amount of a few items, and watch trends. If one item is selling better than another is, order more of the top-seller.

3. Rotate your inventory frequently. Customers tend to get bored easily. Having at least one display area that changes frequently will keep your customers excited, and they will return often to see what's new.

4. Keep your stock room organized, and use it properly. If customers can't see it, they won't buy it, so only put duplicate items in the stockroom.

5. Organize your inventory properly. Make your sales floor inviting to the customers, and group like items together to make for an easy shopping experience. Organized stock also makes for easier inventory tracking for your employees.

6. Track your inventory on a regular basis. A small retail store can do this easily on a computer spreadsheet. Keep it updated so you will notice sales trends and know what to order.

Tips & Warnings

• Remember that things will get broken or stolen. Be sure to factor this into your inventory control.

References

• BusinessLink: Stock Control and Inventory