Creating Cash Flow with Old Inventory

Too much inventory ties up critical cash for your business. The key is to find the right price to move your merchandise. Slow moving items take up space and cash that could be used for more profitable items.

Keywords:

cash flow, inventory, small business, retail store, owner, pricing

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Being a retail consultant, there is a comment many business owners used. It is “I'm not giving away my inventory". It is most common among store owners that business is in bad shape. It is too bad that most retail owners don't understand about inventory. Inventory does two things. It eithers makes you money or costs you money.

You need to have sufficient inventory to be profitable. However, having too much inventory is a larger problem than too little inventory.

Too much inventory ties up critical cash for your business. It can also result in more damages to your merchandise. The key is to find the right price to move your merchandise. Slow moving items take up space and cash that could be used for more profitable items.

There are times you have to adjust your pricing strategy. For example, let's assume your retail price is double your cost. In this example, you pay $10 and it retails for $20. If it is a slow mover or discontinued item, what should be the new price? I would take 20% off for 1-3 months, 50% off and then 75% off. If you have to sell at 75% off, you will sell below cost. Cost should never be a factored in marking down an item.

I can hear you yelling now. I'm not giving away my inventory. You are looking at your inventory from the wrong perspective. Your product is worth what a customer will pay for it.

Using my example, let's say you sold your product at 75% off. How much did you make on that item?Your answer most likely was a loss of $5.This was based on a $10 cost and $5 retail. That answer is partially correct. The more correct answer is that you made $5.

You took an item that was producing zero and turned it into $5 cash. You can take that cash and space and use it for a profitable item. Many times a business does not have enough cash to buy the needed quantities of the best-selling products. If you take the cash from the poor sellers and use it for good sellers, you will more than make your money- back.

No matter how good a buyer you are, there will be items that don't sell. The key is to realize this and react before it ties up too much cash and profit.

An added benefit of taking care of your problem inventory is increased sales. You will get customers who will shop your store regularly looking for your markdowns. Many of them will buy your high gross items also. If you take care of your problem inventory regularly, your markdowns dollars will be less.

Inventory is critical to your business success. The key is to take action on the slow moving and discontinued. This will make your bottom line better in the long run.

Critical Small Business Decision #7: Stock Inventory Or Dropship Product For Your Online Store

Planning on an Internet storefront? Every small business owner needs to take these things into consideration when laying the foundation of a "click and order" operation.

Keywords:

wholesale,dropship,drop ship,small business,home based business,work from home

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Starting a business online could be much quicker than starting one offline. However, as a small business owner, you need to be prepared to spend a fair amount of time and energy to make your business profitable. After all, that is why you're going into business isn't it?

An online business is still one of the greatest work from home business opportunities on the planet. You may even have a grand vision for an online store, but find yourself struggling to handle the basic details of getting your store up and running. One essential detail is selecting the products you will use to "stock" your store. You will also have to decide if you want to keep an inventory or want to use dropshipping. Starting a store online can be as challenging as starting one offline, but it if you understand what's involved, this doesn't necessarily have to be the case. By identifying and using the right resources, you can make your start-up a smooth one.

The key to having a profitable online presence instead of just another online enterprise is creating or locating good quality products that you can sell for a profit. One way to do this is through drop shipping. Drop shipping allows small business owners, like you to establish a professional relationship with vendors who wholesale the products you want to sell. These vendors will ship customer orders directly to them rather than you having to stock inventory and do the product fulfillment yourself.

Prior to opening your store, it is critical to have the foundation of your business firmly established. Organization must be an integral part of this process. As your list of vendors and dropshippers increases, you should have all of their contact information in a convenient location for easy access. Don't short-circuit this part of the process, it is amazing how much time you can save by being organized and by having established contacts within your product market. Take the time you need to build your store right from the ground up and business will virtually run itself in due time.

A number of factors will contribute to the ultimate success of your business whether that business is online or offline. The Internet, especially, is often viewed as a way to "get rich quick" rather than as a way to build a good business with a greater reach. You will get out of your business what you decide to put into it. Today's technology allows small business owners to build their businesses faster, but it

Finding an Inventory Software Solution that Fits Your Business Needs

It's difficult to know which inventory management software will fit your needs, so here are some tips to find the system that is right for you.

Keywords:

Inventory Software, Inventory Management Software, inventory control software, erp

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If you're looking for an inventory software solution, a simple Web search gives you a myriad of options. It's difficult to know which inventory management software will fit your needs, so here are some tips to find the system that is right for you.

Choose an Industry Leader

Inventory control software is too important to leave to companies that haven't proven their mettle. The best products come from companies that have deployed their software in a wide variety of industries, from aerospace and apparel to manufacturing and sporting goods.

Look for Robust Functionality

The best inventory software solutions provide you with Enterprise Resource Planning (ERP) that integrates solutions for all aspects of your business. Features to look for include:

Analytics: Information is critical to managing and growing your business, but you need more than numbers on a page to transform data into actionable information. Robust inventory control software will give you a range of customizable reporting options, including advanced analysis for the decision makers in your company.

Expiration Date Tracking: If your inventory includes time-sensitive products, your inventory software should track expiration dates from the moment they are received until they are shipped. Because expiration-related issues could crop up in the future, the software should also include the ability to track historical expiration date data.

Manufacturing: Smooth production cycles depend upon sound management of resource planning and production. The right software can allow you to gain a competitive advantage because it gives you the ability to respond quickly to the needs of your customers.

Remote Data Collection: The top inventory software providers can combine software and hardware solutions that will allow you to remotely access vendor and customer data, track inventory and fixed assets, and issue sales orders and receive purchase orders.

Retail Management: If you have retail locations, look for an inventory software solution that can increase the productivity of your employees, adjust inventory at point-of-sale, and automate purchasing.

And, of Course, Inventory Control

The inventory software solution that you choose should have the ability to track serial number, print barcodes, and store item images. It should allow you to define automatic reorder points, the purchase currency and cost, and the sales currency and cost. If you have unique pricing requirements, the software should allow you to assign different price points to the same item. It should also allow for manual counts and adjustments, as well as provide an audit trail for inventory adjustments.

Flexibility is Key

An inventory software solution should be robust, but it should also be flexible. If, for example, you deal in apparel, a module that tracks color, size, and style should be available. If your company provides service and returns, you may need a module that allows you to issue return merchandise authorization numbers, receive replacement items from your vendors, and issue replacement items to your customers.

Whichever inventory software solution you choose, make sure that it has both the features you need at the present time, and those that you may need in the future. In today's competitive marketplace, you can't afford not to have the most up-to-date information available in a form that enables you to make decisions in response to market demands.