Move that old product before it hurts the bottom line.
Bricks and mortar retailers can struggle with product sitting too long on the shelves.
Managing inventory is a careful balancing act.
Without good control, product can quickly date and be far too costly.
Read some simple ways to avoid the slowdown and help move product:
1. Know What your customers want:
Think like your customers so that you know what they want. Be careful not to buy product that interests you, but not them.
The products you offer should reflect their needs and wants.. It’s the customer really, who determines whether or not you succeed.
2. Care about Pricing your product:
Pricing starts with what a customer is willing to spend.
Try negotiating a better buying price from your suppliers, join up with a buying group if necessary to give yourself buying power punch, go looking for specials and discounts on the products you need from wholesalers and seek out cheaper freight costs.
All or any of these savings can have a impact on final pricing.
3. Monitor how products are moving:
Careful monitoring of all products, particularly the slower moving ones is a must.
If these laggards start to build up, then overall turnover will fall back and holding costs will mount up.
Be vigilant and keep a very regular check. Take note of products that are obsolete.
Set a discounted price for stock which moves too slowly and be active about moving it on.
4. Energise the store to engage customers by going “sensory”.
Customers get tired of seeing the same thing every time they enter, so create an entrance display of products you want to promote in the first few metres of the store.
Use different lighting and colour to focus on them.
Set up displays that make it easy for people to envisage themselves using these products.
Use music to slow down and encourage browsing, or uplift and stimulate, or to communicate to a particular customer age group. It’s a subtle tool.
Give customers the opportunity to touch, taste and smell the merchandise. Smell is often overlooked by retailers but it’s a definite means of controlling emotion and memory which can lead to sales.
5. Step Outside:
If possible, move some merchandise outside the shopfront, or create an eye catching static display outside your entry.
It’s a way of drawing attention to what’s inside and getting people to enter the store.
The old saying “a crowd draws a crowd” can be applied here.
Make it look as though something’s happening inside, create a “footpath sale or a “spot special” outside to move product.
If it’s not moving, move it out!