One way to get a good grasp on your inventory is to narrow in on your top sellers. Ask yourself a few key questions to help understand why they are your stop sellers.

1.       Have they always been your stop sellers?

2.       If not, why do you think they are now?

3.       Are there other products that would compliment your current top sellers and potentially sell as well? For example, if you are selling a lot of wine toppers, would cocktail napkins be a nice addition to your store assortment?

Likewise, determine what have become the worst sellers in your inventory and make plans to get them out your door as soon as possible. Easier said then done, yes. However, it needs to be done – even if you have to take a loss on some of your product purchases. Letting them sit on your shelves and make no return at all for you is worse than at least recovering some of your initial investment. By doing this, you may allow yourself to afford smarter purchases for your business today… or at lease sooner than later.

A few things you should consider when determining how to move inventory that has not been selling include the following.

1.       Call your vendors to see if they would buy back their stock. While not all vendors do this, some will consider it depending on your contract, your relationship, and your future business opportunities with them.

2.       Markdown your inventory right away if you haven’t already. Don’t just bring it down to 20%, but bring it down to 40%, 50%, even 75% off if you have to. Price to sell! The plan is to get it out the door, allowing you to get rid of access inventory that may be holding you back from bringing in new product that will have more selling potential.

3.       Host a special shopping event that caters to selling marked down items. Add special incentives to purchases made with multiple items. For example, you could have 50% off the first item, and 60% off each additional item. You can add additional or other incentives to help sweeten the deal. Buy one get one free. Gift with purchase. You get the idea.

4.       Some small business owners are willing to trade their inventory with each other depending on their customer base and more. If you have relationships with stores that this is a possibility for, consider how this may work for you.

Don’t be afraid to mark your product down because in doing so, you may take a loss. The bigger loss you are at risk for is not moving any inventory at all and ultimately having to close your doors. Be realistic with yourself as to what is the best scenario for your store, ultimately allowing you to bring in products that sell.

The goal of analyzing your inventory is to create balance. Top sellers should outweigh bad sellers in a perfect world, but this isn’t always the case. Re-evaluate your inventory each week, or at the very least each month, to best support your store trends and sell through. Have tips to help support inventory control? Let us know! Please comment below.

There are a few key things you can do that will impact the efficiency of your inventory and overall stockroom organization. These include:

1. Bins & Bin Labels - Using bins to identify various things is  a clean, organized way of keeping your stockroom from getting cluttered. By identifying these bins with labels, you help control the chaos of inventory just piling up without a place to go. For example, you could have a bin labeled “returns” for items that need to be re-stocked or put back onto the floor. Other bin suggestions include ”damaged items”, “return to vendor”, “store decor”, “promotional giveaways” and “hangers”. The list is endless based on your store’s unique needs.

2. Shelving – Take advantage of the height your stockroom offers and have shelves available for use. These shelves should be neatly organized with categories of product that are easily recognized by signs and clear, clutter free organization. Identify the category areas with visible signage that all associates can easily read.

3. Desk Space- Even if you primarily work in the front of your store, there is bound to be a time when you or an associate need to sit down in your stockroom area. This may be to complete some work details or to have a lunch break. Either way, make an area designated to support these types of situations so that areas not meant for this are kept tidy. Include drawers or shelving to hold excess paper, pens and other office  supplies that your store needs.

4. Mini Fridge- A miniature refrigerator is a great addition to any retail stockroom. You may choose to stock it with drinks for your customers and employees or simply use it to hold employees lunches and leftovers. Either way, it’s a nice addition to have. The catch is to make sure it stays clean and food does not rot away inside of it. Have a 2 day rule to keep it clean and smelling fresh.

5. Work Table – If you have the space, include a work table that can be  used for organizing inventory. It will be great to use when new deliveries come in as well as to prep product that is ready for the sales floor, such as for folding or ticketing. Keep this work table clean and clear of anything after each project is complete so that it’s ready for the next project without having to push things aside and create the start of a mess.

6. Bulletin Board- Store annoucements, schedules and pictures need to go somewhere. A bulletin board is a great solution for this. You may need more than one to support your store needs, but at least one is suggested. Having these by the desk are suggested since this is where most people will sit down for a bit and have the time to look at what is on the bulletin board. It also may be beneficial to have a large bulletin board towards the stockroom exit that announce daily sales goals and other important store news.

7. Hanging Racks – Not everything will be suited for shelves or bins. Having hanging racks in the stockroom area can allow you to prep product accordingly. In addition, it can offer a designated space for employee coats.

8. Shipping Area – There will be a time when you need to send something to a vendor, customer or just because. Have a specific area with all your shipping supplies in one place so that you save time looking for everything and the process can be as quick and efficient as possible. Have packing tape, boxes, envelopes and packaging materials neatly organized in bins or drawers that are clearly labeled.

9. Employee Lockers – So maybe lockers aren’t your thing, but giving employees their own personal space is suggested. This is ideal for their purses, gym bags and everything else they bring to work. By identifying where their space is, they can be held responsible when they have loose things around the stockroom that contribute to it being a mess. Lockers are also ideal since there is some security involved here.

10. Character – That’s right, character. Add some life to your stockroom with paint and color. Color coordinate bins or use different labels for different things. You will spend a lot of time in the stockroom, so make it a place you want to be. This will also help everyone keep it organized and  clean.