5/31/2007

Secrets to Retail Success (Part 2)


Last time we discussed the importance of starting small (and concentrating on the quality and display of your merchandise) and becoming educated on the market that you are competing in. Now we will learn a little more about merchandising as well as inventory control. Please consider these ideas in addition to the previous article.
As noted in Part 1, the quality of your merchandise must always stay at a high level. Providing the right mix of quality and pricing will most definitely affect customer traffic and sales. Many things must be considered in order to make smart merchandising decisions such as your finances, store concept, turnover rate, and sales space. Now that you have done research on the product market, you can make educated decisions on the needs of that market. Provide a variety of products so that you are not spread too thin over the sales success of any particular product lines. Just like playing the stock market, it is a good idea not to keep all of your eggs in one basket. Customers also appreciate good selection. Every time you receive a shipment, pay employees to inspect the goods to be certain that the merchandise is in good shape and of high quality.
Make sure your inventory is organized. It needs to be easy for employees to restock items. Sales associates should also be able to find items quickly for customers. Keeping your inventory organized will keep customers happy (due quick responses) and free up your employees' time to do their jobs more efficiently. Most retailers do not sell inventory of a wide range in price and quality. Try to stay within a certain block of pricing. Perhaps you have more of a budgetary focus in your store, or maybe something more moderate.
Keep tabs on what it selling and what is not. The owner or manager should be well aware of what products need to be reordered and what products might be dropped. If particular items are not selling, it is time to mark those times down. Remember, items taking up space on your store fixtures and retail store displays are wasting space where other more profitable items could be displayed. The idea of retail merchandising is to move products regularly and profitably. There are three common methods used to keep track of inventory. You can keep track of items based on the selling price, based on actual units, or based on the number of tickets removed from items. This depends on the type of merchandise you are normally providing. If your unit prices vary greatly, it is probably more useful to use a method based on the selling price, or perhaps a combination of selling price and unit number.
Keep your inventory mixed, organized, and moving. Be practical about what products are working and what products are not. Do not hold on to inventory just because you like it, unless you can afford to buy it yourself. Everyday that it stays in your store, you lose money.
Look for the next edition of "Secrets to Retail Success."

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