How-To Info, Online Tools for Retail Inventory Control and Open-to-Buy Planning
There is a cause-effect connection between sales, gross margins, and inventory turns.
Effectively managing that balancing act is part of the art of retailing.
What's your inventory's SALES Potential?
Given your annual sales plan, do you have enough inventory?
Most retailers know their average inventory over the year. But the question is this: What are the likely sales from that much inventory?
Here's how to find out. Use our Index of Sales Potential calculator. See what sales volume other retailers achieve. Find out now
Sound merchandise management is crucial for the survival and prosperity of your retail business.
It’s not just another “paper exercise”—it can mean the difference between strong, positive cash flow or a constant battle to pay your bills.
It can keep your operation profitable even in times of less-than-robust sales.
If your store is like many other independent retailers, it’s probably overstocked much of the time.
This excess inventory is like excess fat:
If you’d like to time your inventory flow so you always have fresh merchandise and a healthy turnover rate, consider this shape-up plan.
It will help trim away excess inventory without cutting into the muscle of your stock.
As a retail owner, one of your primary goals is to boost profit margins—right?
You know that good inventory management is essential to producing top-notch profits.
You also know that bad inventory management can cause big problems with profit.
However, you may not know the actual cause-and-effect of bad inventory management.
Is excess inventory threatening your store's survival?
Here are 10 tips to turn your inventory into cash – quickly!
Sometimes retailing doesn’t quite turn out as you had planned.
Did last year fail to live up to what you predicted—and budgeted for?
Did you overestimate the popularity of your generous order of a particular product?
Are there areas of your inventory brimming with overstock?
Relax! There is a way out of this mess!
If you find yourself long on inventory and short on profits—whether from overbuying, expanding lines too quickly, or overestimating sales, don’t panic.
You still can whip your inventory back into shape before it devours your profits.
One of the best tools for measuring and managing the productivity of your inventory investment is GMROI - Gross Margin Return on Inventory Investment.
It's fast and easy to calculate.
It is dynamic (some call it the "earn 'n turn" measure.)
Best of all, it provides powerful insights specifically for retailers.
That's why The ROI calls GMROI "the #1 measure of inventory productivity."
©Copyright, The Retail Owners Institute® and Outcalt & Johnson: Retail Strategists, LLC. All rights reserved.
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Save time! Know It NOW! bundle for busy retailers
We get it. There is a lot of how-to information here at The Institute.
And sometimes, you just "Need to Know it NOW!"
So, we've put together some "Know It NOW!" Bundles. Go here to see the BUYER'S Bundle
Watch • Listen • Practice • Do-It-Yourself • Know It NOW!
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Since 1999, empowering retailers and store owners to "Turn on your financial headlights!"
"Okay, this sounds great. Except it's tedious, and time-consuming, isn't it?"
Alas, there is some truth to that. Which is exactly why The ROI has built our online Open-to-Buy "calculators." They do the tedious number-crunching for you!
Having those Big Picture parameters – how much merchandise to bring in, and when – means you can focus on those things that demand your good judgment: what specifically to buy, from which vendor, at what terms.
Members have unlimited access to each of these calculators, plus much more. Go here to start your Member Access now!