It doesn’t matter what you sell. You must pay attention to your inventory, and that includes the stuff that sits in reserve.
For example, if it’s outdated merchandise that no one will ever buy and is just sitting on shelves collecting dust, that stuff represents a loss and needs to go.
Old inventory – no matter what it is – can hurt the health of your financial picture. That’s why you need to establish a schedule for doing a physical count of inventory on a regular basis – and stick to it.
How often should you physically count inventory? As often as possible. At the very least, every quarter. That’s considered a best practice for any retail business.
But why not do an inventory count every month instead? In this way you can stay on top of things. A laser-sharp focus through the lens of an efficient inventory management system will help ensure that everything you have in stock is quickly moving out of the warehouse, making you money.
Simply put, you don’t want too much building up in reserve.
An efficient inventory management system provides oversight for identifying items that are profitable and items that should be chucked as write-offs to your bottom line.
Think of it this way: Items that don’t sell take up space. Get rid of the old stuff to make room for the good stuff, and your investment will pay off.
It is way too easy to lose track of what sells and what does not. If you’re not on top of your inventory, you lose. Seriously, it really is that simple, even though keeping track of inventory is not simple at all. That is unless you have an inventory management system you can count on.