Turning Dead Retail & Professional
Inventory into Ca$h
Even with MIKAL inventory control systems in place keepinginventory carry costsdown is a BIG job! Use these ideas to keep your retail productsprofitable. A recent conversation with a salon owner reminded me of how much some small (and not-so-small) salons/spas strugglewith dead professional inventory. My salon owner relatedhow, slowly, gradually, over time, the percentage of dead retail and professional inventory had grown.And as it was growing,the problem was thought to be modest, because the rate of growth appeared to be modest, so modest measures were taken to deal with it. An extra markdown here, a special promotion there, but still there seemed to be more of it this month than there was last. Finally, when the sheer amount of retail and professional inventory involved became inescapable, and the dispensary was so full the door would not open all the way, and the realization came that the measures to deal with it weren't close to being sufficient. The whole thing started to feel overwhelming.
So if you're looking at a buildup of dead retail professional inventory, and feel a little overwhelmed by the enormity of it, here are a few ideas to help you get started turningit into cash.
The first rule: if you have to dust an item more than three times, send it back! (I’m kidding. Seriously.)
DON’T GIVE UP! Stay on this problem until it goes away! You didn't get into this situation overnight, and you're not going to get out of it overnight (unless, of course, getting 10 cents on the dollar from a jobber or liquidator makes sense to you, which is diversion and is a very bad thing to do).
Do you wonder where all the cash has gone in your business? Remember when we had tons of cash money in the business.... Build ups of dead retail and professional inventory are frequently accompanied by a cash flow crunch, so the instinct to search for a quick fix can be strong. The solution, however, rests with a sustained effort designed to deliver consistent, incremental results. The first and most important step is establishing reasonable, attainable expectations for what can be accomplished in any given period of time. In other words get a plan together. Your MIKAL consultant can help with a simple five step plan. Call us at 513-528-5100 or e-mail us at email@example.com for details.