Logically, having a store on a major street in a city can help to achieve profits. However, it is also vital to know the turnover of each of the products, apply merchandising techniques or optimize the cold and hot areas of our store to encourage purchases. Below, we list 10 key concepts that all those who have or are going to have a physical store should know and that will help us improve the profitability of the business.
Stock and range of products
We start with stock, which is the amount of merchandise we have, or the stock of a particular product that we have available. It is very important not to confuse stock with the assortment or range of products . This is the variety of items that a company offers in the same class. For example, you can sell bow ties, and the assortment will be red, green, black bow ties, etc.
A businessman is often faced with the dilemma of choosing between these two concepts. There is the possibility of having a wide assortment with little stock for each of the items, or having a small assortment with a large stock for each item.
Out of stock
Isn't it frustrating to see a potential customer leave transportation email list our store empty-handed because we don't have the item they want? Stockouts occur when the market demands a product that our store cannot supply because there is no stock in the warehouse or because our production system is incapable.
Rotation
It is the speed at which a product is sold, from the moment it is placed on the shelf or display until someone buys it. Likewise, we can also define inventory turnover as the number of times it must be replaced. It is a necessary index to assess, since it indicates the relationship between the input and output of products.
While a product with high turnover , in addition to selling quickly, helps us move inventory and ensure the profitability of the business, a product with low turnover not only takes a long time to sell, but can also affect your cash flow.
Manage your warehouse: FIFO and LIFO
Warehouse management is a must if we don't want to incur unnecessary costs. Although there are many ways to do it, FIFO and LIFO are two very basic techniques that will help you manage your store efficiently.
