Retailers have many liabilities that are part of the cost of doing business, and we just accept them vs. stepping back and conducting a review to assess and change strategies, which in turn gives you more freedom, whether that be increased cashflow, profit, or more time back.
Let’s look at your stock on hand as this poses the greatest risk to your cashflow position as well as Your Greatest Opportunity to turn into cash, free up space in-store, offsite storage or warehouse, and to invest in new season stock or other areas of your business.
Across the board, many businesses are experiencing overstock issues that may have been an issue pre-COVID and now just exacerbate the issues due to COVID restrictions.
If we scratch the surface, and look deeper at what’s causing the stock issues, this will put you in the driver’s seat to ensure you have preventative measures in place for the future, by understanding the case and effect behind them today.
The Top 5 Contributors (Causes) of Stock Inventory Issues:
- Lack Brand Clarity: What is your ‘why?’
- Lack Clarity: What is the problem you as the retailer are solving for your customer?
- Lack Customer Clarity: Who is your ideal target customer you should be buying for?
- Ideal Customer: Who is your ideal customer and do you have enough of them?
- Stock Movement Strategy: Do you even have one, and understand how important it is?
Put simply, all of these points are sending your customers Mixed Messages. The result, your stock turn required is not where it needs to be, your sales are not covering your overhead costs, it’s negatively impacting your cashflow, and it’s likely you’ll be experiencing financial stress.
There is a way forward that is simple. Next month we will look at a proven strategy to achieve $25K in New Sales in 30 days.