Inventory turn is a key differentiation point between high-profit and low-profit jewelers. In fact, the most recent Jewelers of America Cost of Doing Business Report found high-profit stores had a 20 % greater inventory turnover than their low-profit counterparts. That translates to better sales growth too. With that in mind, it’s essential that you know what inventory’s moving, and what’s collecting dust.
Jewelers of America’s resident education and management expert David Peters offers simple tips for keeping an eye on inventory:
- Code the in-stock date of the tag of every item in your store. That way you can quickly identify older merchandise.
- Pull inventory aging reports monthly and take action on any merchandise that is moving slowly.
- Always, always, always know what your fastest sellers are, and keep them in stock.
Take The Tip:
Take Part in the 2009 Cost of Doing Business Survey, to start improving your store performance, in key areas like those mentioned above. Visit www.jewelrysurvey09.com to complete the survey by May 15th and you’ll receive an immediate calculation of your financial ratios and a copy of the renowned benchmarking tool, The Cost of Doing Business Report – both invaluable to analyzing your business performance.
Comments