| Your clients purchase products
based on their perceived needs, price and availability. This
need seed can be nurtured by you when you perform a service for
your clients.
It is important to remember that clients will be attracted to
a clean well organized display, and will always remember a
disorganized unclean one.
Offering specials and promotional items gives your clients
the perspective that your organization is a good value.
Inventory control is very important also. Inflation is one of
the biggest culprits to profit margins, your purchase prices can
creep up unnoticed unless close attention is paid to this. Some
software has the ability to visually display decreases in profit
margins when receiving merchandise.
Buy fast moving items in quantity from vendors not in your
area. Quantity discounts are available on many product lines.
You may also wish to private brand, printing your own barcode
labels as some software allows.
Suppliers or Vendors sometimes send me the wrong items and
returning them is a big hassle, the use of software that
generates Purchase Orders can greatly enhance tracking and
control. It is also important to negotiate with vendors and
establish a return policy.
Security or the lack there of can cause inventory shrinkage.
Some Software through the use of passwords lets you restrict who
has access to inventory files. This insures accountability by
limiting who can change inventory levels. While our software
cannot speak it does deliver a message that on hand inventory
must be accounted for. We recommend that every bottle, tube or
jar removed from the shelf must be accounted for even if it is
used in house. Through the use of our purchasing module, you can
assure that your margins are maintained.
Controlling discounts given to clients, purchase price to
employees and cost for internal use can be a cause of reduced
inventory item profits. It is therefore important to set the
maximum discount allowed as some software provides.
Shop use items should be charged out to the organization and
if used by others as Salon hair dye or Spa massage oils or
cleaning supplies.
Through of the methods above profit margins and inventory
losses can be decreased, substantially increasing overall
profitability. |