"Inventory is money sitting around in a different form."*
For many small businesses, product sales represent about 10% of the gross revenue. Some of our clients' retail generates 40%-50% of theirs! One of the keys to successfully moving your retail is inventory control. All the tools you need to do this are readily available within your MINDBODY site!
Even if you haven't been tracking your inventory, it's never too late to start. Here are a few tips and tricks to logging and monitoring your products.
Setting up your inventory:
- Inventory On Hand: The easiest way to make inventory adjustments is through the Inventory On Hand report. Keeping an accurate record of how many products are in stock will prevent you from overselling products and to correctly identifying your product shrinkage. Tip: Do a full inventory count at least twice a year for accuracy. This useful guide breaks down the art of conducting an inventory count.
- Purchase orders: Think of these as the wish list you send off to your vendors. Purchase orders are created when you reorder products from your suppliers. This will list all products that you need to order, as well as the quantities of each. Tip: Set up your supplier's information prior to creating a purchase order.
- Inventory Tickets: How are you tracking your incoming shipments? If "pen and paper" is your answer, then you are doing twice the work! Inventory tickets log incoming shipments from vendors and product transfers. These tickets can be created upon ordering from the vendor and stored as a pending order. Once the order is received and quantity is confirmed, it's easy to note this by changing the order's status to "Complete." Best of all: your order will automatically update the inventory count. Tip: If you have multiple locations and need to transfer products from one location to another, inventory tickets are the easiest way to send and receive these shipments.
Product Reports for Monitoring:
- Inventory Age Report: This report reports the age of all your products, based on when products were last logged. This report essentially records the shelf life of each product and informs your reordering decisions. Tip: If you have products that are not moving off the shelf, offer a discount promotion or a "buy 1, get 1" deal.
- Best Sellers: This report will display your top-selling products and calculates the profit margins (a percentage) associated with these sales. The report can be run in Summary or Detail view to display various sales information. Tip: When reordering a best-selling product, increase your order size. This will save you money in shipping costs and you will reorder less frequently.
- Cost of Goods Sold: This report tells you the profits associated with your business's sales. The profit calculated is based upon wholesale cost per unit and sales price at your studio. This report is perfect for identifying your most profitable products. Tip: Package this most profitable product with a best seller to expose customers to items they may not otherwise purchase. This will create awareness for your most profitable item and bring clients back to repurchase the item.
If you have other reports or tricks for inventory tracking, feel free to comment and share your ideas below. For more assistance with running these reports or others in the MINDBODY business management software, please contact our technical support team at 877-755-4279 or email firstname.lastname@example.org.
*Quoted in: "8 Ways To Get The Most Out Of Your Excess Inventory", Judith Aquino