fbpx As a retailer, you are always wanting to stay profitable and keep a consistent cash flow. If the inventory on your shelves isn’t moving, you need to find ways to turn it over in order to free up cash flow to pay for the next order. One of the best ways to turn inventory over is by knowing and practicing the following tips: Know the Industry – You need to know the latest trends and styles for the type of inventory you are selling. You want to make sure you are supplying what is in current demand. That means you need to give up selling last season’s shoes and stay up-to-date on the latest fashions. You also need to make sure you are selling for the right season at the right time. If you are a specialty running retailer, make sure you have the newest gear ready to sell around Marathon season! Also be prepared with cold weather accessories when winter hits. Know Your Customer – Buy what your customers are buying. By using your data in your POS and inventory management system, you can pull reports to see what customers are buying the most or least of. Knowing what they want will help you forecast demand and allow you to continue buying the products that your shoppers seek out. You can also see which brands and styles have been your best sellers. It never hurts to have conversations with your customers and ask them about their favorite products. Just be sure to add this information to their customer profile so that you don’t forget! Buy and Price for Profitability – Buy items that can make you money and can turn over quickly. Figure out how to price your items at a point that will sell, while also earning profit. Knowing that sweet spot where items aren’t overpriced, but will still be profitable is the key to keeping your cash flow in the positive. Manage Discount Cycles – When new inventory comes in, set up a markdown calendar. For example, if the items haven’t turned over in 30 days, give a 10% discount, 40 days, 25%, 60 days, 35%, and so on. While no retailer likes having to sell inventory at a discounted rate, it is essential for moving old inventory out and continuing to make money. For more suggestions and tips on marking down your inventory, check out these best practices. To learn more about how you can quickly put your business back in the green when it comes to cash flow, download our free guide!