Ready to Trim Some Inventory Fat?

“Success is dependent upon the glands – sweat glands.”

— Zig Ziglar

Last summer I started regularly working out with weights. I would go with my husband to the gym and think to myself, “Ok, this is not that hard.”

My simple goal is to have decently strong muscles and bones in 20+ years. A little time at the gym every day when I am in town – with a good podcast flowing through my ear buds does not seem too much to ask of myself.

I did not expect much change in my body. But I am definitely different. I can lift things like bottled drinks at Costco with little effort. I smile to myself every time I lift something that used to seem heavier. 😊

Consistent gym visits have made life better. Easier. It feels good. And my husband says my improved posture is noticeable.

Inventory is kinda like that. We have healthy inventory – the stuff that is turning like our muscles breaking down and building up – keeping us strong. We also have unhealthy inventory – the stuff that doesn’t sell – weakening our overall store health. It’s accumulating fat – weighing our store down.

If you are on top of every item in your store – awesome. You are already lifting weights consistently.

But if not – give your inventory a once over. It’s a great time of year to do that. You have more time than you’ll have 4th quarter – and if you know what you need to move on out – you’ll be prepared when the best time comes – about 2 weeks before December 25th.

Read on for a couple of more tips on that.

I appreciate y’all. Grateful to have such an awesome group of local retailers in Kentucky and Tennessee with whom to work! Here for you!

xoxo,
❤️ AmyFay

2 More Inventory Tidbits

The Good Fat
Yes, if you’re in the gift business and things don’t go out of style or date – the “fat” can accumulate. Been there.

But all fat is not bad.

My favorite example is LINNEA. (What a summer we are having. This woman-owned small batch candle company in Indiana is killing it!) I digress.

Have you seen the Grande Triple Wick? It’s the only item sold in 4s (everything else – 6s). It’s the most expensive. Guess what?

Offering something more expensive helps sell the less expensive option. That’s right. You might not sell the triple wick as fast as the double wick – but it is super smart to carry the more expensive option. (i.e. Grande Triple Wick)

Human behavior is why. We might not think we can afford to buy – but when we see the most expensive option and compare it to a less expensive option – suddenly it seems doable.

Go figure – but it’s the truth. Bunches of studies have been done. Drive sales of an item simply by showing a more expensive option.

It works – with any line in your store.

Timing
Ready to trim some inventory fat? Wait. Get all the margin you can. You are heading into your best time of year. But don’t wait so long you miss the opportunity.

When I was a retailer I learned from some smart retailers around me to mark things down while there were still a LOT of shoppers shopping. That means, don’t wait until December 26th.

The sweet spot seems to be about 2 weeks before Christmas. You have a lot of traffic. If items still have not sold by then – go ahead and mark them down.

30% off seems a good starting point. Move to 50% the next week.

Your store will look noticeably better – and the accountant side of you will feel noticeably better. Giving more space to healthy inventory is smart!

“Start where you are. Use what you have. Do what you can.”

— Arthur Ashe