Stock-It-Right! - Solution for Retail Store Owners

Attention retail store owners: FREE MONEY TRAPPED IN UNPRODUCTIVE INVENTORY If you could sell the same amount you are selling today, but with 20% less inventory, that’s like getting free money, isn’t it? Based on our customers’ experience, if you have an average of $100,000 of inventory today, you could save $20,000, and actually increase your sales and total profits at the same time.

Your Challenge

If you are the owner of a small to medium-sized retail store (or stores), typically 75% of your investment is in inventory. Therefore, one of your primary goals is to maximize the return on your inventory. If you can keep sales and profits constant, but stock “just enough” of each item, your costs and cash requirements will drop.

Even better, if you know which items generate the lowest return on investment, you can replace them with items more like the ones that are generating the highest sales and profits. This will increase your total profits, and drive more customers to your store.

In order to save on inventory costs and increase your profit, you need to have critical information on each item in your store:

• Inventory turns and gross margin return on investment (GMROI), based on your current inventory policies, and on what they would be if you stocked “just enough” of the item.
• Comparative ranking: how does the item’s turns and GMROI compare with the others in your store? Again, this has to be done for both your actual performance, and on the best possible results, if you stock “just enough”.
• Maximum and average weekly sales, and “degree of randomness” in the sales.
• If the item is seasonal, the average sales during the “high season” and the “low season”.
• The average number of weeks required to sell one purchase order’s worth.
• What is the ideal “just enough” stocking level for the item.

The problem is: a lot of the above information is not available from your point of sale (POS) software nor from your inventory-management software. They can tell you how much inventory you have, and what your average sales and profits are. Some of them may even provide the turns and GMROI of the item in the past. However, they don’t tell you how you can improve the turns and GMROI of an item by changing how much you order at a time, and how much you stock of it. It is not practical for you to manually calculate the missing information - - it takes millions of calculations.

Stock It Right!™ - Your Solution

To get the critical information mentioned above, you need Stock It Right!™.

Stock it Right!™ (SIR for short) automatically analyzes the sales and inventory data in your point of sale (POS) system. Just install it on a computer that can access your POS database, and it produces workbooks that show you how profitable your investments in inventory are, and what you can do to make them even more profitable. Print out those workbooks, and you have a list of action items you can implement to reduce your inventory budget, while increasing profits!

SIR recognizes that every store is unique. You can’t just apply industry standards to determine the ideal inventory and gross profit levels for your unique merchandise mix. Those general standards may not be feasible or desirable for your store. Therefore, SIR uses your own best performers as the standard. This ensures that its recommendations are attainable (you are achieving them, already, with at least some of the items in your store).

To do that, SIR identifies the “top performers” – the items whose inventory you have managed in a way that makes them the most profitable items in your store. SIR then compares all your other items against those “top performers”. It calculates how much you would need to adjust their stocking levels, reorder sizes, and average margins to match the settings of the top performers. SIR then selects the top few adjustments you need to make that will have the greatest impact on your store’s profitability. That way, you can focus on the changes that will have the greatest impact on the store’s profitability.

It provides you with item-by-item evaluations such as:

• How much you make in a year for every dollar invested in inventory of that item
• How much you could save in reduced inventory, with improved stocking of the item
• The ideal reorder level based on the “weeks supply” you keep for your top performers
• Whether you need to decrease order size in order to reduce the average amount tied up in inventory of the item
• What was the impact of markdowns on the profitability of the item
• Whether you should consider replacing the item, because it can’t be as profitable as your other items

Best of all, it doesn’t just report the information. It provides worksheets that allow you to try out or “explore” alternatives to your current inventory policies for each item. Find out how much cash you can free up, and still enjoy equal or higher sales, and minimal stock-out situations. Play “what if” with:

• Minimum quantity to keep for display and “safety stock”
• Reorder size and cost
• Average markdown and impact on sales
• Target profitability for new items

As you change those values, the worksheet automatically computes how much you will need to invest in inventory, and how much profit you can expect based on those scenarios.

Easy to Use and Priced Just Right

Stock It Right!™ is easy to use. It automatically connects to your POS database every week. It performs all its calculations and produces the reports and worksheets automatically. You don’t have to struggle with complicated data-entry screens to get the results you need.

You can play “what if” using the worksheets, until you have the results “just right”. Then, just enter a simple command to have Stock It Right!™ update its database to memorize your inputs. Next time Stock It Right!™ runs, your inputs will show up in the reports and worksheets.

Stock It Right!™ is designed to save you money and increase your profits. Even the pricing reflects that goal. The core product, with all those features and benefits, costs only as much as a basic desktop “office” software.

How to get Stock It Right!™

Call us at 201-962-7781 to have one of our certified resellers install the software and integrate it with your existing POS database.

Within hours, Stock It Right!™ will analyze years’ worth of your POS data and show you what you can do to bring down the amount you have tied up in inventory. And, it will recommend the items you should plan on replacing to grow sales and profits.

Stock It Right!™ will get you on your way to making your retail store a more profitable business.