I was amazed yesterday when I stopped at a local cheese shop. “Do you have garlic Norwegian brick in stock?” I asked.
“No,” replied the salesperson.
“Can you get it from your parent store?” I wondered.
“I don’t think we carry it anymore,” another salesperson responded. “At least, I haven’t seen it for a while.”
“You’re kidding!” I exclaimed. “That is one of your bestsellers. You are always out-of-stock!”
“I know,” the second salesperson agreed. “It always sells well. I have no idea why we don’t have it.”
“Here’s my name and cell number,” I returned. “Would you please check and let me know?”
“We will,” they both promised.
I was reminded of a grocery store that I frequent. The store is notorious for not keeping items that sell well in stock. Last year the store stocked a Magnum mini ice cream bar which sold as quickly as it was stocked. In January, they dropped that item and inserted an assortment in its place. The assortment did not sell at all. Six months later, they finally replaced the assortment with the original.
When I included a chapter on Keep It in Stock in my second book, What’s in It for Me? Marketing from the Customer’s Point of View, I confess I thought it was unnecessary. I thought that to maximize sales, all businesspeople would keep items that sell well in stock. I was wrong. I am amazed how frequently I find good selling items out of stock.
I am most surprised by this because these items are easy ways to increase the average sale, which is one of the two profitable ways to grow your business. If customers cannot find an item they want, they may not substitute another item. This is particularly true of items that are not necessary such as the Magnum bar or the Norwegian garlic brick cheese. In addition, unnecessary items not only increase the average sale, they likely have a higher margin.
Today’s technology gives businesspeople many options to stay on top of best-selling items and find a way to keep them in stock. Not using this technology shows a lack of management. Consistently being out of stock on items also reflects a lack of management. An important function of management is control. Being out of stock is mot being in control. It results in missing sales. These daily missed sales amount to many dollars of lost revenue over a week, a month, and especially a year.
How effective is your inventory system at keeping items in stock? When did you last check on it? If you haven’t done so recently, review it. When customers are at your store ready to buy, be ready to sell.
This week's marketing trivia challenge is What out-of-stock situations have you encountered? E-mail me your answer.
“No,” replied the salesperson.
“Can you get it from your parent store?” I wondered.
“I don’t think we carry it anymore,” another salesperson responded. “At least, I haven’t seen it for a while.”
“You’re kidding!” I exclaimed. “That is one of your bestsellers. You are always out-of-stock!”
“I know,” the second salesperson agreed. “It always sells well. I have no idea why we don’t have it.”
“Here’s my name and cell number,” I returned. “Would you please check and let me know?”
“We will,” they both promised.
I was reminded of a grocery store that I frequent. The store is notorious for not keeping items that sell well in stock. Last year the store stocked a Magnum mini ice cream bar which sold as quickly as it was stocked. In January, they dropped that item and inserted an assortment in its place. The assortment did not sell at all. Six months later, they finally replaced the assortment with the original.
When I included a chapter on Keep It in Stock in my second book, What’s in It for Me? Marketing from the Customer’s Point of View, I confess I thought it was unnecessary. I thought that to maximize sales, all businesspeople would keep items that sell well in stock. I was wrong. I am amazed how frequently I find good selling items out of stock.
I am most surprised by this because these items are easy ways to increase the average sale, which is one of the two profitable ways to grow your business. If customers cannot find an item they want, they may not substitute another item. This is particularly true of items that are not necessary such as the Magnum bar or the Norwegian garlic brick cheese. In addition, unnecessary items not only increase the average sale, they likely have a higher margin.
Today’s technology gives businesspeople many options to stay on top of best-selling items and find a way to keep them in stock. Not using this technology shows a lack of management. Consistently being out of stock on items also reflects a lack of management. An important function of management is control. Being out of stock is mot being in control. It results in missing sales. These daily missed sales amount to many dollars of lost revenue over a week, a month, and especially a year.
How effective is your inventory system at keeping items in stock? When did you last check on it? If you haven’t done so recently, review it. When customers are at your store ready to buy, be ready to sell.
This week's marketing trivia challenge is What out-of-stock situations have you encountered? E-mail me your answer.
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