As a retailer you’ll know that the run up to Christmas is a vital time for your business; Black Friday (which will fall on November 23rd of this year) is now the biggest single day for online spending not only in the UK but across the world and the months of November and December still outstrip any other in the calendar when it comes to retail sales.
Having an accurate and thorough understanding of where your stock levels stand running into that critical period therefore becomes paramount. After all, if you haven’t got it you can’t sell it. Here are just a few reasons you need to be conducting a stocktake before your products start flying off the shelves…
Maximising your potential revenue
At the heart of all stocktaking should be the aim of increasing your potential sales and what could be more important at this time of year! How does a stocktake do this we hear you ask? It’s just spreadsheets and endless numbers isn’t it?
Well yes, there are numbers but consider this; when someone wants to buy a product your stock system will ensure that the product is on the shelf available for them to buy. If the system is inaccurate or out of line with your current stock levels it may believe that the item is available when in reality, there are none in your store or warehouse waiting to be sold.
The ultimate result of this is lost sales.
Multiply this over the busy Christmas period when demand is at its highest and you’ll undoubtedly have lost many sales, customers and a great deal of potential revenue along the way.
Conducting a stocktake now will let you know exactly where you stand and ensure that your items are always available when your customers want them and in doing so, maximise the potential revenue you can gain during these vital months.
Keeping on top during a busy period
When people come under pressure, mistakes can be made. With the vast volumes of stock going in and out of businesses during the Christmas period there is undoubtedly a lot of pressure on the entire supply chain – from warehouse, to distribution right to the shop floor. This means that mistakes can and will be made; perhaps someone logs some items incorrectly, doesn’t keep a track of returns or items become mixed up in your store as would-be buyers pound the pavements of your local high street. You may even employ seasonal staff who are unfamiliar with your systems and processes.
If any of these common errors occur, you can quickly and very easily lose track of stock levels and encounter the problems we mentioned in our first point. Remember, your system may say you have an item that you don’t have – if you don’t have it you can’t sell it. If an accurate stocktake leading into the busy period isn’t undertaken, then these issues and mistakes can be significantly magnified and multiplied, which again can mean more missed sales.
And once you’ve made it to The New Year?
You’ve had a period of high demand and as we’ve mentioned, mistakes can happen. So what do you do next? The same logic applies in The New Year as it did in the run up to Christmas; you need to maximise your availability. How do you do that? You guessed it, through effective stocktaking. The profits and revenue will follow suit.
For more information on our specialist stocktaking services for retail businesses please give us a call on 01637 874609 or email the team at info@abacusvaluers.co.uk
