If you’re a stock-based business, managing stock efficiently is crucial to your profit and success. Knowing your stock turn ratio, will give you an idea of your business’ efficiency.
To work out your shop’s stock turn, look at how many times during the year you sell and replace (turnover) your stock. It’s an indicator of how fast the stock sells on average and ultimately, how healthy your business is.
Successful stock control is about managing the balance between the right amount of merchandise and profitable customer demand. Too little stock could mean you're unable to respond quickly to customer requests, leading to missed sales or unhappy members. But over-stocking could lead to lower stock turn and will limit your cash flow.
We've had amazing feedback from customers on the new Stock Turn button within the Hub in XPOS V2, (rolling out to new and existing customers this year). The traffic light system helps retailers keep an eye on their business, indicating when things look good, or if stock control needs attention.
Keep stock turn levels high by running sales reports on a weekly basis; work with suppliers to deliver fewer items more frequently; cancel pre-books if necessary; and hold flash sales to keep older stock turning over and free up cash.