| Manage your inventory like your business depends | | | | sales and your customers count on you to have |
| on it, because it does. | | | | their favorites in stock. It is like cutting off your |
| Chances are you have more money invested in | | | | nose to spite your face. |
| your inventory than anywhere else in your | | | | 3. Be ruthless marking down the "dogs". Excess |
| business. It is your largest asset and your biggest | | | | stock sitting on your selling floor should be turned |
| expense. | | | | into cash to pay the bills and cover the payroll. |
| Too much inventory, or the wrong assortments | | | | 4. Take Markdowns on seasonal merchandise in |
| of inventory are heavy financial burdens to carry | | | | season. Nobody likes to sell merchandise at less |
| in difficult economic times. They can easily drag | | | | than optimum margins, but markdowns are part |
| you under. | | | | of doing business. After all, your store is NOT a |
| Here are four important strategies for managing | | | | museum! Taking markdowns in season usually |
| your inventory in uncertain times. | | | | allows you to take a smaller markdown (keep |
| | | | your margins higher) and sell more of the marked |
| 1. Use "open-to-buy" planning. This is the most | | | | down merchandise (reduce the museum effect). |
| powerful way to keep you inventory at an | | | | There are many, many more ways to "but |
| appropriate level. | | | | smart". Start doing it today and you will find you |
| 2. Always buy bestsellers. Do not fall into the trap | | | | have less inventory on hand and more money in |
| of stopping all purchases if your sales drop and | | | | the bank. |
| inventory levels balloon. You still need to generate | | | | |