5 Smart Tips for Reducing the Inventory Cost for Your Business
If you’re a retailer, good inventory management it crucial for cutting down on expenses. Learn 5 tips to help cut your inventory cost quickly.
When running your own business, your biggest priority should always be finding new ways to save a little extra cash.
Reducing your costs in ways that don’t affect the quality of your product or service is essential to the success of a company. And, one of the best ways to do that is by taking a good hard look at what you’re paying in inventory cost.
Your inventory cost is what you pay to keep your products in stock and immediately available to your customers.
Because it’s impossible to keep an infinite amount of product on hand, you need to find a cheap way to fill, maintain and store your stocked goods.
Ready to reduce your inventory cost but aren’t sure where to start, we can help.
Here’s everything you need to know about reducing the cost of your inventory stock and saving your bottom line.
1. Order as Much Stock As Possible
The less amount of stock you keep on hand, the less you’ll have to pay to store it — right?
While you may not need as much room to sell a small amount of inventory, you may end up paying more in shipping fees in the long run.
When possible, you should always order as much product as you can. Not only will you have to place fewer orders, but your manufacturer may also offer special deals for larger orders.
2. Get Rid of Out-of-Date Stock
You don’t want to store what you don’t have to. Keeping products in your inventory that you no longer sell is a waste of money and space.
Clearance sales are a great way to move almost out-of-date products, but sometimes you may find yourself with a few pieces of old inventory left over.
The best thing you can do with products when you can’t sell it is to cut your losses and get rid of it all.
Remember you can write some donations off of your taxes. Just be sure not to bog down your local charity shop with a lot of junk no one is going to want.
3. Use Safety Stock
So you’ve got a new product that you expect to sell, but don’t think it’s going to be the next big thing. Do you want to risk losing customers by selling out faster than you anticipated?
Safety stock acts as a net to help you avoid selling out. By keeping a few extra items on hand outside of your regular stock, you don’t have to worry about rush-delivering a new order to meet demand.
4. Organization is Key
Do you know what you have in your inventory right now?
Sure, you probably have a list or charter to keep track of how much of each product you should have. But, are you sure you know where all those products are and if they’re in decent shape?
By keeping your stock organized, you can cut down on the amount of space you need to store everything and be able to tell when it’s time to order more with ease.
5. Don’t Pay Too Much for Your Warehouse
Finally, the best way to cut down on inventory cost is by making sure you aren’t paying too much for your warehouse.
Here at Find Fill Storage, we do everything we can to help find you the best warehouse to suit your business’s needs, at the best possible price.
You’ll never have to worry about paying too much for not enough space, or, for paying for space you don’t need. We can help you find the best unit for you whatever the circumstances.
How to Reduce Inventory Cost
In business, maintaining your bottom line is essential to your success. So, you want to be able to cut costs whenever you can.
By reducing inventory cost, you can save yourself and your business a lot of money, which you can then use to help your business grow.
Now that you know how to reduce inventory cost, it’s time to get to work.
Ready to find the best storage option for you? We can help.
Contact us for more information about our available services, or to get started finding the perfect warehouse for you today.