When you run a cell phone repair shop, you already know, there’re plenty of inventory items, repair parts, accessories and other things to handle. Inventory management is not easy on the mind as one might think – it can take your business to new heights, or it can break your business’s overall structure. CNBC reported that out-of-stocks, overstocks, and returns cost retailers $1.75 trillion per year.
Considering the inventory costs, the need for inventory optimization has been growing since the past decade due to the rising trends of the latest technological gadgets, increases in customer demand and expanding product ranges. To help you tackle the whole thing, we’ve highlighted 5 useful inventory management tricks down below.
Avoid Overstocking
When you buy more inventory than you can sell, you lower your profits. You’re spending money on stock that you won’t earn back with the goods not selling. Your excess inventory leads to greater storage costs, more time to get to the right section and extra effort.
To keep a good quantity of inventory, data is crucial. At regular intervals, check how fast different products move so you can quickly push slow-moving inventory with discounts and special deals. Analyze your best-selling items, and use trends in the market and sales from the same month in the previous year to get a better estimate of your needs.
“Inventory is the money sitting around in another form.”
Keep an Eye on Reorder Point
Knowing what you have and what you need at the right time is the key to effective inventory management. As a busy owner, you need a system for becoming aware of when your inventory reaches those levels so you know when to fill up your stock. RepairDesk offers you a great option in terms of inventory tracking and reordering.
‘A complete solution to manage your inventory, create reorder alerts, view inventory summary report and make purchase orders in no time’.
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Set up reorder alerts to make sure that you don’t get out-of-stock. Create a daily calendar reminder to check whether your stock has reached par levels and needs to be reordered.
Get Rid of Obsolete Stock
Sometimes it can be actually more expensive to hold onto items rather than cleaning up! There’ll be plenty of items that you’ve overstocked on and have planned to use someday, but unfortunately, you’ve got no reason to use those repair parts even after months.
Auditing your shop after specific intervals will let you know about these stats very clearly. The best way to free up your shelves is to offer a “SALE” on those least-used items, start a promotion, or go for giveaways. These steps may just end up attracting more business for you in the long run, so look into them as a viable option!
Value Your Inventory
How a business chooses to determine its inventory value has a direct impact on its financial reporting and profit margins. To find out the worth of your inventory, go for the best inventory valuation method for your business.
Choose from the most widely-used valuation methods and apply them to your business model. To get details about inventory valuation importance, read our 5-minute blog article: Why is Inventory Adjustment & Valuation Important for Your Repair Business?
Automate Workflows with an Inventory Management Software
Gone are the days of manually recording every transaction on pen and paper. It’s time to ditch traditional inventory management in favor of modern cost-effective methods that can help your business grow much faster. With large amounts of inventory items and accessories, inventory management is an obvious area where automated systems and software can be of big help.
RepairDesk is a POS software that allows you to not only keep track of everything ordered from every supplier but can also aid you in knowing real-time inventory levels.
RepairDesk makes your life easier by helping you manage your work effortlessly and with just a few clicks. We have everything – from creating repair tickets to inventory management and more. Get a FREE trial of our all-in-one POS software for your cellphone repair store and see it for yourself!
