History shows that economic downturns do not last forever. Remain calm and act in a rational manner as you concentrate your attention on your company to the current economic conditions.
Focus on what you can controlDon’t let the media’s rhetoric concerning recessions and economic slowdown deter you from achieving business success. It´s a trap! The condition of the economy is beyond your control. Surviving economic downturns requires a focus on what you can control, i.e. your relevant business activities.
Measure everythingKnow what is happening in your business as a result of any actions you take. Don’t do anything you can’t analyse.
CommunicateBeware of the pitfall of trying to do too much on your own. It is a difficult task indeed to survive and to grow your business solely with your own efforts. Solicit ideas and seek the help of other people (your employees, suppliers, lenders, customers, and advisors). Be honest and consist. Effective two-way communication is the key.
Convert your inventory into CashConvert excess, obsolete, and slow-moving inventory items into cash with inventory reduction sales promotions. Consider returning excess and slow-moving items back to the suppliers. Reward volume sales.
Narrow your product offeringsAnalyse your sales reports, promote fast sellers, identify slow sellers and poor ROI items and don’t re-purchase. Order only what you need, when you need it and within your cash flow parameters. Well-timed order placement helps to reduce excess inventory levels or out of stocks on fast movers.
Invest in your staffUpskill your staff, get them to understand and follow all your business processes correctly. Involve your team in decisions - if your staff don’t like items they will not try and sell them. Ask staff what items they would add to the sale and exit from the business. Have your best people selling not administrating. Promote your business – don’t shrink it, there’s some amazing opportunities for positive people.
Re-focus on existing customersMake customer satisfaction your priority. Encourage staff to sign up customers to your loyalty program. Promote to your existing customer database more often. Review your customers’ buying history, frequency of purchases & margin contribution.
KEY # 1 - Reduce your inventory without losing sales.Run these reports by sales value, by sales units, by margin, by ROI, by day, by week, by month - analyse them - take action:
KEY # 2 – Buy only what you need when you need itHave an efficient re-order system:
KEY # 3 – Sell more to existing customers
If you want to use any of the above keys or your not sure what to do then contact us now so we can discuss how Counter Intelligence Retail Software will help you successfully manage your business in this challenging market.
Kudos Solutions Pty Ltd
15 Parramatta Road
Haberfield NSW 2145
Phone: 02 8459 2009
07 3051 5402