Weeding Out Slow Selling Lines

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Weeding Out Slow Selling Lines

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How do I determine and weed out my slow selling lines?

Profit margins are the first numbers to look at to determine and weed out slow selling lines. Although determining a profit margin can be a useful tool to determine your business’ success, there isn’t a one-size-fits-all profit margin retailers should hope to achieve. Rather than determining your margin based upon somewhat arbitrary industry averages, you’re best suited to projecting reasonable profit goals, and attempting to set your profit margin to meet those goals. After you determine a profit goal, work backward to determine the margin you need to achieve to reach that goal.

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How do I determine and weed out my slow selling lines?

Profit margins are the first numbers to look at to determine and weed out slow selling lines. Although determining a profit margin can be a useful tool to determine your business’ success, there isn’t a one-size-fits-all profit margin retailers should hope to achieve. Rather than determining your margin based upon somewhat arbitrary industry averages, you’re best suited to projecting reasonable profit goals, and attempting to set your profit margin to meet those goals. After you determine a profit goal, work backward to determine the margin you need to achieve to reach that goal.

Maintaining the proper amounts of inventory can be very challenging. While maintaining enough inventories to satisfy customers, being over stocked comes at a price. In previous posts I have talked to you about the OTT System of setting buying budgets against sales, if you are currently using The Open to Thrive System of buying, you are now in much better shape and more in control of your inventory. Inventory purchases put an immediate dent in to your cash flow. With your margins being affected by inventory that has been on your shelves for a long period of time and having to be marked down to move it.