Running a convenience store requires a lot of inventory management, and that includes managing the cost of your inventory. With profit margins being slim on some types of food and other convenience items, managing costs can be the key to profitability. Here are a few ways you can control costs and make more with every sale.
Consider Warehouse Clubs
If you only run a single convenience store, getting a warehouse club membership may be a great option. You can make quick purchases based on the changing needs of your customers, and you can enjoy deep discounts on certain items. Consider using your membership to purchase items that aren't frequently bought by your customers, such as bottles of shampoo or boxes of tissue. These items can stay on your shelves for an extended period of time, and you won't have to worry about scheduling recurring orders with vendors. A warehouse membership can also be great for seasonal items, such as holiday snacks or grilling essentials.
Negotiate With Vendors
You'll likely want to use local vendors to keep your store supplied with items that are purchased frequently. Visiting the warehouse club every few days to buy milk, soda, and other similar items can be too much of a drain on your time. However, you'll want to compare prices between local vendors and negotiate your contracts. Be sure that the vendors don't push you to purchase items you don't think will sell, as this will cost you extra in the long run. You should also check to see if the vendors offer any type of inventory services. For example, vendors supplying you with dairy products may rotate out stock for you to prevent expired items from sitting on the shelves. This can also save you money, and you won't have to spend payroll hours on these tasks.
Track Your Sales
A Point of Sale (POS) system can help you track your sales and determine which items aren't moving off of your shelves. Using shelf space for items that customers never purchase can cost you, as that shelf space could be used for inventory that moves quickly. Consider examining your sales every month to determine whether you want to discontinue any items you currently offer. You can also use the POS inventory reports to determine which items you should stock more of. For example, if you are always selling out of a particular type of soda, you can use the report to renegotiate the contract with your vendor to increase your weekly or monthly supply.
For professional help with your convenience store inventory, contact a company like Instant Inventory Service.Share
25 June 2019
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