Feedback Form
Home Features Mastermind Forums About Advertise Blog Network Contact Be An Author

The Cost of Lost Sales

The Cost of Lost Sales
Free Download - Local E-commerce marketing By Will Atkinson
Name: Email:

We've talked a lot about inventory here, and there are lots of great strategies for maximizing turnover and throughput, but I want to talk about some of the less obvious implications of improper inventory management.

First, the obvious problems with poor inventory management are:

1) Lost sales due to empty shelves

2) Shelf space being filled with unpopular items (this takes up useful and productive shelf space, but it also portrays you as out of touch)

3) Customers can't get the items that they DO want.

So, if you stock your store using your instincts, or by trusting the vendor reps who call on you, you run the risk of all of the above, hurting your profits and your image. But, if you have a good point of sale system to track customer purchases, you can readily compare your recent sales and inventory activity to that same activity in the year ago period for the approaching order period. This allows you to see what is selling now, as well as what sold well a year ago next month. You can use this data to make educated (and likely correct!) decisions about what to order and where to put these items in your store.

If you have the wrong items on main display, then not only will they not sell, but your customers will not be able to get the items they want, meaning you lost that sale, and you're paying for inventory that may never sell, or at least not without a big discount. Plus, your customers may form the opinion that you don't carry what they want, and they'll go elsewhere to get it. We don't even want to think about the long term costs of this effect, do we?

The takeaway is that instead of ordering and stocking by memory, instinct, suggestion, or any other false metric, dig into the data that your POS system gives you to make the right decision about what to put in your store each and every time you order. Sure, it may take a few minutes longer, but it could mean the difference between success and failure for your business.





The Cost of Lost Sales - To learn more about this author, visit Will Atkinson's Website.

Like this article? Share it with your friends

Article Tags:

Article Feedback
 Article Feedback No article feedback found.
  Leave Your Feedback
article feedback

Article Feedback
David Acheson
David Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns.  David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website

Dave Kurlan
Dave Kurlan is a best-selling author, top-rated speaker and thought leader on sales development.  He is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website

Leanne Hoagland-Smith
Are your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website

Linda Richardson
Linda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website

Kim Castle
With nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website

George Ludwig
George Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website

Anne Barr
Anne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website


To learn more about the Evan Elite Author Program please contact us.

 About The Author


Will Atkinson
(Visit Will's Website)
Will Atkinson has spent his entire career dealing directly with small retailers to solve their technology problems, especially point of sale and inventory control issues. Will manages CAP Software, a specialty POS software company dedicated to providing the finest in retail POS applications for small and medium retailers. Learn more about CAP at www.capretail.com or contact me at will@capretail.com. His expertise extends to customer service issues, usability and workflow properties, and other retail best practices. Will helps retailers understand business problems in order to provide a solution that saves time and money, commodities that are limited for everyone.


Will Atkinson is a Platinum author on EvanCarmichael.com
 About The Author

 Author Blog
 Author Blog

 Video
 Video

 Free Downloads


Will Atkinson's

Complete
List Of
Retail
Articles

Name
Email
If you enjoyed this article, get Will Atkinson's Complete List of Retail Articles For FREE!

More Will Atkinson
Upselling with Complementary Items
POS Security for Productivity
Retail Security
Staffing in Tough Times
Social Media and You
Efficient Ordering
Retail Costing FIFO LIFO Average COST
Are you out of touch
Upselling
Vendor Improvements
 Free Downloads


 
 
 


Evan Elite Authors
David Acheson  
Marcus Arkan  
Dianne Crampton  
Evan Elite Authors

Become An Author
Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details.
Become An Author

Evan's Latest Video
Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media
Evan's Latest Video




Evan's Newsletter
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
Name:
Email:
Evan`s Newsletter

Free Downloads
Managing the Unimaginable Icon Managing the Unimaginable
Traffic to Site Icon Traffic to Site
Free SEO Report Icon Free SEO Report
10 Questions for Sales Rep Icon 10 Questions for Sales Rep
Business Wisdom Icon Business Wisdom
Free Downloads - Complete List

Entrepreneur Tools and Guides
Top 50 Blogs For Startups To Watch In 2008
Top 50 Blogs For Startups
Top Blogs To Watch In 2008
 
Top 50 SEO Posts of the Year
Top 50 SEO Posts - 2008
Top SEO Posts of the Year
 
Entrepreneur Tools and Guides

SEO For Africa
SEO For Africa
Grace Appiah Tarkwa, Ghana,
Grace Appiah
Tarkwa, Ghana
SEO For Africa

If I Were A Startup...
Lee Segal, >1,800% Growth in 5 Years
Lee Segal
>1,800% Growth in 5 Years
Robert Iachetta, $372k to $921k in 2 years
Robert Iachetta
$372k to $921k in 2 years
If I Were A Startup... - Complete List

Famous Entrepreneurs
Gordon Ramsay, Gordon Ramsay
Gordon Ramsay
Gordon Ramsay
David Filo Jerry Yang, Yahoo!
Famous Entrepreneurs

Entrepreneur Advice
T. Harv Eker, Millionaire Mind
T. Harv Eker
Millionaire Mind
David Allen, Getting Things Done
David Allen
Getting Things Done
Entrepreneur Advice - Complete List

Popular Articles
(Premium Authors)

     Organizational Success Hallmarks
By Dr. Fathi El-Nadi
     Leadership Power and Change
By Dr. Fathi El-Nadi
     The Six Pillars of Market Leaders
By Dr. Fathi El-Nadi

Have A Suggestion?

Toronto Salsa Classes / Toronto Salsa Lessons Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!

Have A Suggestion?

More Evan Carmichael
More Information