Inventory control is probably second only to lack of capital as the greatest cause for
financial difficulty for most small businesses who sell products. A good system of stock
control is essential to offer customers a good variety of merchandise and a balanced
assortment of merchandise. An important aspect of inventory control is stocking and
monitoring inventory, based upon seasonal variances.
A year-round calendar should be maintained to detail the overall merchandise ordering
plan for the year. A detailed list of potential merchandise should be prepared and
available a few weeks before orders are placed—sometimes months in advance depending
on the industry and vendors. January is the time to pick and order your line of Easter
merchandise. June is the time to plan orders for Christmas merchandise.
Stock control also means having the right varieties of merchandise when demand is at
its peak. While some lines have colors popular all year-round, demand for colors of some
items will vary by time of year. Red candles may be on your shelves year-round, but
seasonal sales peaks around Valentine’s Day and Christmas may demand a larger supply.
It’s up to you to decide what volume of merchandise is right for your store in a
given product category.
Other items shows seasonal demand by the product type. Meats for barbecuing sell better
over the warm summer months. Sales for pool maintenance products peak during the swimming
season. The automobile service garage is sure to have antifreeze on hand in time for the
winter season. Whatever your product line you want to consider product trends with
consumers, as well as the seasonal conditions that drive consumer demand.
A seasonal calendar for buying and stock control is common to many retailers. If your
competitors have seasonal merchandise in stock that you did not order, visit their stores.
Find out if their merchandise selection is moving quickly or sitting on the shelf? What
merchandise is being heavily discounted by your competitors, compare that to your own
shelves. Gather information that indicates what is happening in the market beyond your
sales floor. Competitive analysis can help you plan your own merchandise selection better
for upcoming seasons.
If you would like to discuss inventory control, purchasing or merchandising, contact
the SCORE Association (Service Corps of Retired Executives). More than 12,000 volunteer,
business counselors donate their time and expertise to assist entrepreneurs. SCORE is a
nonprofit organization that provides business counseling as a free and confidential
community service. For a referral to the SCORE chapter nearest you, call 1 (800) 634-0245.
