The ability of small- to mid-sized independent business owners to manage their budgets and inventory with pinpoint accuracy, and learn their customers’ buying behaviors, is absolutely crucial to not only the success but also the very survival of the business.
Properly managing inventory and budgets is perhaps the most important daily task a business proprietor performs. Simply put, you can’t sell what you don’t have, and you can’t sell a surplus supply of items that your customers don’t want.
Budgeting and inventory management needn’t be stressful or worrisome. Advances in technology have alleviated guesswork and increased confidence in making correct, data-driven decisions to learn customer behavior and keep establishments stocked with desirable products.
In today’s digital age, stores can’t rely on outdated ways of running inventory checks. Employees counting milk bottles on shelves to see what needs to be ordered is not just incredibly wasteful from a personnel use standpoint; it also does nothing to accurately predict through data analysis if customers will want the product in the same numbers in the future as they do today.
Here are several ways to save money and boost profits through modern budgeting and inventory management technology:
1) Make sure that your POS system is integrated with software that allows for sophisticated inventory tracking. All-in-one POS systems, such as those provided by NRS, set up alerts when inventory is low, allowing store owners to accurately track sales. Store owners can, directly via their POS, order hot-selling products at any time during the day, and as many times as they like.
There’s no need to worry about running low on stock and losing potential sales when you can order on your POS with accuracy and inventory tracking and reporting. In addition, proprietors can reduce their employee head count or existing staff hours spent manually counting inventory, allowing workers to concentrate on other important tasks (like setting up sales promotions).
2) Don’t overbuy or underbuy — sure, experienced merchants that are experts in their field usually have accurate gut instincts as to how much inventory to keep stocked in their establishments. However, it’s that 9th time out of 10 when they make the wrong call that can be disastrous to sales and drain money from their pockets. Especially during the current COVID-19 pandemic and economic downturn, customers’ needs, wants, and spending ability are constantly changing. Merchants using modern budgeting and inventory management methods that track sales in real time hold a distinct advantage over those relying on outmoded predictive forecasting that makes decisions indiscriminately.
And remember, overstocking is just as bad as understocking; merchandise that’s not selling sits on the shelf gathering dust, a cruel reminder of lost revenue. This is especially the case with perishable items that must eventually be tossed in the trash, along with those wasted dollars.
3) Accurately predict what customers want and don’t want — using advanced data analytics, business owners can combine their knowledge and experience with technology to ensure healthy future sales and eliminate wasted inventory through wise business decisions. Some POS systems offer data analytics tools that provide insight on what products to put on sale and advertise throughout the store. Conversely, data analysis can help business proprietors determine what non-selling items should be put on clearance. Knowing what to advertise — based on customer demand and inventory tracking — whether with store signage or on customer-facing POS screens (such as those offered by NRS) can significantly boost sales.
4) Use a remote app or merchant online portal for budgeting and inventory management from anywhere, 24/7 — using these tools, business owners needn’t worry anymore about having to be in the store at all hours to make sure the flow of products and associated cash flow run smoothly. Some remote merchant apps, such as National Retail Solution’s My NRS Store app, integrate directly with the POS system; so there’s no need to relay the remote information to an employee to input information, saving manual time and money.
Don’t fear the future. On the contrary, using data-driven modern technology to drive budgeting and inventory management, especially advanced data analysis, is the logical way forward. Managing the back-office in an organized manner that’s integrated with checkout equipment reduces accounting stress and may mitigate the need to hire as many employees, thereby saving the retailer money.
National Retail Solutions (NRS) is the leading national provider of point of sale (POS) systems and NRS PAY credit card processing to bodegas and independently owned, small- to mid-sized groceries, convenience stores, liquor and tobacco establishments, and hardware stores. For information about National Retail Solutions point of sale (POS) system and how it can help you manage your inventory, call (833) 289-2767 or visit nrsplus.com.
