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Making these calls, however they are made, is only possible with a strong data analytics program. A good POS system should be equipped for this. For example, a giveaway on an unpopular item will naturally fail, as there is no inherent demand for the item itself. Doing the same on a popular but cheap item also doesn’t work because customers can just buy the item, removing the need for the giveaway in the first place. By zeroing in on the exact metrics of your inventory, your POS makes these options not only possible, but more effective.
Trimming the fat with regional specials
One of the biggest challenges in inventory management is keeping your stockroom moving. If items are not moving, then they are taking up valuable space that could be used for more valuable inventory. For this reason, business owners need to identify what their weakest products are to try and move them as quickly as possible.
Using a powerful data analytics program provided by your POS does exactly that—by identifying what you have the most in stock. Business owners can start to create specialized promotions around reclaiming that lost space in their stock room. This can take several forms, including:
Discounts for the item in question
Making the offer “limited time only” to generate interest
Linking the item with your most popular one as a “bundle deal”
Offering donations to charities for each sale of a given item
Utilizing these approaches not only moves your least popular items, but also does the general work of drawing customers into your store. This makes them more likely to buy other items in addition to the ones you’re trying to remove from your stock room. More importantly, it frees that space up, allowing you to start pushing more valuable items that you believe will move more quickly.
Seasonal promotions keep your business timely
Anyone who has walked through a department store in January knows exactly what this section is about; the remnants of Christmas lights and inflatable snowmen are likely still fresh in our minds at the start of the new year. These amusements, however, are real problems for businesses that face a difficult decision. Either hang on to your holiday inventory until next year when it will likely be out of date and damaged, or set it off at an incredibly low rate to keep your inventory moving.
By utilizing the data analytics programs available through a top-tier POS system, companies can preset seasonal promotions to minimize out-of-season inventory after the holidays. It works like this:
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