Christmas season is the time for most retailers to offer the widest selection possible. We broaden our selection. We increase the choices. We try extra stuff that we think we can sell that time of year.
The problem, however, is when we get into the off-season and start re-stocking the store. We have a tendency to want to restock every single thing that sold in December. And therefore, we tend to overbuy in February and March only to find ourselves cash-poor in May and June.
One simple tip to stop you from overbuying, to increase your cash flow, without losing sales in the slower seasons is this…
Limit your customer’s choices to only two or three per category.
Cut back on your offerings by simply giving them a good, better, best (or even just good/best) option for now. They will appreciate the simplicity of the choice. You will appreciate the simplicity of the buying. Your bank account will appreciate the simplicity of fullness.
PS To learn more about ways to manage your inventory and cash flow, download my free eBook Inventory Management. In it you will learn two formulas that can help you manage your cash better than ever before.