Stocktaking is important. We know what you’re thinking – I’m not Amazon or McDonalds, and I don’t have a tonne of stock, so why do I need to stocktake? If you want to save money and find ways to maximise your profit, then start stocktaking today.
What is stocktaking?
Stocktaking is the process of counting your inventory and confirming your records match what you are physically holding. At a basic level, stocktaking allows you to confirm discrepancies between your records and what you’re holding to firm up procedures to better control stock. It’s done from a financial perspective and can help you build profit.
Here are two important reasons to start stocktaking today:
It’s a helpful process to assist in determining your pricing strategy for individual items you sell.
Taking stock of what items you’re holding, for example, individual items you hold for sale and items required to sell an overall product (maybe the ingredients for your perfected banana bread and best-selling coffee beans). You’re able to quickly and efficiently identify trends and norms in how quickly you run through your stock and whether you should hold more or less of a specific item in order to increase your cash flow and supplier terms. If your last few stocktakes have shown similar levels of an item in stock without replenishment, then maybe it’s time to consider whether you should continue to sell that item. Equally, if you’re regularly replenishing an item or ingredients and your stocktake identifies low quantities of that item, it could be time to think about ordering larger quantities for a better price from your supplier, and better terms, while increasing the item’s sale price. If the banana bread is flying off the shelf, increase the sale price and build your profit!
Understanding what items are your best sellers and which are taking up valuable storage space and gathering dust is vital to building profit and potentially adjusting your sales and business strategies.
It’s the definitive method of identifying discrepancies in your stock
If you don’t carry out regular stocktakes, you’ll never know whether your stock records are correct. Physically counting your stock is the definitive method of confirming that your electronic stock records are correct and the only way to avoid over or under ordering stock on a regular basis.
A regular count will help you deter theft of stock, and importantly assist you in identifying where further staff training may be required. Pouring the perfect coffee or cocktail takes practice, and practice requires multiple attempts. For example, if a customer asks your team to remake their coffee because the milk is a little too cold, or asks for their eggs benedict to be remade because the eggs are too hard or soft, then naturally there will be a discrepancy in your stock. You’ll never be aware of that stock discrepancy unless you carry out regular stock checks. In turn, you can build your team’s skills to decrease the number of meals and drinks that need to be remade, saving you time and money.
Take the time to stock take on a regular basis and we guarantee you that you’ll find ways to increase your profits. We can help.