4 Essential Components of Product Management
Every retail store and chain, regardless of sector or the products you carry, has to manage inventory effectively. Without control over your inventory, you have no way of knowing whether your products are gaining you profits or even if you are selling the right products.
Here are four essential components to managing your product inventory more effectively no matter what you are selling.
- Price Management – Do you know the optimal price for each of your products? How do you know it? How do you know if you have a product overpriced or underpriced? A good product management solution will allow you to monitor the prices of each of your products and analyze them based on number of items, season, and customer desires and shopping habits. Run specials when it suits your business, offer discounts, and present coupons to move specific products and merchandise out the door more quickly.
- Transfers – Every retail store is different. Even within chains, you’ll find that certain demographics and geographical locations move different products at different paces. There will inevitable come a time when you’ll have to transfer items from one store to another. You may move product from retail to your outlet store or from one retail location to another to meet a customer’s need. Maybe a particular item sells better at one store than another. Whatever the case, you need a way to manage transfers effectively.
- Purchasing – The only way to ensure you have the right product in your stores to begin with is to know what the customer wants–at each location. A good product management software will give you eyes on each retail location and the demands of your customers so that you can buy the right products in the right amounts.
- Allocations – Even after you buy, you’ll need to ensure each of your retail locations has the right amount of the right kind of product. This is done through merchandise allocation. You may purchase 100 units of a particular item and send 25 of those to Store A, 15 to Store B, 5 to Store C, and the remainder to Store D simply because demand for that product dictates it. You know this based on customer purchasing habits, sales history, and other reports generated by your analytics software.
How are you doing managing these four necessary components of your inventory?