A successful businessman will always take on the habit of monitoring his products’ turnovers to assess their performance in the market. Turnover is the process by which a company measures the duration its products are kept in the inventory and the speed it took to sell it in the market. You Brisbane bookkeeper knows that a low turnover is enough cause for alarm because it could mean the business is not doing well. Businesses should take the necessary steps to ensure a balance is achieved between sales and inventory, that will ultimately lead to an increase in turnover.
Here are the key elements in increasing your turnover;
Assess your goods. Categorise your products according to its key attributes like seasonality (e.g. summer/winter outfits, swimsuits) and perishability (e.g. food, medicine). Be mindful of the products that you need to prioritise in terms of consumption and make sure they are sold out before the dates of expiration is reached. If you’re in the fashion business, make sure you’re on top of the current trends.
Assess your clients. Check their profile and understand their purchasing behaviour. How likely are they to become repeat customers? Who have high probability of becoming walking advertisers? Put a high level of priority to the customers who can make your business grow. Offer personalised services and be attentive to the items they usually look for. Identify your detractors and dissatisfied customers. Understand what’s causing the dissatisfaction and address accordingly.
Assess purchasing patterns. How often do you buy your stocks? How timely are they being delivered to you? Likewise, how timely are these products being delivered to your customers? What is the ratio between supply and demand? Do you have more than enough supply to cover the demand and a ready stock should there be an unanticipated increase in the demand? On the other hand, is there overabundance in the supply that they usually end up being put on discounted sale before they expire? Achieve a healthy balance based on your assessment.
Assess the collection system. How quickly can you collect payments? Do you use an allotted budget to purchase new goods or resort to credit while waiting for collections? What is your behaviour towards collection? Do you have a specific timeline set for all credits to be collected? Is your collection system persuasive and incentive driven? Study the process carefully and decide if you need a more aggressive approach. Consulting with a Brisbane bookkeeper will help you design a system that will boost your collection process.
Assess your marketing programs. How often do you offer discounts? How do your marketing strategies compare with those of the competitors? How familiar is the market about your products? Do you offer selling incentives to your sales personnel? Find your team’s motivation and create a healthy competition that will boost their sales targets.
Assess the prices of your products. Is your pricing at par with the prices of the other stores? Are you selling your products short? Do they cost higher than the products in the other stores? Be a customer for a day or two and take notes from the competition.
Assess your costs. What is your product margin? Are you spending more than you are earning? Are there some products or services that you can do away with or find a less costly alternatives? Be resourceful and creative.
Assess your personnel and top up their customer service levels. Create skill building activities and offer customer service oriented seminars to up their customer service skills. While you’re at it, attend the training yourself and practice leadership in action.
Build healthy relationship with your team. A motivated team is a team that performs and grows together. Assess your relationship with the people you work with - the sales staff, the customer care agent, your bookkeeper in Brisbane - and make sure their goals are aligned with your goals. At the end of the day, you are not running your business all by yourself.