Tips for Established Businesses

5 tips you ought to know

After the time spent on growing your business into an established company, there are new obstacles you’ll be faced with that will come down to your inventory and management.

Since your business may have limited capital and storage for your inventory may be scarce, you’ll need to decide where you physically do not store any merchandise and use drop ship methods instead. Being smart with your inventory will allow you to be smart from a financial standpoint as well. This alone will help ensure your established business stays in the green.

INVENTORY REPLENISHMENT: With your inventory organized and capital steady, you’ll need to manage the inventory with a program to ensure your business continues to thrive at its optimal capacity. When choosing a program, be sure to demo as many as you can and ask the questions needed so the program grows with your company. The last thing you want to do is spend time and money on one program only to change it in a year or two and spend more time and money that could have gone towards expanding your inventory.

One program used by some Liquidation.com buyers is RestockPro, as this allows companies to get replenishment alerts based on sales information from recent and annual data. With the information in hand, you can then filter your inventory needs by source and place an order for a specific price point to ensure you’re being smart about how you’re investing your capital for the best returns.

SOURCING: With a steady list of suppliers for your company, your business may be less about selling on your various resell channels, and more about buying from your diverse set of suppliers. Since these resell channels handle getting customers to their site, you can afford to focus your time on making better purchases to strengthen your core business.

REPRICING: Sometimes having the lowest price isn’t the most viable option. When you have competitions on your listings, the price isn’t the only factor that determines is a customer will purchase. Having a repricing algorithm system can be pricy, but when your business is at a certain scale, it can be vital to long-term success.

For example, because your selling rating is higher than your competition, you may be able to price your item(s) higher and still sell, because customers will put an invaluable price on reassurance the item(s) they are buying are in fact genuine with a great reputation. Repricing systems will take this factor and others into account to help ensure your listings are priced competitively so you make the profits you deserve!

STEADY CASH FLOW: With steady sales and your company taking off, there will be a few questions you’ll need to answer:

Are you willing and able to buy larger loads from a supplier in order to get a price cut?
Do your suppliers offer payment plans?
What does all this mean to your bottom line?

Often times, with limited funds and high-value merchandise it can be difficult to remain focused and realistic, but if a good lot comes around with the right profit margins you’ll need to find a way to get the extra cash to make it happen. Just be careful to make these sacrifices when the merchandise you’re buying are ones that sell quickly so you can replenish your cash flow and reinvest in your business.

BUYER FEEDBACK: When buyers lodges complaints on established products, it’s often about the product and not the seller who sold them the merchandise. If selling private labels, then complaints are about the product and the seller. To keep a high seller rating, make sure to sell quality merchandise, or at least be very specific in your listings to ensure buyers know exactly what they are buying so there are no surprises.

If a certain product, or product line causes your business to receive negative reviews on a steady basis, either stop selling the product or sell another brand of the product. Don’t be dragged down by something you can, and should, change. If the negativity doesn’t stop, rethink your sourcing strategy.