Deciding Where & How to Cut Inventory?

"But, I Can't Sell from an Empty Wagon."

Obviously, there's truth in the basic retailing maxim that "you can't sell from an empty wagon." If you don't have an appealing assortment of goods your customers need, they have no reason to visit your store. 

However, today, you may have to redefine "full wagon". 

Here are some questions to ask about each item added to your store:

Q. Can my customers get this item at other stores in my market area?
Yes?  It probably has no pulling power.

Q. Is this a good margin item, or is it subject to a lot of price competition?
The latter? Slow turners with weak margins are double trouble.

Q. Does having this item in stock help me sell other higher-margin merchandise?
No? You may not need it.

Q. Can I get faster delivery on this item than I am now getting?
Yes? Sweet! You may be able to cut back on your stock.

Q. Do I order larger quantities of this item than I actually need in order to take advantage of price breaks?
Yes? Be careful! You may be coming out on the short end when you figure in all your carrying costs.

Q. Do I have an emotional attachment to this item that reflects my personal taste rather than a business-like response to my customer's desires?
Yes? Get rid of it!