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To keep product sales rocketing along, you need a continuous supply of fuel. Fuel, in this case, is your stock.

Using Citrus-Lime Cloud POS, our cloud-based retail and stock management software, you can ensure that you eliminate missed sales opportunities and build up an uninterrupted momentum in your cash flow and profitability "to infinity and (for legal reasons) onwards to a point at or over the furthest side of the infinity to which I previously made mention".

Missed sales (and the resulting loss of a customer) is much easier to avoid and eliminate using our simple-to-read Cloud Reports software.

Cloud Reports, our Cloud POS-integrated reporting and business intelligence software, tracks product and sales information and clearly illustrates the opportunities you have to avoid running out of items in high demand.

For simplicity's sake, let's say that you have a stock turn* of 2.6.

* Stock turn, for the uninitiated, is a measure of the number of times stock is sold in a given time period such as a year. An average stock turn of 2.6 in a specialist retail environment is typically representative of a good balance between meeting demand, achieving meaningful growth and still having something akin to a successful work-life integration.

 

The maths behind Weeks Cover

There are 52 weeks in a year,
    ... so 52/2.6 = 20 weeks.

Your average weeks cover is 20.
In other words, on average, it should take 20 weeks to sell through your entire stock position (all knowable factors considered).

Understanding the Numbers

In knowing your Average Weeks Cover value, you can now look at brands, departments, categories or individual items and assess that which is selling at such a rate that you are likely to run out of before demand eventually wanes.

You should be mindful that, despite the maths, it's not a pure science. There's the art that you bring to it, too ... through your experience and skills as a retailer.

 

For example, your knowledge of the transactions that have happened in your business, how late into the season you are, the nature of the product that's selling through and the feasibility of top-up orders … all of these things will rightly influence your decision to try and source more or retire the stock and focus effort elsewhere.

It is often the case, however, that the ability to catch sales trends and predict the point at which you will sell-through is hidden from view within a software system; so it relies on the team to have a strong connection with the flow of product through the business (over a meaningful period of time). Retail environments tend to have staff rotas and that means that it is rare to get enough continuity in the workplace that any one colleague could spot the trends manually anyway.

This is yet another reason why retail and stock management with Cloud POS is so powerful.

Story time ...

Every week, you open up Cloud Reports and look through the Margin by Brand & Department report. The report contains Weeks Cover information. Looking at the report, you see that the current rate at which Brand X and Y are selling means you will are likely to sell through about 6 weeks before the key selling period ends and the demand starts to dip away.

You dig a little deeper into the report and see that it is a handful of products within a certain department that performing above expectation, so you raise a purchase order in Cloud POS and get that off to the supplier.

You do that sooner than the competition because they don't have the data that exposes these opportunities or the understanding of their Weeks Cover to meaningfully interpret whatever data they do have. Instead, they reorder at the minimum point or when someone lets them know that they don't have any left.

When they finally get round to reordering, they find that there's none left at the supplier.

For you, the product arrives a few days later, you book it onto Cloud POS and sales continue uninterrupted all the way through to the season end.

It might sound somewhat idealised but this simple approach has played a significant role in helping a Citrus-Lime customer to double their revenues every year, for five consecutive years (establishing them as a multi-million pound retailer), and they haven't had to sacrifice their achieved margin significantly to achieve it.

We'd love to help you do the same.

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