BETTER BUSINESS & SALES
Professional Distributor I December 2018 I VehicleServicePros.com 27
three pages” of his annual sales report
to be sure he has the most sold items
stocked. Phelps also has regular conference
calls with other Cornwell dealers.
It helps him to determine what his fellow
dealers find hot and he tries to stock
those items.
Keeping an accurate tally on your
inventory is key. If you find a deal on an
item, you need to know how many you
have in stock already. You don’t want to
overload on an item just because your
inventory count is off. This ties up cash
and space.
Know what’s new
The dealers I polled said they primarily
decide what new items to stock based on
their flag’s tool expo and monthly flyer.
Flag resources can also provide dealers
with special discounts and incentives.
The second method dealers use to
keep up-to-date is trade magazines
like Professional Distributor. Outside
sources can give dealers an objective
view of what innovations are happening
nationwide.
The third most popular way dealers
find new products is customer requests.
This is a good way to find out what is
actually popular in the work bay. Your
customers will tend to be the best gauge
of what will sell well on your route.
Keep it fresh
Sometimes, it’s not just about having
new inventory. Rotating your stock is
important, too. Moving items around
the truck can sometimes help move
more merchandise.
Phelps freshens his inventory simply
by moving it around. “Every four
to six months, take everything from
the top shelf and put it on the bottom
shelf and rotate everything and you’ll
be amazed,” he says.
Knowing what makes you money
should also tell you where to place
your stock.
Hardlines tend to be the biggest
moneymakers. So, you should place
your hardlines in the prime real estate
areas of your truck: close to the door, on
the right side, at eye level. Merchandise
your products well. Take them out of
the box as appropriate. Post key selling
points nearby. Remember: the more
likely a customer is to see it, the more
likely you’ll sell it.
Making money takes
spending money wisely
“This year, I bought the same air tools
I’ve bought at rally every year,” Phelps
says. “But nine months later, I found
myself with a couple thousand dollars
of air tools on my truck. I didn’t know
what I was going to do.”
Customers are still buying air tools,
but there’s definitely a shift from air
tools to cordless tools. If you don’t see
the trend, you could end up with a lot
of expensive, dusty boxes taking up
space on your truck. Seeing the shifts
and knowing the trends is important.
“Over the course of a decade I’ve
seen things change and I try to pay
attention and keep up on it,” Phelps
says. “I have noticed from when I
started to now, there are a lot of things
I stock differently … but most of the
stuff I stock are your normal everyday
items like socket sets, wrenches, impact
guns, cordless tools, drill bits ... things
like that.”
Phelps also advises, “Don’t be afraid
to put a big ticket item on the truck
every once in a while.”
Customer loyalty only
goes so far
Some dealers think building customer
loyalty can make up for inventory
gaps. But if every other item your
customers ask you for are special orders,
you may need to take a hard look at the
items and dollars in your inventory.
Loyalty isn’t always guaranteed.
Today, more customers realize they
can often get the tools they need from
another dealer, a bricks and mortar store
or online. So, if you don’t have a popular
tool in stock, a customer may not wait
until next week.
Out with the old
One way to manage inventory is to find
old or obsolete stock and dump it at
clearance to free up cash and space for
newer or more popular items.
“I actually sold an item the other
day that had been on this truck for six
years,” Phelps says. “The crazy thing
is the customer asked for it. He said
‘Please tell me you have one.’ We had
to dig around on the bottom shelf in
the back for a while to find it … He was
ecstatic. But I think I was more happy
to get rid of it.”
Keeping all together
Overall, managing inventory is a juggling
act. It’s replenishing key inventory
immediately. It’s spotting the trends
and knowing how to change your buying
patterns according. It’s keeping the
stock and the layout of your truck fresh.
It’s knowing how much is enough to
inventory. And it’s buying smart so you
maximize your profits.
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