The World of Paint Inventory
To small body shop owners and even paint retailers, overstock clearance inventory is those cans you store inside the warehouse in the back of their shop or those cans of mistint paint found hiding below the shelves. Usually, little effort is made to keep track of that surplus wholesale merchandise. One of the many reasons why this happen is the fact that most shop owners use an inventory control method that will ensure that they do not run out of paint while they are in the middle part of the job or if they own a retail shop, do not want their buyers to go somewhere else to get a can of paint.
This haphazard method however is being utilized by the same shop owners or retailers who do not have enough working capital to begin with. These owners seem to have just a little too much month left at the end of the cash, and cry that the overstock clearance ate their profits. Little do they know that those surplus wholesale merchandise lying in their shop, warehouse or even in the selling area are like having unrealized profit, and while they need ample level of inventory, having too much could be costly.
Some experts in this business believe that having a good inventory control approach is the key to the success of the business. It helps owners manage their working capital and also permits their employees to know what color or brand is readily available inside the shop. This makes them aware what is not available will help them sell other colors or brands to customers.
Paint manufacturers and retailers having a large quantity of mistint paint overstock often contact closeout buyers, merchandise liquidators or surplus liquidators that are experts in this business. They know that stale dated merchandise is like money sitting in a checking account, not earning them interest. Also this wholesale merchandise is just sitting in their warehouse taking up valuable space that could be put to better use. They realize from experience that they must act promptly and liquidate their overstock clearance inventory quickly.
Here are two components of a good inventory control approach:
Automation – some shop owners, well they still exist, refuse to automate their shop. Though, having an automated inventory control system could be costly at first, the benefits and the efficiency that it offers is by far greater, unless you are willing to sell your entire inventory to closeout buyers, inventory liquidators or surplus liquidators at a greatly reduced price. If you do not have cash, there are some banks and leasing companies that can give you various smart options. However, if you know someone knowledgeable in computers then please ask for their help. Otherwise get a computer with Windows or Macintosh, these OS have some programs which you could initially utilize to keep track of your inventory.
Computing Inventory Turnovers –In order to arrive at this, take the costs of goods sold and divide it by the inventory to arrive at the inventory turnover. Actually there are various financial computations to track down your inventory, but this method is much easier. Successful shop owners say that their business as a general rule will be able to turn its inventory at least 12 times annually. If it is not moving as well, then the shop may have kept so much of that specific SKU. And if this happens, wholesale liquidators and closeout buyers may already be lurking at your doorstep wanting to buy your dead paint inventory. Of course, keeping track of your wholesale merchandise would be a lot easier if you use an automated system or a computer system.
There are several components of a good inventory control system and this includes finding a balance between too many and too little, systematize the ordering approach, and being accountable in keeping your available inventory to a minimum.
Manufacturers and importers try to alleviate their costly problem and will contact various larger national closeout buyers and merchandize liquidators to rid themselves of their miatint paint and wholesale merchandise. One of the largest wholesale liquidators is AAA Closeout Liquidators, a trusted and well known closeout buyer and wholesale liquidators, in business since 1979. They specialize in quickly purchasing wholesale merchandise, overstock clearance and bulk inventory for cash. You could visit their liquidation website at www.aaacloseout.com or you can see a free informative video about their best buy liquidation services by CLICKING HERE.