The expression “take stock” is a well-worn idiom meaning to consider first and act later. But it’s quite remarkable how many independent optical practices don’t set aside the time to consider how decisions on stock control can affect the profitability of their practice.
Successful retail incorporates how improved inventory management can impact on key areas such as Profitability; Practice Valuation; Business Tax; Accounts and Financing.
You might like to consider the following questions and their impact on both your practice and your pocket.
1. Why do you maintain the inventory lines you currently stock?
2. What factors determine the shelf position of each line of stock?
3. How many frames of each line do you dispense each month and what is the relationship between this number and the position & amount of pieces held in stock?
If the answer to each of the above 3 questions is “because we’ve always done it this way”, then you’re tying up cash that could be put to much better use invested elsewhere in your practice.