by Art Piccio . February 21st, 2013
If you’ve ever bought shoes or clothes off-the-rack you might have wondered how stores decide how many of each size they needed to stock. The topic of stocking the right sizes is close to me, since my shoe size was rarely ever available in the styles I liked back where I grew up. I also knew a couple of people who bought clothes at the kid’s section, since since the stores back there never seemed to carry anything smaller than a “medium”.
Unfortunately, many newbie entrepreneurs don’t think much of it either. This infographic from StitchLabs, gives us a simple but informative insight into why size matters.
Technology allows data gathering in ways that simply weren’t practical for microbusinesses a generation ago. With better data gathering, inventory management can help streamline your business and help it not only maximize profits and save space, it can minimize your impact on the environment.
Inventory management is not rocket science. However, its impact on your business can be severely understated, and many small businesses ignore the massive implications it can have for their bottom line. Dead and unsold stock can tie up valuable space for years and depreciate in value as styles (and technologies, if you’re selling tech oriented items) change. For many businesses that sell items like apparel or specialty medical equipment for instance, stocking the right size can be life or death for the enterprise.
Arthur Piccio manages YouTheEntrepreneur and has managed content for major players in the online printing industry. He was previously BizSugar's contributor of the week. His work has appeared multiple times on The New York Times' You're the Boss Small Business Blog. He enjoys guitar maintenance and reading up on history and psychology in his spare time.