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10 Best Buying Tools

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Merchandising Tools to Maximize Revenue

Retailers, we know that you have a tough job, especially when it comes to merchandising. One of our goals as a software provider is to help retailers maximize the revenue their merchandise generates using data from historical inventory performance and current sales trends. Here we outline our collection of must-have buying tools, that focus on maximizing your revenue potential.
Coins Stacked

1. COLLECTION PERFORMANCE

Let’s start with a macro view. Collection buying is important to the furniture industry. Yet it can be a lot of pressure, as it requires a significant investment. To help you hit your collection buying out of the park, the Collection Performance Tool shows the overall ranking of each product collection in your inventory.

How To Use This Data…

Buyers can change the criteria that determine how each collection is ranked. Sort by revenue dollars to see how each collection compares by sales performance or focus on profitability using GMROI to rank your collections by their margins.

Even if you aren’t planning on re-buying the same collection, you can utilize this tool to discover what type of pieces within a collection were the best performers or what parts of a collection were typically sold on the same sales order. This can help you best merchandise future collections.

2. PRODUCT PERFORMANCE &
3. MERCHANDISING ACTIVITY

Now let’s get granular! The Product Performance Tool is a buyer’s dream. Its interactive format lets buyers dive into the performance of each product in their inventory.

How To Use This Data…

This tool allows buyers to benchmark each product by key metrics. It’s a snapshot of GMROI, cost, selling price and total revenue generated by each product. These metrics are automatically calculated based on real-time activity.

Buyers can easily manage a product’s inventory levels. You can see positioning in your showrooms and warehouses, what is reserved to open orders, and what you have coming in on purchase orders.

While the Product Performance Tool provides a high-level overview, Merchandising Activity is great for data on historical revenue performance.

What’s The Value…

These tools allow you to see how sales are trending over time with totals for Month to Date and Year to Date. If a product has been in your inventory for a while, it will be compared to Last Year’s same historical time period. A key benefit is that this tool uses past sales to provide a four-month revenue projection.

4. SALES TO INVENTORY RATIO

Every dollar in your open-to-buy is precious. The Sales to Inventory Ratio Tool shows how each product composes your inventory as a whole. Buyers can see total inventory value by product and the percentage it represents of the total inventory. It also shows year to date sales and the percentage of the total sales each product represents.

How To Use This Data…
Comparing the percentage of stock to the percent of sales can glean interesting insights. Click To Tweet You would expect sales to align with inventory values, however, this is not always the case. This tool is a great starting point to analyze if a product is worth your open-to-buy dollars.

This tool can also be used with Product Categories to show the same metrics and comparison providing another layer of analysis.

5. REPLENISH STOCK BASED ON SALES RATE

When you have a stock product that is turning well, you want to make sure to reorder it at the right rate. Replenish Stock Based on Sales Rate uses three key components of a product’s revenue to generate its sales rate. These metrics are

  1. Unit sales
  2. Number of units on hand needed to support revenue
  3. How long it takes to get the product from the vendor
What’s The Value…

Using the sales rate can generate optimized replenishment suggestions, which is valuable in balancing your cash-flow. It helps you capitalize on increasing turns of a product in a timely manner.

Manually tracking stock and replenishment would take a large amount of time. By automating this process, strong replenishment recommendations are provided without manual effort.

6. PURCHASE ORDERS WITH CHANGED COST

Vendors are known to update their price lists from time to time. While these prices are often updated from the acknowledgment or the purchase order, sometimes they fall under the radar. The Purchase Orders with Changed Cost Tool easily alerts buyers to these changes, which is especially important in a replenishment program.

How To Use This Data…

This tool acts as a queue for price adjustments. When you are aware of cost changes, you can reflect your selling prices to preserve margin goals for that product. You can also update your floor tags for products already on your floor to maintain consistency.

7. INVENTORY VALUES OF OPEN ORDERS

Just like buyers must know the value of inventory coming in on purchase orders, they also need to know what inventory is on its way out of their possession. The Inventory Values of Open Orders Tool provides cost information for goods that have been sold but not delivered.

What’s The Value…

This is frequently monitored by many retailers as it tells them how much inventory is tied to open orders. It is valuable to the planning process to ensure inventory is replaced in a timely manner.

Additionally, if inventory is reserved for orders that aren’t being closed effectively, buyers can work with sales to resolve any issues.

8. INVENTORY BY AGING PRODUCT

Every sales floor needs to be regularly invigorated with a new product in order to generate excitement. The Inventory by Aging Product Tool shows your current on-hand inventory by receipt date and translates that into how old the product is in days.

How To Use This Data…

This tool helps buyers and sales managers identify a slower moving product that may not be selling at its current price. This is a good starting point to evaluate mark-down strategies and determine how to move that merchandise in order to make room for newer lines.

You can also use this report to see if certain product types or trends are turning at a slower rate, which should be considered when planning your next buy.

9. PURCHASE RECOMMENDATIONS

Purchase Recommendations takes all of the analysis behind a product and delivers actionable suggestions. This tool provides a system generated inventory forecast that can be used as a basis for purchasing stock merchandise.

What’s The Value…

These Purchase Recommendations are backed by data from a product’s historical performance and current inventory standing.

Buyers can review the proposed recommendations and either accept them as is or make adjustments. They can then automatically generate a purchase order to meet demand.

10. SALES HISTORY BY INITIAL MARKETING CODE

When you make a great buy, you want to showcase it with the best possible marketing campaign. By identifying what marketing programs work, you can increase the ROI of your advertising budget and sell more product. That’s what the Sales History by Initial Marketing Code Tool is all about.

How To Use This Data…

Just like merchandising, marketing is about finding the ideal mix. Segment the success of your marketing programs by the type of merchandise on the sale. You might find there are trends to what medium works best for different products, price points, and brands within your merchandising program.

Are you ready to Maximize Revenue from your merchandise?

Information combined with a buyer’s artistic abilities is a recipe for merchandising success. Click To Tweet These are just some of the key buying tools available in STORIS that provide a well-rounded overview of your merchandise’s performance and glean insights to maximize your revenue.

Contact STORIS to discover how you can leverage technology to grow your revenue.

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When you choose STORIS, you get more than a revolutionary retail software solution. You get the know-how of our team of retail experts, superior service and opportunities for growth. Use the form below to learn what STORIS can do for you.

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