Liquor stores generally fall in the retail category. However, liquor stores have some unique challenges that are typically not that common in other retail sectors. Adequate liquor store inventory is the root of many of the problems. And most of the issues below can be addressed with a solid POS solution for liquor stores. This is something much more powerful than a run-of-the-mill cash register for a liquor store.
- How to Do Liquor Inventory Tracking
- Liquor Store Employee Theft
- Insufficient Reporting on Liquor Store Inventory Management
Keeping track of thousands of different products with different flavors and bottle sizes is a hard task. Not many other retail business types have to deal with such a large product assortment. Therefore, most general retail point of sale systems are not really equipped for the task. Unfortunately, too many liquor store owners have just accepted the fact that proper inventory tracking is simply too complicated and expensive. However, here are a few simple tricks on how to get better control over your inventory management:
Utilize assortment management features
If you have the ability to assign your products to assortments you can separate seasonal items from general items. Your product catalog will become much more organized when you have the ability to easily filter out items that are no longer relevant.
Always update incorrect numbers
As soon as you notice incorrect numbers, such as negative inventory counts or items with on-hand counts that are no longer selling, make sure to correct your inventory and investigate the reason for the differences. Not only does KORONA has an automation feature for this, but also includes ABC analysis software for every customer. This software helps liquor store owners placement, pricing, and ordering for each of their products.
How to count liquor inventory? Perpetual counting
Instead of doing complete store counts consider continuous counts with smaller product lists. Inventory counting will become part of the routine instead of a major headache once a year. Once again, KORONA prepares short count lists for you that are easy to manage on a daily or weekly basis. This eliminates the possibility of shutting your store down for a large inventory count and also keeps costly mistakes to a minimum.
Employee theft is a concern for many retail businesses. However, liquor stores are especially impacted. Unfortunately, many managers and owners are not fully aware of this issue. This is mainly due to a lack of reliable inventory tracking. If you don’t know what you are supposed to have, you also have no way of knowing when something goes missing. It’s also common for employees to make a sale and then simply remove the items from the transaction if the customer pays cash, allowing them to pocket the money. We recommend taking the following security procedures:
- Don’t allow cashiers to freely remove any item from a transaction.
- Don’t allow cashiers to operate the POS while cash drawer is opened.
- Perform cash balances per cashier.
- Use the individualized sales reports for each cashier to identify any concerning trends.
With large product catalogs, it can get difficult to determine which items are actually making your business profitable and which are simply taking up shelf space. In order to figure out which items you should promote and which ones you should kick out of your inventory we recommend the following best practices:
- Compare profits instead of just quantities or revenue.
- Evaluate complementary products and adjust prices accordingly.
- Compare sell-through rates and inventory turns to prevent overstocking or understocking.
If you would like to find out more about how KORONA can help you solve these issues, and why we’re the most popular POS system for liquor stores, give us a call: (833) 200-0213
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