The media is on a constant loop about the cost-of-living crisis. It is easy to get caught in the spiral. You hear the noise and start to worry. Your customers are worrying too. It feels like the sky is falling. When the squeeze hits, the natural instinct is to look outward. We want someone else to fix the vibe. We call the bank to demand lower rates. We hustle suppliers for wholesale discounts. We lean on the landlord. While those moves have their place, they should not be your first play.
The most immediate value you can unlock is already inside your four walls. You have to work on yourself before you ask others for a hand-out. If you haven’t tightened your own ship, you lack the leverage to negotiate. Start by looking at your data.
Here’;s a new short video with practical advice from us https://youtu.be/Dde_CqgfiiA:
The Dead Stock Trap
Dead stock is the ultimate silent killer. It is not like a fine wine that gets better with age. It is just cash sitting on a shelf gathering dust. It is “mid” at best and a total drain at worst. Many retailers are “delulu” about what their inventory is worth. They want to get their full margin back. They want to at least cover the cost. This is the wrong way to look at it.
That stock is taking up space. It is taking up time. Most importantly, it is locking up your liquidity. In some businesses, anything older than three months is dead. For others, the trigger might be six months. You need to decide what that limit is for your specific niche. If you haven’t sold a single unit of an item in six months, it is time to move it on.
One business recently discovered they had $20,000 tied up in non-performing stock. That is $20,000 of invested capital that was doing absolutely nothing. It had zero prospect of performing. By quitting that stock, you create a declutter opportunity. Sell it for whatever you need to get it out the door. Use that space to pivot. Bring in new, fresh products that actually generate foot traffic. This is how you “glow up” your business during a downturn.
Audit Your Hours and Rosters
Once the stock is sorted, look at your operations. Are you rostered for success or just for habit? You might be overloaded with paid hours that don’t match your sales peaks. Check your opening and closing times. If you are staying open late for no reason, you are just burning cash.
Trimming the roster is a sensitive move, but it must be tight. Ensure the people you have on the floor are productive. When your roster is lean and your stock is fresh, you gain a new level of confidence. You have taken care of your own business first.
The Power of Leverage
When you finally do go to your bank or supplier, you come from a position of strength. You can show them the work you have done. You can prove that you have already cut the fat and optimised your inventory. It gives you a real reason to urge them to assist you. You aren’t just complaining about the economy; you are showing them a high-performing business that needs a temporary bridge.
Don’t let stock sit in back rooms or drawers. Track it when it comes in and track it when it goes out. Do regular stocktakes. Use your POS software to run a rank sales report. It is “lowkey” the easiest way to find the low-hanging fruit.
Stop letting the “main character” energy of the economic crisis dictate your mood. Focus on the variables you control. Clear the dead stock. Tighten the roster. Pivot to growth. That is how you survive the crunch and come out on top.
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The right POS system or website for any retail business depends on the specific needs of the business. Tower offers POS software and websites made specifically for local small business retailers in a selection of retail channels. To see if we might help you…, request a free, no-obligation demo today.
Call 1300 662 957 in Australia or 0800 444 367 in New Zealand. Or, email sales@towersystems.com.au.
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