As a fabric store owner, your inventory is your key to success.
The fabric that lines your shelves is what draws customers to your store and keeps them coming back — so how you manage your inventory matters.
To successfully run your business, you need to generate the greatest value possible out of your inventory — but too many business owners find themselves running into the same inventory obstacles again and again.
In this blog, we’ll explore the seven most common mistakes made in fabric store inventory management. By avoiding these pitfalls, you can keep inventory organized and turning over quickly, so you can increase your sales in no time.
Mistake #1: Overbuying Fabric Stock
Knowing how much inventory to purchase is one of the most difficult tasks in fabric store inventory management. Buy too little and you could run out, leading to lost sales. Buy too much and your inventory will sit on the shelf, taking up space and failing to turn a profit. Many fabric store owners fall into the second category, with more inventory than they know what to do with.
You can avoid this problem by purchasing smaller shipments of inventory, and paying close attention to your sales data. Analyzing your past sales allows you to make more accurate predictions for the future and purchase inventory accordingly. A point of sale (POS) system automatically tracks your sales data and makes analyzing sales reports easy.
Apart from the quantity of items you purchase, sales data also helps you determine what kinds of products are selling. Buy more of products that consistently sell and less of products that tend to sit on the shelves. The longer you run your fabric store, the better idea you’ll have of your most and least popular items.
Related Read: How To Keep Track of Sewing Business Inventory: 7 Best Ways
Mistake #2: Ignoring Seasonal Trends
There’s a significant market for seasonal fabric and sewing products. Sewing enthusiasts use seasonal fabrics to create fun projects for holidays like the Fourth of July, Thanksgiving, and Christmas. Don’t miss out on the opportunity to capitalize on this market.
To do so, you need to plan for these occasions by purchasing seasonal fabric well in advance. Put seasonal fabric items on your shelves at least a month before a big holiday or occasion to create a wide window of sales.
After an occasion passes, pay attention to how much seasonal fabric and supplies you sold so you can plan for how much to purchase the following year. If you want to sell more seasonal fabric, try creating window displays or advertisements to create more excitement around these items.
Mistake #3: Poor Organization and Labeling
To effectively manage fabric store inventory, you need to know how much you have of each product and where everything is located. It may not be realistic to commit all of this information to memory, but modern digital tools can monitor this data for you. A sophisticated POS system keeps track of all of your inventory levels, and a color-coded or barcode system helps you track where everything is.
The lack of an organized system with product labels makes it more difficult for customers to find what they’re looking for. Customers in your fabric store should be able to easily navigate sections of products to find a certain type of product. When a customer wants a specific item, you should ideally be able to look it up and track it down for them.
An organized system helps you keep your store efficient and helps you avoid lost inventory and theft.
Related Read: Fabric Stores: How To Implement A Barcode System for Inventory
Mistake #4: Lack of Inventory Audits
Even with a reliable system that tracks your inventory levels and gives each item an identifying label, neglecting regular inventory audits can cause your counts to be off and items to fall through the cracks.
Regularly conduct a manual count of your items and cross-reference them with the totals in the computer. Update incorrect totals and make sure all the information in the system is correct. This helps you detect theft, keep your reports accurate, and properly forecast future sales.
Related Read: Manage Your Sewing Business Inventory: 7 Best Practices
Mistake #5: Failing To Monitor Supplier Performance
Another common mistake in fabric store inventory management is to let supplier organizations get away with subpar services. As a fabric store owner, there are many suppliers you can purchase inventory from, and you may choose to buy inventory from several vendors.
For each supplier you work with, keep tabs on the quality of their products, the speed with which they arrive, how well their customer service treats you, and whether they deliver on their promises. Continue working with suppliers who do great work and stop working with those who disappoint you.
Seek to develop strong relationships with reliable vendors. When you find a supplier your company works well with, remain loyal to them. Continued loyalty may help you negotiate special deals and lower prices — helping you to improve your profit margins.
Related Read: Collaborating With Local Artisans and Crafters for Unique Offerings in Your Sewing Store
Mistake #6: Not Training Staff Properly
To keep your fabric store inventory management system running smoothly, each of your employees must understand how it works and how to keep counts accurate. Train your employees on how to label and sort new inventory, accurately conduct transactions, and perform inventory audits.
Failing to properly train employees will lead to mistakes, inaccurate numbers, and a lower quality customer service experience. Create a safe environment for employees to ask questions and empower them to make decisions without you where appropriate.
If you update your system, make sure to train each employee on the changes you make. Keeping everyone in the loop helps you keep your fabric store running smoothly and increases employee loyalty.
Mistake #7: Overlooking Customer Feedback
Your business wouldn’t exist without your customers — so don’t ignore their feedback. Seeking customer feedback both in person and in the form of digital reviews helps you understand your business’ strengths and where you can make improvements.
Ask your customers questions about the products they’ve chosen and which fabric products are their favorite. The answers to these questions will help you know which products to keep stocking and which to let go of.
Manage Your Fabric Store Inventory Like an Expert
Running a fabric store is hard work. Every small business owner makes mistakes, but by taking care to avoid these seven errors, you can strengthen your fabric store inventory management practices.
To recap, here are the seven common mistakes to avoid:
- Overbuying fabric stock
- Ignoring seasonal trends
- Poor organization and labeling
- Lack of inventory audits
- Failing to monitor supplier performance
- Not training staff properly
- Overlooking customer feedback
Steer clear of these mistakes, and you can keep your fabric store organized, keep your inventory turning over, and continuously generate profits.
To keep your information accurate, you need a POS system. Like Sew is an all-in-one cloud-based system that processes transactions, keeps track of your inventory, gives you access to vendors, and offers many other features.
Like Sew is designed specifically for fabric stores and will help you accomplish the goals you have for your small business. Contact us today to schedule a demo!
