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Thread: Inventory Ratios

  1. #1
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    Inventory Ratios

    We are looking to expand our sunglasses lines and are wondering what percent of your total frame inventory should be broken down into designated ophthalmic frames and what percent should be sunglasses?

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    Is your sell through rate pretty good on suns right now? I think it depends a little on the demographics, location, weather patterns etc.... No one office geographically is going to benefit the same from a percentage point of inventory. If you can't keep up your inventory of sunglasses with the percentage you have now, obviously you want to increase it. If you have slow sales in this catagory, you don't necesarily want to expand it.

    I have a pretty decent sell through, and run about 25% of my inventory in Sunglasses. It does sunshine a lot here in my location.

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    Yes, our sell through is good and we have the demand for additional inventory but don't want to overextend. I was looking for general ideas and recommendations. Yours has definitely been helpful. Thank you!

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    the turn you need is relative to your margins, if your a high margin a 2 to 1 turn is OK. If low margin, you need a 3 to 1 turn. 2.5 turn is ideal, but since Suns are Second pairs (and thus more profitable) you could even go with a 1.5 to 1 turn and still make some money.

  5. #5
    What's up? drk's Avatar
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    Very intriguing concept, sharpie.

    Dumb it down for me: you are saying you want link % of inventory allocated to sunwear based on it's relationship to the turns on your ophthalmic?

    (I guess this could apply to kiddies, too.)

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    More on how it turns for itself. Every frame line should earn its board space via turn ration, Suns are tough though so you can count them all as if they are one frame line. You have to consider an over all minimum to be effective too, so I would exclude kids in a slower office. But if your in a busier practice it makes more sense to consider turn once you reach a minimum of selection.

    Quote Originally Posted by drk View Post
    Very intriguing concept, sharpie.

    Dumb it down for me: you are saying you want link % of inventory allocated to sunwear based on it's relationship to the turns on your ophthalmic?

    (I guess this could apply to kiddies, too.)

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