Trying to get a grip on how to think about inventory, thought I would ask the brain trust here to see how you all look at it.
Right now we have an allotment for each frame brand, example Tom Ford ophthalmic 28 frames on our board. We have data on how many frames of each brand we sold last year, so lets say we sold 70 Tom Ford ophthalmic Frames. We take 70 sales divided by 28 allotment and get 250% turn rate.
Obviously 250% turn rate doesn't mean much on its own, it means more when compared to how other frame brands are sold in the store. So I looked at average turn rate for all of our brands and now I am considering should we drop brands that are under the average to try and find something that would sell better?
1) Do you use turn rate when trying to decide if you should drop a brand or is it done more by feel?
2) Should I be looking at inventory differently? I was considering looking at total frame space and looking at markup and cost of the frames to see which frames are the most valuable to sell. Then look at that in conjunction with frame turnover to see how valuable that turnover actually is.
Am I completely overthinking this?
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