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Stockouts are the worst nightmare of any repair shop owner.
Why?
Because they not only result in lost sales, but they harm customer relations too.
Imagine you have a long-standing client who requires prompt phone repairs or a specific accessory. They are prepared to pay you more, but they aren’t willing to wait long for it.
You instantly start creating a ticket in your cell phone repair store POS software, and you come across your worst nightmare.
Repair parts or items needed for the repair are out of stock!
The consumer is dissatisfied and leaves. You’re disappointed because you missed a sales opportunity by not restocking on time.
We’ve prepared a list of six quick methods to prevent going out of stock in your cell phone repair business.
1. Keep Tabs On Stock Levels
Stockouts might happen when you’re least expecting them.
That’s why it is crucial to keep close tabs on the inventory and monitor all products and accessories for your store in real-time.
You can do this by using POS software. This tool will send notifications every time a product reaches a certain low-stock threshold, and you can restock in time. It is an easy way to avoid stockouts and keep your customers happy!
Stockout alerts will allow store owners to monitor their inventory 24/7 using the features below:
- Monitor Custom Products
- Know When To Reorder
- Low Stock Notification (with customizable thresholds)
- Reorder Alert (with customizable thresholds)
- Get Your Inventory on the Cloud
- Track Historical Data
2. Prioritize Inventory Items Via ABC Analysis
Dividing your inventory into priority categories can help you understand it better. Instead of managing everything at once, categorize them and see what you need more of and how often you’ll use it.
That’s how you can quickly determine which inventory things are necessary to your cell phone repair store.
The ABC Analysis is a method for ranking things in order of importance. It involves categorizing your inventory into three groups: A, B, and C.
Here are how it works:
- The greatest number of parts/products are classified as ‘A’ types/ These account for 80% of all items made but just 20% of the inventory stock.
- Types ‘B’ parts/products account for about 25% of products used but roughly 30% of inventory stock.
- Type ‘C’ makes about 5% of parts/products but accounts for almost half of inventory stock.
3. Conduct Regular Inventory Counts
You can’t manage your inventory if you don’t have reliable data. In addition, if you count your products’ list manually every week, there’s a good chance of making a mistake.
For example, a staff member may overlook or miscount the number of items on the list. Likewise, a user decides to return an item because they forgot to keep track of it.
The easiest method is to take help from your POS software. It can keep your stock levels in check quite effectively.
Find some time to count your items and make sure what you have on paper corresponds to your store’s stock.
To avoid stockouts, you must have real-time information on what you have in stock. You won’t be able to do so if you just count your stock once or twice a year.
So, be diligent and keep track of both real-time and on-record inventory once a month.
4. Track Inventory In Real-Time
There are several drawbacks to manual inventory keeping, including human error. You can’t make immediate changes or modifications to your stock. Furthermore, dealing with suppliers is time-consuming.
In addition, a solid repair shop software will monitor your stocks in real-time and reorder items as needed.
5. Avoid Stockouts By Analyzing Patterns And Anticipating Customer Demand
You can’t make the most of your cell phone repair store if you don’t know what customers need.
Do market research on the items that sell more often than others, and adjust inventory accordingly to avoid stockouts in the cell phone repair industry.
The primary goal is to predict customer demand by understanding their buying behavior patterns over time.
An ideal repair shop software offers real-time data analysis tools. Such tools allow business owners to see how sales are trending at any given moment across different product lines or departments.
This gives them a chance to identify potential problems before they become severe issues like stockouts. The information gathered from this type of reporting may also help with decision making such as: which products should be discontinued? Which new items should be added? Which items should you re-order now, and which can wait until later?
Always watch out for customers’ demands. First, you must understand what they want and why you look like the cell phone repair store of choice. Second, they need repairs quickly, so if something’s not in stock, your cell phone repair shop could lose a big sale – plus potentially goodwill from that customer!
6. Maintain Good Relationships With Vendors And Manage Your Capital
It’s essential to develop a good rapport with cell phone repair supplier companies. They will keep you informed about upcoming product releases and discounts promptly so that you can adjust your inventory accordingly.
Effective cell phone repair POS software includes features for managing capital efficiently. It allows business owners to see how close they are coming to meeting their financial goals such as:
- Return on investment (ROI) analysis
- Inventory turnover rate
- Receivables collection period
- Payables payment terms
These metrics help determine the degree of success achieved by certain decisions regarding products/services offered or marketing campaigns launched, among other things. The information gathered from this type of reporting also help with decision making such as:
- Which products should be discontinued?
- Which new items should be added?
- Which items should you reorder now, and which can wait until later?
Managing relationships with suppliers helps ensure timely delivery of cell phones or accessories required by cell phone repair shop patrons.
Conclusion
The inventory game is time-consuming, but it does not have to be as challenging as it frequently is. Streamlining the supply chain procedure with the appropriate point of sale system can assist decreasing stockouts and, in the end, keep consumers returning happily.
