As a rule, most retailers are directly affected by predictable changes in seasonal demand. In the Philippines, events such as paydays and the release of 13th month pay tend to increase the collective urge to splurge, reliably driving up demand for luxury products. Changes in the weather and holiday observances, likewise, tend to increase the demand for specific items like beachwear and Christmas lights.
In any case, keeping up with all the events that can trigger temporary surges and dips in demand is critical for retailers, regardless of size. If you don’t stock enough seasonally in-demand items, your business incurs opportunity costs. If you overstock, you’ll tie up your operating capital and risk potential losses due to unsold merchandise.
Because every retailer operates under different circumstances, it’s difficult to recommend a one-size-fits-all solution that works for everyone. Thankfully, modern inventory management techniques make it easier for you to handle seasonal demand fluctuations. Here are some tips that should help you keep an optimally stocked inventory:
1) Optimize Your POS system
Your inventory management practices will be hampered if your store’s POS (point of sale) system is unable to process today’s most popular forms of digital payments. In addition to cash, in-store customers now also expect to be able to pay with the e-wallet, QR code, or payment card of their choice.
For the best results, you want to get a POS supplier Philippines’ leading retailers, big and small, depend on. Maya business has years of experience in elevating in-store POS systems for businesses of all sizes, seamlessly facilitating digital payments to ramp up conversions and speed inventory movement during critical times. Notably, the highly popular Maya Terminal is a trusted POS system used by major retailers and small boutique operations alike. It’s fully compliant with QR Ph, the standard for QR code payment Philippines’ policymakers at the Banko Sentral ng Pilipinas have established, letting you take any QR Ph-compliant local QR payment.
2) Link Your POS System to Your Inventory Management System
Make sure the POS system you choose can easily connect to your electronic cash register (ECR). The ECR should, in turn, be able to connect to your retail inventory management system. Linking your POS to your inventory management system can enable you to update your inventory in real-time, giving you a much better idea of which items are selling well and which ones you should stop ordering.
3) Use Sales and Inventory Data to Build Accurate Demand Forecasts
Once you have a POS system that automatically updates your inventory, you can start using historical sales data and inventory turnover rates to identify day-to-day trends in customer purchasing behavior. After some time, you should be able to accumulate enough data to make accurate predictions weeks or months in advance.
4) Offer Pre-Orders
Ahead of expected demand surges, set up a pre-order system to engage customers and gauge real demand for upcoming products. Offering pre-orders lets you create anticipation around your products and helps you avoid overstocks by giving you valuable information about real customer demand. As a nice bonus, you’ll also get the cash flow you need to purchase stocks for your store.
5) Get Rid of Slow Moving or Out-of-Season Inventory
A lot of retail items follow predictable seasonal curves. For instance, in the Philippines, sales of rain gear like umbrellas and rubber boots tend to be sluggish outside of the rainy season. While you can simply hold onto these slow movers until the next season, doing this will incur storage and obsolescence costs.
To move these stocks quickly, consider offering big discounts as soon as the season is over. If your customers prefer a specific method of payment, QR code type, or payment plan, make sure to accommodate it to further incentivize purchases.
6) Regularly Clear Out Overstock
Set up a clearance bin to display any inventory that’s been overstocked, out of fashion, or close to expiry. Regularly clearing out overstock not only frees up valuable shelf space but also prevents potential losses due to perishable or seasonal items losing their market appeal.
7) Bundle Complementary Products
You can boost sales and also get rid of overstock while still enhancing the shopping experience by strategically bundling complementary products. Bundling items that naturally go hand-in-hand lets you create value-driven packages that appeal to many consumers.
Keep Your Inventory Profitable with Maya POS Solutions
Maya is the POS vendor Philippines’ top retailers depend on to provide seamless acceptance of all relevant digital payments. For hassle-free card, bank, digital wallet, and QR code payment processing, Maya Business is sure to deliver. Sign up for Maya Business today to order a Maya Terminal device and to accept popular and emerging digital payments at your store.
Signing up for Maya Business grants you exclusive access to the Maya 1-2-3 Grow bundle. With Maya 1-2-3 Grow, you’re entitled to a 1% MDR (merchant discount rate) discount on all QR Ph transactions for 3 months after signing up. This means an additional PHP 14,600 in savings for every PHP 1 million in QR Ph sales.
This bundle also grants access to you a Maya Business Deposit account for your settlements. With an unbelievable 2.5% per annum interest rate, your Maya Business Deposit will grow your business’s funds 20-25x faster compared to other similar banking products. At this rate., your funds will earn PHP 25,000 each year for every PHP 1 million deposited. Maya Business Deposit’s zero maintaining balance and free transfers via InstaPay and PESONet also mean you’ll have even more cash on hand.
The Maya 1-2-3 Grow bundle also qualifies you for a Maya Flexi Loan offer, valued up to PHP 2 million, in just 3 months, just what you need to kickstart your inventory management upgrades. For better terms on your next loan offers, make Maya your go-to processor for all wallet and card transactions.
Send in your completed Maya Business application today to upgrade to a Maya POS and get boosted earnings and savings with Maya 1-2-3 Grow.
