Buying and Merchandising
customers. However, if the turnover becomes too high, sales may be lost becauseof reduced customer selection.
How to Calculate Inventory Turnover?
Here's how we calculate inventory turns to help create a proper inventory control:
Here is How:
Start with the Beginning Inventory At Cost (purchase price)2.
Add Purchases At Cost3.
Subtract Ending Inventory At Cost4.
Subtract Cost of Scrapped and Lost items (if applicable)5.
Divide by the Cost of Sales6.
The result is the number of times the average inventory is sold and replaced.
Inventory Turnover = (Beginning Inventory at Cost + Purchases at Cost
End Inventory at cost
cost of lost or scrapped item) divided byCost of Sales
You should note that:1.
Inventory turnover can be calculated in whole, as well as by department ormerchandise category.2.
Inventory turns can be calculated by the month, quarter, season or year.
Turn Returns into Sales (Sale of Returned Goods)
Once a product or service is sold to a customer, the last thing a Retailer wants isto get that item back. However, the return of purchased item and refunds are areality of retailing and also a measure to satisfy the customers. Following are thecustomer service skills to how to turn those inconvenient returns into exchangesand avoid refunds.1.
Listen and Learn:
Start the return transaction by genuinely listening to thecustomer. This allows the customer to be heard and it is your chance to
understand the Shopper’s needs. Once the customer is finished speaking,
begin asking any unanswered questions to establish the reason for the return.Explore why is the item being returned? What is wrong with the item? Whatend result is the customer seeking? Once the reason for the return is known,customer care associate can offer solutions to the problem. If not possible at