The expression ‘take stock’ is a well-worn idiom meaning to consider first and act later.
But it is quite remarkable how many independent optical practices do not set aside the time to consider how decisions on stock control can affect the profitability of their practice.
Independents Day on November 6 will be headlined ‘detail for successful retail’ and will include sessions on a whole variety of operating issues relating to the topic of stock. As well as presenting in the afternoon, I will be around to answer questions on how improved inventory management can impact on key areas such as profitability; practice valuation; business Tax; accounts and financing.
I look forward to meeting up with many old friends and new practice owners. In the meantime, you might like to consider the questions below and their impact on both your practice and your pocket.
Why do you maintain the inventory lines you currently stock? What factors determine the shelf position of each line of stock? How many frames of each line do you dispense each month and what is the relationship between this number and the position and amount of pieces held in stock?
If the answer to each of the above three questions is ‘because we’ve always done it this way’, then you are tying up cash that could be put to much better use invested elsewhere in your practice.
Marc Bennett FCA, MD of AEL Markhams, specialist accountants to the optical sector