When you are doing a retail inventory count, we can provide you with the inventory at cost vs. retail value. It is easier to give the cost value of items when we are doing a financial count, but your point-of-sale system will provide you with the cost price during a scanning audit. Knowing the value of your inventory at cost is also important during a transfer of ownership.
Doing a Financial Count to Break Down Inventory at Cost vs. Retail for a Retail Inventory Store
On your financial counts, we won’t be scanning everything on an item level. Instead, we will ask you for your departments ahead of time so that we can set your margins and apply them. If you would like us to break out novelty items from general merchandise, we can.
Using the cumulative margin, we will apply it to the retail value to get your cost value. That is how we will determine your average cost value. A financial count will only provide an average, but breaking out the inventory into different departments makes it more accurate.
Certain items are counted directly at cost if it is provided, like cigarettes. That means you will have 100% accurate cost values of those items, and if you were to apply the retail cost, you would add your markup.
Doing a Scanning Audit to Break Down Inventory at Cost vs. Retail for a Retail Inventory Store
Typically, we don’t provide you with a cost comparison during a scanning audit. This is because your system will automatically have your cost value for all the items we scan. So, when we import and update the quantities on hand, you can use your system to run that report. This will enable you to get your cost value for all your items, which will be a true cost value.
Transfer of Ownership
When going through a transfer of ownership, you will want everything at cost to know exactly what stock is on hand. During this process, we have done an inventory count all at cost and done the same count at retail. So using our margins, there’s not too much of a difference.
When you count everything on the shelf at your selling price, you will have that value and your cost values. Of course, we can do an inventory all at cost, but we can usually do a financial account and apply the margins.
Trust Monarch With Your Inventory Needs
Regardless of the type of inventory count you need, Monarch has the team, tools, and technology to help.
During the planning phase, we will send you a prep guide to help you organize your store before the count. Having a store organized by department and further broken out by product, flavor, brand, etc., makes the count more efficient.
Whether we are doing a financial count or scanning audit, having item locations, staff on hand, and a system for dealing with kick outs and Not Found items will lead to more accurate results.
By providing us with accurate information upfront, we can quickly get through your physical inventory count and present you with a report detailing your average cost or retail values.
We understand that time is money, and we want to provide accurate results in the shortest time possible. If your store is going through a transfer of ownership, you want to ensure that your systems are up-to-date with good legacy data.
Financial Count vs. Scanning Audit
Whether you need your inventory at cost or retail, we have the process and technology to help. Our technology is adaptable, allowing us to customize your inventory count to get the results you want.
So, contact our team if you want to learn more about how we break down inventory at cost vs. retail.
