A physical retail inventory count is a vital resource for your business and helps you get a good idea of your store’s performance.
It helps you assess inventory levels and the effectiveness of your point-of-sale (POS) system while ensuring your inventory processes are effective.
Accurate data on your inventory level is crucial to the success of your business, and understanding the difference between an item level and a financial level count can help you decide what your business needs.
Financial Level Physical Retail Inventory Count
A financial level count is a cost-effective option when doing physical retail inventory. It provides a category dollar value for your store and will also give you the overall dollar value by multiplying the price by the quantity of the total items in your store.
We will count each of the items that fall into your respective departments and categories. At the end, you will have a total dollar amount that reflects the value of just that department in your store.
If we know your margins, we can calculate your cost percentage average. We can also show you the retail value of everything we counted at the price you sell it for and the dollar value of your costs. This is an average because we won’t have individual costs for each item.
Benefits of financial physical retail inventory counts:
- It is more cost-effective
- It is a quick way to get a good retail value estimate for your store
- It allows you to review how your store is doing
- You can see individual department performance
- You can check your dollar amounts to see inventory levels
Item-Level Physical Retail Inventory Count
An item-level count involves more manual processes. We’ll load data from your POS system into our handheld scanners. Using this process, we can capture the exact quantity of items you have in your store.
We use your data and our equipment to scan the barcode and count the number of individual products. When we have finished, we have comprehensive data for your actual inventory on hand and not just a dollar amount per category.
How Can Monarch Help?
At Monarch, we offer many first-time clients a one-time scanning inventory.
This provides them with accurate data and a good starting point. This approach is ideal if it’s your first time working with a POS system or if you want to compare existing data or update your system.
Once we have completed a count and the data is entered into your system, we will spend some time consulting and working with you on managing and keeping up with regular inventory counts.
A one-time scanning inventory offers you a good base. You can then have an accurate idea of inventory levels based on the dollar amounts from your POS reports.
We can come back and do a financial inventory a couple of months after that initial item-level count. This more cost-effective option allows you to see where your dollar amounts have shifted over the previous month.
If your data is inaccurate, there might be a problem with your items or your POS system. If your numbers are fairly accurate, this means your systems are working, and your team is doing your physical retail inventory count correctly.
Choosing the Best Fit for your Business
Your business will need an item-level and a financial-level count at some stage, and we are here to help.
Whether it’s updating your systems with clean data or providing an economical option to check you’re on the right track, contact us for a personalized solution for your physical retail inventory count.