Robyn Johnson from Best From The Nest hosted a webinar, along with IL’s Kim McCaffery, that explained the 10 ways she uses InventoryLab to save over 20 hours a month. They shared a lot of great ideas during their time together, and this series will highlight some of those ideas and provide you with additional resources and commentary to expand on their discussion. This article is all about profitability and inventory valuation reports offered within InventoryLab.

Look For Your Profit Centers

Robyn uses the Category and Supplier profitability reports within InventoryLab to maximize her shopping. If you haven’t looked at these recently, don’t click yet! First, write down what you think your best category and supplier will be. Now, hop on over to InventoryLab and check them out.

Were you correct? Sometimes we lose touch with pieces of our business and need reminders on what products are actually our bread and butter. It can be tempting to chase the hot items, or the ones that excite us. But there may be some “boring” replenishments that are actually making you the most money.

Robyn recommends keeping track of your average spend per hour by store. If you can go into Store A and drop $1,000/hour but at Store B you only spend $200/hour and your supplier profitability is similar in both or not much higher for Store A, then you may want to focus more time on sourcing in Store A to elevate the return on your time invested.

The Data Point That ALONE Makes InventoryLab Worth The Cost

Year end inventory value. A sentence that strikes fear into sellers the first time their accountant mentions it when they are doing your taxes. Don’t make the mistake so many sellers have made and not have this captured on 12/31!

InventoryLab tracks the value of your active inventory each day and displays it in the Inventory Valuation report.  When your accountant asks for your year end Inventory Value total, all you need to do is go to the report and find the value from 12/31. As long as your costs are all entered for your active inventory before 12/31, the Inventory Valuation report will give you the correct total needed for your taxes.

 

Robyn JohnsonRobyn Johnson started with just $100 and grew that into a seven figure business. She has taken her nerdy passion of selling on Amazon and become an expert on selling on the marketplaces.

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