Retailers who specialize in selling luxury items have to focus on keeping expenses down, just like any other business. To maintain prestige but also offer a big value, luxury retailers need to balance goods’ costs so they can earn a healthy profit and keep sales strong without raising or lowering prices too much.
The danger of lowering prices too much is that your products may no longer seem as prestigious. A high price commands respect. However, even the affluent have limits on how much they’re willing to pay for items, and raising prices increases the risk of hitting those limits.
A big part of the solution to this problem of finding the right balance between products costs and prices is using Fishbowl’s inventory management software. Fishbowl helps keep costs down by:
- Making sure you don’t overstock on, or run out of, products.
- Streamlining and automating processes.
- Reducing warehouse staff needs.
- Using barcode scanners and other tools to make ordering, receiving, and picking products easier.
Inventory management software also helps with setting prices for products by:
- Measuring all costs that go into products.
- Calculating landed costs.
- Creating pricing rules for certain customers and/or products.
Luxury retailers are just like other retailers in most respects. By using inventory management software, you can keep costs down, effectively control your inventory, and keep many aspects of your business running smoothly.