LESSON 2: PRODUCT SELECTION & ORDERING
The success of any Cheese & Specialty department depends upon having the right product mix and an effective ordering system to ensure that the products you have selected are always available to your customers.
Product Selection
The key to good product selection is not necessarily having the broadest mix of products but having the right number of the right products for the size of your department.
Greater product mix does not always equal greater sales. Remember to apply the “80/20 rule” which states that 80 percent of your sales will be driven by 20 percent of your items. In the Specialty department, it’s almost always a wider spread than 20 percent of your items, but it’s crucial to know how many products drive the majority of your business.
Establish a “core” list of items and make sure they’re consistently available.
Recognize the culture of your community. Watch your customers, engage with them, listen to them and pay attention to what they say. When considering a product, think about what kind of customer will buy it.
Be sure to have every category represented to have a well-rounded selection
Define the subcategories, what is being referenced or list the basic 6/7 industry categories
Identify the subcategories that drive your sales and offer an expanded itemization within the subcategory.
Ordering and Buying
Taking the time to have an inventory and ordering system is vital to successfully operating your business. The two biggest pitfalls are over-ordering and under-ordering on specific items.
Strive for balance. Have enough product on hand, but not so much that you will suffer loss.
Refer regularly to sales reports, order histories and any other ordering records that can help you to order accurately.
Establish pars that quantify how much you need of a given product for its display to feel bountiful, well-stocked and fresh.
Take regular inventory.
Know the sell-by date range for each product.
Know what is actually selling.
Keep track of inventory you have to ‘shrink’ (inventory that has been used for samples, gone out of code, etc.). Quantity/piece or weight x unit or price per # = dollars. Track this daily or weekly for a monthly basis review.
Always order past the time frame from when your product is due to arrive. This will ensure that you have enough to serve your customers in case your delivery is late, or a bit more product sold the day before than was expected.
Helpful Tip: Don’t place orders just before the end of your shift. Allow yourself plenty of time to focus and get it done accurately.