So, what's old?

What's new? Without a doubt, this is the No. 1 question on the lips of every person involved in this industry. Whether you are a manufacturer, sales rep or retailer, this is generally the way every conversation starts when two people in this industry meet anywhere in the world.

However, we're not going to talk about the new today, we're going to talk about the old. Why? It's very simple. I believe there is lots of money left on the table by not paying attention to the "old" product (which is continuing to sell) in stores or vendor's warehouses.

Have you ever heard that old statement that a person's, or company's, biggest strength is also their biggest weakness? The absolute strength of this industry, above all else, is its ability to constantly create new product. Unfortunately, this can cause us to not always maximize our sales out of older items.

As much as technology has moved all of us forward in business, nothing replaces the age-old wonder of simply taking an inventory. After all, the majority of the retailers out there don't have POS systems. Nothing will point out to you what you may be missing in lost sales better than a simple inventory. Most importantly, this is a basic part of doing business that should always be handled before any discussion of new items takes place.

But realistically, how does this happen in this fast paced world? As with almost anything else, it always starts with proper attitude and policies.

If you are a retailer, do you have a system in place where someone on your staff takes an accurate inventory of all products you receive, say, four weeks after you have received it? The timeframe can vary, but my point is: Don't just receive your product, put it out and forget about it. Set up a system so it will be checked on regularly so reorders are placed at the right time. You'll also be surprised at how many "lost souls" will turn up. I'm talking about those items that were put on the shelf, sold and no one noticed that there were still some in the back room. A proper inventory system will help you stay on top of some of your best sellers.

If you are a sales representative, what time do you show up at stores for a 10 a.m. appointment? If your answer is 10 a.m., you're not doing a very good job. A buyer's time is precious, and if you are a professional rep, you will show up early to review and inventory all of the products you already have in the store, and prepare a suggested reorder for the buyer's review.

Your buyer will appreciate the fact that you're there to be an unpaid member of their team, straightening your product, counting it for them and making sure they have more on the way if needed. A good buyer will always be more willing to buy product from a salesperson who shows that kind of interest in their sales, as opposed to most reps who just drop by to quickly show the latest new releases.

If you are a vendor, what are you doing to help your retailers make this job easier? Are you e-mailing them four weeks after they receive a shipment, with an attached listing of all the product they received and an inventory column that their clerks can use? If you don't have their e-mail address, are you mailing it to them? The method here really doesn't matter. What does matter is that you show the retailers that your product line is good enough to stay on top of, and that you're willing to help them do so by providing them with simple tools to use.

There are many basic strategies to be utilized in running a successful business. Some of them only work for very specific businesses, but always being aware of what's selling, and getting reorders out quickly, works for everyone in this food chain.

This also speaks to the most important rule of business. Always, always look for ways to lower your risk at all times. When it comes to new items, no matter how good you feel about the product, there is still a chance that the consumer will not buy them. This represents risk. All of us have bought items that we just knew the public would accept, only to be disappointed later. Old items, on the other hand, if inventories show repeated sales, offer virtually zero risk. Continue to reorder them until you start to see a slowdown, then pull back as the item goes through its life cycle.

One last benefit of taking inventories: They will also show you what is not selling, and this is just as important to you as knowing what is. If several inventories show no movement, first, change the display or the location of the product in your store or showroom. If it still doesn't sell, close it out, turn the trash into cash and then look at all those great new items!

So, what's old?

Watch this space every month for Business Memo. Our experts will present ideas and examples to help you be more successful in operating your own business. Nextmonth: Suze Bragg on the Internet.