How Retailers Can Better Manage Their Money

Posted by, Guest Post

Retail is all about flow.  Money goes out to maintain an inventory and it comes in from sales.  Managing that money properly is key to a successful retail business.  It is a juggling act.

The inventory is where most of the money sits.  A retail operation has to maintain a buffer supply of product to sell, and decisions have to be made about how much to buy and store.  If the number of categories of items is large, it becomes complex, and increasingly difficult to maintain the various items at a sensible level.  If there is too much of an item it will eventually have to be sold marked down if buying trends change.  If there is too little of the item in stock, there is the possibility of running out and missing sales.

There was a time when only large retail outlets could manage their inventory automatically, but POS software of various kinds have made this possible for almost everyone.  The benefits of retail software are numerous.  Items can be ordered automatically when stocks run low.  Keeping an automated eye on the stock levels gives the retailer the confidence to stock less, to stock more leanly and prevent money being tied up in units which may never sell.

Buying trends can be monitored across large numbers of product categories using retail software.  It becomes easy to gather statistics of marketing strategies to see what strategies are effective in terms of units sold.  Retailers can tell at a glance which suppliers products are under-achieving and that data can be used as bargaining evidence when negotiating prices with suppliers.

Marketing strategies which include mark down sales and the ubiquitous two-for-one need to be closely monitored.  Without careful analysis these plans may simply lose money.  A direct study of the number of items sold may suggest a loss but overlook the extra sales caused by increased foot traffic.  Retail software is valuable in showing exactly where money is being lost, or can be saved.

There are many schemes available to the retailer for greater control and analysis of inventory, such as Open-to-Buy plans, which retailers can use to plan their purchasing requirements over certain time periods.  These schemes can be calculated on paper, on a spreadsheet, or with specialized software.

Even for traditional retailers, creating an e-commerce site can help to monitor trends in consumer behavior and therefore help to manage their inventory more effectively.  Creating an integrated traditional and e-commerce plan is a very affordable way to track what consumers are buying.  For a retailer with a bricks and mortar outlet, the online version of their store will accurately reflect what their typical customer base is buying.  Sales online are likely to be similar to sales in the store.

The key to better management of money in the retail trade is knowing what people are buying, and what they are likely to buy in the near future.  That information will translate to a more effective and responsive inventory, with less money tied up in stock.  Retail software and e-commerce solutions free up money from bloated inventories and are the tools that keep retailers competitive.

About Cashier Live

Cashier Live provides POS systems for small business. Whether you’re looking to have an easier checkout, analyze checkout data, or find new POS hardware pieces, Cashier Live is a solution for all your POS software and hardware needs.

LILA Route into Bankruptcy

Posted by, Guest Post

The Low Income Low Asset (LILA) route into bankruptcy is an alternative route into bankruptcy, for those with a low income and few valuable assets.

According to figures released by Accountancy in Bankruptcy, Scotland’s Accountancy Service, nearly half of people entering bankruptcy took the LILA route in Q1 this financial year (April-June).

There were 5,319 personal insolvencies in Scotland in the first quarter of 2011/12; which represents 25% more than in the previous quarter, but 1% less than in the same period in 2010/11.

2,947 of those insolvencies were awards of bankruptcy. This is 10% higher than in the previous quarter, but 6% lower than in Q1 last year.

Approximately 44% of all bankruptcies in Q1 2011/12 were awarded through LILA: that’s 1,305 LILA bankruptcies.

How does the LILA route work?

LILA stands for Low Income, Low Assets. It was created to help people with debts they can no longer afford to repay, to apply for bankruptcy – in particular, people with low incomes and few valuable assets.

There is a set limit to how much you can earn to be eligible for the LILA route into bankruptcy. Also, there is a limit to the value of the assets you can own if you want to apply. If you had any valuable assets worth more than £1,000 each (or £10,000 in total), you would have to apply for a ‘normal’ bankruptcy.

There is a small application fee to pay. You would only be entered into bankruptcy this way if the application was accepted.

People who take this route into bankruptcy will have their unsecured debts written off and will be protected from further action from their lenders.

Once an application for the LILA route into bankruptcy has been accepted, a borrower will no longer have to deal directly with their lenders.

Using the Internet to research Home Loans

Posted by, Money Tips staff writer

The biggest purchase a family will probably ever make is their home.  Researching how to make an informed choice on where and what type of home loan to apply for can seem to be a lot of work. It truly isn’t though.  Anyone who has access to the Internet can cut their research time down by merely researching instead on different types of home loans.

There are literally thousands of articles out there that can educate a consumer on any topic they need. This is truly a benefit that the age-of-Internet has brought to consumers. There are many online sites that will give you the benefit of their research to help anyone to find just the right home loan.  So researching via the Internet, will find a person all they would need to know about the different types of loans.

In this regard, the Internet makes it so much easier for the consumer who is contemplating becoming a first time home owner, to research types of home loans. Letting someone else who has done all the research inform the consumer is a great time-saving tool for busy consumers.

The simple act of typing what the loan is needed for and asking for the top recommendations from experts can prepare them to get their loan. Using all the technological tools available will greatly minimize finding out all a person needs to know on this subject.

The consumer contemplating the types of home loans can learn all they need to know about the difference in each. There are VA loans or Veterans Association loans. If at any time you’ve served in the service a consumer may qualify for this type of mortgage. It basically is a mortgage that is secured by the military. Basically, they the military, becomes the co-signer.

Then another option is the FHA or the Federal Housing Association. FHA loans are usually made available to lower income consumers, which reside in America. These loans are usually backed by the government. These loans can be very helpful to people that cannot afford a conventional down payment.

Then there are variable rate loans and fixed rate loans. The difference between a fixed rate and a variable rate are in how they set the interest that a consumer needs to repay. Obviously the fixed rate is one interest rate that is set for the term of the loan. A variable rate is one that the interest rate fluctuates during the course of the loan. Obviously there are advantages and disadvantages to each and a fair amount of research will be required to pick out just the right rate for the prospective home owner.

Here is where types of home loans come in handy. The research to be an informed consumer in the area of home loans can be greatly cut down by the Internets vast amount of available research. Not only can a consumer learn exactly what’s available out there for them to choose from, but, they can learn the right questions to ask when actually picking one.