Sales are down and, as part of your sales strategy, you’re looking to add a new team member or two to your marketing department. To bring in more customers, you need to figure out whether you can free up enough working capital to afford the hire. Using CHATA.AI, it’s easy to dig into your sales and inventory data. You’ll be able to see if there are opportunities to free up working capital by dropping low-performing products or services.
You’ll want to explore which items you can you cut from your inventory and which are costing you money to keep in stock.
In Data Chat, ask for “Bottom 5 items by sales this year”. For each of the items you’ve discovered, ask “Monthly sales for item X this year”. Select a line graph to see whether sales are trending downwards, or if they’re always low for a certain product.
Take a look at your inventory for these low sale or downward-trending items and ask “Quantity on hand for item X monthly”. Repeat this for all five items. If you see you’ve been ordering less and less of the item, you know it may be possible to drop it entirely. If you’re keeping or continuing to buy more stock of a low-selling product, you can save money by purchasing less of that item.
At this point, you’ll have a clear idea of which products you can drop, but you don’t want to leave your best customers high and dry.
Ask “Top 5 customers” and drill down to see if they purchase any of those bottom five items. If they have purchased any of the bottom five items, take a look at how often they’ve purchased. Consider whether they are likely to buy those products again. Is the product a necessary restock item? Or is it a one-time purchase or an infrequent buy? You can also ask “Sales by customer for item X” and repeat for the five items.
When you’re finished exploring this data, you’ll know which items to keep, drop, or keep less stock of. This allows you to make decisions that will free up working capital in line with your sales strategy and ultimately allow you to hire that new team member you’ve been looking to bring on.
Check out more ways you can use CHATA.AI’s features to help you turn business data into the powerful insights that put you on the road to success.