#010: How to Identify and Eliminate “Cash Flow Eaters” in Inventory

Cash flow challenges often send retailers scrambling to boost traffic or launch sales, but those fixes are just band-aids. 

This episode kicks off our Top 7 Money Makers to Focus on in 2025 series! In this episode, Cathy dives deep into the root cause: cash flow eaters hiding in your inventory. Learn how to manage your inventory more effectively, run strategic clearance sales, and boost your profit margins without slashing prices on your best sellers. This episode is packed with actionable tips on cash flow management, inventory control, and getting rid of dead stock that drains your bottom line.

If you're ready to stop letting your inventory drag your cash flow down and start running clearance sales the right way, this episode is for you.

What You’ll Learn:

• How to spot cash flow eaters in your inventory and eliminate them
• Why inventory turnover is crucial for maintaining healthy profit margins
• Using the Good, Bad, Ugly framework to categorize stock
• Shifting your mindset: Why clearance sales aren’t a failure they’re a smart sales strategy

Key Takeaways:

• [01:25] The hidden costs of relying on storewide sales as a “band-aid” solution
• [09:55] Why inventory is like a banana, not a fine wine – the importance of inventory control
• [11:05] How to categorize inventory into Good, Bad, and Ugly and what to do with each category

Resources and Links:

• Episode 8: The Hidden Costs of Inventory Hoarding
• Episode 9: Eradicating Dead Stock with a New Income Stream
• Clearance Sale Secrets: Get the program that helps you liquidate unwanted retail inventory in just six weeks without destroying your profit margins or discounting best sellers
• Ready to coach up? If you’re already at 6 figures and ready to scale up to 7 figures, watch our free class: 3 Steps to Maximize Profit & Reduce Overwhelm.
• If you’re not there just yet, watch: How to Increase Your Sales So You Can Consistently Pay Yourself & Your Staff. Together, we'll help you build the profitable, sustainable business you've always dreamed of – one that lets you sleep better at night knowing your retail dreams are becoming reality.
• Follow us on social media for more updates! Facebook / Instagram 
• Join the community with ambitious store owners in our Richer Retailer Facebook Group

Have questions? Reach out via email!

Millie Moment:

1. Calculate Your Inventory at Retail: Make sure it doesn’t exceed half your annual sales.
2. Organize Sales Inventory: Use the Good, Bad, Ugly method to identify what’s helping or hurting your cash flow.
3. Run a Clearance Sale the Right Way: Eliminate cash flow eaters without slashing your profit margins.

Share This Episode: Send it to a fellow retailer who needs help managing their inventory and improving their cash flow.

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