#051: Too Much Inventory, Too Little Profit? Find Your Goldilocks Zone

You’ve built a beautiful store and customers are buying… so why doesn’t your cash flow feel as strong as your sales? Let’s fix that.

In this episode, Cathy dives into one of the most misunderstood parts of running a store: inventory turn and freshness.

Broadcasting straight from Disney World, Cathy shares a magical analogy that will forever change the way you look at your backroom: Your inventory is just like a bathtub! 

If you’ve ever struggled with overbuying, stale stock, or slow cash flow, this episode is your fresh start to making your inventory work for you, not against you.

What You’ll Learn in This Episode

• The “Goldilocks zone” of inventory that fuels steady cash flow
• How to measure your inventory turn (and what number to aim for)
• Why freshness is the secret to happy customers and higher margins

Key Takeaways:

• [01:52] Understanding Inventory Turn
• [06:14] The Importance of Freshness in Inventory
• [08:10] The Goldilocks zone: finding that perfect balance between too much and too little
• [09:13] Identifying and Managing Old Inventory

Your Millie Moment 

Want to see where your profit potential is hiding? Here’s your homework from Cathy:

• Calculate your inventory turn for last year, take your annual sales and divide them by your average inventory.
• Then, check your freshness today, look at how many dollars (or units) you’ve received in the last 90 days and divide that by your total on-hand inventory.

These two numbers tell the story of how hard your inventory is working for you and where your next profit breakthrough is waiting.

Resources & Links

• Episode 029: Want to Scale Your Retail Business. Fix This First
• Episode 035: Encore: The Hidden Cost of Inventory Hoarding
• Episode 010: How to Identify and Eliminate “Cash Flow Eaters” in Inventory
• Episode 013: How to Stay Ahead of Retail Cash Flow Challenges: 2 Strategies for Success
• Is your turn and freshness not where it should be? In our Profit Club program we can identify the slow movers, create a plan for moving them out, and determine what inventory to replace it with to make your inventory fresh & profitable. Apply for your free Gameplan Call, where we’ll identify your growth opportunities and map out the most profitable next steps to elevate your visibility, attract the right customers, and scale with confidence.
• Follow us on social media for more updates! Facebook / Instagram

Join the community with ambitious store owners in our Richer Retailer Facebook Group

💚 Remember: You’re not just managing numbers or products, you’re nurturing the heartbeat of your business. Every time you refresh your inventory and keep it flowing, you’re creating new energy, new excitement, and new profit. Trust yourself, keep that flow going, and remember, your store is meant to thrive, just like you.