July 8, 2025 • 27 mins
In today’s Retail Roundup we discuss the importance of inventory management with Danielle Malconian of Plus by Design. We all know that managing your inventory is one of the most important things you do. If not done well it gets costly, very quickly. Listen in...
WESA Retail Roundup July 7, 2025:
- Host: Glenn the Geek, Host of Horses in the Morning
- Facebook: Retail Roundup Facebook group
- Guest: Danielle Malconian by Plus by Design, Los Angeles County, CA
- Link to WESA PartnerShip
- Presented By: Western English Sales Association
Takeaways:
- Effective inventory management is crucial for retail success as it directly impacts profitability.
- Using inventory management software can significantly enhance the accuracy and efficiency of stock management.
- Retailers often become fatigued with their merchandise before customers do, leading to misjudged sales potential.
- The importance of understanding customer preferences is paramount when considering product line expansions.
- Planning for seasonal inventory and understanding market trends can mitigate potential financial losses.
- Maintaining a healthy inventory level requires careful analysis of sales data and customer demand.
Chapters
00:04 - Introduction to the Horse Radio Network
04:06 - Inventory Management Strategies
13:12 - Navigating Inventory Decisions
17:31 - Managing Inventory and Customer Demands
22:38 - Navigating Trends and Inventory Management
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:00):
Foreign.
You are listening to the HorseRadio Network, part of the Equine
Network family.
Well, hi everybody.
Glenn the Geek, back with you.
Founder of the Horse RadioNetwork and host of Horses in the
Morning.
The daily podcast has beengoing on for 15 years now.
Welcome to the WESA Retail Roundup.
(00:21):
The Retail Roundup is your goto virtual hub for all things retail.
Join panel discussions, learnfrom webinars, share your thoughts,
ask questions and connect withyour community.
We host a virtual event orshare educational content every Monday
via the Retail RoundupFacebook group.
You want to join that group?
If you haven't yet, head onover to Facebook, look for Retail
Roundup and join that group.
That's where we all communicate.
(00:41):
That's where we keep in touchand let you know what's happening.
And we're only a month awaynow from WESA over in Dallas.
We'll all be there in personlooking at new products and things
that are happening in the, inthe world.
So excited to meet some of youover there.
In today's Retail Roundup, wediscuss the importance of inventory
management.
Everybody's favorite thingwith Danielle Malconian of Plus by
(01:04):
Design.
We all know that managing yourinventory is one of the most important
things you do and if not donewell, it gets costly very quickly.
So Danielle, thanks forjoining us.
Thank you very much for having me.
I appreciate it.
Did I get the last name right?
Malconian.
You did.
Well done, Malconian.
Yes.
Yay.
I love that last name.
Thank you.
So tell us where you're located.
(01:27):
We, we are located in LosAngeles, California.
We ship out of a warehousehere in Chatsworth.
And what is plus by Design?
Plus by Design is a onlineretailer of women's plus size clothing.
We offer a high qualityclothing that women wear to work
or to special occasions.
(01:49):
And it's a product that can,that is, that lasts a long time.
And, and we have a very loyal following.
The brand, main brand we sellis called Vicki V and that's been
around for about 30 years.
And, and I've been working atmultiple brands.
You work with multiple.
We do have multiple brands, yes.
But I also manufacture theVicky V label and you.
(02:09):
So what I'm getting to is, youknow a little bit about having a
number of skus.
Because nothing has more skusthan clothing.
Yes, yes, we are over skewedin the clothing business.
Yes, well, that's what we'regoing to talk about, you know, and
I think that's why Jennifercontacted you about inventory management,
because you know a little bitabout that.
(02:30):
You're on the manufacturerside, but also the retail side.
So you're handling it.
I am.
I've been on the retail sidefor a very long time.
Yes.
With department store and nowas my own company for 25 years.
I wanted to mention, too, youdo have a connection to the horse
world.
Your daughter is involved withtherapeutic Riding Center.
My daughter, Juliet, yes.
She sees clients at threedifferent barns in Sonoma County.
(02:54):
County in California.
And she's been a horsewoman aslong as I can remember.
So she's gonna love this.
I'm gonna send her the linkand she'll love it.
Way to go, mom.
Yeah, yeah, she'll be so.
It's really great.
She's gonna have you riding next.
I don't know.
(03:14):
I don't know where that camefrom, to be honest with you.
I'm allergic to hay.
It just starts.
It just starts when they'reabout four, and then it goes.
Exactly.
She would wake up.
Mom, I. I had a dream therewas a horse in the backyard.
I'm like, okay, at what agedid she get the horse in the backyard?
She didn't have a horse in her backyard.
(03:35):
We had to go to the barns.
Sorry.
There you go.
I don't live in a place tohave a horse.
Yeah, you're the kind of anexpensive area to have horses in
the backyard.
I'm a city gal.
Exactly.
I'm a city gal.
Well, then her saddlery wouldbe Calabasas.
That's right.
That's right.
Yeah.
We've spent many, many times.
Many.
I was just there recentlybuying her birthday gifts.
(03:57):
So many dollars.
Yeah.
That's a great place.
It is.
Many dollars.
That's right.
That's a cool store, though.
Yes, it is.
All right, so let's talk aboutinventory management.
Okay, so first question.
How do.
How do you make decisions onwhat and how much to carry?
How do you do it?
What do you.
What are you.
What's your thought processthat goes into that?
(04:20):
I've always followed a plan oftrying to carry what I would sell
within three months.
Has.
Has always been my.
I think I learned that atNordstrom, to be honest with you.
I worked for Nordstrom in the90s, and that's kind of the way they
did it, and it made a lot ofsense to me.
So I take my.
My average cost of goodsnumber having to do with my sales,
(04:44):
and then I multiply that by three.
So what I was talking aboutwas the high level amount of inventory
to carry for your store to behealthy is three months worth of
a dollar amount.
Okay.
So that's how I decide howmuch inventory to carry.
Generally when you're talkingabout replenishment, which I think
(05:06):
is what you're.
Especially a store thatcarries the same type of things all
the time, and they're justreplenishing sizes and colors and
that sort of thing.
And is.
I use inventory managementsoftware, which is really, I used
to do it by hand, you know,and now there's so much software
out there that can tell us,they can look at the history of our
(05:29):
selling and tell us what weneed in the future with a few different
parameters set, you know, howlong it's going to take you to get
the shipment, how, how longyou want to be in stock.
You know, a lot of differentparameters there.
What software are you using?
I use inventory planner.
(05:50):
Was there a reason you likethat particular one?
You know, I tested a couplewhen I was looking for an inventory
software and I just wantedsomething really robust that had
planning tools that would keeptrack of all my sales.
I was looking for somethingthat was really good at predicting
what I would need for the future.
(06:12):
Has it been good?
Has it been accurate?
It has been accurate.
You have to be careful withsome of the prediction software.
You have to make sure that allthose little levers are set about
how long it takes to get theproduct, how long you want to be
in stock.
That really makes a differencein getting the accurate information
(06:33):
of what to order.
Style is a problem too, inyour world, right?
I mean, isn't that something?
You're also taking a look atwhat's coming in, what's going out?
Fashion.
Fashion.
It's funny that you mentionedthat because I'm going through that
today, actually.
I've gotten a new collectionin which is a bright lemon color.
(06:53):
And if you know anything aboutfashion, it's a little late in the
season to bring in bright lemon.
If I had my druthers, I.
It would have arrived back inMarch, but, you know, it's fabric
coming from Korea.
And so now I'm introducingLimoncello in July and trying to
decide whether or not to offerit at full price or give a little
(07:14):
discount.
So you do have to be worriedabout seasonality, especially in
the clothing.
In the fashion clothing area.
I know a lot of these storesdo carry that.
And, and if you're bringing ina new, brand new product line, what
is your thinking then?
Do you take a look at similarproducts like it to decide how much
to buy or.
I do.
I mean, I look at all my history.
(07:36):
I. I go over what size is soldand where.
And a hard thing for me rightnow is that are losing weight because
there's a trend OIC and the GS1s.
So that has skewed my sizes alittle bit.
And I think that's probablytrue a lot, you know, across the
board for people.
Not just plus size clothing,but when I'm bringing in something
(07:59):
brand new, honestly, there isa lot of guessing.
So the educated guess isprobably where.
Where it is.
Which if you have the longerthe history you have, the more you
can.
Exactly.
You know correctly.
Right, exactly.
And honestly, as much educatedguessing as I've done and whenever
(08:20):
I'm absolutely, positivelysure that something is going to sell,
it doesn't.
And whenever I think somethingis a total dog and it's never going
to sell, it's the first thing gone.
So that has not changed sinceyour Nordstrom days either.
That has not changed since myNordstrom days.
It's just.
Okay.
Oh, you like that one instead?
(08:41):
All right, it's true.
It's true.
Oh my goodness.
How do you decide then?
I'm going to follow thatthread through what you just said.
How do you decide when it'stime to cut bait and, you know, put
it on sale and get rid of itand run?
Is there a magic number you'relooking for if it hasn't, you know,
if 50% of it hasn't soldthrough in three months?
(09:03):
If, you know, do you have amagic number there?
Well, it depends on what it is.
And one of the things Ilearned at Nordstrom is to split
my inventory into what Iwanted to carry all the time and
what I wanted to carry seasonally.
So the, what I carry all thetime doesn't go on sale.
And I just try and keep itstocked the way that it should be
(09:23):
stocked.
Like your basic riding pant,you know, basic black riding pant
that sells day in and day out.
You don't think about it, youjust keep it stocked.
But when you're talking aboutthe, the cool zip up printed thing
from the latest vendor, I giveit, I still use that three month
rule from Nordstrom.
(09:44):
It kind of, it kind of inthat, in that same place, the problem
is you can't mark downsomething too quickly or the people
that, the few people thatbought it at full price, it just
kind of detracts from your honorability.
You know, you want to have areputation that this is the price
it is and this is, you know,this is what we believe it should
sell.
(10:04):
So you do have to wait and youcan Do a little flash sale when you
have stuff like that withouttouching, you know, without redlining
your item.
If you're a retail brick andmortar store or even online, try
not to actually mark down theitem until you absolutely have to
do little flash sales, dobundle sales, little things like
(10:26):
that, to get people to buysome of those things that aren't
moving so quickly.
How often do you look at the inventory?
Every day.
I look at my inventory everyday and I, you know, it's mostly
because when you're.
I don't know if your listenersare mostly online or brick and mortars,
is it kind of half and half.
Right.
(10:47):
So when you're online andthese days especially, you have to
have live inventory, you know,so what you have needs to be what's
online.
So, you know, back in the olddays, in the brick and mortar days,
you would do inventory maybeonce, twice a year and be like, oh,
okay, you know, that's what we have.
But today, if somebody orderssomething in a 1x, a yellow top in
(11:11):
a 1x and I don't have it, thenthat's a customer service issue.
So our inventory needs to bevery accurate all the time.
Yeah.
Especially with online.
That changed 20 years ago.
Right?
I mean, for all of us.
Yes, exactly.
Yeah.
I mean, and when it firststarted, though, people were still
not necessarily linking theirinventory to their online, and they
(11:32):
would just let it sell andthen get a hold of the customer or
whatever.
It just doesn't make sense todo that now.
Amazon changed that.
Yeah, good old Amazon.
Amazon changed everything.
Yeah.
Expectation was the big thing,you know.
Right.
It's hurt a lot of small stores.
It really has.
No question.
It's unfortunate, especially.
(11:52):
They can, they can order ittoday and get it tomorrow.
And it's really, it's.
I think, you know, there's.
There's a little bit of apendulum swing coming back to people
wanting to shop in the smallerstores, though.
I'm.
I'm feeling that myself.
I did a survey with our horselisteners, our super fans, and we
asked them how they felt aboutAmazon, and It was about 50, 50.
(12:14):
I was surprised at how manysaid, I'll never shop there again.
It was about 50% and then 50%.
Looking forward to prime day.
Right.
So it was about 50.
I don't think it's ever been 50.
50 before.
I think so.
You're right, is what I'm saying.
I think that is there is achange going on there with a certain
percentage of the population,because we don't.
(12:35):
Want to see these brick andmortar stores go out of business
and it's becoming more andmore obvious that that's what's going
to happen.
And you're not going to beable to go into that store and say
hi to the owner and do all that.
So it's important.
And the other problem we have,of course in our world is there's
less and less brick and mortar stores.
Right.
So some of our listeners, whenwe've done sur in the past are six,
(12:56):
eight hours from a physicalstore that carries anything horsey.
Right.
So they're orderingeverything, same thing in plus size
clothing.
Yes, true.
Yeah, right, true.
There used to be stores aroundall over the place that had it.
Yeah.
Not anymore.
So what would you say thebiggest mistake people make in inventory
management stores.
(13:17):
Specifically, you know,retails, as, as retailers, we get
tired of our merchandisebefore our customers do.
Oh, interesting.
And especially if you have newcustomers coming into your store
all the time, what you boughtsix months ago is still, is new to
them.
But we go to market and wethink, oh, I'm so tired of that.
(13:39):
Oh, let's, let's buy that.
We need, we need newness, weneed more and more and more and more
and more.
But you really have to take alook at your open to buy, which we
haven't really talked about,but the dollars that you have open
to actually go buying.
When you go to the market, weget excited.
You know, we, we love the business.
(14:00):
You know, it's like Christmaswhen the box.
Right.
You get to open what you order.
Like going to an auction.
Guilty.
It's awesome.
Exactly.
And so we have to tamp downthat excitement and really look at
the numbers and say, okay, youknow what, this is what I have to
spend.
This is what I think I can sell.
Even though I personally lovethat new dress, I don't think it's
(14:23):
the right time to buy it.
So it's just tamping down youremotions, I think for me.
Do you go to markets?
I do, I do.
So when you go to a market, doyou have in mind before you go, do
you have a plan?
Okay, I'm looking for, I'mlooking for shirts, you know, this
percentage of shirts, thispercentage of pants.
Do you break it down that way or.
I mean, I shop more incollections and vendors.
(14:44):
And the issue too with plussize clothing is there's not that
much availability.
So I do have a problem withthat and I do have a strong plan.
When I go in, I have to sayI'm guilty as charged though.
When I start talking to Asalesperson about their fantastic
line.
And what I've actually learnedto do is not write the order at the
(15:06):
show.
I just won't do it.
But they want you to show today.
You'Re gonna get 20% off offree shipping.
Yeah, I.
And you know what?
Maybe that is an enticement tome, but I. I've made the worst mistakes.
When I leave the paper at theshow, I would much rather.
I'll tell them, you know what,Let me go back to my hotel room.
(15:29):
Let me just work out my numbers.
Because you know what?
They also don't want to put inall the prices and give you a total
at the bottom when you're atthe show, they just want to put in
the items on the yellow page.
Right.
And you're supposed to belike, okay, sure.
So I tell them, you know what?
I want to go, and I just want to.
I want to add everything upand see exactly what I've spent today.
And I will get you the orderby the end of the night.
(15:51):
Hopefully you'll still honorthe 20 off.
Do you.
We were talking about leadtimes earlier.
You know, do you.
Have you changed your leadtimes now that things, you know,
shipping's weird.
Have you changed your lead times?
Are you still working off theold lead times?
Are you talking about imports?
Yeah.
(16:12):
Yeah.
So I don't really import anything.
Okay.
Our.
Our product is made here, butyou have to.
And one thing, you know, I'mgoing to bring up.
I deal with a lot of storeowners because I work for score.
I'm a business mentor, volunteer.
And one thing I've beenwarning them about is that some of
these vendors in China are notadding the tariffs to your pricing.
(16:34):
They're letting.
When you get your shipment.
Yeah.
They're letting you just get it.
Surprise.
Yeah.
So.
So people need to really beaware of that.
That practice of them gettingin orders.
That are fifteen hundreddollars and shipping's fifteen hundred
dollars, you know, with the.
Right.
Exactly, exactly.
So you have to be so carefulof that.
Yeah.
And it's hard because some ofthis stuff we can't get here.
(16:56):
You know, it's.
It's hard because you're justgoing to get it overseas regardless.
And, you know, and.
And, you know, it's so hard tokeep up.
Now, we had a talk on tariffsa couple of weeks ago in the show.
It's just hard to keep up.
Up, you know.
What's.
What's.
What?
Well, yeah, no, it is hard tokeep up because, you know, the minds
are getting changed every day.
(17:16):
So who knows what's actuallygoing to happen?
And exactly when you order thething, the tariff might be different
when it actually arrives.
So, you know, that is scary.
I would love to see themanufacturing come back to the United
States a little bit more, though.
I, I think there's apossibility that could happen.
So is there a point with, withyour inventories, okay, so on products
(17:41):
that are not the, the baselineproducts that you're going to keep,
is there a point with, withthe, with the seasonal product or
with the product you know iscoming and going, when you get to
a certain level of inventory,50% of that product, 20% of that
product that you're going to,you're going to get rid of it at
that point.
Do you have a level in mindfor those products?
(18:03):
You know, it, it reallydepends if it's, if it's a group
that hasn't.
I sell in a lot of collectionsof colors, right?
So I'll bring in one color, abunch of different skus.
If the, if the color has soldwell and I'm broken, we keep on breaking
up.
And, and if it sold well andthe sizes are broken and I know that
(18:28):
I cannot get any more.
That's really when I decide tomark it down because people like
to, to buy sets in my business.
So if they can get the jacket,but they can't get the pants anymore,
then that's the reason that Imark it down.
If it's not a color that soldwell, I do all those other things
I was talking about, likemaybe offer a flash sale or a bundle
(18:50):
or go through that before Iactually go ahead and mark it down.
I try to wait that threemonths at least.
So re.
You know, retailers grow, right?
We hope, we hope we're growingand you've grow as time went on.
It's.
You always seem to need to addto your collection, to your, to your
inventory before you canafford to add to your inventory.
(19:11):
You always need a new employeebefore you can afford the new employee.
It always works that way.
That's right.
How do you make that toughdecision that, okay, I'm doing pretty
well with what I'm, what I,what I have in inventory now.
I need to expand the line.
How do you make that decision?
That's a tough decision tomake because you're putting money
out there.
You know, that's, that'ssurplus, right?
That's above what you know.
(19:32):
It's a risk.
Yeah, that's right.
That's right.
And, and you, you bring up agood point is people need to understand
that when you're growing,anytime you grow your inventory beyond
the normal levels, you'reusing your profit.
Hopefully there's profit to dothat with.
So when you're feeling likeyou have a cash crunch, a cash flow
(19:53):
problem, it's probably in your inventory.
So you do have to use moneyfrom that bottom line to buy more
inventory.
And you're not going to get itback because you want to keep that
inventory at that new, higherlevel to sustain the growth.
So it is literally aninvestment in your business because
even if you sell that newinventory, you still need to replace
(20:14):
it.
So, you know, what you reallyhave to do is listen to your customers.
What are they walking in orcalling or emailing, asking for that
you don't currently offer, andreally think about that.
If you want to expand yourline, maybe you don't buy another
style of or another print top,but maybe you think, what are the
(20:37):
customers really asking forthat I don't have?
And try to fill those needsand that's a little less of a risk,
in my opinion.
And we have to be careful too,because when one person asks for
it, you think that everybodywants it.
I have a. I have a rule.
We get a lot of fan.
We've been doing these showsfor a long time and we get emails,
(20:58):
right.
And somebody will complainabout one thing or they'll want to
see something else.
I kind of discount that a bit.
I listen to it, I look at it,but I.
When I get four or five or tenemails about that same thing, then
I start to pay attention.
Same here.
When you're buying inventory,one person asked for that specific
thing.
Doesn't mean everybody wants.
Oh, that took me a long timeto learn.
It's hard.
(21:21):
I've wasted a lot of money.
I have wasted so much moneygoing after this.
Yes.
Oh, my gosh.
And I've got these sweet,sweet ladies that, oh, you know,
I need this, but I need toorder 12 of them to get you that
one.
Do you understand?
No, they don't.
And they don't care.
So I've learned to say no.
(21:42):
I've learned to say no.
Yep.
You have to say, if you hear.
From four or five ladies,then, then you start to think about
it.
Okay, then the 12's worth it, right?
Exactly.
But it's hard because peoplepleasers, you know, that's right.
And pay attention to the trends.
You know, the trends reallytell you, you know, reading your,
you know, staying up to dateon your magazines and online magazines,
(22:05):
obviously, and, and, you know,really Seeing what, what new thing
is out there because peopleare looking for those new things
as well.
How much are to find trends?
How much are you payingattention to TikTok and to Instagram
and those things out there?
Are you watching theinfluencers in.
In the plus space?
(22:25):
You know, I'm not, I'm notwatching the influencer.
They're.
They're young.
They're really young.
And my customers are 50 plus,so they're not necessarily.
I pay, you know what I do.
My biggest one is Pantone.
I watch what, what the colorof the year is, and it sets a tone.
It's.
It's really interesting.
(22:46):
I always think of paint when Ithink of Pantone.
Right?
Yeah.
Yeah.
But they, they set the colorof the year.
So anything else you want toleave with anybody about, give the
name of your software againthat you use.
The inventory software iscalled Inventory Planner, and I did
make a list.
(23:07):
There was Zoho inventory.
There was Sin7Core for scaling needs.
Zoho and Sin7Core, which is CI N7.
Yeah, Shopify.
But I, I don't really like.
I have a Shopify store, but Idon't use it really to manage my
inventory.
I don't find it robust enough.
(23:27):
But there are lots of appsthat Shopify works with.
Just use something, you know,that's the most important thing.
And, you know, one thing I'velearned over the many, many years
is when you have a bad day,just try to let it go.
It doesn't mean that the salesare never going to come again.
I literally have to tellmyself that all the time.
(23:49):
It's just, you know what,people are busy.
And especially right now, it'ssummertime and, and people are out
doing stuff and they're notnecessarily busy purchasing.
So, you know, the sun willcome out again and the clouds will
go away and everything isgoing to be fine because, you know,
as long as you have a greatstore and you offer great service,
(24:09):
you know, and are willing totake back returns if you can, I really
recommend doing that.
One of the biggest mistakesbeginning podcasters make is they
look at their numbers every day.
Right?
Download numbers every day.
We.
I look at them quarterlybecause I want to see trends over
quarters.
Right?
Daily doesn't matter to mebecause it, it doesn't tell me anything.
(24:30):
It doesn't.
It doesn't tell you anything.
And it's true when you'relooking at sales too, you know, you
take a look at the court, youknow, year over year, quarterly is
much more effective than yearover Year, monthly.
Because you're right.
Yes.
And it's going to change alittle bit every year, but depending
on weather too.
That's the other thing thataffects our world too is whether
people are going to shows.
(24:50):
They're not going to showsbecause they've been canceled, you
know.
Yeah.
It makes a big difference.
And how about what's in the news?
I mean lately that's reallybeen getting people.
No matter where you fall onthe skit on the spectrum, it makes
people upset.
So, you know, but the thing Ihave to remind people too is especially
you and I, we have beenthrough this cycle every cycle, many
(25:11):
times.
Many, many times.
It goes up, it goes down, itgoes up.
It's, it's always going to goup and down.
We're always going to have herups and we're always going to have
her downs.
It's the planning process.
To plan for those downs whenyou're up is very difficult.
But it's what keeps you in business.
That's right.
That's right.
Be prepared.
(25:31):
And I think a lot ofbusinesses lost it in the, the big
up.
That was Covid Right.
When everybody's sales wentthrough the roof and they thought
it was going to stay that way forever.
RV industry is a perfectexample of that.
Their sales went through the roof.
They started manufacturing allthose RVs.
They kept manufacturing forthe next three years and sales plummeted.
So now they're, they have waymore inventory than, than they need
(25:54):
because they thought it wasalways going to stay up.
It's never always going to stay.
Right.
No.
Especially something like that.
Exactly.
Yeah.
Yeah.
And you know, even.
Can I ask you one other question?
What percentage you sell online?
Right.
Because I saw your store.
It's very well done.
What percentage do you do inbrick and mortar and in on.
You know, we don't, we have acouple of small boutiques in the
(26:20):
country but they are few andfar between these days.
The small boutiques that carryplus size clothing because it's hard
to support a brick and mortarstore for just plus size clothing.
And this, the, the otherstores don't really want to deal
with it.
So it's, it's really a hardpart of our industry is that it's
all gone online.
(26:42):
Gotcha.
Where can people find it?
@Plusbydesign.Com Just like it sounds.
Plus by design.
That's right.
And Vicki V is all V V I K K IV I.
And that's the, the wonderfulbrand I've been selling for 30 years.
Very good.
And Danielle, so I reallyappreciate the opportunity.
(27:03):
This audio on Wisdom by Wes onthe Pot any podcast player.
Also on our YouTube channel,you'll find the video on the wesatradeshow
dot.
My wife and I will be at WESA.
I think this is our 30something 8th or 9th time or something.
We'll be there in August, sowe're looking forward to meeting
a bunch of you.
(27:24):
Wisdom by Wesa is a podcastthat WESA does as well, talking to
people or to members of wesa.
And my wife hosts that.
Jennifer hosts that, so youcan check that out on the Wisdom
by Wesa podcast player.
We'll be back again next week,so look for us then and you can find
all the details at the RetailRoundup Facebook page.
Have a great week everybody.
(27:45):
Sell bunches.
Thanks again.
Foreign.
You are listening to the HorseRadio Network, part of the Equine
Network family.
Well, hi everybody.
Glenn the Geek, back with you.
Founder of the Horse RadioNetwork and host of Horses in the
Morning.
The daily podcast has beengoing on for 15 years now.
Welcome to the WESA Retail Roundup.
(00:21):
The Retail Roundup is your goto virtual hub for all things retail.
Join panel discussions, learnfrom webinars, share your thoughts,
ask questions and connect withyour community.
We host a virtual event orshare educational content every Monday
via the Retail RoundupFacebook group.
You want to join that group?
If you haven't yet, head onover to Facebook, look for Retail
Roundup and join that group.
That's where we all communicate.
(00:41):
That's where we keep in touchand let you know what's happening.
And we're only a month awaynow from WESA over in Dallas.
We'll all be there in personlooking at new products and things
that are happening in the, inthe world.
So excited to meet some of youover there.
In today's Retail Roundup, wediscuss the importance of inventory
management.
Everybody's favorite thingwith Danielle Malconian of Plus by
(01:04):
Design.
We all know that managing yourinventory is one of the most important
things you do and if not donewell, it gets costly very quickly.
So Danielle, thanks forjoining us.
Thank you very much for having me.
I appreciate it.
Did I get the last name right?
Malconian.
You did.
Well done, Malconian.
Yes.
Yay.
I love that last name.
Thank you.
So tell us where you're located.
(01:27):
We, we are located in LosAngeles, California.
We ship out of a warehousehere in Chatsworth.
And what is plus by Design?
Plus by Design is a onlineretailer of women's plus size clothing.
We offer a high qualityclothing that women wear to work
or to special occasions.
(01:49):
And it's a product that can,that is, that lasts a long time.
And, and we have a very loyal following.
The brand, main brand we sellis called Vicki V and that's been
around for about 30 years.
And, and I've been working atmultiple brands.
You work with multiple.
We do have multiple brands, yes.
But I also manufacture theVicky V label and you.
(02:09):
So what I'm getting to is, youknow a little bit about having a
number of skus.
Because nothing has more skusthan clothing.
Yes, yes, we are over skewedin the clothing business.
Yes, well, that's what we'regoing to talk about, you know, and
I think that's why Jennifercontacted you about inventory management,
because you know a little bitabout that.
(02:30):
You're on the manufacturerside, but also the retail side.
So you're handling it.
I am.
I've been on the retail sidefor a very long time.
Yes.
With department store and nowas my own company for 25 years.
I wanted to mention, too, youdo have a connection to the horse
world.
Your daughter is involved withtherapeutic Riding Center.
My daughter, Juliet, yes.
She sees clients at threedifferent barns in Sonoma County.
(02:54):
County in California.
And she's been a horsewoman aslong as I can remember.
So she's gonna love this.
I'm gonna send her the linkand she'll love it.
Way to go, mom.
Yeah, yeah, she'll be so.
It's really great.
She's gonna have you riding next.
I don't know.
(03:14):
I don't know where that camefrom, to be honest with you.
I'm allergic to hay.
It just starts.
It just starts when they'reabout four, and then it goes.
Exactly.
She would wake up.
Mom, I. I had a dream therewas a horse in the backyard.
I'm like, okay, at what agedid she get the horse in the backyard?
She didn't have a horse in her backyard.
(03:35):
We had to go to the barns.
Sorry.
There you go.
I don't live in a place tohave a horse.
Yeah, you're the kind of anexpensive area to have horses in
the backyard.
I'm a city gal.
Exactly.
I'm a city gal.
Well, then her saddlery wouldbe Calabasas.
That's right.
That's right.
Yeah.
We've spent many, many times.
Many.
I was just there recentlybuying her birthday gifts.
(03:57):
So many dollars.
Yeah.
That's a great place.
It is.
Many dollars.
That's right.
That's a cool store, though.
Yes, it is.
All right, so let's talk aboutinventory management.
Okay, so first question.
How do.
How do you make decisions onwhat and how much to carry?
How do you do it?
What do you.
What are you.
What's your thought processthat goes into that?
(04:20):
I've always followed a plan oftrying to carry what I would sell
within three months.
Has.
Has always been my.
I think I learned that atNordstrom, to be honest with you.
I worked for Nordstrom in the90s, and that's kind of the way they
did it, and it made a lot ofsense to me.
So I take my.
My average cost of goodsnumber having to do with my sales,
(04:44):
and then I multiply that by three.
So what I was talking aboutwas the high level amount of inventory
to carry for your store to behealthy is three months worth of
a dollar amount.
Okay.
So that's how I decide howmuch inventory to carry.
Generally when you're talkingabout replenishment, which I think
(05:06):
is what you're.
Especially a store thatcarries the same type of things all
the time, and they're justreplenishing sizes and colors and
that sort of thing.
And is.
I use inventory managementsoftware, which is really, I used
to do it by hand, you know,and now there's so much software
out there that can tell us,they can look at the history of our
(05:29):
selling and tell us what weneed in the future with a few different
parameters set, you know, howlong it's going to take you to get
the shipment, how, how longyou want to be in stock.
You know, a lot of differentparameters there.
What software are you using?
I use inventory planner.
(05:50):
Was there a reason you likethat particular one?
You know, I tested a couplewhen I was looking for an inventory
software and I just wantedsomething really robust that had
planning tools that would keeptrack of all my sales.
I was looking for somethingthat was really good at predicting
what I would need for the future.
(06:12):
Has it been good?
Has it been accurate?
It has been accurate.
You have to be careful withsome of the prediction software.
You have to make sure that allthose little levers are set about
how long it takes to get theproduct, how long you want to be
in stock.
That really makes a differencein getting the accurate information
(06:33):
of what to order.
Style is a problem too, inyour world, right?
I mean, isn't that something?
You're also taking a look atwhat's coming in, what's going out?
Fashion.
Fashion.
It's funny that you mentionedthat because I'm going through that
today, actually.
I've gotten a new collectionin which is a bright lemon color.
(06:53):
And if you know anything aboutfashion, it's a little late in the
season to bring in bright lemon.
If I had my druthers, I.
It would have arrived back inMarch, but, you know, it's fabric
coming from Korea.
And so now I'm introducingLimoncello in July and trying to
decide whether or not to offerit at full price or give a little
(07:14):
discount.
So you do have to be worriedabout seasonality, especially in
the clothing.
In the fashion clothing area.
I know a lot of these storesdo carry that.
And, and if you're bringing ina new, brand new product line, what
is your thinking then?
Do you take a look at similarproducts like it to decide how much
to buy or.
I do.
I mean, I look at all my history.
(07:36):
I. I go over what size is soldand where.
And a hard thing for me rightnow is that are losing weight because
there's a trend OIC and the GS1s.
So that has skewed my sizes alittle bit.
And I think that's probablytrue a lot, you know, across the
board for people.
Not just plus size clothing,but when I'm bringing in something
(07:59):
brand new, honestly, there isa lot of guessing.
So the educated guess isprobably where.
Where it is.
Which if you have the longerthe history you have, the more you
can.
Exactly.
You know correctly.
Right, exactly.
And honestly, as much educatedguessing as I've done and whenever
(08:20):
I'm absolutely, positivelysure that something is going to sell,
it doesn't.
And whenever I think somethingis a total dog and it's never going
to sell, it's the first thing gone.
So that has not changed sinceyour Nordstrom days either.
That has not changed since myNordstrom days.
It's just.
Okay.
Oh, you like that one instead?
(08:41):
All right, it's true.
It's true.
Oh my goodness.
How do you decide then?
I'm going to follow thatthread through what you just said.
How do you decide when it'stime to cut bait and, you know, put
it on sale and get rid of itand run?
Is there a magic number you'relooking for if it hasn't, you know,
if 50% of it hasn't soldthrough in three months?
(09:03):
If, you know, do you have amagic number there?
Well, it depends on what it is.
And one of the things Ilearned at Nordstrom is to split
my inventory into what Iwanted to carry all the time and
what I wanted to carry seasonally.
So the, what I carry all thetime doesn't go on sale.
And I just try and keep itstocked the way that it should be
(09:23):
stocked.
Like your basic riding pant,you know, basic black riding pant
that sells day in and day out.
You don't think about it, youjust keep it stocked.
But when you're talking aboutthe, the cool zip up printed thing
from the latest vendor, I giveit, I still use that three month
rule from Nordstrom.
(09:44):
It kind of, it kind of inthat, in that same place, the problem
is you can't mark downsomething too quickly or the people
that, the few people thatbought it at full price, it just
kind of detracts from your honorability.
You know, you want to have areputation that this is the price
it is and this is, you know,this is what we believe it should
sell.
(10:04):
So you do have to wait and youcan Do a little flash sale when you
have stuff like that withouttouching, you know, without redlining
your item.
If you're a retail brick andmortar store or even online, try
not to actually mark down theitem until you absolutely have to
do little flash sales, dobundle sales, little things like
(10:26):
that, to get people to buysome of those things that aren't
moving so quickly.
How often do you look at the inventory?
Every day.
I look at my inventory everyday and I, you know, it's mostly
because when you're.
I don't know if your listenersare mostly online or brick and mortars,
is it kind of half and half.
Right.
(10:47):
So when you're online andthese days especially, you have to
have live inventory, you know,so what you have needs to be what's
online.
So, you know, back in the olddays, in the brick and mortar days,
you would do inventory maybeonce, twice a year and be like, oh,
okay, you know, that's what we have.
But today, if somebody orderssomething in a 1x, a yellow top in
(11:11):
a 1x and I don't have it, thenthat's a customer service issue.
So our inventory needs to bevery accurate all the time.
Yeah.
Especially with online.
That changed 20 years ago.
Right?
I mean, for all of us.
Yes, exactly.
Yeah.
I mean, and when it firststarted, though, people were still
not necessarily linking theirinventory to their online, and they
(11:32):
would just let it sell andthen get a hold of the customer or
whatever.
It just doesn't make sense todo that now.
Amazon changed that.
Yeah, good old Amazon.
Amazon changed everything.
Yeah.
Expectation was the big thing,you know.
Right.
It's hurt a lot of small stores.
It really has.
No question.
It's unfortunate, especially.
(11:52):
They can, they can order ittoday and get it tomorrow.
And it's really, it's.
I think, you know, there's.
There's a little bit of apendulum swing coming back to people
wanting to shop in the smallerstores, though.
I'm.
I'm feeling that myself.
I did a survey with our horselisteners, our super fans, and we
asked them how they felt aboutAmazon, and It was about 50, 50.
(12:14):
I was surprised at how manysaid, I'll never shop there again.
It was about 50% and then 50%.
Looking forward to prime day.
Right.
So it was about 50.
I don't think it's ever been 50.
50 before.
I think so.
You're right, is what I'm saying.
I think that is there is achange going on there with a certain
percentage of the population,because we don't.
(12:35):
Want to see these brick andmortar stores go out of business
and it's becoming more andmore obvious that that's what's going
to happen.
And you're not going to beable to go into that store and say
hi to the owner and do all that.
So it's important.
And the other problem we have,of course in our world is there's
less and less brick and mortar stores.
Right.
So some of our listeners, whenwe've done sur in the past are six,
(12:56):
eight hours from a physicalstore that carries anything horsey.
Right.
So they're orderingeverything, same thing in plus size
clothing.
Yes, true.
Yeah, right, true.
There used to be stores aroundall over the place that had it.
Yeah.
Not anymore.
So what would you say thebiggest mistake people make in inventory
management stores.
(13:17):
Specifically, you know,retails, as, as retailers, we get
tired of our merchandisebefore our customers do.
Oh, interesting.
And especially if you have newcustomers coming into your store
all the time, what you boughtsix months ago is still, is new to
them.
But we go to market and wethink, oh, I'm so tired of that.
(13:39):
Oh, let's, let's buy that.
We need, we need newness, weneed more and more and more and more
and more.
But you really have to take alook at your open to buy, which we
haven't really talked about,but the dollars that you have open
to actually go buying.
When you go to the market, weget excited.
You know, we, we love the business.
(14:00):
You know, it's like Christmaswhen the box.
Right.
You get to open what you order.
Like going to an auction.
Guilty.
It's awesome.
Exactly.
And so we have to tamp downthat excitement and really look at
the numbers and say, okay, youknow what, this is what I have to
spend.
This is what I think I can sell.
Even though I personally lovethat new dress, I don't think it's
(14:23):
the right time to buy it.
So it's just tamping down youremotions, I think for me.
Do you go to markets?
I do, I do.
So when you go to a market, doyou have in mind before you go, do
you have a plan?
Okay, I'm looking for, I'mlooking for shirts, you know, this
percentage of shirts, thispercentage of pants.
Do you break it down that way or.
I mean, I shop more incollections and vendors.
(14:44):
And the issue too with plussize clothing is there's not that
much availability.
So I do have a problem withthat and I do have a strong plan.
When I go in, I have to sayI'm guilty as charged though.
When I start talking to Asalesperson about their fantastic
line.
And what I've actually learnedto do is not write the order at the
(15:06):
show.
I just won't do it.
But they want you to show today.
You'Re gonna get 20% off offree shipping.
Yeah, I.
And you know what?
Maybe that is an enticement tome, but I. I've made the worst mistakes.
When I leave the paper at theshow, I would much rather.
I'll tell them, you know what,Let me go back to my hotel room.
(15:29):
Let me just work out my numbers.
Because you know what?
They also don't want to put inall the prices and give you a total
at the bottom when you're atthe show, they just want to put in
the items on the yellow page.
Right.
And you're supposed to belike, okay, sure.
So I tell them, you know what?
I want to go, and I just want to.
I want to add everything upand see exactly what I've spent today.
And I will get you the orderby the end of the night.
(15:51):
Hopefully you'll still honorthe 20 off.
Do you.
We were talking about leadtimes earlier.
You know, do you.
Have you changed your leadtimes now that things, you know,
shipping's weird.
Have you changed your lead times?
Are you still working off theold lead times?
Are you talking about imports?
Yeah.
(16:12):
Yeah.
So I don't really import anything.
Okay.
Our.
Our product is made here, butyou have to.
And one thing, you know, I'mgoing to bring up.
I deal with a lot of storeowners because I work for score.
I'm a business mentor, volunteer.
And one thing I've beenwarning them about is that some of
these vendors in China are notadding the tariffs to your pricing.
(16:34):
They're letting.
When you get your shipment.
Yeah.
They're letting you just get it.
Surprise.
Yeah.
So.
So people need to really beaware of that.
That practice of them gettingin orders.
That are fifteen hundreddollars and shipping's fifteen hundred
dollars, you know, with the.
Right.
Exactly, exactly.
So you have to be so carefulof that.
Yeah.
And it's hard because some ofthis stuff we can't get here.
(16:56):
You know, it's.
It's hard because you're justgoing to get it overseas regardless.
And, you know, and.
And, you know, it's so hard tokeep up.
Now, we had a talk on tariffsa couple of weeks ago in the show.
It's just hard to keep up.
Up, you know.
What's.
What's.
What?
Well, yeah, no, it is hard tokeep up because, you know, the minds
are getting changed every day.
(17:16):
So who knows what's actuallygoing to happen?
And exactly when you order thething, the tariff might be different
when it actually arrives.
So, you know, that is scary.
I would love to see themanufacturing come back to the United
States a little bit more, though.
I, I think there's apossibility that could happen.
So is there a point with, withyour inventories, okay, so on products
(17:41):
that are not the, the baselineproducts that you're going to keep,
is there a point with, withthe, with the seasonal product or
with the product you know iscoming and going, when you get to
a certain level of inventory,50% of that product, 20% of that
product that you're going to,you're going to get rid of it at
that point.
Do you have a level in mindfor those products?
(18:03):
You know, it, it reallydepends if it's, if it's a group
that hasn't.
I sell in a lot of collectionsof colors, right?
So I'll bring in one color, abunch of different skus.
If the, if the color has soldwell and I'm broken, we keep on breaking
up.
And, and if it sold well andthe sizes are broken and I know that
(18:28):
I cannot get any more.
That's really when I decide tomark it down because people like
to, to buy sets in my business.
So if they can get the jacket,but they can't get the pants anymore,
then that's the reason that Imark it down.
If it's not a color that soldwell, I do all those other things
I was talking about, likemaybe offer a flash sale or a bundle
(18:50):
or go through that before Iactually go ahead and mark it down.
I try to wait that threemonths at least.
So re.
You know, retailers grow, right?
We hope, we hope we're growingand you've grow as time went on.
It's.
You always seem to need to addto your collection, to your, to your
inventory before you canafford to add to your inventory.
(19:11):
You always need a new employeebefore you can afford the new employee.
It always works that way.
That's right.
How do you make that toughdecision that, okay, I'm doing pretty
well with what I'm, what I,what I have in inventory now.
I need to expand the line.
How do you make that decision?
That's a tough decision tomake because you're putting money
out there.
You know, that's, that'ssurplus, right?
That's above what you know.
(19:32):
It's a risk.
Yeah, that's right.
That's right.
And, and you, you bring up agood point is people need to understand
that when you're growing,anytime you grow your inventory beyond
the normal levels, you'reusing your profit.
Hopefully there's profit to dothat with.
So when you're feeling likeyou have a cash crunch, a cash flow
(19:53):
problem, it's probably in your inventory.
So you do have to use moneyfrom that bottom line to buy more
inventory.
And you're not going to get itback because you want to keep that
inventory at that new, higherlevel to sustain the growth.
So it is literally aninvestment in your business because
even if you sell that newinventory, you still need to replace
(20:14):
it.
So, you know, what you reallyhave to do is listen to your customers.
What are they walking in orcalling or emailing, asking for that
you don't currently offer, andreally think about that.
If you want to expand yourline, maybe you don't buy another
style of or another print top,but maybe you think, what are the
(20:37):
customers really asking forthat I don't have?
And try to fill those needsand that's a little less of a risk,
in my opinion.
And we have to be careful too,because when one person asks for
it, you think that everybodywants it.
I have a. I have a rule.
We get a lot of fan.
We've been doing these showsfor a long time and we get emails,
(20:58):
right.
And somebody will complainabout one thing or they'll want to
see something else.
I kind of discount that a bit.
I listen to it, I look at it,but I.
When I get four or five or tenemails about that same thing, then
I start to pay attention.
Same here.
When you're buying inventory,one person asked for that specific
thing.
Doesn't mean everybody wants.
Oh, that took me a long timeto learn.
It's hard.
(21:21):
I've wasted a lot of money.
I have wasted so much moneygoing after this.
Yes.
Oh, my gosh.
And I've got these sweet,sweet ladies that, oh, you know,
I need this, but I need toorder 12 of them to get you that
one.
Do you understand?
No, they don't.
And they don't care.
So I've learned to say no.
(21:42):
I've learned to say no.
Yep.
You have to say, if you hear.
From four or five ladies,then, then you start to think about
it.
Okay, then the 12's worth it, right?
Exactly.
But it's hard because peoplepleasers, you know, that's right.
And pay attention to the trends.
You know, the trends reallytell you, you know, reading your,
you know, staying up to dateon your magazines and online magazines,
(22:05):
obviously, and, and, you know,really Seeing what, what new thing
is out there because peopleare looking for those new things
as well.
How much are to find trends?
How much are you payingattention to TikTok and to Instagram
and those things out there?
Are you watching theinfluencers in.
In the plus space?
(22:25):
You know, I'm not, I'm notwatching the influencer.
They're.
They're young.
They're really young.
And my customers are 50 plus,so they're not necessarily.
I pay, you know what I do.
My biggest one is Pantone.
I watch what, what the colorof the year is, and it sets a tone.
It's.
It's really interesting.
(22:46):
I always think of paint when Ithink of Pantone.
Right?
Yeah.
Yeah.
But they, they set the colorof the year.
So anything else you want toleave with anybody about, give the
name of your software againthat you use.
The inventory software iscalled Inventory Planner, and I did
make a list.
(23:07):
There was Zoho inventory.
There was Sin7Core for scaling needs.
Zoho and Sin7Core, which is CI N7.
Yeah, Shopify.
But I, I don't really like.
I have a Shopify store, but Idon't use it really to manage my
inventory.
I don't find it robust enough.
(23:27):
But there are lots of appsthat Shopify works with.
Just use something, you know,that's the most important thing.
And, you know, one thing I'velearned over the many, many years
is when you have a bad day,just try to let it go.
It doesn't mean that the salesare never going to come again.
I literally have to tellmyself that all the time.
(23:49):
It's just, you know what,people are busy.
And especially right now, it'ssummertime and, and people are out
doing stuff and they're notnecessarily busy purchasing.
So, you know, the sun willcome out again and the clouds will
go away and everything isgoing to be fine because, you know,
as long as you have a greatstore and you offer great service,
(24:09):
you know, and are willing totake back returns if you can, I really
recommend doing that.
One of the biggest mistakesbeginning podcasters make is they
look at their numbers every day.
Right?
Download numbers every day.
We.
I look at them quarterlybecause I want to see trends over
quarters.
Right?
Daily doesn't matter to mebecause it, it doesn't tell me anything.
(24:30):
It doesn't.
It doesn't tell you anything.
And it's true when you'relooking at sales too, you know, you
take a look at the court, youknow, year over year, quarterly is
much more effective than yearover Year, monthly.
Because you're right.
Yes.
And it's going to change alittle bit every year, but depending
on weather too.
That's the other thing thataffects our world too is whether
people are going to shows.
(24:50):
They're not going to showsbecause they've been canceled, you
know.
Yeah.
It makes a big difference.
And how about what's in the news?
I mean lately that's reallybeen getting people.
No matter where you fall onthe skit on the spectrum, it makes
people upset.
So, you know, but the thing Ihave to remind people too is especially
you and I, we have beenthrough this cycle every cycle, many
(25:11):
times.
Many, many times.
It goes up, it goes down, itgoes up.
It's, it's always going to goup and down.
We're always going to have herups and we're always going to have
her downs.
It's the planning process.
To plan for those downs whenyou're up is very difficult.
But it's what keeps you in business.
That's right.
That's right.
Be prepared.
(25:31):
And I think a lot ofbusinesses lost it in the, the big
up.
That was Covid Right.
When everybody's sales wentthrough the roof and they thought
it was going to stay that way forever.
RV industry is a perfectexample of that.
Their sales went through the roof.
They started manufacturing allthose RVs.
They kept manufacturing forthe next three years and sales plummeted.
So now they're, they have waymore inventory than, than they need
(25:54):
because they thought it wasalways going to stay up.
It's never always going to stay.
Right.
No.
Especially something like that.
Exactly.
Yeah.
Yeah.
And you know, even.
Can I ask you one other question?
What percentage you sell online?
Right.
Because I saw your store.
It's very well done.
What percentage do you do inbrick and mortar and in on.
You know, we don't, we have acouple of small boutiques in the
(26:20):
country but they are few andfar between these days.
The small boutiques that carryplus size clothing because it's hard
to support a brick and mortarstore for just plus size clothing.
And this, the, the otherstores don't really want to deal
with it.
So it's, it's really a hardpart of our industry is that it's
all gone online.
(26:42):
Gotcha.
Where can people find it?
@Plusbydesign.Com Just like it sounds.
Plus by design.
That's right.
And Vicki V is all V V I K K IV I.
And that's the, the wonderfulbrand I've been selling for 30 years.
Very good.
And Danielle, so I reallyappreciate the opportunity.
(27:03):
This audio on Wisdom by Wes onthe Pot any podcast player.
Also on our YouTube channel,you'll find the video on the wesatradeshow
dot.
My wife and I will be at WESA.
I think this is our 30something 8th or 9th time or something.
We'll be there in August, sowe're looking forward to meeting
a bunch of you.
(27:24):
Wisdom by Wesa is a podcastthat WESA does as well, talking to
people or to members of wesa.
And my wife hosts that.
Jennifer hosts that, so youcan check that out on the Wisdom
by Wesa podcast player.
We'll be back again next week,so look for us then and you can find
all the details at the RetailRoundup Facebook page.
Have a great week everybody.
(27:45):
Sell bunches.
Thanks again.
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