Data-Driven Inventory Management
Running a retro game store on gut feeling alone leaves money on the table. Here's how to use data to optimize your inventory.
The 80/20 Rule Applies
Typically, 20% of your inventory generates 80% of revenue. Identify your top performers and ensure they're always in stock.
Key Metrics
Stock Turnover Rate
How quickly items sell. Calculate: Cost of Goods Sold / Average Inventory Value
- High turnover (>6x/year): You might be underpricing or understocking
- Low turnover (<2x/year): Consider markdowns or different sourcing
Days to Sell
Average time from acquisition to sale. Track by category:
- Common titles: target 30 days or less
- Mid-range collectibles: 60-90 days acceptable
- Rare/high-value items: up to 180 days
Sell-Through Rate
Percentage of acquired inventory that sells vs. sits. Target 70%+ monthly for common stock.
Optimization Strategies
- Set reorder points for fast-moving titles
- Age your inventory and markdown items sitting too long
- Bundle slow movers with popular titles
- Track acquisition costs to maintain healthy margins
- Use AI pricing to stay competitive without constant manual research
- Seasonal adjustment — stock up before peak periods
The Dead Stock Problem
Items sitting for 6+ months tie up capital. Options:
- Progressive markdowns (10% at 90 days, 20% at 180 days)
- Bundle with popular items
- List on online marketplaces for broader reach
- Trade with other stores