The Hardware Man: Old Merchandise
Howdy Folks,
Hard to believe this year is nearing its end. You and I know that the only thing that happens between Thanksgiving and New Years is hunting season and over-eating. Here we are in the first week of November with a few short weeks to be productive before we finish up for the holidays.
I am still learning the ebb and flow of retail and am getting more comfortable with seasonality and the process of selling through stock and not reordering. We have been moving some end caps to better reflect the needs of November, and I did a few strategic purchases to see if we can win some Christmas shoppers. I dislike trinkets or pointless doo-dads but brought in some fresh Milwaukee head lamps and knives. I am waiting for a few more items to arrive as I build a Small Business Saturday sale.
Meanwhile, we are beginning work on a couple maintenance projects within our point of sale system. We have some old items in the data file that need checked and removed, maybe physically, but definitely out of inventory. We have some ghost items lingering in there. Ed started on that by throwing out most of our penny sale items that no one wanted. In a short while, we will have a new set of discounted merchandise, and the hunt will be on for some of you to get a great deal. Most importantly, we will be doing a complete inventory to double-check our numbers and make sure things are accurate for end of year.
We had a minor surprise with inventory last year as we did our taxes. It is one thing to know that a higher inventory value affects the profitability of the business. It is another thing to specifically understand just how that does. We are proud to say we have refreshed and nearly doubled our inventory from when we purchased the store, but that tax bill wasn’t fun to pay. Our inventory value will be worked to finish close to what we had at the end of 2025 so we aren’t penalized again.
We are also going to sell a few of our small rentals that have not rented out enough. That will free up some cash to purchase something different in the spring. If you are interested in a lightly used wood splitter and rototiller, check our Facebook page or stop by to look. There is no reason for us to store them over the winter. They would look better in your garage.
Perhaps the biggest lesson I’ve had to learn is not to hold on to old merchandise. Sure, it may have value, but if no one has bought the widget for a year or longer, it has little value to our demographics, and we don’t have space for it. It will pay more to open a spot for something new that will sell.
So, as we begin the sell down for 2026 and prepare for what new products await us in 2027, we have plenty of work cut out for us. Most of it will be computer work, taking data and analyzing it, then using that information for physical action. I am going to try out some AI tools to assist me in the analysis. Artificial Intelligence has its purpose and a place, and this is one scenario where it could be helpful. But one thing is for sure, if we feed it garbage data, it will report with garbage. Our data isn’t bad, but we do need to confirm it. We have work to do!
Daniel Karns and his wife own Clintonville Hardware & Rental along with other businesses. Join the discussion by contacting him at info@clintonvillehardware.com.
