Doe’s your backroom look like this? How much money could you be losing with a backroom like this. If your business is small, large or a home business you can benefit from having less Inventory of Merchandise or Supplies on hand. It can not only improve your Gross Profit but also lower your labor and more. Here are five areas that can be improved by getting control over your backroom.

1. Increase Gross Profit
When you have a lot of Inventory things seem to get damaged the more you handle it. By reducing your damage you increase your Gross Profit. Also by having less Inventory on hand you are able to take advantage of last minute deals that are at a great cost.

2. Labor Savings
The best way to make money on what you buy is to handle it once, when it comes in and it fit’s right on the shelf. But if part of the case comes to the backroom and you have to handle it again it adds to the labor you have in the item and reduces your profit. If you could have a giant scoreboard in the backroom that would add up the labor cost each time you handle a item more than once it would make you think twice of having excessive back stock. I had one department that got there inventory down and the department manager said they saved 10 hours a week. If the average employee wage was $10 an hour that is $100 per week or $5,200 per year in just one department by reducing there inventory in the backroom. Imagine if your store had 21 departments.

3. Improve Moral
With less inventory for your employees to dig thru in the backroom the happier they will be. It will be easier for them to get their job done and they will in turn be able to focus more energy to giving great customer service and improving sales. I recently had an employee say how nice it was to work in there department now that the back cooler was so low of Inventory on hand. Happier employees are more productive and work harder also.

4. Lower Expenses
Not only you would lower your labor expense by having less Inventory on hand like the above example of the department saving $10 a week but if you rent an outside storage unit you can save on it also. I have worked at a store that rented three outside containers, each one cost $89 per month. That is $267 per month or $3,204 per year. Every dollar saved on your expenses goes straight to the bottom line.

5. Free up Money
If you have 200 locations in your chain and each location reduces there inventory just $10,000 that would free up $2,000,000 that you could use towards new locations or remodel your current locations. If you are a sole business owner you know the importance of not having money laying around not working for you.

Sometimes the best way to get it in control is to have one person approve any purchases that doesn’t fit on the shelf. It is like going on a diet from ordering and selling what you currently have on hand. Inventory control is one of the best ways to add to your business net profit.

Let me know your thoughts or ideas. Also please join my facebook and Linkedin using my e-mail me at Follow me at twitter Bruce Mills at millsway_com

Also please check out my website for products that could help you. Have a great day.

Author's Bio: 

Hi, My name is Bruce Mills and I am the creator of Mills Way.

Thank you for visiting my site. I started this site in the hopes of helping others live a happier life. My dad inspired me to create the Mills Way. He lead a life that anyone would be proud of. He was has happily married to my mom for 57 years. He was a giving man to people in the community in so many ways. He was a supporter of my dreams and others. He was not a materialistic person and lived with little debt his whole life. He had a good smile and was a great dad to myself and my sister. His five grand kids would tell you that he was the best grandfather anyone could ever have.

Mills Way

Mills Way is Positive Solutions for home, life and business. We offer Life Coaching, Speaking to Hypnosis services. We can make you a personal Self Hypnosis CD or we have many already made. I will also offer many other items and services in the future. I am available to speak to your group or business about the Mills Way. I am also available for one on one coaching. Mills way covers Leadership, Faith, Dreams, Relationships, Business, Balance in Life, Living Worry Free, Living Debt Free, Communication, Being Positive Daily, Giving Back to Others and much more. With Hypnosis I can do one on one sessions to group sessions to parties or events.

Listed below are the schools I attended for my Coaching, NLP and Hypnosis training from. My NLP and Hypnosis training I received from a Minnesota state licensed school and from a teacher with over 25 years experience. Hypnosis and Coaching Certification from Minnesota Institute of Advanced Communication skills and Coaches Institute International. Also a Certified Competent Communication from Toastmasters International. I continue to keep up with current training and techniques. I am a excellent choice to help you.

Professional Associations I belong to:

Minnesota Coaches Association, Member
National Guild of Hypnotist, Inc, Member
National Federation of Neuro Linguistic Programming, Member
Community Associations I belong to:

Toastmasters International, President 2011
Heritage Days Committee, Board Member
White Sands Park Committee, Member
Please send me your ideas, thoughts, suggestions or wisdom on helping people live a happier life and I will post it in the blog to help others. If you have any special topic you would like me to talk about in the future let me know.

I am on My Linkedin ID is Please send me a invite. Also follow me on Twitter. My Twitter ID is MillsWay_com. Follow me on the following sites also:,, Google Buzz.

Remember anything is possible. Make it Happen and live the Mills Way.

Bruce Mills, CPC, Master NLP, CHt, CC,CL

President of BAM Management Group, Inc.