Operating an auction company can seem pretty crazy at times. From inspecting your items to setting up auctions and everything in between, it can seem like you are nonstop busy. A big piece of running an auction company is managing your inventory. Inventory, especially for auction companies, can quickly become disorganized. This is where an inventory management system comes into play.
Inventory management systems allow auction companies to stay on top of their inventory, which inevitably helps save time and cuts back costs. But how exactly does inventory management save you money?
At InnovA Technologies, we offer auction management software that includes a customizable inventory management system to suit your business needs. We believe that an effective auction management system can help save you both time and money! Below, we discuss how inventory management can help reduce your operating costs!
One of the biggest advantages for auction companies to utilize an inventory management system is that it allows you to categorize your inventory. By this, we mean that you can visually chart which inventory is high and low in value. By keeping this information organized, you will be able to more easily dictate starting bid prices on all of your items depending on what value you have come up with.
Another benefit of inventory management is that it helps companies better forecast sales. Now, it is really difficult to forecast auction sales as everything is based on the amount of bids. However, by creating a more detailed and organized inventory, you can better guess how many items you should be listing each auction to get the max amount of bids and ultimately profits.
Another thing that an inventory management system benefits is your company's accounting. By keeping track of all of your inventory and sales in one place, you can save time and simplify your accounting processes! Inventory management also allows you to assign exact costs to every item, which helps in figuring out your costs of goods sold (COGS), an important factor when it comes to business taxes.
Lastly, depending on how much inventory your company has, an inventory management system can help you save on storage costs. Storing inventory is a variable cost, meaning, it fluctuates depending on how much inventory you have. Keeping an organized inventory will help you avoid accumulating too much inventory which in turn will help reduce your storage costs!
For auction companies, and any business, time is money. While an inventory management system isn’t going to substantially reduce your company’s costs, it will in fact save you time and help streamline your revenues!
At InnovA Technologies, our auction management software helps businesses save time, cut costs, and ultimately make more money. If you are interested in learning more about our new software, or would like to request a free demo, please visit our website today!
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As our team begins to make our shift to InnovA, I just want to send a note of gratitude. Since beginning conversations with InnovA about transitioning to your software and auction platform, I’ve been blown away by the responsiveness to our needs as a company. The software you’ve built is already miles ahead of other industry competitors and even though I believe there’s always room for improvement, your team’s willingness to listen and adapt to our specific needs, as well as the areas we believe from experience are important to other similar auction companies, is welcomed with gratitude. Our industry landscape is quickly evolving and as such, we have to be responsive as a company to those changes. Having a software partner that is ready and willing to adapt with us is paramount. Thank you for your creativity and dedication to this product, and to the auction industry.-Kirk Witcher/Owner / CEO Witcher Auctions LLC