What is the most efficient way to categorize our merchandise in the Retail Hardware and Construction Business?
I am looking for some insights on how to categorize our products in the hardware business?
We operate a Chinese Style Family Owned Hardware store in the Philippines, and we sell almost anything related to hardware items as long as people look for them, we usually find a source to supply them with ANYTHING they need. We are currently in the process of automating our operations into a POS and have started recording all current and new items to the system. It has been very difficult for me since I am new to the hardware business taking over from my parents and sister and aside from covering other work, I do not have any idea on how I can categorize my items. Can you please give me some tips, insights or some documents which I can use to start categorizing our items by the following:
How do I figure out which items to put in each category? What if the item can be grouped into more than one category? Lastly, how do I standardize the implementation of recording properly so that I can be able to delegate the role to an employee when I myself am having a hard time already finding out where to put them? Currently we are processing at least 32 items on average per week.
If you don't have a selfservice shopping space - don't care about categorization, this doesn't increase sales and customers always asks for particular item not for category, in the other case it's matter of customers' convenience and goods placement withing the shopping space, so ask each customers to choose category for each item they are currently buying.
I suggest you to get some professional services for this. I recommend you also go for somekind of webbased tool and mobile applications. This will also help you to control all the inventory and financial transactions and stocks. For more regarding development you can contact.
I would categorize items under large headings like: Building Materials, Tools, Hardware, Kitchen, Bath, Plumbing, Paint, Landscaping, Electrical then sub-categorize them by job: Building a Deck, Remodeling Kitchen, etc. This way in your main categories, every item falls into only one. Then when you resort them by project, they could fall into multiple categories. It also will give your customers a shopping list. Be sure to include starting and clean up items like brooms and dust pans as they add tremendously to your profit and are impulse purchases.