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2 min readBy Hugh Findlay, Founder
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Doing inventory can be tedious and feel like a useless formality, but it’s actually an important part of keeping your tire shop profitable. Here are a few reasons why you should bite the bullet and commit to doing inventory counts every month.

“Don’t tempt an honest man”. If you’re hiring right, you should be able to trust your employees, but there’s no point in laying out an easy opportunity for them to lose that trust. If you’re doing monthly inventory checks you’ll both know if that trust in your employees is justified and reduce any temptation for them to fudge the numbers.

Keeping in stock. Even if you’re keeping track of your inventory in other ways (buy and subtract method), a simple mistake can lead to a loss of sales if you’re unexpectedly short. Imagine having a customer ready to buy and losing out on that sale simply because you don’t have tires to sell.

Ensuring inventory efficiency. You want to make sure that you’re not buying certain models of tires out of habit, even if they don’t sell anymore. This is getting into other areas of inventory management, but doing a physical check can remind you which tires are selling these days and which are now out of popular use.

Rotating inventory checks. You don’t necessarily have to do a full inventory sweep every month. Instead, rotate doing physical counts of each type or line of tire. You can randomize this rotation or do a specific order depending on your needs. Use a tool that makes it easy to split your inventory up into fast movers, average movers, and slow movers. Count the fast movers more often – once a month or even once a week. You can count the slower movers less often.

If doing a full inventory all at once sounds overwhelming, a good tire shop management system should let you do cycle counts. This allows you to count a few at a time every day. Before you know it, you’ve completed a full inventory check with none of the stress.

Although they can be a bit of a pain, doing these inventory checks will help to keep your shop profitable and running smoothly. Even if you don’t have the man hours to do them perfectly, any regular form of inventory count is better than flying blind.