I am going to need to cut spending in my store. Where do I begin?

Cutting spending is not as easy as it seems. First, you have to know one very important fact—where are you exactly spending your money? Take a broad look at your overall financial situation. Hopefully, you have a budget and a posting system where you can see where your monies are being invested.

Recently, we took time in our store to look at where our dollars were going. We found waste on some rather interesting items. After identifying these areas, we discussed ways to either eliminate these expenditures or cut the amount of money we allocated to these items.

Of course, the main objective of research should be returns. A weekly check on books that can be returned is vital to keeping cash flow. One rule we try to abide by is that before we buy, we double-check what we can return.

Another positive that comes from returning product is to see what you are buying that is not selling consistently. For example, if you have been buying fiction books in quantities of four, but are regularly only selling two, then reduce the number the next buying cycle. Fine-tuning your buying is the best way to reduce spending.

Got a question for Betty Bookstore? Write to her at This email address is being protected from spambots. You need JavaScript enabled to view it..

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