Too many business owners treat inventory like a trophy — paid for, protected, and never marked down — even when it’s not selling.
Todd Fyfe calls it the raccoon trap: fist clenched around a penny they refuse to release, while cash, space, and opportunity stay stuck.
In this episode, Greg Forzani and Todd Fyfe dig into practical inventory management for retailers, manufacturers, distributors, trades, and any service business that stocks parts.
They cover gross margin vs. net profit, inventory turns, payment terms, multiple deliveries, best-seller discipline, supplier negotiations, and why gross margin dollars per square foot is one of the most important numbers in the business.
If you’ve ever had cash tied up in slow movers, run out of winners, or wondered whether your stockroom is helping or hurting, this conversation is packed with real-world lessons.
Key Takeaways:
- Gross margin % must cover operating expenses + target net profit
- Inventory turns directly affect how much cash is tied up
- Longer payment terms and split deliveries reduce financing pressure
- Never run out of your top sellers / “vanilla”
- Dead stock is a cash trap— mark it down, free the capital, redeploy it
- Hold every SKU accountable for space and margin dollars
- Suppliers will push extra products; protect your open-to-buy for what actually sells
- Brick-and-mortar wins with knowledge, experience, and in-stock winners
- Excess space and storage often signal inventory problems, not growth
- Gross margin dollars per square foot is a core performance metric
Chapters
00:00 – The raccoon trap: holding inventory too tightly
01:06 – Intro & why inventory matters beyond pure retail
01:45 – Todd’s background in retail, wholesale & inventory
02:41 – Gross margin vs. net profit (and why wording matters)
04:59 – How few owners truly live by gross margin
08:04 – Payment terms, turns & financing inventory
10:49 – Real examples of too much inventory / slow turns
13:15 – Discounting aged inventory and margin damage
15:26 – Supplier vs. retailer inventory tension
17:35 – Multiple deliveries and reducing cash tied up
19:30 – Being “loaded” with inventory and missing best sellers
21:17 – Open-to-buy, booking less, repeating winners
27:13 – The ice cream lesson: always stock vanilla
30:18 – Out-of-stocks on winners and wasted shelf space
35:37 – Turning slow movers into cash for winners
37:18 – Letting go of dead stock and redeploying capital
43:09 – Competing with online retail
46:53 – Experience, staff engagement & in-store advantage
50:00 – Space, storage costs & Best Buy-style resets
54:48 – Using new product drops to drive repeat visits
57:20 – Eliminating warehouses / direct-to-location ordering
1:00:12 – Rent vs. inventory and square-footage discipline
1:05:36 – Why this applies to more businesses than people think
1:07:35 – Living off inventory fat until the business collapses
Host is Greg Forzani.
Our guest is Todd Fyfe www.predictably.ca
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Disclaimer: The More Profit Less Stress podcast is providedfor informational and entertainment purposes only. The content, opinions, and views expressed by the hosts, guests, or contributors are their own and do not necessarily reflect those of More Profit Less Stress podcast, its producers, or affiliates.
