One of the most challenging aspects of running a business is learning how to effectively manage your inventory so you have what your customers need and want without having too much excess, which can be a waste of money. Whether it's deciding what and how much to order, when to order, keeping an accurate count of your products, or knowing how to handle excess and shortages, knowing how to control inventory properly will help ensure your business's success this holiday season!
Know what you have on hand – list Expiration dates on shelf or outside of box
Know what you sold last holiday season and do math on your goal for this year. Analyze sales data can save you from running out of hang tags, ribbon, filler, products, etc.
Holiday designs are complete – list products using in 3-5 designs. Make sure you are offering at least 12 holiday designs from stuffed mugs, candy bouquet, to crowd pleaser gift basket!
Have inventory management software (I use QuickBooks Pro)
Consider using QuickBooks or Peachtree. These are accounting software programs, but they also have inventory management features that can help you keep track of your inventory, and they come with a central database that can make sure all staff have coordinated information.
POS Maid is a free inventory management software program that can be very helpful for small retail businesses.
Make sure you have room for all your inventory so you can clearly label & store safely!
Consider order and delivery times. Another factor to keep in mind is how quickly your items can be delivered to you after you order them. For instance, if it takes a week for your order of a certain item to be delivered, then you will likely want to order larger quantities of the item to have on-hand so you don't run out while you wait for the next delivery. If, however, items can be delivered the next day, then you know you can quickly replenish dwindling inventory and don't need to keep as much backstock. Also remember you will need to add shipping cost to your product cost!
Consider using a Drop shipper this year for additional designs without inventory. We recommend Dani at http://giftbasketdropshipping.com/ They have a large selection and are very customer service friendly. We happen to love them. We also recommend https://www.wholesalegourmetproducts.com/gifts-1 our wholesale site with ready made gift sets.
Do your math what ever your goal is for the year make sure you have enough product to make this a reality. “Pam’s example”: If your goal is $10,000 in sales = average design is $40 = 250 designs you will need that many containers, hangtags, bows, products, & supplies! Remember you know how many bows a bolt of ribbon makes, you also know how many handfuls of shred is in a #10 pound box, and you also know how many designs you can physically make in a day! RIGHT???
Okay if you are making 250 designs in 4 weeks you will need to make 12 ½ designs a day. You can do better than that! So now all you need is customers & product! Let’s go!!!
Call Pam if you need help and let’s schedule a phone session today 330-478-0555!