To carry inventory or not

[Shannon-n-la]

I've been thinking about the pros and cons of carrying inventory. With Clumber Parties you are given the option of carrying inventory with you to your parties. I like the fact that more people buy when they are given the oppurtunity to bring it home that night. But I'm a little leary of investing so much money in inventory when I need the income from my parties.

I already know that as I start I will build up my demo line to carry as much stuff as possible. There is a thrill in being able to touch and see all the neat things even if you don't intent to buy the 130.00 object. But what about inventory? Once I get my demo line built up should I invest in inventory? If I do invest which items should I carry first/most?

Would you say that the creams/lotions and such are bigger sellers and more impulse buys than say the bedroom gadgets? Or would you think having the higher priced gadgets to be the most likely to be turned down if a customer has to wait?

I'm trying to work out a plan in which to re-invest back into my business. I'd like to eventually be able to carry everything all the time, but just starting out that is not possible. I'm thinking long term here. Also what percentage do you think is best to re-invest into your business. At first I was thinking just about everything from my first couple of parties. Then from there once I've gotten my demo line set up investing a smaller portion back into inventory. I know it will take me longer to build an inventory line doing it this way but I will need my income for personal, Otherwise I would not be doing this at all.

Please share your ideas on how you built up your business. And maybe some mistakes you made along the way.

Shannon

[PassionDivaTrishia]

Hi Shannon,

I personally do not carry inventory and it has not hurt my sales at all. I am very expedient with shipping and most of my customers have their products within 7 business days.

I am upfront at the start of my parties about not carrying any and let them know that just because they don't have their products that night, that they can still use all of the tips and excitement from the party to have a GREAT time at home, and then another great weekend when their items come in.

Other than the upfront costs, here are a few reasons I don't carry inventory. 1. I don't process the order until all the credit cards are posted to my account and all the checks clear. This protects me from bad checks! 2. Party ease. I have only 1 suitcase for my demo and one tote for my paper work, lap boards, ect. So party set up and take down is a piece of cake! I only have to arrive 5 minutes before the party start time and I am ready to go! I used to sell Pampered Chef and had to be there an hour before to get ready!!! Also, this makes me job look easy and fun for potential team members. I would not have signed up to be a consultant if I had to carry inventory. 3. Storage. I have a fairly small house and no lockable work location AND teenage boys! LOL! 4. Even if you do carry inventory, you would never be able to carry the full catalog, so some people would still have to wait for items or may not order an item because you didn't have it in stock. 5. Taxes. I like to keep my taxes as simple as possible and having inventory adds a whole additional process and reporting for tax purposes.

Now, I can see having some inventory on hand for special occasions, Valentines Day, Christmas, Vendor fair, etc. and have done that in the past. Also, I know some consultants who have certain items grouped togther that they sell as a package only or only carry their 5 top sellers. If I were to carry inventory, I would prefer to carry higher priced items in the toy department other than a bunch of edibles. This would increase my sales if someone only wanted to buy something that was on hand.

Again, for me, not carrying inventory has worked incredibly well. My average party is close to $700.00 and I have not had anyone not buy something because they couldn't have it that night.

HTH~

Trishia

[Shannon-n-la]

Thanks for lots of good points. Bad Checks were a concern of mine as well as keeping up with everything. But not carrying inventory would be the easiest route to go. Plus the warehouse for SP is right in town here and I should be able to get all my orders out asap!

I also have a young son at home, he is still much to young to understand any of this, but I was concerned about the eventually when he gets older.

Shannon