How much inventory do you purchase upfront?

[candleshiba]

Hi everyone! Was hoping to get some advice from more experienced folks.

 

How many jars do you purchase upfront when you started your business? I'm of the opinion that you should start small to test the market first, but the challenge with COVID is that the manufacturing side takes forever to ship. I purchased 48 jars to start but these jars took 3 weeks to deliver =O

 

My thinking was to wait until I launch and gauge how well these jars sell before purchasing more, but I would be stuck waiting for another 3 weeks if they do sell...the idea of losing sales during this time is not ideal. So my question is, how do you decide how much inventory to purchase upfront? Do you sell small to gauge the market, or do you bet on yourself?

 

Any advice is much appreciated!

 

[TallTayl]

that is a very difficult question. While you want to protect your cash flow by buying just in time (JIT) the major problem is supply chain. three weeks is problematic. Worse is when the supply STOPS altogether  or if it materially changes (sizing, color, quality).  We have all been plagued by changes of distribution suppliers to our suppliers and caught in that re-testing trap. 

 

 

[NightLight]

If you can afford another set of jars do it. You can always sell supplies on EBay. Have you test marketed yet?

[Candybee]

That's a tough question to answer. You are right things have been different when ordering supplies due to the pandemic. Vendors staff is often skeletal and filling orders takes two weeks instead of a day or two. Then there's the shipping. Shippers no longer quarantee delivery dates and shipping times typically run longer than before.

 

This year I have debuted at least 4 new products. But then I already have an established customer base and try to develop products I know my customers have been asking for or that pair well with products I already make. 

 

I debuted body powder, body oil, deodorant, and men's aftershave. Since I buy much of my supplies via WSP and Camden-Grey I knew the time between ordering and actual home delivery would be a minimum of 3 weeks or more.

 

The way I decided to stock supplies is by count of how much I intended to make. If I have four scents of something and order a set of 48 bottles/jars from WSP I can make 12 of each. To have enough on hand if the product takes off and sells I ordered double sets of supplies. So I ordered 2x48 and enough additives, labels, etc. to make 96 products. That way I have enough supplies on hand I can make more. So when I start seeing sales pick up I have enough time to order another set of supplies and still have product on hand for the time it takes for supplies to get to me and make more product. Hope that helps some.

[candleshiba]

On 7/14/2020 at 4:27 PM, Candybee said:

That's a tough question to answer. You are right things have been different when ordering supplies due to the pandemic. Vendors staff is often skeletal and filling orders takes two weeks instead of a day or two. Then there's the shipping. Shippers no longer quarantee delivery dates and shipping times typically run longer than before.

 

This year I have debuted at least 4 new products. But then I already have an established customer base and try to develop products I know my customers have been asking for or that pair well with products I already make. 

 

I debuted body powder, body oil, deodorant, and men's aftershave. Since I buy much of my supplies via WSP and Camden-Grey I knew the time between ordering and actual home delivery would be a minimum of 3 weeks or more.

 

The way I decided to stock supplies is by count of how much I intended to make. If I have four scents of something and order a set of 48 bottles/jars from WSP I can make 12 of each. To have enough on hand if the product takes off and sells I ordered double sets of supplies. So I ordered 2x48 and enough additives, labels, etc. to make 96 products. That way I have enough supplies on hand I can make more. So when I start seeing sales pick up I have enough time to order another set of supplies and still have product on hand for the time it takes for supplies to get to me and make more product. Hope that helps some.

 

Yes it does - and that does make sense to me. Thank you for sharing!

[MilosCandles]

Enough to try and get the price down, but not so much that you break the bank.

 

Also knowing what you can/will sell helps.  

 

5 years ago when I started I would buy 1 50lbs box of wax at a time.  I found a place I could get it next day and was a good price.  Order it as I needed it.