For Starters: Buying Supplies

[EmpressC]

I would like feedback on something I've been mulling in my mind. When one is ready to start selling but obviously just starting out, do you think it best to buy supplies in bulk in order to obtain the lowest pricing or to just buy minimally?

I am perplexed by this. On one side, buying in bulk would allow for lower pricing and/or increased profits. On the other, for a newcomer to the business there's the potential risk of not having sales often enough and simply having a huge inventory on hand.

So to all you seasoned sellers, assuming the person has the storage space and that there are really no other outstanding issues, which option is best: buying in bulk or as needed? TIA.

[Demenshia]

When I first started out I bought in medium amounts, if that makes sense. I didn't buy 120lbs of each wax, but did do the 60lb cases, med. size bottles of FO, etc. That way my prices were still pretty low, and I only had enough of the supplies that if I didn't sell enough I could use up for other purposes. HTH

[sudsnwicks]

I don't buy in bulk because I don't have the cash flow to do this. But I buy the largest size I can afford to, so as to maximize my savings.

[sandyrose]

I buy as much as I can afford. I'd like to buy even larger quatitiies but I just don't have the money. So I focus on one item at a time (ie..I started with my whipped shea and next I'll move to my bath salts etc...), I make as many as I'll need to start..then move on to the next.

Sigh... It would be nice to buy everything at once and in very large quatities to save money.

[dest]

Well when I was in my testing stage I bought minimal, so that way if there was something I didn't like I wouldn't have to much excess. But after the testing stage I bought/buy as much as I could/can!LOL! HTH~

[Late Night]

When I first started out I bought in medium amounts, if that makes sense. I didn't buy 120lbs of each wax, but did do the 60lb cases, med. size bottles of FO, etc. That way my prices were still pretty low, and I only had enough of the supplies that if I didn't sell enough I could use up for other purposes. HTH

Ditto, except I'm still just starting out. I figure I have enough to play around with but if I don't like it, I can always pass it off on family and friends or use it for myself. Some of the smaller amounts aren't really enough to play around with and test.

[wilsonswix]

I buy as much as I can afford at the time. I try to take advantage of any sales that are out there. Basically I believe I won't have supplies delivered by the truckload until I have trucks rolling out too!! LOL:D

[Nodtveidt]

For testing, always start with small quantities. The initial investment may seem higher, but if you buy a huge amount of a FO, for example, and it simply doesn't work out, you've actually invested far more money, and now have a resource that is useless. When test marketing after quality testing, go with medium amounts; that way you're striking a balance between quantity and cost. If you're stuck with a huge inventory of a particular product that doesn't sell, that's just wasted space. If your particular configuration is highly marketable, then obtain the materials at the lowest cost possible by buying as much as you can at once. That way you can max your profit margin. It's a pretty simple process, but one that a lot of newcomers in every industry overlook.

[EmpressC]

Thanx for the suggestions about medium quantities, Nodtveidt. That gives me a new perspective that I hadn't considered.