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I Advice - How Much Inventory Should I Import When I Start Out?
One of the most important skills a doctor can posses, is that of a bed side manner. In the same sense, it is important that sales people posses the same type of skill, to be able to put their customer at ease.Relaxing your customer is important to any type of sales situation you may find yourself in. Remember, think of the customer as a guest in your house, you are the host, so you want to make them as comfortable as possible in your house. The more comfortable they are in your house, the easier
Factor #5. Marketing channels. If you sell not just to wholesalers but have multiple marketing channels, it's like having insurance if one particular channel doesn't pan out. I sometimes risk carrying extra uncommitted inventory so I can test out new marketing channels.
By now you wi
There are four phases that are absolutely essential to making your story cohesive, clear and easy to follow. The first phase involves setting and characters. Your audience needs to have some sense of where and when the story is taking place. Did this story happen in the past or is it occurring in the future? What era is it supposed to take place in? Where does the action take place? On a farm, in the workplace, on a fishing trip or at a store? Immerse your audience within your story's co
But what exactly should that number be? Should 100% of it have been pre-sold? Or should it be 50% or even 25%? If you have too much uncommitted inventory sitting on shelves, it will not just tie up your cashflow but cost you mental stress and anxiety as well. If you don't have enough ready inventory on your shelves, you may not be able to fulfill new orders in a timely fashion. So what is a good balance?
There's no one-size-fit-all answer. It depends on a number of factors. By considering the five factors I listed below, you will increase your chance for success.
Factor #1. Cost of goods. I import Bali Sandals and sell them between $25 to $39. The cost of each pair of sandals to me is between $4 and $5. So, even if I only sell off 50% of my inventory, I make a profit. In other words, if your cost of goods is very low compared to selling price, you'll be ok with a lower pre-sold percentage. If your cost of goods is higher, you may want to have pre-sold a large percentage before you actually ship the inventory to the U.S.
Factor #2. Ease/difficulty locating buyers. As you pound the pavement to get your initial orders before you actually import your inventory, you get an idea how easy or how difficult it is to find buyers for your products. For example, I took my Bali Sandals to 10 boutiques and 7 ordered. That said to me the product was so unique they were easy to sell. So I was comfortable carrying more uncommitted stock. What is your experience in your initial attempts selling your product? Let that guide you how much uncommitted stock you will be comfortable with.
Factor #3. Seasonality. If you sell a seasonal product, I would not want to carry too much 'uncommitted' stock. For example, if you are selling beach products, you have a short 3 summer months to sell them. If you product is year-round and not perishable, I have more leeway selling them off my shelves so I would be ok with a higher ‘uncommitted' percentage of stock.
Factor #4. Industry standard delivery schedule. Some markets accept long delivery schedule. For example, in the women's apparrel market, bags or shoes business, retailers have been trained to order 3 to 4 months ahead. They order their Fall merchandise in July and they order their Spring merchandise in October.November. In a situtation like that, there is no need to carry ‘uncommitted' stock. When your clients are willing to accept long delivery times, you can order from your supplier after you have a signed order from your customer. You probably would not want to take this on-demand model to the extreme though because the per piece overseas shipping drops significantly if you can ‘bunch-up' your shipping to larger volumes.
Factor #5. Marketing channels. If you sell not just to wholesalers but have multiple marketing channels, it's like having insurance if one particular channel doesn't pan out. I sometimes risk carrying extra uncommitted inventory so I can test out new marketing channels.
By now you wil
My passion as an Entrepreneur started 11 years ago as a SSG in the Military. I got so tired of people getting credit for the work I did and all I got was a pat on the back. So I decided to leave the military after about 13 years and 9 months. I just got tired also of seeing so many of my fellow enlisted soldiers retire and not be able to find a good job because they were either to old or not skilled enough. People still think I was crazy for getting out with only 6 years 3 months left.Even I do
There's no one-size-fit-all answer. It depends on a number of factors. By considering the five factors I listed below, you will increase your chance for success.
Factor #1. Cost of goods. I import Bali Sandals and sell them between $25 to $39. The cost of each pair of sandals to me is between $4 and $5. So, even if I only sell off 50% of my inventory, I make a profit. In other words, if your cost of goods is very low compared to selling price, you'll be ok with a lower pre-sold percentage. If your cost of goods is higher, you may want to have pre-sold a large percentage before you actually ship the inventory to the U.S.
Factor #2. Ease/difficulty locating buyers. As you pound the pavement to get your initial orders before you actually import your inventory, you get an idea how easy or how difficult it is to find buyers for your products. For example, I took my Bali Sandals to 10 boutiques and 7 ordered. That said to me the product was so unique they were easy to sell. So I was comfortable carrying more uncommitted stock. What is your experience in your initial attempts selling your product? Let that guide you how much uncommitted stock you will be comfortable with.
Factor #3. Seasonality. If you sell a seasonal product, I would not want to carry too much 'uncommitted' stock. For example, if you are selling beach products, you have a short 3 summer months to sell them. If you product is year-round and not perishable, I have more leeway selling them off my shelves so I would be ok with a higher ‘uncommitted' percentage of stock.
Factor #4. Industry standard delivery schedule. Some markets accept long delivery schedule. For example, in the women's apparrel market, bags or shoes business, retailers have been trained to order 3 to 4 months ahead. They order their Fall merchandise in July and they order their Spring merchandise in October.November. In a situtation like that, there is no need to carry ‘uncommitted' stock. When your clients are willing to accept long delivery times, you can order from your supplier after you have a signed order from your customer. You probably would not want to take this on-demand model to the extreme though because the per piece overseas shipping drops significantly if you can ‘bunch-up' your shipping to larger volumes.
Factor #5. Marketing channels. If you sell not just to wholesalers but have multiple marketing channels, it's like having insurance if one particular channel doesn't pan out. I sometimes risk carrying extra uncommitted inventory so I can test out new marketing channels.
By now you wi
What’s it going to cost you - and who will buy it?In figuring profit for your invention, it is NOT just what you will make - or even what you and your investor will make. You have to consider the entire food chain - developer/prototype, to manufacturer, to wholesaler, to retailer, then to you and your investor. It is a long chain and each party takes a cut. Cost estimates have to be determined for each link:Determine the start-up costs to get a prototype and to prepare for and
Factor #2. Ease/difficulty locating buyers. As you pound the pavement to get your initial orders before you actually import your inventory, you get an idea how easy or how difficult it is to find buyers for your products. For example, I took my Bali Sandals to 10 boutiques and 7 ordered. That said to me the product was so unique they were easy to sell. So I was comfortable carrying more uncommitted stock. What is your experience in your initial attempts selling your product? Let that guide you how much uncommitted stock you will be comfortable with.
Factor #3. Seasonality. If you sell a seasonal product, I would not want to carry too much 'uncommitted' stock. For example, if you are selling beach products, you have a short 3 summer months to sell them. If you product is year-round and not perishable, I have more leeway selling them off my shelves so I would be ok with a higher ‘uncommitted' percentage of stock.
Factor #4. Industry standard delivery schedule. Some markets accept long delivery schedule. For example, in the women's apparrel market, bags or shoes business, retailers have been trained to order 3 to 4 months ahead. They order their Fall merchandise in July and they order their Spring merchandise in October.November. In a situtation like that, there is no need to carry ‘uncommitted' stock. When your clients are willing to accept long delivery times, you can order from your supplier after you have a signed order from your customer. You probably would not want to take this on-demand model to the extreme though because the per piece overseas shipping drops significantly if you can ‘bunch-up' your shipping to larger volumes.
Factor #5. Marketing channels. If you sell not just to wholesalers but have multiple marketing channels, it's like having insurance if one particular channel doesn't pan out. I sometimes risk carrying extra uncommitted inventory so I can test out new marketing channels.
By now you wi
Advertising business gifts can be a significant expense for your company. Like most advertising, it can be difficult to determine a bottom line return on your investment. With advertising business gifts, it can be especially difficult to measure their true worth to your company, since a great deal of the value comes from intangibles like increased customer loyalty and heightened brand awareness. Here are some considerations and figures that may help you determine the relative cost-per-value ratio of yo
Factor #4. Industry standard delivery schedule. Some markets accept long delivery schedule. For example, in the women's apparrel market, bags or shoes business, retailers have been trained to order 3 to 4 months ahead. They order their Fall merchandise in July and they order their Spring merchandise in October.November. In a situtation like that, there is no need to carry ‘uncommitted' stock. When your clients are willing to accept long delivery times, you can order from your supplier after you have a signed order from your customer. You probably would not want to take this on-demand model to the extreme though because the per piece overseas shipping drops significantly if you can ‘bunch-up' your shipping to larger volumes.
Factor #5. Marketing channels. If you sell not just to wholesalers but have multiple marketing channels, it's like having insurance if one particular channel doesn't pan out. I sometimes risk carrying extra uncommitted inventory so I can test out new marketing channels.
By now you wi
Writing a ResumeNot that long ago, the easiest way to get a job was to visit the company you wanted to work for and ask for one. Today, however, it's not quite that simple. Most companies require you to submit your resume to them before they'll consider you for a position. So the resume has become a great deal more important, because it's the first, and possible last, chance you have to make the right impression. That's why it's so important to get it right!First off, you need
Factor #5. Marketing channels. If you sell not just to wholesalers but have multiple marketing channels, it's like having insurance if one particular channel doesn't pan out. I sometimes risk carrying extra uncommitted inventory so I can test out new marketing channels.
By now you will agree that the ratio of committed versus uncommitted inventory is not carved in stone. Consider these factors and use them to analyze your situation so you arrive at a balance that works for you.
If you miss in your first year, don't be discouraged. Time is the best teacher. With time, you will get to know your market, your buyers, your products and you will know that number at the top of your head.
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