Inventory questions

[Martin Boekers]

Lately I've been tasked on improving my inventory control, next to pricing this can be just as difficult to figure out.
I would like to hear others thoughts and ideas on this. The bulk of my business is retail awards and gifts.

I'm trying to work out a better balance/ratio so I can take advantage of free shipping and case discounts. Most of you know JDS
can be generous on those offers. I don't order everything because of discounts but it does factor in my purchases.

Thanks All!

[Kev Williams]

funny--

I'm NOT in the retail biz, but for years I've mfr'd a few dress-up, 'functional replacement' and a few oem replacement parts for a few older cars. It doesn't account for a ton of biz, but it's good 'part time' money sometimes. I usually have 6 to 12 items per week to make and ship, usually on Fridays and Saturdays. I call it my 'Burger King' work... since the items are few, I usually make everything to order.

But occasionally I decide to get ahead of the popular items, and make up a few at once during slow periods, which of course saves precious weekend time!

--and almost without fail, whatever parts I make a few extras of, suddenly quit selling. Right now I have a drawer full of switchplates, a stack of turbocharger heat shields, and box full of alcohol injection system faceplates, all of which were selling at the rate of 2 to 5 per week. Since I've stocked up, I'm lucky to sell 2 to 5 a month. Years ago we had a local company ordering plastic 30mm legend plates weekly. My BIL was slow one day and spent the whole day making up about 20 each of the 3 different versions they would order. And at the same time, they stopped ordering them cold turkey; we decided to stock up just as our customer's need for them dried up. Every one of those legend plates is still sitting on a shelf with about a pound of dust on them...

It's a phenomenon I've yet to figure out, and it always makes me glad I don't HAVE to have a large stock of stuff! I go thru probably 30 full sheets of black/White Romark per year, but even though it would save me money, I refuse to by more than a month's worth at a time!

[Mike Null]

I inventory plastic and metal as well as one specific plaque series from JDS. Otherwise I order as I sell. With one day delivery from Johnson Plastics and local pick up from JDS I don't feel the need to inventory. Oh yes, I inventory name tag findings in good quantity. You know how much space I have so even if I were inclined to buy to discounts I don't have space.

[Mark Sipes]

Have to agree with Mike in the "Stock what will never go out of style"..the basics. Your description of "your business" is open to interpretation. "Trophy & Gift Retail"

I find I have customers that order the same item every year and then the Distributor stops carrying/making the Item... had I known I would have bought every one in the market. Others I have say they will use this item into the future. so I order 3 years supply. Well they go out of business and I have 2 years of an item nobody else wants....."Deep Discount Time"

Silver products/ picture frames/ desk items .... are in the same category.

I carry $20K-25K in inventory.......and work that down during the year. Still have to order those items I am not willing to risk in the "stock" category.

I stock 10 sheets of my most popular plastic/ brass/ aluminum colors Desk/ Door plate holders 8/10/12" Gold/silver Garden Stakes for
In Memory" customers.... 5x7 through 12x15 Fiberboard Cherry plaques 1 case each. If you purchase more that $35K a year PDU considers you a preferred customer and sells 1 case at the 10 case price. Free shipping in January requires a $5,000 order as I recall.......
....

Interesting subject.... Had considered putting a website together of items that were slow movers in my area to see if others in the business/country needed those items. Used E-bay for several reductions but now a days people want free shipping and with the jump in shipping that took place on Jan 17 there goes any profit....
l
I used to go to a local - Washington/Oregon Swap meet put together by Awards Recognition Businesses.. held once a year just to trade/sell items that were over stock/ slow movers.... Been awhile since that that group has held any meeting.........

[Martin Boekers]

The bulk of my business is awards, monthly, Quarterly, Annual etc. Typically my customers keep the same items for a couple years. Sometimes I can work with them on a yearly purchase
then they bring them back for engraving. A large part of my business revolves around customer service and quicker turns than competition. I purchase mostly from JDS as they have great
product lines, customer service as well as a couple warehouse within a day ship. I don't feel I have a large inventory say about 10% of annual sales, but it gives me flexibility on quick turns or if
a client adds a piece or two or heaven forbid, a miss engraving... ;) I don't think that number is out of line esp when I save shipping costs and the time and paper work to place multi orders a day.
That doesn't include the quantity discounts I get.

The powers that be what a lower inventory. It makes it hard to assess monthly inventory counts when we aren't allowed a POS System. So I was just curious about others that hold inventory and their thoughts. :)

[Mike Troncalli]

Like most of the posts above, I am 1 day shipping from JDS.. I do stock certain sheets that I know I use for many customers signs, name plates ,etc.. I also have a few of the there gift SKU's that I sell on a pretty regular basis that I will stock a few up.. Other than that I just order as needed. I am more wholesale so I have to charge case price and less than case price to help offset my cost in shipping..

Your just going to have to let time and history tell you what to stock up on...

[Mark Sipes]

I think the trick to inventory is only stocking what you "know" you will sell within the years time. If the item/s are still in inventory, say two years from the time you purchased then..... Time to make a decision on selling as a closeout price or donating / a "Free to a good home" table.

Major players in retail find it cheaper to "trash" the stuff that does not move to make room for the New Stuff.

If you still have say 2013 trim figure in stock........ it's time to save 5 for those customers who break one and come to you for a replacement ... and trash the rest........ what is your space worth?? (rhetorical)


10% of sales for inventory.........if that is your number.. stick to it.



What was your question ??



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[Glenn Norton]

Just became manager of a local awards business. Just did our inventory and it is outrageous. Over $100g of which $70g is over 5+ years old. Trying to figure how to unload some of this old inventory. The shop I had before I lost my space I never carried minimal inventory as JDS was an overnight ship.

[Mark Sipes]

Put together a list Vendor, Part Number, Qty of the major items ...... Deep discount to justify shipping.. across the country I'm sure there are retailers that would be interested. PM me a copy of the list.




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