How much stock to buy?

Discussion in 'Growing Your Startup' started by Rainbowdrops, Jul 17, 2015.

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  1. Rainbowdrops

    Rainbowdrops UKBF Newcomer

    17 0
    Hello all I'm new here and would really like to some help. Im in the processing of a small retail business working from home and online. How much stock would you say I'd need to buy? My husband says no need to buy any and when ppl start ordering then to make a purchase from the suppliers. On the otherhand was going to buy lots of stock. Please can you tell me what the normal process is?

    Many thanks :)
     
    Posted: Jul 17, 2015 By: Rainbowdrops Member since: Jul 17, 2015
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  2. Hash and Bash

    Hash and Bash UKBF Enthusiast

    321 67
    In general, holding lots of stock is not a good idea.
    You are just tying up capital which you could probably put to better use.

    If your suppliers can supply your requirements on a short lead time and in the quantities you require then that is fine - just order when required.

    However if items are on a long lead time or if you need a larger MOQ to get the best prices then you would need to hold some stock.

    There is also a possibility that there may be a stock out at the supplier and you may want to hold a small amount of stock to cover this eventuality.

    Another problem could be the product becoming obsolete or superseded by a new model and you would be left with items you can't sell or need to discount to get a sale.
     
    Posted: Jul 17, 2015 By: Hash and Bash Member since: Nov 8, 2012
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  3. Rainbowdrops

    Rainbowdrops UKBF Newcomer

    17 0
    Thank you for your input hash and bash but how would I be able to take pictures of stock if I don't have it to hand? I can't take the suppliers pictures but maybe they supply pictures for retailers to use? Would you have any stock at all?
     
    Posted: Jul 17, 2015 By: Rainbowdrops Member since: Jul 17, 2015
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  4. ClearviewPropertyCare

    ClearviewPropertyCare UKBF Newcomer

    29 6
    Hi,

    This is a good question as I faced this some time ago when I started off, my head was everywhere as I did not wants loads but didn't want any at all.

    I basically would go on the lines of purchase a small amount and as orders come in start to purchase more to replace ones sold etc and keep doing that until you have a decent sized regular purchases, also advertise with notice large orders can be processed so basically someone can order loads from yourself and you have it in without having to order yourself and keep a client waiting...

    That's my opinion.
     
    Posted: Jul 17, 2015 By: ClearviewPropertyCare Member since: Jul 13, 2015
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  5. Rainbowdrops

    Rainbowdrops UKBF Newcomer

    17 0
    Thank you clear blue property care that's very helpful. I was thinking along the lines of ordering a small amount. If I do have a product that I haven't got to hand can you advise how I could take a picture for advertising purposes?
     
    Posted: Jul 17, 2015 By: Rainbowdrops Member since: Jul 17, 2015
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  6. ClearviewPropertyCare

    ClearviewPropertyCare UKBF Newcomer

    29 6
    Hi,

    No problem for the help, we're here to seek and give advice :).

    I would however ask your supplier for an image of the product maybe? Is that an option for you.
     
    Posted: Jul 17, 2015 By: ClearviewPropertyCare Member since: Jul 13, 2015
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  7. Rainbowdrops

    Rainbowdrops UKBF Newcomer

    17 0
    That's a very good point. Once I've decided on suppliers then I will broach that subject. Being new to this im unsure how suppliers feel about this. I guess they just want you to buy their products. Then again maybe they are happy for customers to order as and when required. Hopefully my supplier will shed some light on this :)
     
    Posted: Jul 17, 2015 By: Rainbowdrops Member since: Jul 17, 2015
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  8. moo-tique

    moo-tique UKBF Contributor

    299 27
    When we first started out, we were asking ourselves the same question. We made the mistake of purchasing stock but found it almost impossible to sell it all as some figurines were more popular than others. We were then left with some stock which did eventually sell but we had to re-think. We no longer hold any stock as it's shipped direct to our customer from the manufacturer. Many advantages here are:

    A) Saves us time not having to wait/organise deliveries and indivually package and post items
    B) We are able to offer shorter delivery timescales
    C) Reduces our our overall costs/increased overall profit

    Ultimately, it is all down to works best for you, and depends if you are able to negotiate a dropshipping arrangement. The only downside with some suppliers is that yiu need to have shown some commitment in terms of ordering before they will agree to do this.

    Dan
     
    Last edited: Jul 17, 2015
    Posted: Jul 17, 2015 By: moo-tique Member since: Aug 27, 2012
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  9. Rainbowdrops

    Rainbowdrops UKBF Newcomer

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    Thanks Dan, Im a bit fuzzy headed with all going round in my head but that deffo helps.
    Many thanks
     
    Posted: Jul 17, 2015 By: Rainbowdrops Member since: Jul 17, 2015
    #9
  10. moo-tique

    moo-tique UKBF Contributor

    299 27
    No problem - it will all get easier once you find out what works best for you.
    Good luck with the venture - exciting!
     
    Posted: Jul 17, 2015 By: moo-tique Member since: Aug 27, 2012
    #10
  11. MY OFFICE IN CHINA

    MY OFFICE IN CHINA Full Member

    5,811 1,375
    There are different factors to consider:

    1. Your finances

    2. Your storage space

    3. Is the product fashion item

    4. Will you be able to negotiate a better price for ordering / amounts

    5. How many products are you likely to need to stock

    6. Is there a chance that the stock will be outdated quickly

    7. By ordering will this allow you to include your own brand

    8. Are your predicted sales accurate

    9. What if the product simply does not sell

    10. Will you find better suppliers as you progress with your business

    Generally, if you can afford it and the pricing makes sense, try not to order more than 4 weeks worth of your predicted sales.

    Also take postage costs into account, generally, the less you order, the higher the postage rate will be.

    You will learn as you go along, but tread carefully at the beginning.

    You can always increase your stock as you see sales start to pick up.

    As the saying goes, don't run, before you can walk.
     
    Posted: Jul 18, 2015 By: MY OFFICE IN CHINA Member since: Nov 16, 2011
    #11
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