Inventory vs. Running Open Sales

Inventory vs. Running Open Sales

Every business operates differently but one thing we seem to have found in crafting businesses there are 2 different styles that seem prominent. All with their pros and cons of course. We wanted to share with you the 2 different styles we have seen in case you are starting off or find that your method is not really working and you are not quite sure where to go from where you are now.

 

The Inventory Method 

This method requires some capital investment, as you will need to purchase some inventory to always have on hand stock for things you are selling.

Pros:

  • You can always provide things to your client in a short period of time.
  • Always have on hand the products you’ve done in the past
  • Be sure that what your clients requests are product you can provide

Cons:

  • It is a big investment to make sure you always have stock
  • Takes a lot of room to carry all the items and keep up with inventory

 

The Running Open Sales Method

This method requires your business to focus on a few items at a time and run an open sale for items meaning that you create a few mock ups or post images of the product and you choose how long you will host the sale period. Then once you decide its over (usually based on inventory stock from your supplier OR a holiday is getting close) you place your order with the supplier and get ONLY products people have paid for already.

Pros:

  • You have no inventory which means it does take up space or money
  • Your clients are always being offered a few products at a time making it less overwhelming for them in terms of options

Cons:

  • It may take a little longer for clients to get their items from you
  • If someone wants an item after the sell period you wont have it available to them

Overall both methods work depending on your market and the type of customers you have. 

A mix of both methods can be used as well.

  • You could carry inventory and run sales on very popular items for specific holidays (ex: bunny baskets, ornaments)
  • You could run sales of specific items and then have a few extras in stock for those who answer after the sale period is over

You have to find a method that works for you business and move forward based on YOUR client base. Even if someone is in the same area does not mean they target the same people.

Be sure to know YOUR clients.

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