Wednesday, August 02, 2006

Is Inventory Important?

One of the hot questions when it comes to direct sales and offline shows is this:

"Do I need a large inventory, or can I just take orders?"


Honestly, this is no easy answer and it's going to mostly depend on what products you are selling. Some items (such as custom products) are near impossible to have on stock and must be ordered. Other items (such as candles), the shopper wants to have in hand before they leave. Candles are one of those items which are NOT unique (no matter if you have a great product), and a shopper knows they can easily pick it up at just about any store.

For the most part, you are going to want a large display of products to sell right off the table. When shoppers are roaming around craft shows, they are looking to shop. If they wanted to have items shipped to them, they would probably be shopping online. I'm sure they do, but only because they have no other option when shopping online or at a home party. People LOVE to walk out with something in hand.

I know one of the benefits of a direct sales company is not to have large amounts of stock on hand. However, if you plan to have tables at offline events, stock is a must. Even when taking orders, you must have some type of display. This way the customer can see and touch, knowing exactly what they will be getting should they order.

Be warned though, even with large amount of stock on the table, it's like pulling teeth to get orders. For example, occasionally we'll have a 12oz Jelly Jar in a scent they really like but no 8oz Jelly Jar. We'll suggest they put in an order and have it delivered (no shipping for local orders since we deliver). Almost always they'll go with a different candle or none at all.

In over a year, we've taken in a total of 3 orders. The reason for each order was as follows:

Order #1: Previous customer who had purchased a candle at another show. She smelled a candle she liked and bought it, but wanted 2 more in a larger size. So she not only already knew the candles, but wanted more than what we had on the table.

Order #2: A customer wanted 4 of the same candle while we only had 2 in stock. Because it was a gift for a special occasion, she decided to order.

Order #3: Another previous customer. This one had smelled each scent on the table and wanted different colored votives all in the same scent. Again, she knew what the product was like and wanted more than what was on the table.

In conclusion, while you can get away with taking orders only, it's better to sell outright. Shoppers are ready to impulse buy, and you don't want to miss out on it!

Direct Sales Helpers on the Road

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