Inventory - to Have or Not to Have

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Discussion Overview

The thread explores the topic of whether Pampered Chef consultants should maintain an inventory for sale. Participants share their personal experiences and opinions regarding the benefits and drawbacks of having inventory, pricing strategies, and alternative approaches to selling products.

Discussion Character

  • Opinion-based
  • Anecdotal
  • Debate/contested

Main Points Raised

  • One participant, identifying as a consultant, questions the necessity of having inventory and seeks recommendations on pricing.
  • Another participant expresses a strong preference against maintaining inventory, highlighting the appeal of the business model without it.
  • Several users mention using items for giveaways or selling at craft fairs rather than keeping a stock for sale.
  • One participant shares that they only keep inventory from host specials or surprise boxes, finding it challenging to predict what will sell.
  • Another participant notes that their director allows borrowing inventory for events, but they have not had much success selling it.
  • Some participants emphasize that the company discourages maintaining inventory, citing quick shipping times and the extensive catalog as advantages.
  • One participant mentions advice from their accountant against carrying inventory, highlighting tax implications.
  • Another participant raises questions about warranty issues related to holding inventory.
  • Several users agree that the lack of inventory is a significant benefit of being a Pampered Chef consultant.

Areas of Agreement / Disagreement

General agreement exists among participants regarding the drawbacks of maintaining inventory, with many expressing a preference for not carrying stock. However, there are varied personal experiences shared regarding the handling of products and alternative selling methods.

Contextual Notes

Participants share a range of personal experiences related to inventory management, pricing, and selling strategies within the context of their roles as Pampered Chef consultants.

Who May Find This Useful

Consultants considering their approach to inventory management and those interested in understanding different perspectives on selling products may find this discussion relevant.

J
Jillb
Gold Member
Messages
22
Just wondering should I have an inventory for sale or not?

If I do what do you recommend?

How do you price your inventory?
 
No way! That's one of the best things about this business.
 
I don't really have one to sell per se. I keep some things on had for giveaways, and when I want to clean out my closet, I will take some cash & carry to a craft fair. I price it for whatever it is in the catalog or catalog it was in. If I am doing a fundraising event, I will take 10% of sales from products and donate it to the charity.
 
no need for inventory.
 
It's too difficult to know what to keep in stock! and unless you have alot of $$ to spare, it's not worth it.
 
The only inventory I have is a) things I got from host specials when I've hosted my own show b) things I purchased to make said show (really small items which I knew I would sell ... or would be happy to have in my own kitchen) and c) things I got in surprise boxes.

I agree it is too hard to know what will sell. My director has cash and carry which she lets us borrow. (If we sell it, we order it and put it back.) However, her house is out of my way and in the past, haven't sold much of her stuff.
 
NO!!! Don't do it. It's too risky and uncertain what will sell and what won't. Not only that, but why hassle with it? When I do booths- I just get those interested in products to host shows! Another reason I love PC - no inventory!!
 
HO discourages us from having inventory. Do not do it. It is one of the benefits of being a PC consultant - we do not carry inventory. The catalog has awesome pictures of everything and you can show what you own to give a customer an idea of the quality. Our shipping time is so fast that they'll get what they want quickly anyway. What you might buy is probably not what someone will ask for anyway.
 
I don't do it at all. I do get an extra Host Special here and there that I use to giveaway as a "big prize" when I get enough outside orders to make a show with my DD as Host. Other than that, no inventory and no plans to carry any! I do buy SBs some to have but last Season I had 50 SBs I had ordered as add-ons to Host orders (cheaper than buying on supply order AND got commission) but ended up having too many so I gave a lot away for various incentives.
 
BethCooks4U said:
HO discourages us from having inventory. Do not do it. It is one of the benefits of being a PC consultant - we do not carry inventory. The catalog has awesome pictures of everything and you can show what you own to give a customer an idea of the quality. Our shipping time is so fast that they'll get what they want quickly anyway. What you might buy is probably not what someone will ask for anyway.
Click to expand...

That is SO true! Our catalog is extensive, and so it's hard to determine what people are going to want and ask for, and it's going to disappoint people more if you say you carry inventory, but then don't have what they want.

And a lot of our product takes up a lot of space. If you were to carry inventory, you'd have to have an extra room in your house. :-)
 
Our accountant said "DO NOT". Items bought one year and sold the following year are TOTAL profit, since the purchasing of the item was claimed in the previous year.
 
Also, how would the warranty work if you kept an inventory? Is it from the date YOU purchased it or when they re-purchased it, you know?
 
There would be no true warranty on it. I do like to have some discontinued things on hand if they have something good. As for SB, don't just give them away. People love looking for older ones! I give them away too, but not to get rid of them. It's an easy thing to have at a booth.
 
I agree with everyone here. No inventory!! That's why this business is so appealing to so many of us!
 

Frequently Asked Questions

What is the advantage of having inventory in direct sales?

Having inventory allows you to provide immediate product availability to customers, which can enhance customer satisfaction and lead to quicker sales. It also enables you to showcase products during parties or events, making it easier for potential buyers to see and feel the products before purchasing.

Are there any downsides to maintaining inventory?

Yes, maintaining inventory can involve upfront costs and risks, such as the potential for unsold products that may become outdated or go out of style. Additionally, managing inventory requires time and effort for organization, tracking, and replenishment, which can be challenging for some direct sellers.

How can I determine the right amount of inventory to keep?

To determine the right amount of inventory, consider your sales patterns, the popularity of specific products, and seasonal trends. Start with a small, manageable amount and gradually increase based on demand and sales performance. Keeping track of customer preferences and feedback can also help you make informed decisions.

Is it possible to run a successful direct sales business without inventory?

Yes, it is possible to run a successful direct sales business without holding inventory by utilizing a drop-shipping model or relying on the company’s inventory. This approach minimizes financial risk and storage concerns, allowing you to focus on sales and customer relationships rather than inventory management.

What strategies can I use to sell products without holding inventory?

To sell products without holding inventory, consider using online platforms to showcase products, hosting virtual parties, or utilizing social media for marketing. You can also take advantage of pre-order opportunities, where customers pay upfront for items that will be shipped directly from the company, ensuring you don’t have to manage stock yourself.

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