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shopgirl

posts: 5

Sep 20, 2007 2:40 PM ET    Quote  Report Abuse
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Shopgirl here....you ain`t heard the last of me :)  I have lots of questions. The one that has been burning in my mind the most, however, is that of acquiring a start-up inventory for a retail store. I have been in touch with several manufacturers requesting product pricing information, as well as ordering, shipping, etc. I also have the information for a trade show. How do most small retail businesses determine and build a start-up inventory....trade shows, individual manufacturers....and how do they determine the inventory costs? Oh, I LOVE this SUNny little place...thank you!
miabellacandles

posts: 37

Sep 20, 2007 7:47 PM ET    Quote  Report Abuse
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Your beginning inventory will be partially determined by how much space you need to fill with product displays, how much product you expect to sell in the near future, and how much capital you have to spend.

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stonesledge

posts: 1093

Sep 20, 2007 9:08 PM ET    Quote  Report Abuse
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ShopGirl,

I have read your posts and you sound very excited about what you are doing! That is great! I have a friend who owns and runs a retail boutique here in VA. If you are interested i can put you in contact with her. She is a savvy business women and also an attorney. I also know she is a wiz at ordering and buying and wholesale, etc. She also plans on franchising her store.Let me know and i will get you two together. Her name is Joanne and I am sure she would be willing to help.

Erin



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CraigL

posts: 9051

Sep 22, 2007 1:43 AM ET    Quote  Report Abuse
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....partially determined by how much space you need to fill with product displays, how much product you expect to sell in the near future....

I think this hits the nail on the head, doesn`t it? How much do you think you can sell in 1 cycle, where you take in money, pay your bills, reorder, and get the new shipment in time for the next cycle?
houseofjerkyjanie

posts: 1150

Sep 22, 2007 11:45 PM ET    Quote  Report Abuse
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 Inventory costs, are first determined by how much inventory you need. I`ve often thought the most difficult part of this, is to choose which products will sell, versus what products might sit on your shelves forever. The products that end up sitting on your shelves forever, are going to determine your ability to pay for, and order, more of the product that sells.

shopgirl

posts: 5

Sep 23, 2007 11:29 PM ET    Quote  Report Abuse
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Thanks everyone so much for your help! Erin, I would love to get in touch with Joanne...it sounds like she would be a great resource, and I admit, the more resources and great advice, the better off I`m going to be.

Right now, the space I am looking at, is approximately 2500 sq feet.

Kelly

onlinestartup

posts: 2

Jul 13, 2008 11:01 PM ET    Quote  Report Abuse
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I am in the process of starting up an on-line retail store...it is a children`s boutique and I`m trying to determine how much I should budget for inventory.  Since it is on-line, obviously space isn`t necessarily as much of an issue as if I were going to have a brick and mortar store.  It is high-end designer items so they are expensive even at wholesale prices.  Any suggestions or experience?
CraigL

posts: 9051

Jul 14, 2008 3:11 AM ET    Quote  Report Abuse
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I think we had a topic on this, some time back. Not that you`d find it easily, but there were some useful things that came under discussion. If I remember right, the one key concept was the relationship between the taking of an order and the shipping of an item.

For example, if you offer 1-day shipping then you`d have to have everything you offer on your site in stock. On the other hand, if you promise to ship within 2-3 weeks, then you`d have to figure out how long it`ll take to get your items from your manufacturers.

So it comes down to your own shipping policy: how long will you take to ship an order?
minimegeology

posts: 143

Jul 15, 2008 1:24 AM ET    Quote  Report Abuse
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Hello onlinestartup,
 
Craig is exactly right about the relationship between how fast you can get product and how fast you promise to ship.  You will find that vendors vary widely on how fast they ship to you and depending on your location to the vendor, the transit time will matter as well. 
 
You should also consider what you think your best sellers will be.  You will find that certain items move more quickly than others but it may take several months to find out what those items will be.  Buy enough to get you through initial sales but don`t stock up on any items until you know they will move fast.  Personally, I was surprised to find out which of my items sold the most because it was not the items that I had anticipated.
 
Good luck and let us know your web address when you launch!
 
Tracy


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Tracy Barnhart, Owner
Giverny, Inc. / Mini Me Geology
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DeenaEsq

posts: 40

Jul 15, 2008 9:17 AM ET    Quote  Report Abuse
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As a manufacturer of baby products (baby carriers, diaper bags and nursing jewelry) and having spent some time around other manufacturers at trade shows, you may want to see if any of them are willing to dropship for you.  Many are (for a fee) and that will cut down both the amount of inventory you have to have in stock and the amount of time it will take you to ship....  Just a thought.
 
Deena
 
 


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