February 10, 2009

Building an Inventory on a Shoestring Budget, by Kristine Carpenter

I've had several requests from distributors for this article that I had posted in someone elses thread a while back in reply to a question that they had. Since there were so many requests, I decided to re-post again, in it's own thread to help others who might have missed it. Here it is:

Hi Everyone,

This article will teach you how you can build an inventory up for your home based business on a shoestring budget, without taking much out of your OWN pocket at all to do. How can this be possible you ask? Read on...

This article is geared more toward my home based candle business as an example, but the technique could be applied to other home based businesses as well. I hope you enjoy it.

While inventory is certainly not required in our business, I like to carry some and so do many of my team members. The simple and effective "Smell & Sell" technique is very effective... as simple as taking the lid of a jar, letting someone smell some of the scents that you have, and selling on the spot. They move really well like that. Also, by having it, I'm ready for any opportunity that may present itself, even with limited time notice.

So... How can I build an inventory with very little out of pocket???

Here is how you can build up an inventory, AND get a fast start pack without spending much out of pocket to do so. Lets start this REALLY small... say you got a 3 jar order, the sale of 3 jars sold at $20 each (I charge a little more per jar than the $18.95 MSRP, I charge $20 flat rate and say shipping, ect... is included in the price (rather than selling for the $18.95 and then adding shipping ect... I'm all for keeping it simple. Some of my team members sell successfully at $25 each jar candle in their area, but I personally charge $20, so I will use $20 as the price in my example). Anyway... a 3 jar sale at $20 each is enough to have ordered 6 jars at the distributor price of $9.95 each (you would have to kick in a small amount to cover the shipping and tax on the 6 jars but then you would have had 3 jars to smell and sell with.

When you sell those 3 "Smell and Sell" jars, then you take that money that you collect from those 3 "Smell and Sell" sales and order 6 jars to smell and sell with (you order your "Smell and Sell Jars in TOP selling scents, there is always a list of the top selling scents for this time of year at the end of every newsletter. TOP selling scents are always easy to sell with the simple "Smell & Sell" method).

So... then you have 6 jars to smell and sell with (you won't beleive how easy these jars are to sell when you have them on hand to smell and sell. Now, when you sell those 6 jar candles at $20 each, you'll have about enough to order a dozen jars to "Smell and Sell with), when you sell those 12 smell and sell jars, you'll have collected about enough to order 2 dozen jars to smell and sell with, and so on.

What I did, was to keep reinvesting my profits into building stock until I had the amount of stock that I wanted carry, like I explained above. For me, the amount of stock that I wanted to always have on hand was 3 dozen jars. You may want one or 2 dozen, it's up to you, but for me 3 dozen is working well. There are certain scents that I like to have 3 of on hand of because they are fast sellers (Hot Apple Pie, SO&CP, French Vanilla). "Sex on the Beach" is another top seller for me, but since I work in a bar 2 days per month and bring my candles with me that could have something to do with that, LOL. Anyway, when you choose scents from the TOP sellers list, and tell people that you carry the top selling scents in stock, and here's what you have that they can take right away, or you can order any scent that they want, and you will be placing your next order (give yourself about a week, so that you can collect more "smell and sell money" to invest in the 6 jar order to fulfill that request, or get more orders to put in with it)... they will most often choose one of those top sellers that you have right there, but that's what you do if they choose one that you don't have there. You're safe to be able to sell the TOP sellers, when you choose your "Smell and Sell" jars from the TOP sellers list because those scents sell really well quickly as long as you're sharing them with people ("Smell and Sell").

Once I had reinvested my profits so that I could build the 3 dozen inventory that I wanted (for me this happened quickly. I had gone into businesses for corporate gift giving and got a LARGE corporate gift order and reinvested my profit into a bigger inventory, but you could build it up slower just as I described above if you wanted... it works on the same exact idea and is working for others who couldn't afford to be out of pocket a lot to just buy it, but by reinvesting and building it up that way they get a nice inventory to be ready for a party quickly, or any opportunity that may come their way without being out of pocket much to have built up that inventory.

I was one of those who couldn't afford to buy the fast start pack right away. I wished SO BADLY that I could!! My boyfriend and I handle our finances seperately, and the money just was NOT in my account. As much as I wanted to start with the fast start (and DEFINITELY would have if the money was in my account, I just couldn't. I wanted it so bad that it was like a hunger that I needed to get it, so I was very focused. It meant, focus, and hard work to get my bag (fast start pack) FAST! Once I got my inventory built up (which happened quickly for me because I was showing the products to everyone, taking orders, and got BIG orders from businesses too), I then focused on maintaining my 3 dozen, and putting my profit aside so that I could invest it into a Fast Start Pack.

So every time I sold a dozen (collected $240), and bought my replacement dozen to maintain my inventory level, I put what was left aside (seperate from the rest of my money)... this became the "Fast Start Pack Fund", LOL. I wanted that sample bag, and it makes the most sense to buy it as part of the fast start pack because for the extra $200 above the cost of just the bag alone you get ALL that product. The Fast Start Pack is valued at over $850 because it includes a TON of product! I knew that when I sell the product in the Fast Start Pack, that I would get MORE than my full investment back, virtually making that awesome $200 sample bag FREE and then money in my pocket besides, so it made a lot more sense to me to get my sample bag as part of the Fast Start Pack.

Once I had completed getting my inventory built, then my I acheived my 2nd goal of getting my Fast Start Bag, then all that was needed to do is to maintain my inventory level that I personally like to carry. I like 3 dozen jars in stock, like I said.... so when I sell a dozen ($20 each x12= $240 collected), I just buy a dozen to maintain my 3 dozen stock at my discounted distributor price of $9.50/jar, and can pocket the rest as my profit. :)This is how you build on a tight budget. For those who can start with the Fast Start Pack WITHOUT falling behind on your bills, I HIGHLY recommend it. You will reach your income goals so much quicker and easier, having products on hand to "Smell and Sell" with right from the start, and I can't even tell you how many sales that my sample bag has been responsible for. It's definitely worth it's weight in gold!

For those, like me... that starting with a Fast Start Pack is just impossible for, this is a realistic plan to accomplish it, without much out of pocket. It's just reinvesting the profit for a while in the beginning to build your business up and then your profits will come later once you've worked through this part.

I did it, and you can too!

The example here is specific to my business but can be applied to other businesses too. If you are currently open to looking at an opportunity, we have a great one! 50% or better earned on most products for retail sales without high quotes to get that high percentage (just your Candle of the Month package, qualifies you to get these high earnings percentage on retail!). We also have the best compensation plan for team building that I've seen in any industry! I'm doing incredible with it and am showing others how to build their own successful business as well. Feel free to ask me for more information. I'd be happy to send you a free no obligation scent sample pack with business information.

I'm confident that once you smell a few of our incredible true to life scents, that you'll love it and be eager to get started. There is no cost or obligation to receiving the info. If you want to change your financial future, you owe it to yourself and to your family to look into this further. Getting involved with this opportunity has literally been a life changing choice for me, that I'm so glad that I made.

Kristine Carpenter
5K Diamond Leader

You have permission to post this article on your own blog, however it may not be changed in any way. All information must remain in tact, exactly as is including my name as the author, to avoid breaking copyright laws. This paragraph must also accompany any republishing of this article. Thank you!

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