Having no inventory is like having no groceries at home. So when hubby and the kiddos get hungry, you run to McDonald’s for fast food. A great fix for now, but too costly in the long run. When you have to order little by little, it costs less at the time, but over time, it costs you much more…not only in shipping costs, but time and trouble of delivery.
Having inventory is like cooking at home, with the cabinets nicely stocked. What does “nicely stocked” mean? Well, that depends on your activity. You might just need $600 in basic items on the shelf, while ordering color and limited edition as the orders come in. You might want a “full store”…but what you don’t want is to be so overstocked that you end up with lots of left over limited edition or old colors after the switch. That is like buying too many groceries and having to throw them out with the garbage!
It is quite a balance to have the correct amount of inventory. The only person in charge of that is YOU! 🙂 You wouldn’t want your director to decide how much you need in your fridge, so while advice is always welcome, that is exactly what it is when it comes to inventory… advice. The final decision is ours. Take your time when placing orders to ensure you have made a decision you feel good with. Because when your MK fridge of inventory is at the correct level for you, you will have no resentment or stress over the amount you have purchased…or in some cases haven’t purchased! It can be just as stressful to have to run to get that fast food MK order every other week and deliver it!
Is your inventory at a good level for you? Why or why not?