Your Spending Pattern May Get You in Trouble
Part of my offerings to VIP gift basket clients is a review of inventory so together we determine what’s already in stock and what products to purchase.
I recently pursued this review when visiting a gift basket designer at her studio.
After the lengthy assessment, the designer and I visited three local suppliers to see their merchandise and decide what to buy from each supplier.
We didn’t walk into the building and immediately start loading up carts with assorted merchandise. I taught her how to make calculated decisions that lead to the three results she wants (you want this, too):
- Lower costs
- Quicker orders
- Higher revenue
From there, we filled in the gaps by ordering products online and by phone that were not available through local suppliers.
All of this occurred in March, just before the designer received a call from a corporate prospect she’s been pursuing. The representative needs 250 gift baskets to distribute during an industry conference to be held 30 miles from the designer’s studio.
Our work together is not just a success for her overall business; now she knows how and when to purchase the right way for general and unexpected sales.
Make smart buying choices
I mention this interaction with the VIP client because it’s mandatory to know where you’ll buy products from suppliers that keep plentiful merchandise on hand.
You can buy items here and there when it’s on sale from a retailer. However, that type of haphazard buying keeps you thinking like a hobbyist, one that buys according to when retailers are trying to get rid of stuff.
When you buy like that:
- Do you have a reason to buy, or are you at the retailers’ mercy?
- Are you simply hoarding clearance products with no sales in sight?
- Is it really okay to pay hard-earned money for items you hope to sell?
Without guidance, as the VIP clients (this is true about my coaching clients, too) are receiving from me, you’ll continue to be happy for a moment about purchases and then look at all the stuff and start regretting the impulse to buy.
Look at your inventory. Then look at your sales. Is it all adding up in your bank account or decreasing your cash as you store more products with nowhere to go?
If you’re not making sales, prepare to sell that impulse merchandise online and hopefully get paid pennies for your dollars.
The bottom line in this business is to buy with your head, not your heart.