Your Spending Pattern May Get You in Trouble
Where is the money going to start and grow your gift basket business? If you don’t know, your spending pattern may get you in trouble. Here’s why.
Part of my assistance to VIP clients is a review of inventory so together we determine what’s already in stock and what products to buy. This is especially important so you have lots of start-up money, the subject of the definitive money article.
I recently went through 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 one.
We didn’t walk into the building and immediately start loading up carts with merchandise. Instead, I taught her how to make smart decisions that lead to the three results she wants (you want this, too):
- Lower costs
- Quicker orders
- Higher profits
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. There’s more. She now knows how and when to purchase the right way for general and unexpected sales. It’s a huge triumph.
Make smart buying choices
You can buy items here and there when it’s on sale from a retailer. However, that type of haphazard buying keeps you thinking too lean, as if orders will never arrive. Also, you don’t want to only buy from retail clearance shelves.
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?
Why your spending pattern may get you in trouble
Without guidance, as VIP clients receive from me, you’ll temporarily be happy about what you buy. Moments later, you’ll look at all the stuff and start regretting the impulse buying.
Look at your inventory. Then look at your sales. Is it all adding up in your bank account or decreasing your cash as you buy more products that aren’t selling?
If you’re not getting 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.