Running a business is tough. Managing inventory is even harder, especially if you don’t have much cash. Here are a few things you can try to save money on your inventory costs.
1. Keep It Simple
One of the easiest ways to save money on inventory is to keep your inventory list simple. Avoid having too many products, which can be hard to keep track of. Having more products also means you may need to order more inventory at once.
Instead, start with a couple of products that you know you can sell. That way, you can order inventory and get it out to customers. As you learn more about how products sell, you can look into adding more products and SKUs. Starting simple is a great way to test the market and see what works for your business.
2. Use the Right Exterior
Another thing you can do is refine the design and manufacturing of your inventory. Using quality materials will help make items last longer, so you don’t have to worry as much about replacing them. Then, you can save money each time you order new inventory. You can look into different manufacturing methods, such as investment casting, to make sure the item has a good, sturdy exterior. Not only will having a good design keep your inventory in good condition, but it can stay that way for the customer. Then, your customers may want to leave a positive review for your business.
3. Ask for a Sample
Any time you create a new product, ask your manufacturer for a sample. You can use the sample to make sure the item is of good quality. If there are any issues, you can address them now before you have a huge stock to deal with. And you can use the sample to give your customers a preview of the new item. That will help build interest, so your customers may be more ready to buy when the product does launch. The sample is a great way to gauge the quality and interest, so you can order the right amount.
4. Search for Storage Space
Consider a few different storage options for your inventory to see which is the cheapest. If you run your business from home, see if you have an extra bedroom or closet to use for inventory. And if you have an office, consider using a room or closet there.