How Much Inventory Should I Stock?

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The right balance of inventory can make the difference between success and failure in the jewelry industry so purchasing habits need to be established which suit both the retailer and the customer.  Several factors play significant roles such as capital, item availability, turn around time, and the type of sales regime that you have established. These six factors are detailed below:

• Capital- Simply put, the more cash available to you, the more silver jewelry that you can purchase.  If cash flow is tight, credit cards are a means of supporting and bolstering your buying power. If necessary, a line of credit may also be established with your bank or a cash advance on a credit card is also another means of accessing ready cash. 

• Availability- If a piece of jewelry requires weeks of lead time for delivery, it may behoove the retailer to purchase multiples of that piece of silver and keep them on hand until a new shipment arrives; conversely, if there are items that are almost always in stock and rarely on low stock alert, such as plain silver hoops or silver cross charms, it may be necessary for the retailer to incur the additional expense of maintaining his own additional stock.

• Turn Around Time- This phrase refers to the amount of time between shipments and if the turn around time is extended, the retailer might need to stock several of the highly desired silver jewelry items.

• Sales Regime-As a general rule, those retailers who have an affiliate site or are designated as drop shippers generally do not need to stock any silver jewelry, nor traditional fundraisers and often jewelry party hosts; historically, stocking of the silver jewelry is a necessary consideration for those retailers who sell in a bona fide store or their own website without drop shipping, flea market dealers, sometimes jewelry party hosts, will all need to maintain a certain amount of jewelry inventory needed for immediate sales use. 

• Discount Schedule- A willingness to make larger purchases is encouraged by a larger discount from Plum Island Silver; this may be defined by each individual order or with a cumulative discount, assessed over a two year time interval.   

• Variation In Styles- A wide variety of styles, budgets, sizes, finishes and stone colors are available within the catalog in order to satisfy every customer with their silver choices and requests.  Maintaing an array of varying price points and styles will ensure the greatest customer satisfaction.