How’d you like those inventory prices?
Let's Break It Down
From the pandemic to the ports thats all we heard. And all we saw were price raise after price rise. If you’re like most mum makers you’re doing your costs in the off season then by August you’re in season and it’s time to make money. But what happened in 2022 to make it all flip?
Prices raised DURING season. Something we’ve not seen often. In 25 years of artificial silk mums the prices have never moved so often and so high. In most seasons if there is a price hike, we roll it in and done. There’s usually little to no price move after July. But in 2022 there were FOUR price moves and some where more than 50%.
So what's a small business to do?
There’s a few things we all can do collectively to keep the prices stable and in 2022 most did a good job at this.
- 2022 Season Hold: As mum makers set their prices right before season, they didn’t report moving them which is good and bad. Good for the public bad for the bottom line. It means we all had to eat it.
- Now that we’re on off season: Take advantage of the bulk. There are some major sales coming up. Like Mum Factory Outlet’s PreBuy in March. This is were you get mum flowers for less than season prices and diamond dust takes a dive.
- Recost items: Go through your invoices and receipts and see where the money went. Did a supply move way up on you, did an item not sell as well as you’d liked?
Costs You May Forget
Understanding that while some business owners are excellent at keeping costs and inventory, others are just awesome mum makers and they don’t want to worry about the rest. We all have our strengths but to survive we have to be know a little about all aspects.
Make it simple and do what the big dogs do.
- Go through your ROI.
- Add in your time
- Make some deals.
Your ROI is your return on investment. Meaning you make a mum, you see profit. If you don’t make profit, you’re not making mums for money. If not okay, but this is for those that are. Comb through your normal mum and write down everything you used. See what it costs now, verses before and then add your time in.
Many mum makers starting out forget to put in their time as a cost. If you want to make $20 an hour then put in your hourly wage as a cost to the mum. If you’re selling a garter for $50 and it took you three hours, you already went in the hole.
$20 x 3 hours is $60. Not including the supplies. Also, don’t forget, and this is a big one.
Pay Yourself for Your Off Season Work!
You’re not working for free just because it’s not mum season! If you’re braiding braids, buying supplies, working on your social media, add your time to your product!
Now that you have an idea of the costs, make some deals. Email your suppliers, get together with some moms, grab a team and make bulk purchases together. One way we keep costs down at Mum Factory Outlet is we place blankets. What’s that? Blankets are purchase orders that we make at the beginning of the year but we don’t pay for or accept until their release dates. For example, if we know we need 40,000 bears, but we usually sell 10,000 per quarter, then ask the supplier for a blanket, they know we’ll need 40k total and they agree to ship 10k once per quarter. The supplier loves it because they’re guaranteed to make a 40k bear sale, and we love it because we are guaranteed 40k bears that are in stock and we don’t have to find a place in the warehouse for 40k only 10k at a time. Plus we pay quarterly when the bears are released freeing up inventory money. We as a supplier to our customers honor blankets too. When our customers email and ask for a blanket, we understand.
Keep reading our magazine for more secrets!
Thanks for reading!
Mum Makers Magazine