Over Buying

How bad is it for your business if you find you have been over buying products as a result of anticipating more sales than you have actually had in a month? I assume it takes a while to really learn how much buying is the right amount for your business depending on your customers needs. Is there a good way to predict this?

If the products have a long enough shelf life and your pockets are deep enough to carry the inventory and you have nothing better to do with your money then no it shouldn't be a problem. With experience you'll be able to gauge this better.

Thank you Marcus. My pockets aren't too deep but I think I can handle what I've accumulated so far. I guess it isn't too late for someone to order one of these items. They all have a long shelf life.

I sure hope that in time I will be able to gauge this better, as you've said.

Ozzie: A strangers good advice:

Quit MLM. Don't work for any conglomerate such as Avon, find yourself a good cosmetic wholesaler, buy a small, popular range, the wholesaler might give you sale or return, or will exchange your unsold goods for others, he might even work with you out of concern you don't make mistakes, order small to get variety, forget door to door, forget deliveries, find two or three local markets [street/ or farm markets] and deal with hundreds of people.

Off the top of my head and without a great deal of homework on my part I want you to call yourself ROCK BOTTOM VALLEY COSMETICS, meaning rock bottom prices, and all you need is a few trestle tables, 2 chairs, a few drink flasks, and willingness. If your in a another town, lets say 50 miles away find someone in the same trade, who you are not competing with, and ask him to recommend an wholesaler and give you a suggested shopping list.

Your turnover will go up by 7, your profits by 5, and your health and composure by x 2. Bob

OZZ: Further to the above:

Here's a bit more advice; if you call yourself Rock Bottom Valley Cosmetics. About a 1/3rd of your clients will assume automatically "I bet they are crap, meaning of poor quality and value. So you need to counter this tendency by adding these extra words>

ROCK BOTTOM VALLEY COSMETICS
Branded Cosmetics at Discount Prices

Then somewhere else you need a sign that says
[a sign in a prominent position]>
8 Out Of 10 Clients said Top Value

Can you see how you build image and credibilty.

ow here's a good tip, you never tell clients its your business, that you are the owner. You say that you are there Agent, and its a Discount Chain specialising in top brand cosmestics at discount prices. You see the clients RATE your company by you yourself, your own rating affects their judgement of whats on offer. So you avoid this problem by claiming you are the Agent. Your sales pitch goes up maybe 50% if you do this. Liz Taylor and Jennifer Lopez don't have this problem, but you have, so DUCK IT by saying you are there Agent. Good Luck and Best over Xmas.

Bob

OZZIE AND OF COURSE OTHER MEMBERS:

What needs to be pointed out is that over the years a company name changes, you can start out as>

Rock Bottom Valley Cosmetics.

With succes it changes to Home & Office Cosmetics

Then Impressions USA - Ask for it by name

and ends up as: Pretty Lady Incorporated.

You see your market alters, you alter and mature, and the staff who are attracted to working for Pretty Lady Inc, will not be attracted to, or want to work for Rock Bottom Valley Cosmetics.
This is something a lot of people are unaware of, or know.
Your market alters, your staff alter, and you alter.
Bob

The advantage of working with Avon and the likes is the training and support these companies provide.

Originally Posted by Houston The advantage of working with Avon and the likes is the training and support these companies provide.

A person new to sales can only take in so much and will not appreciate for maybe 3 years how much commonsense is woven into an old hands talk and proffered advice. At a sales training meeting they hear just 15%, understand 10% and remember just 5%, but the trainer believes he gave them 3 hours of detailed training. The most common remark you hear as they leave is "What a waste of time that was". I cannot recall anyone ever using "what they were supposed to have learnt" and "went on to put it into practice".

*It needs to be said that 50% of newcomers to commission only sales only last 1 week, and this is being charitable. One week, and they leave claiming its not for them. Very few last a month, and a year is an absolute miracle. My opposition to MLM was nurtured by listening to the tales of misery you hear amongst ex-MLM agents, you see them turning up at car boot sales trying to sell their unsold stock. I feel sorry for them. In my heart I want them to be leaders, to make a profit, and to risk their money on their own business ideas. I want them to succeed. But it rarely happens. This ANTI argument is supported by the fact that all newspaper job classifieds adverts carry a very high proportion of the same tired faces, looking for new MLM mugs to enrol. We had a classic case in England were everthing was exaggerated by x10. They claimed to have a £16 million turnover on year 3, a winner the headlines screamed, it was all a joke, a nasty con.

Look around you the winners are the enrolers, the people who are at the top if the MLM pyramid. As a matter of interest my son-in-law is a perfumier, it arrives at their works in 2500 gallon petrol, 30 m/tonne type tankers, and gets bottled into those little midget bottles for $160 a shot. Its port of origin is a small town called Grasse, in France. Its an interesting fact that no French Fashion House makes a profit, they make the cash from branding their name/s, and selling branded perfume. Actual profit for Ozzie is my hopes and concern, hence the unusual post.

I suggest of having a monthly check stock. It gives you the idea of what products to buy. Stock control is very important. If I'm in your shoes, I'll prefer to have more stocks for those items that's very hot in the market.

I'd be quite interested in ozzie's response to Bob's posts, considering she didn't ask about Avon.