the great debate
BUSINESS MODELS FOR YOUR ORIGAMI OWL BUSINESS
One of the most frequent questions I get asked is
“Do I need to carry inventory?”
Many new designers see pictures and displays boasting lockets, chains and charms galore and become easily discouraged because they can’t invest the same into their new business. I want to talk today about using ordering vs inventory models for your Origami Owl business and how both are equally successful.
When I joined Origami Owl I started my business with the smallest kit available at the time. I hadn’t planned on carrying inventory at all and the first few months I took orders fro all of my customers and used the jewelry from kit as display. When I decided I wanted to start having a small amount of the most popular items on hand, I would double my customer orders (an order for 1 medium silver locket I would order 2) and added to my inventory very slowly, using some of the profit from my business so I wasn’t making a large investment at one time. After more than a year of slowly adding to my stock I was comfortable placing orders to add to my inventory. Now I carry a full inventory of product but still many times hold order only Jewelry Bars due to the ease and simplicity. Plus, many customers expect to place an order at a Jewelry Bar and are perfectly content waiting for their product to arrive.
Here are some advantages of both taking orders and carrying inventory for your business:
- easier to travel
- simpler book keeping
- less to keep organized
- allows customers to choose from entire product line (instead of focusing on what you have available)
- no chances of having product on hand that you won’t sell immediately
- take advantage of customer’s impulse purchases
- customers can try pieces on or try combinations
- upsell easily by adding on
- instant gratification of taking their puchase home
- easier to help guide your customer in their creation visually
You can see the many reasons that some designers choose to simply take customer orders while others carry inventory. Neither route is right nor wrong and this is one of the times that really allows you as the busy owner to make a decision based on what will be most beneficial for you.
Whichever model you plan to use in your Origami Owl business, just remember that your product knowledge, customer service, passion for your business and desire to help your customers tell their stories is what will ultimately make your business successful!